Q2 RESULT LOWERED BY MEDITERRANEAN HEADWINDS

Core Insights - The company reported a revenue increase of 3% to DKK 7.8 billion in Q2 2025, but organic growth was negative at -2% [5][4] - EBITDA decreased by 28% to DKK 893 million, while EBIT fell by 69% to DKK 163 million [4][5] - Adjusted free cash flow was DKK 538 million, down 26% from the previous year [4][5] - The company aims to achieve an EBIT of DKK 0.8-1.0 billion for 2025, revised down from around DKK 1.0 billion [10] Financial Performance - Q2 2025 revenue was DKK 7,810 million compared to DKK 7,580 million in Q2 2024, reflecting a 3% increase [4] - EBITDA for Q2 2025 was DKK 893 million, down from DKK 1,232 million in Q2 2024, marking a 28% decline [4] - EBIT decreased significantly by 69% to DKK 163 million in Q2 2025 from DKK 519 million in Q2 2024 [4] - Adjusted free cash flow fell to DKK 538 million from DKK 724 million, a 26% decrease [4] Operational Challenges - The Mediterranean activities remain a key earnings challenge, with pricing initiatives not meeting expectations [3][8] - The Türkiye & Europe South turnaround is progressing but may face delays in achieving breakeven due to market dynamics [9][10] - The company is focusing on improving yield recovery in the Mediterranean business unit for the remainder of the year [8] Strategic Outlook - The company expects to maintain an adjusted free cash flow outlook of DKK 1.0 billion for 2025 [10] - Geopolitical factors, including a new trade agreement between the EU and USA, may impact demand for EU exports, influencing the company's operations [11][12] - The company anticipates growth in nearshoring, benefiting from trading with manufacturing hubs like Türkiye and Morocco [12]