Good morning, everyone, and welcome to Lyko Group's earning call for the third quarter. My name is Tom Thörnblom.

I'm heading up Investor Relations and Communications here at Lyko. Today, we will have a short presentation from Rickard Lyko, our CEO, and Ylva Norlén, our CFO.

After the presentation, we will have a short Q&A for everyone. We will start with the analysts and then open up later on if we have time.

The call will be recorded and will be found on Quartr and in the Quartr app, and the presentation will be shared there as well. With that said, I leave the floor to Rickard Lyko.

Thank you, Tom, and welcome, everyone. Let's jump into the presentation.

As you have seen, we grow good in the quarter, but under expectation on the profitability. We see that it's a market-wide high promotion pressure on the market, but with that said, it's on a certain part of the assortment, not everywhere.

That we see a huge difference, which also impact the mix of what we selling, that is more online, because that's growing faster, but as also showing that we have higher margins in the retail segment, where we can choose which brands we are selling. We have invested in strengthening our position both for the growth in inventory and marketing, and we see that we are on all-time high in the market share, or also from the consumer perspective, as a brand awareness.

We also had some cost related to the ramp-up of the warehouse, both that we came from the Q3, as we have mentioned the things that happened in the Q3, but also going into the Q4, building up the inventory, because it's takes a lot of people in hand to get every product in the warehouse, and we were ramping up with about 150 million more stock. Jump into the next.

We growing about 17%, and we see that's lot above what the total market is growing, and also a lot of our competitors in the market. In that sense, from the consumer perspective, and also from our supplier's perspective, the number looks really good, but what we see is that we need to take a look at going into the margins there.

The new automated warehouse were enabled to do a really good customer experience. We were delivering really fast under the whole quarter.

With that said, we going on this quarter in full speed with both the new automation and the old automation to be able to handle that. It gave us also a possibility to keep on putting inventory in.

That was a problem last year when we were setting every focus to just delivering out. We see that we can acquire 350,000 new customers in the Q3 quarter, which will help us a lot going forward.

We know that when we are looking into the customer experience, we know that the customer will come to us, or they will stay with us when they have tried out and starting buying from us. We also see that Norwegian passing 1 billion in annual sales, it's a quite of a marked passing that level in the Norwegian market, and we starting to be one of the absolutely biggest player in the Norwegian marking all in all.

That's also for Norwegian and Sweden and Finland combined, we see going into 2026 that we should be able to taking that leader position in the whole market, both for retail and online combined. We also see that thanks to good sales and long-time relationship, we have a strong supplier relations, which helped us a lot, because also when we looking into the distribution of the product that we are selling, the products that are distributing very broadly, they are also the ones that are in a lot of price pressure and campaign focus under this period, but also going forward.

We also see that where we have suppliers handling the distribution in a better way, we also know that those are the one we can get much better margins from, and that combined to our own brands, where we also knowing we have totally different marked margin levels. Still, we are in the beauty ecosystem, and for us to play is a lot about being something in between the strong brands and customers, and we see that one of those things that we are doing the best in between there is Lyko Community.

We also saw just under November that we have more than 21 million views in the community, where we also seeing that we are building a unique position that really helping us driving back, but also driving different kind of traffic into the app. You're not just there to buy another product, you're there for the experience to find out and learn more about the products, and that put us in a unique position where we can affect what you are buying.

That is a huge difference in between e-commerce and online is that you're entering the stores a lot of time asking what you want. You want a shampoo, not a specific product, and we see a similar pattern.

Those coming into the community, they are there for exploring, which help us to affect what you're buying. When we look at the spontaneous awareness, we have invested that for a long time in Sweden, and that was because we know that we are selling products that you're running out of and you will come back and buy them.

Now we are seeing that we are on a totally new level, and we are the absolute highest brand awareness both in Sweden and also now in Norway. We see also that Finland is on a really good track.

Some we have started in Denmark, but we don't do that much of investment there yet, but on a good level to keep on going into that more going forward. If we looking into this one, we see that it's a quite of a gap down to the second player in Sweden and Norway, and I think this is put us in a unique position, because is there something that we know about those kind of numbers, those are the one the best project future sales.

Also now that we're seeing we're taking a huge step in Finland to take a big part of that beauty market as well. I think this is something that we totally keep on believing in, and we also know that we can balancing the market investment on a short time, but in the long time we really believe in this is the position we want to keep on building because this is the piece that we need to be able to go from just focusing on price.

The beauty community is the biggest in Nordic, and that's something we keep on investing in and building out. We now have just launched that we are paying per view a lot of consumer that are in the platform and doing a lot of good content, and in the other end we balancing that with retail media selling views to our suppliers, and this is also something truly unique that we don't see any other players on the market have something similar.

This is something we really truly believe that is a unique position that we want to keep on building. We will have some new launches here coming up, and we will launch next week the pay-per-view for consumer in the Finland as well.

We open up a store in Täby, and we have communicate that we will open up in Skellefteå and in Kalmar. This is something also that works very well, and we see that they are profitable.

We also see that the new concept is delivering. We see that we are adding perfume, we are adding skincare and makeup in the stores, and we're seeing that those category is also taking part of the sales in a size that they're getting in the stores.

We're seeing that this is a new position that we are taking with the other categories, and that is also something that really will help us in the long run to build the margins in those category in a better way. We know we came from hair care, where we have really good margins because we have been working with that for a long time, and now we're starting building that up in the other categories.

I will say it's not a heart transplantation, because it's not that hard to change it, but it's really make a huge difference. We are changing the search engine and the promotion engine at our platform, which will be AI-based.

This is truly something that makes a huge difference, because we have so much of the consumer coming to us searching for products, because they haven't decide yet, they use the search a lot. This will be live from the 1st of April, and that will help us a lot, I think, for the customer experience, but also in the sales going forward.

What have we learned? More selective promotion activity going forward.

We know that we can do that better going into Q4 this year. We can set that in a better mix to make sure that we are keeping up the margins.

We see that going into January here as well, that when we are changing that, we also see the result of that. Also when we're looking into the market spend, for sure, we can also do that mix even better, but it also affects, for sure, how the market are developed.

We see that we are in a position where we can set higher ROIs to be able to keep that tighter. Then a tighter cost control framework is also key for the long-term profitability.

There also, there have been a lot of things happening the last 3 to 4 years technology-wise, which make it possible for us to make it more central and also find efficiency in the work we do on the white-collar side. Focusing on the balancing growth with profitability will be key.

We have always been doing that, and now we will set a little bit more focusing on the profitability than the growth. With that said, we are all set up to keep on capturing growth, and we're seeing that there is a possibility for that in the market, and that hasn't changed.

We're seeing the cost reduction program that we have communicate that this is a new step for the company, and we are communicated that earlier. It's a tough decision, because it's affect a lot of our employees.

On the other side, looking into the total of the company, it will makes us stronger going forward. Also when we're seeing it's not because of the sales and consumer are not there, it's because of the margins that we have seen in the last quarter.

We're also closing down the office in the Netherlands and Germany, because we see a possibility to handle that from a central level from now on, so that's why we're changing that. Totally all in all, we think we will save about 100 million on a rolling 12 basis, and it will affect about 70 people.

Productivity gains enable us with previous investment that we have done in a lot of system. We are launching part of the system we have built for quite a long time now with order handling system and everything around how we're using a lot of the data platform that we have building out for managers, and there, together with the AI development, we now see we can get a lot of efficiency out of what we're doing and operating in.

Going forward, we see that the average order value are back on track in January. We have made some changes there, and we're also seeing that the gross margins are back, and that's on the level that we were in January last year, which is much higher than we see in Q4.

Q4 is a unique quarter in that sense that the campaign period is very long and affect the sales a lot. With that said, it's just that the underlying margins on the product hasn't changed.

It's about how we set those promotion. We see that we have a strong customer position.

We acquire a lot of new customers, and the brand awareness on a record-high level. We know also that a lot of customer were experienced super fast delivering also under the period, and we know that also we have our wide assortment with the stock levels where we can sell a lot more products now.

We also see the structured cost advantage in the new automation, which also will help us a lot going forward, because we are more efficient, and we're touching the product much less than we did in the old system. With that said, we still need both the system on the peak period to be able to handle those kind of big volumes.

I think it's all about disciplined growth and profitability balance, and setting the focus for that in the whole organization. I think everyone are on board on that now, and we are really looking into how to do that going forward now.

I think we have a clear roadmap for 2026, and simplification is also very important in this case, and it's a new operating model where we also see if we're not need to go into the next big project, which is I will say almost the first time in the company history, we don't have that big project in front of us. Now we can really set the focusing to operate more efficient in the things we're doing.

I think that is also something that make it much clearer and much easier to prioritize internally in the organization as well.

Thank you, Rickard. Now we leave the floor to Ylva, our CFO.

Hello, everyone, and I will take you through the results and more details on the financials for the quarter. Starting with the group sales, the net sales amounted to 1,278 million in the quarter.

That was an increase by 16.6% against last year's quarter. We had a negative FX effect on sales, in local currencies, that growth was 18.8%.

We had a prolonged Black Friday period with really strong stock levels and availability thanks to the new automation. We know that we gained market shares in this period despite intense campaign pressure in the market.

Looking at the year all in all, 2025 concludes at 3.96 billion SEK, and that corresponds to a growth of 11.3% against the previous year. In local currencies, we would have taken that fantastic 4 billion barrier, and it would have been a 13% growth.

Then to the gross margin. The gross margin decreased to 39.6% in the quarter.

Last year, we had an exceptionally high level, 45.2%. Just to break that sort of decline down a little bit, the main reason for the decline was in the product margin.

Here it was a mix of the pricing strategy, but also combined with the intense campaign pressure. We had a more disadvantageous assortment mix, channel mix, and we also saw lower contributions from our suppliers.

All in all, the product margin accounted for 4.5 percentage points of the margin drop. Then we had a 0.5 percentage point effect from change in inventories between the two years, and we also had a 0.6 percentage point lower other revenue stream affecting that gross margin downwards.

That was the breakup of the gross margin. Then when we look at the opex and personnel side of things, in the operational costs, we saw an increase in share of sales during the quarter, and this was caused by quite a few different events.

Firstly, we had 3.9 million SEK in one-off costs related to the new automation and the ramp-up. This was mainly freight and packaging, but also increased personnel, which I'll get get back to.

We also had a lower average order value as a result from the campaign pressure, we had more orders to ship, and this drove up the freight, packaging, and transaction costs in the quarter. We also spent more on marketing during the quarter, around 20 million compared to the the quarter the year before, and this was both brand and performance marketing.

Then on the personnel side of things, we also had a negative one-off from the closure of the offices in Germany and the Netherlands, and this accounted to 2.7 million. Then as I mentioned previously, we had 300,000 related to the warehouse ramp-up in personnel cost.

When it comes to the group functions, and those that's those are the functions that support the group-wide, we have remained fairly steady since early 2024, and we we have a cost during this quarter of 51 million. Looking at the profitability on group level, we see a decline from the sort of record quarter last year, and this is a result of primarily the lower gross margin, but also higher variable costs that sort of came as a consequence, but also one-off costs related to the warehouse ramp-up primarily, but also the closure of the German and Netherlands offices.

For this quarter, the one-off costs totaled at 6.9 million SEK, but for the entire year, we had almost 20 million SEK in one-off costs. Without the one-off costs, we conclude the year at 78 million in EBIT, corresponding to a 2% EBIT margin.

Looking at our segments, we had a strong growth in the Nordic segment during the quarter, 18.2%. We had a negative FX sales here, in local currencies, that was 21%.

Then if we conclude the year, this segment corresponds to 3.7 billion SEK for the year, and that's a 12% growth. As we mentioned previously as well, we are very excited that the Norwegian market accounted for more than 1 billion.

The EBIT in the quarter was down as a consequence of of all the reasons I went through for the group, we will move to the European segment. In Europe, we have been more or less steady on a rolling basis over the last couple of years.

We decreased in the quarter 13.7%, and if we look at the 2025 outcome, we decreased by only 1.3% and arrived at 131 million SEK. Then if we look at the profitability for the Europe segment, here, of course, we have one that one-off effect from the 2.7 million of closing down the Netherlands and Germany office.

We arrive at -8 million for the quarter, fairly in line with the last six quarters. All in all, the year 2025 concludes at 27- 26.7 million SEK loss, and that's against a 33 million loss last year.

We have been talking quite a lot about the one-off costs for the year, just to summarize this both by quarter and by cost type, it was 6.9 million this quarter, mainly attributable to the automation ramp-up, and in total for the year, 19.9. In total during Q3 and Q4, the automation one-offs was totaled at 18.5.

Then I believe this is probably the last time we will show this slide, as the logistics investment in the new automation are almost done, and the ramp-up is almost finalized. Just to recap the standings, this automation hands us plus 150% capacity going forward.

We have been paying rent for the extended warehouse since the beginning of 2024. Our term loan is currently at 486 million SEK, and we will start the depreciation from March 2026.

Amortization starts from Q2, 13.75 million in quarterly installations. Then when we look at inventory, the automation give us gave us the opportunity for the first time to replenish the stock levels already during the campaign, during Black Friday campaign, but also throughout the month of December.

All in all, we secured selling with improved stock levels, ended the year with 120 million more in stock, and that's a 16% stock-to-sales ratio versus 14.4 the year before.

Thank you, Ylva. Then we will open up for questions.

Please, I will let the analysts come first. I see the hands.

Please, Magnus Råman from Handelsbanken.

Thank you very much. I have three initial questions, and first on your net debt.

Excluding leases, it declined 12% year-on-year. It declined a full 36% sequentially here from Q3.

I believe that payables is a clear driver here behind improving operating cash flow. I would say that your sort of IFRS 16 adjusted gearing of 2.2 times doesn't look super worrying.

In the backdrop of these numbers, I try to be reassured here that it's not just a timing effect of the year-end as relates to payables and thereby bounce back in Q1 again, but rather structural. I'd raise my question like this.

Did you make any sort of long-term renegotiations with your suppliers here, and also do you see that you have a more rapid flow-through in the new inventory, fulfillment center, so that you will see a more sustained working capital improvement essentially? That's my first question.

I would say with the new automation, it gives us a completely new opportunity of how we fill up for campaigns, and also how we manage the sort of stock levels and working capital throughout the campaigns. We here see that we have an opportunity of delivering in later and filling up throughout campaigns to a completely different level than before.

If we go back one year and the old automation, we could either deliver in or deliver out, meaning that all of December was only spent on delivering out. We have completely new sort of, should we call it a playground now in terms of how we buy, how we sell, and also when we pay.

It's a mix of that composition. Primarily, the sort of calendar effect that is the biggest change at the moment is that we were able to replenish and buy a lot during December.

We're going into the new year and the new quarter with higher stock levels than before, which is an asset for us. We have already sort of paid the hours it takes to deliver in these stock levels, and then we have a big campaign starting next week, we are in a really good position there when it comes to stock levels.

The answer to the question is we are hoping to see that this becomes more structural going forward, but it really also depends on the market. This new automation gives us a completely new starting point when it comes to inventory planning.

That was also a change in this campaign this year that we had extended the Black Week with the Cyber Week, which went into December. With good delivering out, we can also starting refilling at the same time in a new level in December.

Last year, we were really handling orders until the last of before Christmas Eve to be able to get everything out in time. This year was in a totally different position.

Great. The second question is these closed offices in Germany and Netherlands, if you could help us with what is the saving and from when will we see that saving?

We have offices in Amsterdam and in Berlin, and we had seven employees that were affected in this decision. This decision was taken during Q4, and the savings are fully sort of accounted for going into 2026.

Could you elaborate also, is it both rent and and and staff cost for seven employees that are being saved, and and will be rolled sort of that saving will then, of course, have an effect year-on-year on a year-on-year comparison throughout 2026? Is that correct?

Yes, exactly.

Right. You wouldn't care to give us any ballpark figure of the total cost there saved?

Not other than the 2.7 million that we took as a one-off cost during the quarter.

Right, but that's a salary-related, I guess. How about the rental cost for these premises?

Is there any meaningful number there?

No, it's not. They were both smaller offices with flexible sort of rental terms, so.

All right. Great.

Then the third one for me here is that you clearly flag here, of course, that you're done with new larger investments for now. Feels reassuring from a cash and debt position.

You also mention here AI-driven efficiency improvements apart from the sort of cost savings measures that you take. Can you elaborate a little bit on which cost could be reduced by AI and how?

I think most of the reduction when we're talking about those systems that's obviously is affected white-collars that we're seeing now. Also going forward, that we can handle more volume on less people.

Then when you're looking into relevance and the search engine, it's harder to say. It's not a cost reduction, that's an improvement in turnover, I would say.

Hard to say exactly, but we will come back when we have clear numbers on those.

Great. Thank you very much.

For me.

Then we leave the floor for Johan Fred, SEB.

Yes. Good morning.

Thank you for taking my questions. A couple of follow-ups for me as well.

Firstly, on the cost reduction program, you stated that this will affect roughly 70 FTEs. Does the SEK 100 million in annual savings also include the closure of Germany and the Netherlands?

Also, could you in general give some more color on what is included in the cost saving program, please?

Yes, the majority of the 100 million will be from the organizational changes and the affected FTEs. We are also doing opex savings, and that will come out throughout the year.

We are also just to lift out the marketing component of the opex, looking into how to be more efficient, especially there as well. Then, of course, lastly as well, we are reducing the capex agenda slightly as well that we have planned for the year.

The 100 million is that including the closure of the local offices in Germany and the Netherlands?

Yes, it will be including that.

Any chance that you could sort of elaborate on the timeline for realizing these savings? How much is in H2 versus H1 in 2026?

Yes, we are in the midst of looking into this at the moment. We don't have any clearer sort of guidance than what we have given before.

We will come back in a much clearer way on that in Q1.

The SEK 100 million in annual savings, one should expect that to take effect in 2026?

Absolutely. The 100 million is on a rolling basis and from the 1st of February, absolutely.

Cool. Thank you so much.

Then, in the presentation, you stated that you're going to be more focused on profitability going forward. Does this mean that you've reconsidered sort of the aggressive customer acquisition strategy?

Is this also why you're seeing gross margins returning or tracking in line with prior years here in January? Sort of on a general basis, how does this translates into sales growth in 2026?

How should one think about margins versus growth?

It's a 1,000 different things that we are doing a balancing act. One of those are prices, campaigns, and the mix of what we're selling.

What we're saying that we will prioritize up a little bit the profitability versus the top line. In exactly how that will turn out this year is also, it's affecting what we have seen in Q4, where we are meeting a tougher market, that the consumer are not there.

Exactly that could change, and then the growth can come instead. We are also now setting us in a position that we are not needed the growth to be able to get out the profitability with reducing costs instead.

It's more I would say a signal about how we look at that, that we are now, with a new automation in place, we can really handle much more volumes. We have everything in place if we're seeing that those possibilities are coming.

Okay. Also an interesting thing that you mentioned, you mentioned lower contributions from supplier as one of the reasons for the lower gross margin in Q4.

Several other online retailers have also mentioned this as an explanation to lower profitability in Q4. What is your analysis of this driver of the lower supplier contributions?

Is this something that could be a structural shift in the industry, or do you see it as something that was specific to Q4 in general here?

It's hard to say. I don't see a general shift there.

It's also about the mix of what you're selling and how you're setting up the campaigns and so on. What we are seeing, the position is that we are getting more support looking into the long run, then it can shift in between quarter depending on what we're selling.

The position from our point, when we look into other suppliers, is much stronger than it has been before. Also here, we see the mix in between physical store and online and so on.

It's a really mix. I don't see any structural shift there or changes that should do a huge difference going forward.

That was very clear. Thank you for taking my questions.

Thank you. Then we go over to Benjamin Wahlstedt from ABG.

Thank you very much. I was wondering if you could explain in a bit more detail perhaps how pricing during campaign season works for you.

Historically, you've experienced gross margin declines of upwards of 2 percentage points Q-on-Q. You are well aware that Q4 is very campaign-heavy.

Sort of any qualitative comments on what happened and what went wrong would be much appreciated here. Thank you.

We have 72,000 products that we are setting different pricing levels on, and then depending on what all the other players in the market are doing, we adjust that. We are in a position where we see we don't need to be the lowest on price, but we need to be relevant on price, we need to adapt depending on what.

What we are seeing we're changing going forward is the setting more focusing on the products we are making the best profit from, where we came from where we are maybe setting more focus on what's selling the best. I think it's more of the mix in what we can affect that we are changing, and then we don't know exactly what will happen in the market, but we are very comfortable that we can affect the margins going forward.

Also there, when we are setting profitability versus top line, we will go more for the profitability and setting more requests on the suppliers that we are going up with.

Right. I suspect you had quite a few SKUs last year as well.

Is there any specific sort of competitor that's forced you to act in this way, or the complexity was there last year.

I think it is more the underlying growth in the market. If there is an underlying growth, I think what's happening in this quarter is that there are a lot of players, and when a lot of players don't see that they having the top line that they needed to be able to handle their costs, they are going more competition into that.

What we're seeing now, there is some of the players seems like they're going out of the market, and that could also be the case that we have players that needed to go even harder and don't get the total in line what they need. I think it's more about the competition in together where we see the growth underlying in the market.

You think Bangerhead's sort of demise might have been part of it? Did they run sort of inventory clearance sales, or?

I think all those players are affected, and exactly how much and where, it's hard to say. We know that we have a lot of players that needed to go for that, and so we will see.

Yeah.

Yeah. On a similar topic, are you using Google automated discounts, and do you see any reason to believe that it was part of the problem?

We are using GAD in some sense, but also doing that it has been changing. We used that a year ago, and then the price rules are changing, you cannot use this as much as we have done in before.

We are using it, but that was not part of the problem. For sure, it can affect it on some SKUs when we see players only going for that, hard to say.

All right. To summarize then, is it fair to say that you're changing focus from driving algorithmic marketing towards sales and instead focusing on sort of a contribution margin or contribution profit?

I would say it's a balancing act where we are balancing it a little bit different. It's not a total shift.

It's more how we are prioritizing the things where we know we can affect the sales, and we see that we can do a better job going into this Q4 on that sense.

Perfect. Thank you.

Turning to top line, to help us understand the Oh, actually, no, sorry, this is gross margin again. To help us understand the comment on mix a bit better, could you share the growth for the physical part of the business versus online, please?

We usually don't share that split since we changed the segments. We had stronger, much stronger growth in the online channel during this quarter since the pricing strategy sort of has a bigger impact on that channel.

The channel mix also weighed down the gross margin, as I mentioned.

Could you give us an estimate of the impact in basis points terms?

We don't comment on that, but as a lot of the sales are on online, even if they would be growing in the same level, which they did not do, it still affect the mix of it. No, we don't comment exactly on the numbers.

All right. Thank you.

I have a few more, but I'll let Daniel step in before me.

Välkommen, Daniel Schmidt, Danske Bank.

Morning, guys. Just coming back to the cash flow, and I heard your answer when it comes to the automation and that's sort of in place now with changes to buying pattern.

You also write that you are extending payment terms or payment days to suppliers. Could you shed some light on how far that's been extended?

It's swinging 450 million in cash flow in the quarter. I assume that they want to get paid soon.

Sorry, we have some issues hearing, but you were talking about extending payment terms.

Exactly, exactly. I assume that they want to get paid, I assume they get paid in Q1 instead.

It's a big mix when it comes to our buying strategy sort of when we buy, when we sell, and when we pay, both if we split up our assortment in the own brands part, in the external part, in the parts that we buy specifically for campaign periods. It's a big mix basically.

The main calendar shift here versus the year before was the fact that we were able to build up a really big stock before the Black Friday period, but also replenish throughout that period, and also all the way during December.

They still want to get paid, I assume. Are they going to get paid in Q1 instead?

The supplier has get paid for 18 years now, so, yeah, they will get paid, and has always got their payments, nothing has changed there.

You say that you are extending it, I assume that there will be a swing back in Q1 instead.

What we have a talk with suppliers, and that's something we're doing on ongoing. We want longer payment term, but with that said, a lot of our assortment, it's our own assortment.

We paid before it's get produced and so on, it is a mix of that. As long as I have driving business, I've never been in a case where I cannot pay the suppliers, so, yeah, they will get paid.

Yes, and it's been a big focus within the company for more than a year now with a new agreement as well, where we are negotiating improved terms not only on things like payment terms, but also on terms that are linked to compliance, to pricing, to support. It's been a sort of long-term effort there.

I still don't get it. The swing is so big.

Are you saying that you won't see that swing fully coming back into Q1, and this is more structural?

We're going up and down in the stock levels as well, and this is one of our biggest period where we are selling a lot, and we need to restock that in December to be able to go into January with a good stock level. It will swing, and it do swing.

Now we're going into big period of big campaigns, it will swing back again. It is big swings in the stock levels for sure.

Okay. It's more sort of it's a changing pattern basically compared to what you used to do in Q4.

The numbers are just that day. We don't see that the stock level is a one day where we're seeing the numbers, and that can change from year to year.

Just moving on then to the investment program. You guided for 110 million in cash out in terms of capex.

It came out at 40-something or 30. Are you scrapping the rest of the investment program when it comes to Vansbro, or is that going to happen in Q1?

No, we have almost taken up the full term loan for the investment, and we are in line with that investment frame when it comes to sort of paying the supplier, Vanderlande. The full 498 will be taken up as per Q1 2026.

Does that mean that the 110 that became 40 in Q4 is going to be another 80 in Q1 instead in cash out?

No.

No? Okay.

Then you gave the wrong guidance in Q3 then.

Because

you said 110 and then you said 12 million for Q1.

Apologies, I don't have the Q3 at hand at the moment, but if that was a mistake done, then that was a mistake.

Okay. Cool.

Then when it comes to the savings program, how's the cash out going to look there? What's the cost of taking out these people?

Yes, we have estimated a one-off cost that we will take now during Q1 of 24 million.

Okay. That's for the people, and then the rest is going to be more efficient ways of working basically.

You mentioned marketing, right?

Yes, it's going to be both sort of indirect costs, but also operational costs, where we will try to scale where we can and really hold down the expenditures.

Okay. You also mentioned normalization of the gross margin and average order value in Q1 so far.

You don't mention top-line growth. Could you say something about top-line growth?

I would say it's in the level that we are expected to be, we don't see anything strange there.

Is that still double-digit then?

I don't comment on that. We're going into campaigns period and so on, we will see exactly where it's landing.

But.

Okay. Thank you, guys.

That's all from me.

We starting running out of time, but we will have one question each from Magnus Råman and then Benjamin Wahlstedt.

Right, I just wanted to tie into the discussion. I think maybe it was a bit of a misunderstanding on the previous questions of the payables.

I think what Daniel was referring to was not whether you would be paying at all or not, that's no question that you would be paying your suppliers. The question, I think, was more related to whether we will see a structural shift push forward in the payment terms, or if it's just a shift over the year-end effect on the payables.

If I understood your replies previously to this question, you have seen a more structural extension of your payment terms. Since you pay material amounts of COGS sort of every quarter, if this holds true that you have more permanently renegotiated payment terms, then we will see a positive working capital effect until Q3 '26 at least, and until we roll over this effect.

Is that sort of the right way to interpret it?

I would say both yes and no. As I referred to, we have a long-term effort in sort of improving supplier agreements on many different aspects, and that will definitely play through.

Then it differs quite a lot how we buy for campaigns and the agreements made for campaigns, also when it comes to supplier contributions and marketing support versus sort of the non-campaign periods. There will be a mix.

For sure, our new automation gives us a lot of advantages when it comes to working in a better way with our working capital going forward in combination with this.

Right. Just very quickly on the marketing expenditures.

You've said before, Rickard, historically that you want to spend 10% to sales, more or less. You don't want this figure to decline.

Is there a new communication here? The discipline and higher ROI demands, I guess this is relating to performance marketing, i.e., AdWords, ad fraud sense spending.

Do you have a new target if you put the marketing expenditure in relation to sales now?

I think that's something we will look into for sure. Depending on what we're seeing in the top-line development, which affect that in some sense.

For sure, we see an overspend in the marketing part as well in Q4 this year that we will not do coming up to next Q4. We taking all that in consideration and see where is the new level that we want to.

We still believe in investing in the marketing part to make sure that the growth will come going forward as well. We don't have a new guidance around that, but we're looking into it.

Thank you, Magnus. Then we go over to Benjamin for the last question.

Thank you, and this is a quick one. What is your private label share of sales in Q4, please?

Or own brands.

I don't have that readily available, but it has been around 8.5%.

All right. We can take that offline.

Thank you.

Yes.

Thank you, everyone, for listening in this morning. We will meet again the 28th of April when we releases the quarter one report.

Have a great day.