Good morning, everyone, and welcome to Axfood's third quarter results presentation. It's good to have you with us.

Let me briefly take you through what's coming up. Our CEO, Simone Margulies, will start with the key highlights of the quarter and developments in the market.

Our CFO, Anders Lexmon, will take us through the business and financial performance. Simone will return to discuss our strategic agenda.

After the presentations, we'll take your questions. If you have several, please ask them one at a time.

With that, Simone, over to you.

Thank you, Alex, and good morning, everyone, and a warm welcome from me as well. In the third quarter, Axfood continued to grow and increase earnings.

We did so in a dynamic market despite deflation and cost pressure. We also delivered on our ambition to reach profitability in City Gross.

Value for money remains a key priority for consumers. At the same time, we're seeing some signs that quality and convenience are becoming more important.

We have strong differentiated concepts, and we're investing to become more efficient and more competitive. That puts us in a strong position to continue growing profitability.

Before we get into the details of the quarter, I'd like to zoom out and look at the broader environment. In recent years, we navigated global uncertainty, geopolitical turbulence, and climate changes.

Digitalization and AI have also accelerated, bringing new opportunities and new demands for our business. Through all this, our market has continued to grow.

It has changed, but conditions have been more stable than in most other industries. Discount has grown more than any other segment in recent years, largely at the expense of traditional grocery.

Hypermarkets have also performed well, and we saw both trends last year, too. Axfood accounts for 25% of the Swedish food retail, and our market share gains over time are clear sign that our business model works.

This year, the market has continued to grow, and in the third quarter, growth was 4%, but the drivers have changed. Unlike in recent years, growth is now coming from higher volume and changes in product mix, and growth is more spread out across different store formats.

Food price inflation turned negative earlier this year, both including and excluding VAT. As a reminder, VAT on food was halved from 12% to 6% on April 1st.

Consumers have had more purchasing power for some time, helped by real wage growth and lower taxes. We are seeing some signs that quality and convenience are becoming more important.

That might mean choosing a ready-made dinner when time is short or spending a little extra on something in the weekend. Price still matters.

Our consumer surveys make that clear. Households have different circumstances, including income and demographics, and keeping costs down and occasionally spending more can go hand in hand.

Consumers watch prices closely while making room for different needs. Our broad range of concepts and offerings helps us meet different customer needs while keeping a strong focus on value for money and other added values.

That combination is a strength in this market. Now, let's turn to the third quarter, starting with the business highlights.

Retail sales continued to grow in the third quarter, driven by higher volumes. At almost 3%, growth was stronger than in the second quarter.

However, we're still somewhat behind the market. It is a demanding year-on-year comparison, and we're comparing with strong third quarter last year when City Gross had also begun to contribute to our sales.

Looking at growth over a two-year period gives a fuller picture, and over that period, we have clearly outperformed the market. Net sales grew by 2% in the third quarter, although growth varied across our chains.

Deflation held back sales, and we report net sales excluding VAT, and on that basis, consumer prices fell by almost 2% year-on-year in the third quarter, and that's according to Statistics Sweden. Our earnings increased in the third quarter, driven by higher sales volumes, a stable gross margin, and also effective cost control.

We achieved this in the market with intense competition, deflation, and cost headwinds. Higher fuel prices were one of those headwinds, and the negative cost impact was in line with the second quarter.

Group profitability remained stable, and the margin was 4.9% both on a reported and adjusted basis. Taken together, that is a resilient result under the market conditions we faced.

Items affecting comparability amounted to 1 million SEK in the quarter compared with 39 million a year ago. We are revising our full-year guidance here, and Anders will explain the change later in the presentation.

That concludes the first part. I will return later to discuss our strategic agenda and outlook.

For now, I hand over to our CFO, Anders, for a closer look at our operating segments and the financials. By that, Anders, over to you.

Thank you, Simone. Let me start with Willys.

Total sales grew by just over 2%. Like-for-like growth was also positive, though still modest.

Deflation held back Willys' sales. We also comparing against strong figures from recent years.

With the customer meeting as our main priority, we worked to further increase growth with a focus on price, campaign, assortment, and loyalty. During the third quarter, this work contributed to a more positive development than in the second quarter.

Operating profit declined slightly, as like-for-like growth remained modest. Gross margin was stable.

Operating margin was also slightly lower at 4.7%. Hemköp delivered another strong quarter.

Once again, the chain gained market share. Retail sales grew by 7%, broadly in line with the second quarter.

Higher volumes drove that growth, with customer traffic increasing. A higher average ticket also contributed.

Deflation held back sales growth, but like-for-like growth remained very strong. Operating profit also increased strongly, and the operating margin rose to 5.8%.

The main drivers were higher sales volumes, a stable gross margin, and solid cost control. When we acquired City Gross, the ambition was to reach profitability at some point during the second half of 2026.

We are now delivering on that ambition. Like-for-like sales growth in the third quarter was positive and improved from the second quarter.

The chain also demonstrated profitability with a positive trend in both earnings and margin. The improvement was mainly driven by structural measures and work to make operations more efficient.

As part of that work, City Gross closed its store in Helsingborg in mid-August, its fifth store closure so far. The location will be converted to Willys this autumn.

Closing underperforming stores helps build a stronger core of City Gross stores and lays the foundation for profitable growth. Snabbgross sales were unchanged from the same quarter last year, but overall and on a like-for-like basis.

Deflation held back sales growth. The restaurant market grew during the quarter.

With Snabbgross sales unchanged, its market share declined. Earnings were lower than last year.

Market investments reduced the gross margin, and volume growth did not fully offset that impact. The operating margin was also lower at 5.1%.

During the quarter, we appointed a new managing director for Snabbgross. Robert Stekovic will assume the role on the 1st of August next year at the latest.

Dagab delivered resilient earnings in the third quarter. Net sales increased by approximately 2%.

As in our retail chains, growth was driven by higher volumes, mainly to Dagab's food retail customers and particularly to Axfood's own concepts. Operating profit and margin were both unchanged year-on-year.

Improved productivity in logistics support earnings. At the same time, deflation and market investments weighed on earnings, as did the higher fuel cost mentioned earlier.

That concludes the review of our operating segments. Now let's turn to the financial development.

Cash flow for the quarter was broadly in line with last year. For the year to date, however, cash flow was weaker, mainly due to weaker operating cash flow.

As a reminder, the VAT cut had a negative impact on cash flow through net working capital, mainly due to lower accounts payable. The cash outflow from investing activities was somewhat higher than last year, and I will come back to that in a moment.

Loan replacements affected cash flow from financing activities in the third quarter. For the year to date, however, that effect was offset by new borrowing.

At the end of the quarter, we utilized 3 billion SEK of our credit facilities. Utilization was somewhat higher than in the second quarter, partly because the second installment of the dividend was paid in September.

Our strong financial position gives us flexibility to make the right long-term business decisions. Our gearing remains low.

Excluding the accounting effects of IFRS 16, net debt divided by EBITDA was 0.6 at the end of the third quarter. Including IFRS 16, it was 2.1.

Our target is an equity ratio of at least 20% at year-end. The level at the end of the third quarter was well in line with that target.

We continue to invest in the future. As I mentioned, investments year to date were higher than last year, driven by automation for our new logistics center in Kungsbacka and investments in our store base.

Far this year, we have established eight new Group-owned stores, slightly more than last year. Using capital efficiently and managing working capital are important parts of our business and financial strategy.

As I mentioned, the VAT cut has had a negative impact this year. You can see that in the rolling 12-month figure.

Even so, net working capital remains at a solid level at -2.7% of sales. Capital employed has increased in recent years, mainly due to the acquisition of Bergendahls Food and City Gross, as well as investments in logistics.

It increased somewhat in the third quarter, mainly due to the dividend payment. Return on capital employed was almost 16%, slightly higher than at year-end, supported by the positive development in earnings.

Let's then turn to the full-year outlook. We are revising a few elements this quarter.

We expect capital expenditure of 2 to 2.1 billion SEK, somewhat below our previous outlook. There have been some delays in the detail planning for our new logistics center in Kungsbacka.

As a result, we are moving the remaining automation investment planned for this year into next year. We will still expect operation and ramp-up at Kungsbacka to begin in 2030.

At this stage, however, we cannot rule out some delay. We are also postponing some structural costs in City Gross that affect comparability.

Our outlook for new store establishments is unchanged. Taken together, the revisions of our outlook mainly concern timing.

Some planned investments and structural costs will come later. Then Simone, I hand over to you again.

Thank you, Anders. Let us now turn to the next part of the presentation, in which I will be covering our strategic agenda.

We have a clear house of brands strategy, and that sets us apart in the Swedish food retail. Our different concepts give us presence in every segment of the market.

In each, our ambition is to deliver the best possible customer experience. By putting customer experience first and continuing to expand our store network rapidly, we're working to accelerate growth further.

Willys has a very strong market position and is the store chain most recommended by households. We are working to improve growth in the short term.

At the same time, we're keeping a long-term perspective and developing Willys for the future. We're upgrading existing stores to our latest concept, Willys 5.0, and these upgrades are making a clear contribution to both growth and profitability.

We are also opening new stores at a rapid pace, giving more customers the opportunity to shop at Willys. Just a couple of weeks ago, we opened our most northern store yet in Kiruna, and the response has been fantastic.

Willys continued to increase members in its Willys Plus loyalty program, it clearly has a very wide reach, which we can build on. Hemköp has a strong momentum in the market.

It's encouraging to see the results of the chain's long-term work to modernize stores and develop the assortment. Hemköp combines food inspiration with value for money.

Ready meals and delicacies have performed particularly well, and that fits with the signs we're seeing that convenience and overall meal experience are becoming somewhat more important to consumers. More than 150 stores now offer store-made sandwiches, salads, or hot food buffets.

Sales volumes for these offerings are growing strongly, with roughly 15,000 items sold every day. That is a concrete example on how Hemköp brings food inspiration and convenience into the everyday shopping trip.

In less than two years since the acquisition, we have taken City Gross from losses to profitability looking at the third quarter development. If you look at the latest 12-month period, we are now at breakeven.

That reflects extensive work by many colleagues across both City Gross and the entire Axfood Group. We have every reason to be pleased with that progress.

We are continuing to develop the chain now with focus on its customer offering and the customer experience. The next step is to gradually increase the profitability and ensure that City Gross is a competitive player over time.

Willys, Hemköp, and City Gross are our main banners. Each has a clear offering and position in the market.

To give them and all our other concepts the right conditions to succeed, we draw on the strength of the Group, and we focus on six strategic development areas. Collaboration and efficiency are central to our business model.

Let me highlight a few recent developments in some of these areas. We will continue to develop our attractive store network in the years ahead.

That means opening new stores at a faster pace while maintaining a high rate of modernization in our existing stores. This creates new opportunities for growth and helps our concepts to offer customers the best possible store experience.

Our investments in the store network are paying off, and faster than they have had in the past. If we compare the stores based on when they were opened, over time, we've seen improving trends.

More recently opened stores reach their forecast volumes and profitability levels sooner. That shows that our investments in stores create values.

Our structure is a clear strength in the current market environment. Through Dagab and Axfood IT, we can put resources and investments to work across all our retail chains.

Our investments in technology, in AI, automation, and logistics, they are improving efficiency and making a clear contribution to our earnings. At our Bålsta logistics center, productivity reached an all-time high during the quarter, following continuous work to improve processes and ways of working.

Despite global uncertainty, we have continued to invest in recent years. We can see how those investments are strengthening our competitiveness.

The efficiency gains gives us a greater scope to develop our customer offerings and offer attractive prices while we continue to make progress towards the Group's profitability target. We aim to be a positive force in society, promoting a more sustainable food system and a better public health.

We also work continuously to reduce the environmental footprint of food. One example is packaging.

Garant's plastic meat trays are being replaced with thin flow pack film. This will reduce plastic use more than 300 tonnes a year, and that is our largest plastic reduction initiative to date.

Sales of sustainability-labeled products developed positively during the quarter, and we continue to expand our sustainable assortment. Garant's entire tea range, for example, is being Fairtrade certified.

Last year, we completed the transition into renewable fuels and electricity in both our own and procured transports. Electricity share, our fuel mix, rose to almost 15% in the third quarter.

These are just a few examples our sustainability work. Our ambition remains high, and we will keep pushing forward.

By that, let me conclude. In the third quarter, we continued to grow and increase earnings.

For me, an important part of our mission is making affordable, good, and sustainable food available to more people. To do that, we combine attractive customer offerings with efficient operations.

We can see that this work is delivering results. With strong and differentiated concepts and investments that improve our efficiency and competitiveness, we are well-positioned for continued profitable growth.

Thank you. By that, Alex, over to you for questions.

Thank you, Simone, and thank you, Anders. Now, let's turn to your questions.

If you'd like to join the queue, please press the pound key and then 5. Just a quick reminder again, if you have several questions, let's take them one at a time.

With that, our first question comes from the line of Fredrik Ivarsson at ABG Sundal Collier. Good morning Fredrik, and please go ahead.

Morning, Alex, Simone, and Anders. Thanks for the questions.

First, if we back up to Q2, you talked about making tactical measures to improve the relative growth in Willys. Can you give some more color at this time, what were the main activities you've been doing and so forth?

Yes. Good morning, Fredrik, and thank you for your question.

The tactical measures, it's about improving the customer offerings, it's about strengthening our price position and also improving the entire offering. We're also investing and upgrading our stores to Willys 5.0, and that's also the aim is to increase our growth pace by doing that.

I would say during inflations, we had a boost in Willys. Of course, with the temporarily now tax reduction and also the reduced so taxes on gasoline, we have seen an increased purchasing power by the consumers.

That maybe make a little bounce in the market, but we are really convinced that we will get the bounce back in Willys, since we've seen we had a good growth for many years. It's about calibrating, I would say, the customer offering towards a somewhat different customer behavior.

That's clear. Thanks.

Maybe to follow up on that, then, a couple of percentage points behind the market, did you see positive trend through the quarter, or was the relative performance fairly stable around those 2%? Maybe also, do you feel like you have to do more to catch up with the market, or is the trend good enough, you think?

If I understand your question right, I think it's about if you've seen changes within the quarter, is that correctly?

Exactly.

Yeah. We communicate a quarter as a whole, and I would say that we're happy to see that we see a slightly more positive trend in Willys.

We will continue to do those measures, and we feel secure that they will give result, and we can see some results in the third quarter. We will continue to improve and calibrate towards the market.

Good. Thanks.

Then moving to Dagab, you talk about margins being negatively impacted by the food price deflation and some market investments and also the higher fuel costs, which were, I think, 40 million, if I recall correctly, in Q2. If you were to rank those three headwinds, is that the order, with the current food CPI being the biggest headwind, or how should we view that?

No, I don't really remember in what order you told them, but I would say in total the food deflation and the cost headwinds are affecting, I would say, as much. I would say together

they're

affecting.

Okay. Perfect, thanks.

A last quick from my side before I jump back into the queue, on the government payroll taxes for the young employees, what was the approximate impact from that in the quarter, please?

It was approximately 40 million this quarter.

40 million. Great.

Thank you so much.

Thank you very much.

Thank you.

Thank you.

Next to ask question is Magnus Råman from SB1 Markets. Good morning, Magnus, and now it's your turn.

Please go ahead.

Thank you very much. I'd start by continuing on the discussion of Willys' actions to improve top-line growth.

If you look at the price and campaign investments that you made in Willys during this quarter, and compare it to the sales outcome, which you grew 2 percentage points slower than the market, do you deem if you choose here that, A, upping price and campaign activity further, or B, meeting the increasing quality/convenience demand that you talk about, for example, by rolling out 5.0 concept and so on, is more important? Which of these two do you deem is more important strategically to improve Willys' top-line momentum?

Thank you, Magnus. I would say the price position that Willys has to be Sweden's cheapest bag of groceries is like a hygiene factor.

That's something that we will never, how to say, elaborate on that one. That's like the hygiene factor.

It's all about calibrating and keeping very close to the market in changes in behaviors. I would say that we still have a very price-conscious consumer, it's not about changing everything.

We have a really strong position in Willys. We have had really strong growth over many years, both in good economies and in bad economies.

It's about a little bit calibrating with the consumer, since they now have a larger purchasing power. However, I would like to emphasize that we have a really strong position in Willys, it's not about changing everything.

It's about calibrating with the market. It's about calibrating the entire offering, I would say small changes.

It's not about changing what Willys are. That's why, for us, it's really important to do these calibrations on the short term, but also keep up the long-term strategic investments we're doing in accelerating the store expansion, and also the modernizations into Willys 5.0, that we wanted to show how well they are paying off both in sales and in profitability.

Right, clear. Lift the view and look at the overall Swedish food retail market, and if you look at the situation since the halving of the VAT, where we've had consistently negative price development underlying, and in the backdrop of high fuel prices and raw material price increases and so on, do you think that it is viable for the market as a whole, this situation to continue going

forward? Let's see if I understood your question right.

I try, and then we will see. As you say, all the experts are pointing out that we will probably see a higher inflation and also increase costs.

However, we don't do any forecasts on that. Of course, there's a risk that we will see that, and I would say that's actually what is also strength in our business model, where we have now concepts in all the market segments, since we also with the acquisition with City Gross, we also present in the hypermarket segment, and then we have Hemköp in the traditional groceries.

For us, it's about taking and adopting to the market in all these parts. We are a low-margin industry, so as you say, of course, in a long term, we have to recover also the costs.

Yes, it was in the backdrop of one of your major competitors also mentioning that they see a need to address sort of the situation through price to mitigate product margin erosion, to speak. That's why that's the question.

I'll just continue on Hemköp. Hemköp has been growing now faster than the market both in the previous period where consumers had a very intense focus on discount, and now in this current market where you elaborate on quality and convenience growing in importance.

How would you explain this?

Hemköp have had a strong growth, as you say, for pretty long time now. We're really pleased to see.

I think it's the result of a long-term work they've been doing by strengthening the concept as a whole, both really strong establishments, a strong new store concept, a high pace in modernizing the store, and also a high focus in developing the assortment, with specific focus on convenience that the consumers really like. I think what we see is the result of a long-term job that they've been doing, and keeping up a high pace in continuing to develop.

That's why also, I think they have developed really well both for pretty long time now, even during the years of inflation. If I can add a little bit to that,

Hemköp also has been strengthening really its price-value perception in recent years. That has also been contributing to Hemköp really performing strongly right now and growing almost two times the rate of the market in the third quarter.

That's also part of it. Mm.

Great. Just a final from me.

You mentioned in the report that productivity in Bålsta was the best to date in Q3, and we also saw in the presentation here a chart where you show a 25% increase in cases handled per hour in the recent almost two years. Based on the initial plans for this fulfillment center, and sort of the technical capability or limits, do you see continued upside potential in productivity, or should we more view it as you more or less have reached sort of peak efficiency in Bålsta now?

When we grow the volume in Bålsta, we are also managing to raise the productivity as well. It's a combination, actually, we are on a journey there, and we continue on that, you can say.

Yeah.

I take you as continued upside potential in cases handled per hour.

Yeah.

Yeah.

We communicated a span of 2 to 300 million in savings for the first period, and earlier we communicated we're in the lower part of the span, now we're getting to the higher part of that span. From the design year, and going on forward, since we put on more volume in the facility, we will scale up even more in Bålsta.

Great. Thank you very much, guys.

Thank you.

Thank you.

Next is Daniel Schmidt from Danske Bank. Good morning, Daniel, and please go ahead.

Yes, good morning, Simone and Alexander. Just trying to put some numbers on Willys, what's going to drive that growth to be better in the coming quarters?

We've talked a lot about 5.0 concept. Could you give us any numbers in terms of how many stores that have the 5.0 concept now, where were we at the start of the year, and where do you think we're going to be at the end of this year?

By the end of the year, we will have 70 Willys upgraded to 5.0. I think we make about 25 modernizations this year within Willys.

The growth would come, of course, from modernizing stores. It's also about, how to say, developing the offering as we have talked about.

It's also we meet very strong comparison figures in Willys during this year. Just

on sort of other driver, opening new stores, and you think you've opened six so far this year, you've said you should open at least 10 in connection with the Capital Markets Day last year per year. Do you see that you are going to get there if you look at Q4 schedule?

Yes.

We are on that plan.

We are on the plan, both for Willys and as a total in our 10 to 15 stores this year.

When you look into 2027, when you look at Willys store opening schedule so far, is that looking promising, or how's the market developing in terms of getting new locations?

Yes, it looks positive. The 10 stores yearly, we feel pretty sure about.

As Daniel, we will come back to that when we present our Q4 report and guide for the next year.

Sure, but it sounded like at the CMD that this new sort of target for Willys was a medium-term ambition, and not only for '26, that's why I'm asking.

No, as you said, we communicated that towards 2030. Mm.

Yeah.

Exactly.

The profitability kicks up quite well in City Gross without really any improvement in like-for-like to talk about. It sounded like you feel that you are margin-wise moving clearly in the right direction.

Is that sort of how we should interpret you when we look into the Q4, which is strong quarter?

Yeah. As you say, we have seasonal effects in the hypermarket segment.

We have seasonal effects as a Group, but specifically they're higher in the hypermarket segment. As you remember, last year's Q4 was stronger, and then we have a weaker Q1.

The underlying, and that's also why we're happy to see that the 12-month rolling is now breakeven. There are season effects in City Gross where the first quarter is a weaker quarter in the hypermarket segment.

Yeah.

How the Q4 will play out, that we have to come back to, of course, when we sum up the Q4.

Just looking at the medium-term potential in City Gross, of course, have Group targets in terms of profitability. Is there any sort of reasons we are still far from it, of course, but you've done a lot in the past two years, is there any reason to believe that City Gross shouldn't be able to reach the Group average in terms of profitability?

The goal we have of 4.5% is for the Group. It's as we told before, it's a long-term, and of course all our concepts will contribute to that.

We're now, as you say, we're profitable now, we're breakeven in a 12-month rolling. From here, of course, we will continue to work to strengthen City Gross in the long term, first of all, to become a competitive player in the hypermarket segment, and by that also gradually improve the profitability.

As our business model works, as that the Group profit of 4.5%, all our value chain has to contribute to that.

Just thinking also, given that you're altering the guidance on one-offs and maybe it's just a timing effect, but with 38 stores now in City Gross, is that the base that you're happy with, or will there be further changes to that base?

We will probably adjust that a little bit, Daniel, but not in the significant measure or so.

Thank you so much.

Thank you very much.

Thank you so much. Let's now go to Richard Trainor at Bernstein.

Good morning, Richard. Please go ahead.

Hello, good morning. My first question is about the modernizations and new store concepts.

It seems that in both Hemköp and in Willys, you have new store concepts which you're very happy with. Have you considered increasing the pace of their rollouts and spending more on capex to speed that up?

Thank you, Richard. A very good question.

For us, we have a very systematic way of how we develop the store concepts, and then how we modernize them. It's a very good question that we, of course, have how to say, validated.

However, it's important also that the investments that we made in the stores are working how to say, that we have vad ska skriva av dem i tid?

Depreciation.

Depreciations during the time, we're not overinvesting too early either. We have strong concepts in the existing concepts, and then when they are done, we modernize the stores into the new store format.

That's great. Thank you very much.

My second and last question is just on Snabbgross. I was wondering if you could elaborate on what's happened there, the priorities will be for the new leader.

Yeah. No, as you see, we're not performing as we want to in Snabbgross.

The market is highly competitive, and Snabbgross is losing market share. Of course, we're doing a hard job to develop the offering to be able to grow in the same pace or faster than the market also in the restaurant wholesale.

We also communicated from January 1st this year that's coming, we will integrate our convenience business that now is in Dagab into the Snabbgross to become a common segment, they will be able to reach more customers within the both restaurant wholesale and also the convenience market to become an even more attractive player in that segment. That's also an important thing that we're doing to improve the performance in Snabbgross.

That's great. Thank you very much.

Thank you.

Thank you. Thank you.

Now, Gustav Hagéus from SEB is next. Good morning Gustav.

Good to hear from you again. Please go ahead.

Hi.

Thank you, Alex, and it is good to be back. Thanks for taking my questions.

I have a question on the loyalty program. In Hemköp, you write that you have just over 2.2 million members in the quarter compared to approximately 2.2 in Q2, I assume that means that you grew sequentially a bit.

I'm wondering if that is also true for the Willys Plus loyalty program, where you write that you had 4.0 million members.

Yes, thank you, Gustav, for the question, and I'm also happy to have you back. Yes, we're increasing the members also in Willys Plus loyalty program.

We see positive trends in the loyalty programs both for Hemköp, for Willys, and also for actually Snabbgross Club.

That is true also sequentially for Willys?

Yes.

Yes. Okay.

Then I have a question on the market investment in Dagab that you write in your report that offset some of the efficiency gains. Did these increase sequentially?

No, they're pretty stable, I would say. Anders, would you...

Excuse me, I didn't catch your question there.

The investments we do in the market for Dagab, they are, of course, to support the customers, all Dagab's customers. Are they increasing, or are they pretty stable?

They are pretty stable, I would say, between if we compare Q3 to Q2. We have the same situation in Dagab there.

Noted. Then I have a bit of a detailed question, but on Willys' private label shares, they were sort of flattish in H1, and now they're down 60 basis points it appears in Q3 year-over-year.

Do you consider this a blip, or is this something that you think might be a start to something that will continue? If you can remind us also what the margin differentiation is between external brands and your own brands in Willys, that'd be helpful.

No, it's true. We see a little bit lower private label share in Willys.

However, we've seen in Hemköp and City Gross, they're increasing. It's a sign of that we see different consumer behaviors, and also the different roles each of our concepts play.

If you look at as a Group, we're pretty stable in the private label share, and I wouldn't say that this is like a trend. I think there are different measures and also behaviors in the consumer behavior that you can see in the private label changes within different formats.

On the note of our margin difference, we do not communicate that.

Yeah. Thanks.

That's all my questions. Thank you.

Thank you very much.

Thank you, Gustav.

Next up is François Digard from Kepler Cheuvreux. Good morning, François.

Please go ahead.

Good morning. I have a very small follow-up on City Gross.

You have indeed increased your profitability a bit faster than maybe anticipated. How much of the improvement reflects structural cost savings versus better underlying trading?

Trying to have maybe more details on '27, what do you see as sustainable margin level for this business for next year? Thank you.

Hi François, thank you for your question. If you look at the performance for City Gross year-over-year, obviously we've seen effects from structural measures, including closing down underperforming stores, but also efficiency.

That's really what's contributing to the sort of profitability now in the third quarter and also the improvement year-on-year. Obviously we are breakeven now on a rolling 12-month basis with City Gross.

We are profitable in the third quarter, and from now on, we will work on strengthening their profitability, obviously, by driving like-for-like growth and also being very efficient in operations. That we will continue to do also.

We do not really guide on sort of the next year development. Have you anything to add?

No, I'm sorry, François [laughs]. I just started to cough.

No, as you say, the positive like-for-like growth, of course, that's where it all starts, but it's the structural measures, it's also changes in the operational model and also about the improved customer offering. No, Alex, I think you covered it.

Thank you.

Thank you. It looks like we have reached the end of the questions here today.

Thank you very much for that. We'll close the webcast here.

You'll find the full report in the Investor Relations section on our website. If you have any follow-up questions about the report or today's presentation, you're welcome to contact me.

With that, I would like to say thank you for joining us today, and have a good day.

Thank you very much.

Thank you.