Sinch AB (publ) (SINCH) Q2 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:01.674 Thank 00:00:01.674 -- 00:00:06.925 you very much, Operator, and a warm welcome to everyone for this Q2 earnings call. 00:00:06.925 -- 00:00:11.394 My name is Lorinda Pang, CEO of Cinch, and I'm calling in today from the U.S., while 00:00:11.394 -- 00:00:15.342 our CFO, Jonas Dahlberg, is calling in from Stockholm today. 00:00:15.342 -- 00:00:18.914 Let's turn to slide two to look at the highlights from the quarter. 00:00:18.914 -- 00:00:24.261 I'm pleased to share that our second quarter results for 2025 demonstrate our continued 00:00:24.261 -- 00:00:29.288 resilience and steady progress, even as we continue to navigate an uncertain 00:00:29.288 -- 00:00:34.454 macroeconomic environment. As we begin, I would call out the large FX swings we 00:00:34.454 -- 00:00:39.862 experienced in the quarter for net sales, gross profit, and costs due mainly to the weakened 00:00:39.862 -- 00:00:45.398 US dollar. As we always do, we will point you to organic changes, which normalize 00:00:45.398 -- 00:00:51.162 these FX swings and is a consistent representation of the underlying business. 00:00:51.162 -- 00:00:56.249 Reported net sales was 6.6 billion krona, corresponding to a 2% 00:00:56.249 -- 00:01:00.636 organic growth rate when adjusting for the effect of foreign exchange movements, which 00:01:00.636 -- 00:01:03.800 was nearly 600 million krona in the quarter. 00:01:03.800 -- 00:01:08.607 Organic net sales growth is an important guidepost to the underlying performance of the 00:01:08.607 -- 00:01:12.152 business, and 2% is lower than our ambition. 00:01:12.152 -- 00:01:17.080 While mixed shift will help drive improved profitability, we need to do both, higher 00:01:17.080 -- 00:01:20.845 top line growth in net sales and shifting our mix. 0...