Zinzino B — Call Transcript 2025

Good afternoon, and welcome to this live video interview with Zinzino, following the Q3 2025 report. My name is Niklas Elmhammer from Carlsquare Equity Research, and we're very pleased to be joined today by the CEO of Zinzino, Dag Bergheim Pettersen. But before we begin, I would like to welcome you to submit questions in the chat function. So please send in as many questions as you like, and we'll try to address them. But now I will turn over to today's main attraction, Dag. So we're very welcome, and we're happy to have you here again. Thank you. Thank you for having me. It's always a pleasure to be here with you. Okay, so Zinzino released its Q3 report this morning. Very strong growth, that has been a familiar theme, for some time now, but also very improved margin, and also you had, you have been, quite busy on the M&A side during the quarter, but please, Dag, give us your perspective on the quarter. I think your summary is pretty precise. Strong growth, which we have announced and has happened the whole year, and then the profits are increasing quite significant now in quarter three. I would say it's within our plan or a little bit above what we have promised the market. So very pleased with everything that we do. I think I'm in the office in Gothenburg now, and some people here are a little bit tired of me dragging in new acquisitions, so they asked me to stop for a while now and make sure that we're implementing everything. All in all, I'm very pleased, very happy, very happy with the team, the development on so many different aspects. And we also created a new... You know, we are dealing with test-based nutrition, so we launched a new test, as we have been talking about, in October. That has been fantastic. So all in all, we're doing extremely well from my perspective. Okay, great, and if you look at the regional development, there's a very solid momentum in Central Europe. Good growth in North America as well, boosted by acquisitions. Could you please comment on the underlying growth in these very important regions for you? We can start off by talking about U.S. We are actually quite happy with the organic growth in U.S., plus the acquisitions that we have made and the mergers. That is a strong region, and I strongly believe with that we are kind of in an early stage, and I think there the potential is quite much higher than what we have seen so far. But we are working on it, so that would be probably one of the strongest markets or regions if you look at the next two to three years. That's my prediction and forecast for that. If we move over to Asia, before I turn my focus on Europe, Asia have been growing. Our model with sales, selling and the Test-Based nutrition and the focus on customers takes time to be perceived, I would say, in the market space. We're working in direct sales and home parties, so we are super happy with the growth that we've seen in Taiwan, for instance. That has been, like, super strong now for one and a half year. We have been established for six, seven years now in Malaysia. Now, we see that we are gaining some kind of trust and growth. Australia and New Zealand are doing pretty well. Asia in total is doing fantastic, but it's driven by some few countries from that point. But happy, since Asia has the most populated area in the world, so of course, if you're gonna be a global company, you need to be present in Asia as well. It's early stages for us. So Europe has been the strongest foundation of Zinzino. We started in Scandinavia, like, 20 years ago, and we are number two, I would say, in the Nordics from the direct sales perspective of every company that we are comparing ourselves with. So that has been our fortress, and I'm happy to play out the global footprint of what we're doing. If you move a little bit further south to the region in the middle of Europe, that is the strongest, and Germany, combined with Austria and Switzerland, are now having approximately like 33, one third of the total revenue in that region. So of course, that is the strongest region. It has been growing pretty fast the last two, three years, and it's still kind of growing, which is fantastic for us. But whole Europe are growing, except for some markets in the eastern part of Europe. South of Europe, with France and Italy and Spain, are now doing good leaps. U.K. are in a strong mode. They have all-time high there a couple of times this year, plus the Nordics. So the only kind of region in Europe that I would say that are a little bit lagging now are the eastern part of Europe, which has been our strongest region for three, four years. So we have had, like, a constant growth for many, many years now in the eastern part of Europe. But now it starts to be kind of on a new wave, which happens in some of the markets that we are part of. All in all, most of the regions have good conditions to grow. We are, we put a lot of effort into creating some good promotions and making sure that we got good people that are supporting the sales and the revenue. So I'm quite positive with the future and what the future will bring, from that perspective. Okay, and just touching back on the US, how much has the sort of distribution network expanded since last year with acquisitions and organically? First, it's a good reminder for everyone who is listening here and maybe have heard me talking a couple of times or maybe the first time. We are working with a direct sales model where we have distributors and the partners, and those are the ones who are selling the products for us. Then 80%, and over 80% are direct to consumer from those partners. So that is a ratio that we see in all of the world. Some of the new markets have a little bit more revenue among their partners and less on customers, but on average it's 80-20. We see that fits directly into the model in U.S. With the acquisitions that we have done over the last years, and that also with the European acquisitions as well, have given us a much stronger sales force in the U.S. How many of those who are working in the U.S. is about. It has been probably 200% growth, so we probably have 1,500 or yeah, 1,500 to maybe 2,000 sales people in the U.S. at the very moment. Okay, thank you. And we have a question from the audience on the Asian markets. Yeah. Do you have any updates on your expansion into China and India? Thank you for that. India is two different markets, of course, you know that. The largest populations on the planet, both of them. They're very different, but they have some similarities. We have had some good growth in India, but it's kind of fragile, I would say. It's established on an early stage numbers, I would say. The same thing with China. We changed to what we called an e-commerce model for China. We did that in June this year. It's still kind of early stages. We don't have a lot of revenue. I think we will probably end this year on both markets. China probably would be on EUR 1 million in total, so it's very small revenue, but it's the building block for the future. China will be a good market for us coming into the future. I'm sure of that. For India, we have had a little bit, like, up and down, so I guess we're gonna hit, like, maybe EUR 4 million-EUR 5 million in revenue in India over this year. But it's very regulated, so we are working a lot on the regulations still, product design, making sure that all of the things are working. So we go slow before we go fast in both of those two markets. It takes time to learn the market and before you really expand it on the growth. So we have a. We are now putting a little bit brake so we make sure that we could deliver when the hypergrowth is hopefully coming in those two markets. Okay, very interesting. We also have a question regarding the growth. What is the sort of, distribution between, new customers, subscriptions versus new distributors? It's the same answer as I revealed. So we have an eighty-twenty rule, so 80% of our revenue comes directly from consumers, and that is the new intake and new partners, so it goes hand in hand, more and less. We have what we call a compensation plan that are intensified on those premises. So the incentives are on the partners to also put a lot of effort to retaining and getting new customers, but also retaining customers. So that is a part of our total system. So it's very predictable what we're doing, and most of the markets are just following the same kind of principles. A good thing, you want to know that, I can kind of predict now the revenue for December and January based on the amount of customers and partners that we have and the intake of that, because we have a lot of subscriptions. So that gives us a lot of benefits when it comes to production planning and, inventory and those kind of things. ... Okay, I see. And you mentioned also new product launches, the gut health test, and there's some questions about that. You mentioned already in the report that you sold 60,000 already. Yep. That seems quite incredible, I must say. It is. What is your expectations for this product? Is it sort of a charm of the new, or is this a sustainable path? For sure it's gonna be sustainable. It's one of a kind. It's the first dry blood spot test that could take and analyze the gut in that certain way. Normally, you need to take different other tests, which is much more complicated and difficult to take. So this is gonna give you a good insight on how your gut is working and what you need to do to improve your gut. And the literature over the last 10 years have shown that the guts are more important maybe to your whole kind of system of how your body is working. So we know for sure there is a lot of interest. We got a lot of publicity. It's still kind of early stage work, so we need to get all the reports in. There is a lot of work on analyzing all of these tests that comes into the lab. So remember that we have the largest database on fatty acids or omega-3s to omega-6, so it takes time to build that kind of foundation of the gut. We also have some products that you could use if you shows that your gut needs a little bit more fiber perhaps. So I have super strong beliefs that the gut health will be extremely important for preventative health for the next upcoming decades, and this is the new big, big thing for Zinzino. I still think that the BalanceTest that we launched four, thirteen, fourteen years ago still will be the largest player on the testing device, but who knows? This has been like crazy good. It's received extremely well among our sales force, and there is a lot of attention around it and publicity and by practitioners, I would say, all across the countries that we are working in. It's a fantastic start, but it's also just a start, so this will be one of the top, top analysis and tests that we... and we've been working almost like a decade to prove the test and done all that kind of work. It is like tons of hours of many people, so I'm so grateful for that. I'm not sure it's very hard for me, when I'm not like a scientist, to explain to you how good this is, but this is truly amazing. Oh, that sounds exciting. Looking at the strong margins, they improved, mainly related to the higher gross margin of 35% or above. Is this a sort of normal level going forward, given the raw material prices and your growth, or? Oh, it's a combination of many things. It's not that easy to read everything out of the balance sheets or the profit and loss, but you're into something right. The growth makes a lot of is helping out. The gross margins, of course, are improved, and then also, what I've been talking a lot about are scalability. So you see a lot of scale advantages in that quarter, and so that is the reflection. Honestly, that's the biggest reflection you can actually read out of that. Okay, and regarding the EBITDA margin, well above your targets, almost 16%, is that boosted by something special or? It's a little bit lower costs, little bit lower cost of goods. It's a reflection a little bit about adjustments of the dollar, the fluctuations, the currency a little bit, but overall, it is the scale of the business. So I think I've said once in one of our interviews, that we probably could have had those kind of margins. If we only focused on margins, we could have had those margins, but we are also focusing on building the company for the future. So what I'm proud of is the investments that we have done on the tech side. What I'm proud of is the investments that we've done on the product, and also opening new markets, doing acquisitions, and all of these things are building up towards this quarter. So it's not like one single thing. It's like many, many years of work and no magic. It's just, like, hard work that gives us this kind of margins. You're asking me, and I avoided to answer the question, if this is the new normal. I think we will go back to page five where we are stating the financial goals. I think we still have the same kind of financial goals. We wanna exceed a certain percentage in growth this year. I think I claimed that we're gonna do around 50% instead of 20%. We promised the market 20% over three years, so 20% 20% plus 20%. We are overperforming on that, and then we said, like, EBITDA on more than 10%. We are not ready to kind of adjust those kind of targets yet. But of course, if we are overperforming, those financial goals seems to be a little bit like on the low end. If that's probably what you're asking me about. Shouldn't you just adjust them? We haven't done that adjustment, but we're probably gonna do that for next year, and giving you a forecast for what we will bring to the market in 2026. Okay, looking forward to that. We have some question regarding... "Hello, I have a question on the case with the authorities, specifically with regards to the accusation of aggressive marketing. Do you have any comments on these..." I guess it's kind of media articles that have been around. Yeah, yeah. I do. It's a very interesting thing. So every year, by regulators and authorities and governments, what you should call us, they go through all our things. I mean, they go through the regulations of the product, the authorities run through how we're describing things, if we are following the laws and the regulations, EFSA claims, and all those kind of things. It's kind of a normal thing for us, that sometimes the government are even changing parts of the regulations and the governance, and we are just following all the different things that the government are putting on us. This year, the Swedish regulators have been watching all those, I would say, influencer media or the social media and those kind of things. For us, this has been just business as usual, business as normal. There was a couple of questions about the way we used a symbol on the packaging. We changed it immediately, but last year it was okay, but this year it's not okay. So it's business as usual in our sense. Then you have local government also that has certain questions on, let's say, we are buying a company, and then suddenly that company maybe have different labels. So we need to look through that and make sure that we are aligned with the laws and the regulations everywhere. But that is kind of business as usual for us. We have that for the Danish Food Authority that goes through this every year. That is an audit that we go through, and we just follow the laws, and we are good on the compliance matters to change towards that. So honestly, I think it's blown out of proportions, and it was blown out of proportions of a media article, and at the same time, our shares were shorted. Which is... I don't wanna speculate. What I wanna do is to create a fantastic company based on the facts. What I'm happy about today is that I've shown fantastic results, and we've answered up all those questions on the government, and I don't think this, there is a case going on at any place. But if there will be, then we will answer it, and we will change and adjust always. Okay, thank you, Dag, for clearing that out. I think unfortunately, we are running out of time here. It's a busy reporting day. But thank you, Dag, for taking the time and bearing with us with the questions and hats off for the strong, profitable growth, I would say. Thank you so much. It's always a good thing and an honor to be here, so thank you. Thank you for listening to me, and good luck on everything that you do on your end. Thanks again, and thank you all for listening in, and hope to see you soon again.

Speaker 2: Good afternoon, and welcome to this live video interview with Zinzino, following the Q3 2025 report. My name is Niklas Elmhammer from Carlsquare Equity Research, and we're very pleased to be joined today by the CEO of Zinzino, Dag Bergheim Pettersen. But before we begin, I would like to welcome you to submit questions in the chat function. So please send in as many questions as you like, and we'll try to address them. But now I will turn over to today's main attraction, Dag. So we're very welcome, and we're happy to have you here again. Good afternoon, and welcome to this live video interview with Zinzino, following the Q3 2025 report. good afternoon and welcome to this live video interview with zinzino following the q3 2025 report My name is Niklas Elmhammer from Carlsquare Equity Research, and we're very pleased to be joined today by the CEO of Zinzino, Dag Bergheim Pettersen. my name is niklas elmhammer from carlsquare equity research and we're very pleased to be joined today by the ceo of zinzino dag bergheim pettersen But before we begin, I would like to welcome you to submit questions in the chat function. but before we begin i would like to welcome you to submit questions in the chat function So please send in as many questions as you like, and we'll try to address them. so please send in as many questions as you like and we'll try to address them But now I will turn over to today's main attraction, Dag. but now i will turn over to today's main attraction dag So we're very welcome, and we're happy to have you here again. so we're very welcome and we're happy to have you here again

Speaker 1: Thank you. Thank you for having me. It's always a pleasure to be here with you. Thank you. thank you Thank you for having me. thank you for having me It's always a pleasure to be here with you. it's always a pleasure to be here with you

Speaker 2: Okay, so Zinzino released its Q3 report this morning. Very strong growth, that has been a familiar theme, for some time now, but also very improved margin, and also you had, you have been, quite busy on the M&A side during the quarter, but please, Dag, give us your perspective on the quarter. Okay, so Zinzino released its Q3 report this morning. okay so zinzino released its q3 report this morning Very strong growth, that has been a familiar theme, for some time now, but also very improved margin, and also you had, you have been, quite busy on the M&A side during the quarter, but please, Dag, give us your perspective on the quarter. very strong growth that has been a familiar theme for some time now but also very improved margin and also you had you have been quite busy on the m&a side during the quarter but please dag give us your perspective on the quarter

Speaker 1: I think your summary is pretty precise. Strong growth, which we have announced and has happened the whole year, and then the profits are increasing quite significant now in quarter three. I would say it's within our plan or a little bit above what we have promised the market. So very pleased with everything that we do. I think I'm in the office in Gothenburg now, and some people here are a little bit tired of me dragging in new acquisitions, so they asked me to stop for a while now and make sure that we're implementing everything. All in all, I'm very pleased, very happy, very happy with the team, the development on so many different aspects. And we also created a new... I think your summary is pretty precise. i think your summary is pretty precise Strong growth, which we have announced and has happened the whole year, and then the profits are increasing quite significant now in quarter three. strong growth which we have announced and has happened the whole year and then the profits are increasing quite significant now in quarter three I would say it's within our plan or a little bit above what we have promised the market. i would say it's within our plan or a little bit above what we have promised the market So very pleased with everything that we do. so very pleased with everything that we do I think I'm in the office in Gothenburg now, and some people here are a little bit tired of me dragging in new acquisitions, so they asked me to stop for a while now and make sure that we're implementing everything. i think i'm in the office in gothenburg now and some people here are a little bit tired of me dragging in new acquisitions so they asked me to stop for a while now and make sure that we're implementing everything All in all, I'm very pleased, very happy, very happy with the team, the development on so many different aspects. all in all i'm very pleased very happy very happy with the team the development on so many different aspects And we also created a new... and we also created a new You know, we are dealing with test-based nutrition, so we launched a new test, as we have been talking about, in October. That has been fantastic. So all in all, we're doing extremely well from my perspective. You know, we are dealing with test-based nutrition, so we launched a new test, as we have been talking about, in October. you know we are dealing with test-based nutrition so we launched a new test as we have been talking about in october That has been fantastic. that has been fantastic So all in all, we're doing extremely well from my perspective. so all in all we're doing extremely well from my perspective

Speaker 2: Okay, great, and if you look at the regional development, there's a very solid momentum in Central Europe. Good growth in North America as well, boosted by acquisitions. Could you please comment on the underlying growth in these very important regions for you? Okay, great, and if you look at the regional development, there's a very solid momentum in Central Europe. okay great and if you look at the regional development there's a very solid momentum in central europe Good growth in North America as well, boosted by acquisitions. good growth in north america as well boosted by acquisitions Could you please comment on the underlying growth in these very important regions for you? could you please comment on the underlying growth in these very important regions for you

Speaker 1: We can start off by talking about U.S. We are actually quite happy with the organic growth in U.S., plus the acquisitions that we have made and the mergers. That is a strong region, and I strongly believe with that we are kind of in an early stage, and I think there the potential is quite much higher than what we have seen so far. But we are working on it, so that would be probably one of the strongest markets or regions if you look at the next two to three years. That's my prediction and forecast for that. If we move over to Asia, before I turn my focus on Europe, Asia have been growing. We can start off by talking about U.S. we can start off by talking about u.s We are actually quite happy with the organic growth in U.S., plus the acquisitions that we have made and the mergers. we are actually quite happy with the organic growth in u.s plus the acquisitions that we have made and the mergers That is a strong region, and I strongly believe with that we are kind of in an early stage, and I think there the potential is quite much higher than what we have seen so far. that is a strong region and i strongly believe with that we are kind of in an early stage and i think there the potential is quite much higher than what we have seen so far But we are working on it, so that would be probably one of the strongest markets or regions if you look at the next two to three years. but we are working on it so that would be probably one of the strongest markets or regions if you look at the next two to three years That's my prediction and forecast for that. that's my prediction and forecast for that If we move over to Asia, before I turn my focus on Europe, Asia have been growing. if we move over to asia before i turn my focus on europe asia have been growing Our model with sales, selling and the Test-Based nutrition and the focus on customers takes time to be perceived, I would say, in the market space. We're working in direct sales and home parties, so we are super happy with the growth that we've seen in Taiwan, for instance. That has been, like, super strong now for one and a half year. We have been established for six, seven years now in Malaysia. Now, we see that we are gaining some kind of trust and growth. Australia and New Zealand are doing pretty well. Asia in total is doing fantastic, but it's driven by some few countries from that point. But happy, since Asia has the most populated area in the world, so of course, if you're gonna be a global company, you need to be present in Asia as well. Our model with sales, selling and the Test-Based nutrition and the focus on customers takes time to be perceived, I would say, in the market space. our model with sales selling and the test-based nutrition and the focus on customers takes time to be perceived i would say in the market space We're working in direct sales and home parties, so we are super happy with the growth that we've seen in Taiwan, for instance. we're working in direct sales and home parties so we are super happy with the growth that we've seen in taiwan for instance That has been, like, super strong now for one and a half year. that has been like super strong now for one and a half year We have been established for six, seven years now in Malaysia. we have been established for six seven years now in malaysia Now, we see that we are gaining some kind of trust and growth. now we see that we are gaining some kind of trust and growth Australia and New Zealand are doing pretty well. australia and new zealand are doing pretty well Asia in total is doing fantastic, but it's driven by some few countries from that point. asia in total is doing fantastic but it's driven by some few countries from that point But happy, since Asia has the most populated area in the world, so of course, if you're gonna be a global company, you need to be present in Asia as well. but happy since asia has the most populated area in the world so of course if you're gonna be a global company you need to be present in asia as well It's early stages for us. So Europe has been the strongest foundation of Zinzino. We started in Scandinavia, like, 20 years ago, and we are number two, I would say, in the Nordics from the direct sales perspective of every company that we are comparing ourselves with. So that has been our fortress, and I'm happy to play out the global footprint of what we're doing. If you move a little bit further south to the region in the middle of Europe, that is the strongest, and Germany, combined with Austria and Switzerland, are now having approximately like 33, one third of the total revenue in that region. So of course, that is the strongest region. It has been growing pretty fast the last two, three years, and it's still kind of growing, which is fantastic for us. It's early stages for us. it's early stages for us So Europe has been the strongest foundation of Zinzino. so europe has been the strongest foundation of zinzino We started in Scandinavia, like, 20 years ago, and we are number two, I would say, in the Nordics from the direct sales perspective of every company that we are comparing ourselves with. we started in scandinavia like 20 years ago and we are number two i would say in the nordics from the direct sales perspective of every company that we are comparing ourselves with So that has been our fortress, and I'm happy to play out the global footprint of what we're doing. so that has been our fortress and i'm happy to play out the global footprint of what we're doing If you move a little bit further south to the region in the middle of Europe, that is the strongest, and Germany, combined with Austria and Switzerland, are now having approximately like 33, one third of the total revenue in that region. if you move a little bit further south to the region in the middle of europe that is the strongest and germany combined with austria and switzerland are now having approximately like 33 one third of the total revenue in that region So of course, that is the strongest region. so of course that is the strongest region It has been growing pretty fast the last two, three years, and it's still kind of growing, which is fantastic for us. it has been growing pretty fast the last two three years and it's still kind of growing which is fantastic for us But whole Europe are growing, except for some markets in the eastern part of Europe. South of Europe, with France and Italy and Spain, are now doing good leaps. U.K. are in a strong mode. They have all-time high there a couple of times this year, plus the Nordics. So the only kind of region in Europe that I would say that are a little bit lagging now are the eastern part of Europe, which has been our strongest region for three, four years. So we have had, like, a constant growth for many, many years now in the eastern part of Europe. But now it starts to be kind of on a new wave, which happens in some of the markets that we are part of. All in all, most of the regions have good conditions to grow. But whole Europe are growing, except for some markets in the eastern part of Europe. but whole europe are growing except for some markets in the eastern part of europe South of Europe, with France and Italy and Spain, are now doing good leaps. south of europe with france and italy and spain are now doing good leaps U.K. are in a strong mode. u.k are in a strong mode They have all-time high there a couple of times this year, plus the Nordics. they have all-time high there a couple of times this year plus the nordics So the only kind of region in Europe that I would say that are a little bit lagging now are the eastern part of Europe, which has been our strongest region for three, four years. so the only kind of region in europe that i would say that are a little bit lagging now are the eastern part of europe which has been our strongest region for three four years So we have had, like, a constant growth for many, many years now in the eastern part of Europe. so we have had like a constant growth for many many years now in the eastern part of europe But now it starts to be kind of on a new wave, which happens in some of the markets that we are part of. but now it starts to be kind of on a new wave which happens in some of the markets that we are part of All in all, most of the regions have good conditions to grow. all in all most of the regions have good conditions to grow We are, we put a lot of effort into creating some good promotions and making sure that we got good people that are supporting the sales and the revenue. So I'm quite positive with the future and what the future will bring, from that perspective. We are, we put a lot of effort into creating some good promotions and making sure that we got good people that are supporting the sales and the revenue. we are we put a lot of effort into creating some good promotions and making sure that we got good people that are supporting the sales and the revenue So I'm quite positive with the future and what the future will bring, from that perspective. so i'm quite positive with the future and what the future will bring from that perspective

Speaker 2: Okay, and just touching back on the US, how much has the sort of distribution network expanded since last year with acquisitions and organically? Okay, and just touching back on the US, how much has the sort of distribution network expanded since last year with acquisitions and organically? okay and just touching back on the us how much has the sort of distribution network expanded since last year with acquisitions and organically

Speaker 1: First, it's a good reminder for everyone who is listening here and maybe have heard me talking a couple of times or maybe the first time. We are working with a direct sales model where we have distributors and the partners, and those are the ones who are selling the products for us. Then 80%, and over 80% are direct to consumer from those partners. So that is a ratio that we see in all of the world. Some of the new markets have a little bit more revenue among their partners and less on customers, but on average it's 80-20. We see that fits directly into the model in U.S. First, it's a good reminder for everyone who is listening here and maybe have heard me talking a couple of times or maybe the first time. first it's a good reminder for everyone who is listening here and maybe have heard me talking a couple of times or maybe the first time We are working with a direct sales model where we have distributors and the partners, and those are the ones who are selling the products for us. we are working with a direct sales model where we have distributors and the partners and those are the ones who are selling the products for us Then 80%, and over 80% are direct to consumer from those partners. then 80% and over 80% are direct to consumer from those partners So that is a ratio that we see in all of the world. so that is a ratio that we see in all of the world Some of the new markets have a little bit more revenue among their partners and less on customers, but on average it's 80-20. some of the new markets have a little bit more revenue among their partners and less on customers but on average it's 80-20 We see that fits directly into the model in U.S. we see that fits directly into the model in u.s With the acquisitions that we have done over the last years, and that also with the European acquisitions as well, have given us a much stronger sales force in the U.S. How many of those who are working in the U.S. is about. It has been probably 200% growth, so we probably have 1,500 or yeah, 1,500 to maybe 2,000 sales people in the U.S. at the very moment. With the acquisitions that we have done over the last years, and that also with the European acquisitions as well, have given us a much stronger sales force in the U.S. with the acquisitions that we have done over the last years and that also with the european acquisitions as well have given us a much stronger sales force in the u.s How many of those who are working in the U.S. is about. how many of those who are working in the u.s is about It has been probably 200% growth, so we probably have 1,500 or yeah, 1,500 to maybe 2,000 sales people in the U.S. at the very moment. it has been probably 200% growth so we probably have 1,500 or yeah 1,500 to maybe 2,000 sales people in the u.s at the very moment

Speaker 2: Okay, thank you. And we have a question from the audience on the Asian markets. Okay, thank you. okay thank you And we have a question from the audience on the Asian markets. and we have a question from the audience on the asian markets

Speaker 1: Yeah. Yeah. yeah

Speaker 2: Do you have any updates on your expansion into China and India? Do you have any updates on your expansion into China and India? do you have any updates on your expansion into china and india

Speaker 1: Thank you for that. India is two different markets, of course, you know that. The largest populations on the planet, both of them. They're very different, but they have some similarities. We have had some good growth in India, but it's kind of fragile, I would say. It's established on an early stage numbers, I would say. The same thing with China. We changed to what we called an e-commerce model for China. We did that in June this year. It's still kind of early stages. We don't have a lot of revenue. I think we will probably end this year on both markets. China probably would be on EUR 1 million in total, so it's very small revenue, but it's the building block for the future. Thank you for that. thank you for that India is two different markets, of course, you know that. india is two different markets of course you know that The largest populations on the planet, both of them. the largest populations on the planet both of them They're very different, but they have some similarities. they're very different but they have some similarities We have had some good growth in India, but it's kind of fragile, I would say. we have had some good growth in india but it's kind of fragile i would say It's established on an early stage numbers, I would say. it's established on an early stage numbers i would say The same thing with China. the same thing with china We changed to what we called an e-commerce model for China. we changed to what we called an e-commerce model for china We did that in June this year. we did that in june this year It's still kind of early stages. it's still kind of early stages We don't have a lot of revenue. we don't have a lot of revenue I think we will probably end this year on both markets. i think we will probably end this year on both markets China probably would be on EUR 1 million in total, so it's very small revenue, but it's the building block for the future. china probably would be on eur 1 million in total so it's very small revenue but it's the building block for the future China will be a good market for us coming into the future. I'm sure of that. For India, we have had a little bit, like, up and down, so I guess we're gonna hit, like, maybe EUR 4 million-EUR 5 million in revenue in India over this year. But it's very regulated, so we are working a lot on the regulations still, product design, making sure that all of the things are working. So we go slow before we go fast in both of those two markets. It takes time to learn the market and before you really expand it on the growth. So we have a. We are now putting a little bit brake so we make sure that we could deliver when the hypergrowth is hopefully coming in those two markets. China will be a good market for us coming into the future. china will be a good market for us coming into the future I'm sure of that. i'm sure of that For India, we have had a little bit, like, up and down, so I guess we're gonna hit, like, maybe EUR 4 million-EUR 5 million in revenue in India over this year. for india we have had a little bit like up and down so i guess we're gonna hit like maybe eur 4 million-eur 5 million in revenue in india over this year But it's very regulated, so we are working a lot on the regulations still, product design, making sure that all of the things are working. but it's very regulated so we are working a lot on the regulations still product design making sure that all of the things are working So we go slow before we go fast in both of those two markets. so we go slow before we go fast in both of those two markets It takes time to learn the market and before you really expand it on the growth. it takes time to learn the market and before you really expand it on the growth So we have a. so we have a We are now putting a little bit brake so we make sure that we could deliver when the hypergrowth is hopefully coming in those two markets. we are now putting a little bit brake so we make sure that we could deliver when the hypergrowth is hopefully coming in those two markets

Speaker 2: Okay, very interesting. We also have a question regarding the growth. What is the sort of, distribution between, new customers, subscriptions versus new distributors? Okay, very interesting. okay very interesting We also have a question regarding the growth. we also have a question regarding the growth What is the sort of, distribution between, new customers, subscriptions versus new distributors? what is the sort of distribution between new customers subscriptions versus new distributors

Speaker 1: It's the same answer as I revealed. So we have an eighty-twenty rule, so 80% of our revenue comes directly from consumers, and that is the new intake and new partners, so it goes hand in hand, more and less. We have what we call a compensation plan that are intensified on those premises. So the incentives are on the partners to also put a lot of effort to retaining and getting new customers, but also retaining customers. So that is a part of our total system. So it's very predictable what we're doing, and most of the markets are just following the same kind of principles. It's the same answer as I revealed. it's the same answer as i revealed So we have an eighty-twenty rule, so 80% of our revenue comes directly from consumers, and that is the new intake and new partners, so it goes hand in hand, more and less. so we have an eighty-twenty rule so 80% of our revenue comes directly from consumers and that is the new intake and new partners so it goes hand in hand more and less We have what we call a compensation plan that are intensified on those premises. we have what we call a compensation plan that are intensified on those premises So the incentives are on the partners to also put a lot of effort to retaining and getting new customers, but also retaining customers. so the incentives are on the partners to also put a lot of effort to retaining and getting new customers but also retaining customers So that is a part of our total system. so that is a part of our total system So it's very predictable what we're doing, and most of the markets are just following the same kind of principles. so it's very predictable what we're doing and most of the markets are just following the same kind of principles A good thing, you want to know that, I can kind of predict now the revenue for December and January based on the amount of customers and partners that we have and the intake of that, because we have a lot of subscriptions. So that gives us a lot of benefits when it comes to production planning and, inventory and those kind of things. A good thing, you want to know that, I can kind of predict now the revenue for December and January based on the amount of customers and partners that we have and the intake of that, because we have a lot of subscriptions. a good thing you want to know that i can kind of predict now the revenue for december and january based on the amount of customers and partners that we have and the intake of that because we have a lot of subscriptions So that gives us a lot of benefits when it comes to production planning and, inventory and those kind of things. so that gives us a lot of benefits when it comes to production planning and inventory and those kind of things

Speaker 2: ... Okay, I see. And you mentioned also new product launches, the gut health test, and there's some questions about that. You mentioned already in the report that you sold 60,000 already. ... Okay, I see. okay i see And you mentioned also new product launches, the gut health test, and there's some questions about that. and you mentioned also new product launches the gut health test and there's some questions about that You mentioned already in the report that you sold 60,000 already. you mentioned already in the report that you sold 60,000 already

Speaker 1: Yep. Yep. yep

Speaker 2: That seems quite incredible, I must say. That seems quite incredible, I must say. that seems quite incredible i must say

Speaker 1: It is. It is. it is

Speaker 2: What is your expectations for this product? Is it sort of a charm of the new, or is this a sustainable path? What is your expectations for this product? what is your expectations for this product Is it sort of a charm of the new, or is this a sustainable path? is it sort of a charm of the new or is this a sustainable path

Speaker 1: For sure it's gonna be sustainable. It's one of a kind. It's the first dry blood spot test that could take and analyze the gut in that certain way. Normally, you need to take different other tests, which is much more complicated and difficult to take. So this is gonna give you a good insight on how your gut is working and what you need to do to improve your gut. And the literature over the last 10 years have shown that the guts are more important maybe to your whole kind of system of how your body is working. So we know for sure there is a lot of interest. We got a lot of publicity. It's still kind of early stage work, so we need to get all the reports in. For sure it's gonna be sustainable. for sure it's gonna be sustainable It's one of a kind. it's one of a kind It's the first dry blood spot test that could take and analyze the gut in that certain way. it's the first dry blood spot test that could take and analyze the gut in that certain way Normally, you need to take different other tests, which is much more complicated and difficult to take. normally you need to take different other tests which is much more complicated and difficult to take So this is gonna give you a good insight on how your gut is working and what you need to do to improve your gut. so this is gonna give you a good insight on how your gut is working and what you need to do to improve your gut And the literature over the last 10 years have shown that the guts are more important maybe to your whole kind of system of how your body is working. and the literature over the last 10 years have shown that the guts are more important maybe to your whole kind of system of how your body is working So we know for sure there is a lot of interest. so we know for sure there is a lot of interest We got a lot of publicity. we got a lot of publicity It's still kind of early stage work, so we need to get all the reports in. it's still kind of early stage work so we need to get all the reports in There is a lot of work on analyzing all of these tests that comes into the lab. So remember that we have the largest database on fatty acids or omega-3s to omega-6, so it takes time to build that kind of foundation of the gut. We also have some products that you could use if you shows that your gut needs a little bit more fiber perhaps. So I have super strong beliefs that the gut health will be extremely important for preventative health for the next upcoming decades, and this is the new big, big thing for Zinzino. I still think that the BalanceTest that we launched four, thirteen, fourteen years ago still will be the largest player on the testing device, but who knows? There is a lot of work on analyzing all of these tests that comes into the lab. there is a lot of work on analyzing all of these tests that comes into the lab So remember that we have the largest database on fatty acids or omega-3s to omega-6, so it takes time to build that kind of foundation of the gut. so remember that we have the largest database on fatty acids or omega-3s to omega-6 so it takes time to build that kind of foundation of the gut We also have some products that you could use if you shows that your gut needs a little bit more fiber perhaps. we also have some products that you could use if you shows that your gut needs a little bit more fiber perhaps So I have super strong beliefs that the gut health will be extremely important for preventative health for the next upcoming decades, and this is the new big, big thing for Zinzino. so i have super strong beliefs that the gut health will be extremely important for preventative health for the next upcoming decades and this is the new big big thing for zinzino I still think that the BalanceT est that we launched four, thirteen, fourteen years ago still will be the largest player on the testing device, but who knows? i still think that the balancet est that we launched four thirteen fourteen years ago still will be the largest player on the testing device but who knows This has been like crazy good. It's received extremely well among our sales force, and there is a lot of attention around it and publicity and by practitioners, I would say, all across the countries that we are working in. It's a fantastic start, but it's also just a start, so this will be one of the top, top analysis and tests that we... and we've been working almost like a decade to prove the test and done all that kind of work. It is like tons of hours of many people, so I'm so grateful for that. I'm not sure it's very hard for me, when I'm not like a scientist, to explain to you how good this is, but this is truly amazing. This has been like crazy good. this has been like crazy good It's received extremely well among our sales force, and there is a lot of attention around it and publicity and by practitioners, I would say, all across the countries that we are working in. it's received extremely well among our sales force and there is a lot of attention around it and publicity and by practitioners i would say all across the countries that we are working in It's a fantastic start, but it's also just a start, so this will be one of the top, top analysis and tests that we... and we've been working almost like a decade to prove the test and done all that kind of work. it's a fantastic start but it's also just a start so this will be one of the top top analysis and tests that we and we've been working almost like a decade to prove the test and done all that kind of work It is like tons of hours of many people, so I'm so grateful for that. it is like tons of hours of many people so i'm so grateful for that I'm not sure it's very hard for me, when I'm not like a scientist, to explain to you how good this is, but this is truly amazing. i'm not sure it's very hard for me when i'm not like a scientist to explain to you how good this is but this is truly amazing

Speaker 2: Oh, that sounds exciting. Looking at the strong margins, they improved, mainly related to the higher gross margin of 35% or above. Is this a sort of normal level going forward, given the raw material prices and your growth, or? Oh, that sounds exciting. oh that sounds exciting Looking at the strong margins, they improved, mainly related to the higher gross margin of 35% or above. looking at the strong margins they improved mainly related to the higher gross margin of 35% or above Is this a sort of normal level going forward, given the raw material prices and your growth, or? is this a sort of normal level going forward given the raw material prices and your growth or

Speaker 1: Oh, it's a combination of many things. It's not that easy to read everything out of the balance sheets or the profit and loss, but you're into something right. The growth makes a lot of is helping out. The gross margins, of course, are improved, and then also, what I've been talking a lot about are scalability. So you see a lot of scale advantages in that quarter, and so that is the reflection. Honestly, that's the biggest reflection you can actually read out of that. Oh, it's a combination of many things. oh it's a combination of many things It's not that easy to read everything out of the balance sheets or the profit and loss, but you're into something right. it's not that easy to read everything out of the balance sheets or the profit and loss but you're into something right The growth makes a lot of is helping out. the growth makes a lot of is helping out The gross margins, of course, are improved, and then also, what I've been talking a lot about are scalability. the gross margins of course are improved and then also what i've been talking a lot about are scalability So you see a lot of scale advantages in that quarter, and so that is the reflection. so you see a lot of scale advantages in that quarter and so that is the reflection Honestly, that's the biggest reflection you can actually read out of that. honestly that's the biggest reflection you can actually read out of that

Speaker 2: Okay, and regarding the EBITDA margin, well above your targets, almost 16%, is that boosted by something special or? Okay, and regarding the EBITDA margin, well above your targets, almost 16%, is that boosted by something special or? okay and regarding the ebitda margin well above your targets almost 16% is that boosted by something special or

Speaker 1: It's a little bit lower costs, little bit lower cost of goods. It's a reflection a little bit about adjustments of the dollar, the fluctuations, the currency a little bit, but overall, it is the scale of the business. So I think I've said once in one of our interviews, that we probably could have had those kind of margins. If we only focused on margins, we could have had those margins, but we are also focusing on building the company for the future. So what I'm proud of is the investments that we have done on the tech side. What I'm proud of is the investments that we've done on the product, and also opening new markets, doing acquisitions, and all of these things are building up towards this quarter. So it's not like one single thing. It's a little bit lower costs, little bit lower cost of goods. it's a little bit lower costs little bit lower cost of goods It's a reflection a little bit about adjustments of the dollar, the fluctuations, the currency a little bit, but overall, it is the scale of the business. it's a reflection a little bit about adjustments of the dollar the fluctuations the currency a little bit but overall it is the scale of the business So I think I've said once in one of our interviews, that we probably could have had those kind of margins. so i think i've said once in one of our interviews that we probably could have had those kind of margins If we only focused on margins, we could have had those margins, but we are also focusing on building the company for the future. if we only focused on margins we could have had those margins but we are also focusing on building the company for the future So what I'm proud of is the investments that we have done on the tech side. so what i'm proud of is the investments that we have done on the tech side What I'm proud of is the investments that we've done on the product, and also opening new markets, doing acquisitions, and all of these things are building up towards this quarter. what i'm proud of is the investments that we've done on the product and also opening new markets doing acquisitions and all of these things are building up towards this quarter So it's not like one single thing. so it's not like one single thing It's like many, many years of work and no magic. It's just, like, hard work that gives us this kind of margins. You're asking me, and I avoided to answer the question, if this is the new normal. I think we will go back to page five where we are stating the financial goals. I think we still have the same kind of financial goals. We wanna exceed a certain percentage in growth this year. I think I claimed that we're gonna do around 50% instead of 20%. We promised the market 20% over three years, so 20% 20% plus 20%. We are overperforming on that, and then we said, like, EBITDA on more than 10%. We are not ready to kind of adjust those kind of targets yet. It's like many, many years of work and no magic. it's like many many years of work and no magic It's just, like, hard work that gives us this kind of margins. it's just like hard work that gives us this kind of margins You're asking me, and I avoided to answer the question, if this is the new normal. you're asking me and i avoided to answer the question if this is the new normal I think we will go back to page five where we are stating the financial goals. i think we will go back to page five where we are stating the financial goals I think we still have the same kind of financial goals. i think we still have the same kind of financial goals We wanna exceed a certain percentage in growth this year. we wanna exceed a certain percentage in growth this year I think I claimed that we're gonna do around 50% instead of 20%. i think i claimed that we're gonna do around 50% instead of 20% We promised the market 20% over three years, so 20% 20% plus 20%. we promised the market 20% over three years so 20% 20% plus 20% We are overperforming on that, and then we said, like, EBITDA on more than 10%. we are overperforming on that and then we said like ebitda on more than 10% We are not ready to kind of adjust those kind of targets yet. we are not ready to kind of adjust those kind of targets yet But of course, if we are overperforming, those financial goals seems to be a little bit like on the low end. If that's probably what you're asking me about. Shouldn't you just adjust them? We haven't done that adjustment, but we're probably gonna do that for next year, and giving you a forecast for what we will bring to the market in 2026. But of course, if we are overperforming, those financial goals seems to be a little bit like on the low end. but of course if we are overperforming those financial goals seems to be a little bit like on the low end If that's probably what you're asking me about. if that's probably what you're asking me about Shouldn't you just adjust them? shouldn't you just adjust them We haven't done that adjustment, but we're probably gonna do that for next year, and giving you a forecast for what we will bring to the market in 2026. we haven't done that adjustment but we're probably gonna do that for next year and giving you a forecast for what we will bring to the market in 2026

Speaker 2: Okay, looking forward to that. We have some question regarding... "Hello, I have a question on the case with the authorities, specifically with regards to the accusation of aggressive marketing. Do you have any comments on these..." I guess it's kind of media articles that have been around. Okay, looking forward to that. okay looking forward to that We have some question regarding... "Hello, I have a question on the case with the authorities, specifically with regards to the accusation of aggressive marketing. we have some question regarding "hello i have a question on the case with the authorities specifically with regards to the accusation of aggressive marketing Do you have any comments on these..." I guess it's kind of media articles that have been around. do you have any comments on these..." i guess it's kind of media articles that have been around

Speaker 1: Yeah, yeah. I do. It's a very interesting thing. So every year, by regulators and authorities and governments, what you should call us, they go through all our things. I mean, they go through the regulations of the product, the authorities run through how we're describing things, if we are following the laws and the regulations, EFSA claims, and all those kind of things. It's kind of a normal thing for us, that sometimes the government are even changing parts of the regulations and the governance, and we are just following all the different things that the government are putting on us. This year, the Swedish regulators have been watching all those, I would say, influencer media or the social media and those kind of things. Yeah, yeah. yeah yeah I do. i do It's a very interesting thing. it's a very interesting thing So every year, by regulators and authorities and governments, what you should call us, they go through all our things. so every year by regulators and authorities and governments what you should call us they go through all our things I mean, they go through the regulations of the product, the authorities run through how we're describing things, if we are following the laws and the regulations, EFSA claims, and all those kind of things. i mean they go through the regulations of the product the authorities run through how we're describing things if we are following the laws and the regulations efsa claims and all those kind of things It's kind of a normal thing for us, that sometimes the government are even changing parts of the regulations and the governance, and we are just following all the different things that the government are putting on us. it's kind of a normal thing for us that sometimes the government are even changing parts of the regulations and the governance and we are just following all the different things that the government are putting on us This year, the Swedish regulators have been watching all those, I would say, influencer media or the social media and those kind of things. this year the swedish regulators have been watching all those i would say influencer media or the social media and those kind of things For us, this has been just business as usual, business as normal. There was a couple of questions about the way we used a symbol on the packaging. We changed it immediately, but last year it was okay, but this year it's not okay. So it's business as usual in our sense. Then you have local government also that has certain questions on, let's say, we are buying a company, and then suddenly that company maybe have different labels. So we need to look through that and make sure that we are aligned with the laws and the regulations everywhere. But that is kind of business as usual for us. We have that for the Danish Food Authority that goes through this every year. For us, this has been just business as usual, business as normal. for us this has been just business as usual business as normal There was a couple of questions about the way we used a symbol on the packaging. there was a couple of questions about the way we used a symbol on the packaging We changed it immediately, but last year it was okay, but this year it's not okay. we changed it immediately but last year it was okay but this year it's not okay So it's business as usual in our sense. so it's business as usual in our sense Then you have local government also that has certain questions on, let's say, we are buying a company, and then suddenly that company maybe have different labels. then you have local government also that has certain questions on let's say we are buying a company and then suddenly that company maybe have different labels So we need to look through that and make sure that we are aligned with the laws and the regulations everywhere. so we need to look through that and make sure that we are aligned with the laws and the regulations everywhere But that is kind of business as usual for us. but that is kind of business as usual for us We have that for the Danish Food Authority that goes through this every year. we have that for the danish food authority that goes through this every year That is an audit that we go through, and we just follow the laws, and we are good on the compliance matters to change towards that. So honestly, I think it's blown out of proportions, and it was blown out of proportions of a media article, and at the same time, our shares were shorted. Which is... I don't wanna speculate. What I wanna do is to create a fantastic company based on the facts. What I'm happy about today is that I've shown fantastic results, and we've answered up all those questions on the government, and I don't think this, there is a case going on at any place. But if there will be, then we will answer it, and we will change and adjust always. That is an audit that we go through, and we just follow the laws, and we are good on the compliance matters to change towards that. that is an audit that we go through and we just follow the laws and we are good on the compliance matters to change towards that So honestly, I think it's blown out of proportions, and it was blown out of proportions of a media article, and at the same time, our shares were shorted. so honestly i think it's blown out of proportions and it was blown out of proportions of a media article and at the same time our shares were shorted Which is... which is I don't wanna speculate. i don't wanna speculate What I wanna do is to create a fantastic company based on the facts. what i wanna do is to create a fantastic company based on the facts What I'm happy about today is that I've shown fantastic results, and we've answered up all those questions on the government, and I don't think this, there is a case going on at any place. what i'm happy about today is that i've shown fantastic results and we've answered up all those questions on the government and i don't think this there is a case going on at any place But if there will be, then we will answer it, and we will change and adjust always. but if there will be then we will answer it and we will change and adjust always

Speaker 2: Okay, thank you, Dag, for clearing that out. I think unfortunately, we are running out of time here. It's a busy reporting day. But thank you, Dag, for taking the time and bearing with us with the questions and hats off for the strong, profitable growth, I would say. Okay, thank you, Dag, for clearing that out. okay thank you dag for clearing that out I think unfortunately, we are running out of time here. i think unfortunately we are running out of time here It's a busy reporting day. it's a busy reporting day But thank you, Dag, for taking the time and bearing with us with the questions and hats off for the strong, profitable growth, I would say. but thank you dag for taking the time and bearing with us with the questions and hats off for the strong profitable growth i would say

Speaker 1: Thank you so much. It's always a good thing and an honor to be here, so thank you. Thank you for listening to me, and good luck on everything that you do on your end. Thank you so much. thank you so much It's always a good thing and an honor to be here, so thank you. it's always a good thing and an honor to be here so thank you Thank you for listening to me, and good luck on everything that you do on your end. thank you for listening to me and good luck on everything that you do on your end

Speaker 2: Thanks again, and thank you all for listening in, and hope to see you soon again. Thanks again, and thank you all for listening in, and hope to see you soon again. thanks again and thank you all for listening in and hope to see you soon again