Polygiene Group AB (POLYG) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to this presentation of the second quarter of PolyGene Group. I am Erika Bjork, and I'm the CEO of the company. And today I have Niklas Blomstedt, our CFO, joining from another location. Good morning. So first of all, I would like to just give a brief summary on the situation. It has been a very, very tough quarter, as you can see. It's a very disappointing report and I believe you have many questions for us. So I encourage you to write the questions in the chat that you can see here in the meeting. Yes, it has been a very challenging quarter and it's due to external factors only that has impacted the quarter very heavily. The tariffs that we mentioned in the last report, we didn't know how that would impact the group. We knew that we don't have any direct consequences because we don't ship any products to US, but we also highlighted that it could be an impact if our customers are affected. And we are an ingredient and we can't sell if we don't have customers that are producing. And with close dialogues with our customers, they have indicated that there has been a lot of disruption in the production chain. Many projects has put on hold. These tariffs have to be mitigated. So there's a lot of price negotiations going on. And during this time, a lot of projects was just delayed. And these discounts they're asking for, it's really hard for the fabric mills or the manufacturing partners to absorb these tariffs. which also led to that there's a lot of capacities that are empty now in China, and we can see that brands are trying to relocate to other countries. But I will come back on this topic when I go into the segments. We also had a negative impact on the currency effect of this quarter compared to last year, which also had a quite b...