Schouw & Co A/S Q3 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonas Guldborg Hansen - Danske Bank A/S, Research Division - Analyst : Yes, Jens. I would like to start with a question on where you started on cash flow and cash that you have piled up now, after reducing net working capital very impressively here. You're talking about further capacity expansion projects. So could you elaborate a bit on where you're looking to expand capacity? And also with this net working capital reduction we saw in Q3, are there any one-offs in there? And also, do you see continued upside from net working capital reductions going forward? And then a question on BioMar, where we saw revenue up 4% in the quarter and up 7% year-to-date. But it looks like you gave a pretty cautious outlook for the fourth quarter. As I calculated, you implicitly expect a 7% decline. So what are the main reasons for this shift in momentum in BioMar? And then my last question is also on BioMar and the fact that you've seen a decline of functional feed sales in certain markets. Are you concerned about this? Is it -- what's -- where it's coming from, so to speak? Yes, those would be my questions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2020 / 2:30PM, SCHO.CO - Q3 2020 Schouw & Co A/S Earnings Call

Question: Jonas Guldborg Hansen - Danske Bank A/S, Research Division - Analyst : It sounds like we should expect some M&A very shortly, because even if I calculate on the capacity expansions you have announced and the acquisition in Spain and maybe a little bit in nonwovens then still your leverage will be very low, as I see it. And so should we interpret this as you are looking at M&A within a short time horizon?