Q4 2021 Dole PLC Earnings Call

March 15, 2022

Johan Linden: Turning to slide 10, I will now give some more color on the value-added salad recall and planned suspensions. In December, we announced a voluntary recall for all packaged salads processed at our Bessemer City and Yuma salad processing facilities and suspended operations at both facilities due to possible health risk from Listeria. As the investigation evolved, we established a source of contamination was likely from outside our processing plant and most likely from a single piece of harvest equipment that had become contaminated with Listeria from the natural environment. This resulted in the need to issue a second voluntary recall in January of salads containing products harvested with that equipment.

Turning to slide 10, I will now give some more color on the value-added salad recall and planned suspensions. In December, we announced a voluntary recall for all packaged salads processed at our Bessemer City and Yuma salad processing facilities and suspended operations at both facilities due to possible health risk from Listeria. As the investigation evolved, we established a source of contamination was likely from outside our processing plant and most likely from a single piece of harvest equipment that had become contaminated with Listeria from the natural environment.

Johan: Moving to production. I'm very pleased to announce that at the end of 2021, we had completed the replanting of 2,900 acres of bananas.

Johan: in Honduras that were destroyed by the hurricane in Q4 2020, leaving only approximately 200 acres to be replanted in 2022 to complete our recovery program.

Johan: The decision to reinvest quickly was not only critical for our large employee base in Andorra, but it's now starting to show benefits with a good recovery in yields and cost efficiencies, starting to come through in early 2022.

This resulted in the need to issue a second voluntary recall in January of salads containing products harvested with that equipment. Genetic testing ultimately confirmed that the source was indeed the harvest equipment, but the time needed to complete that testing required us to implement a conservative return to operation plan that included test and hold procedures on finished products. This in turn resulted in operating at a lower capacity and significant disposals of finished goods into mid-February.

Johan Linden: Genetic testing ultimately confirmed that the source was indeed the harvest equipment, but the time needed to complete that testing required us to implement a conservative return to operation plan that included test and hold procedures on finished products. This in turn resulted in operating at a lower capacity and significant disposals of finished goods into mid-February. We are now back to operating at full capacity and are pleased that the investigation validated the leading industry food safety practices within our plants. We have taken additional steps in developing further protocols for the sanitation of harvest equipment and are pleased to be leading the industry forward again in these efforts. We have also used the lessons learned from our investigations to refine and improve processes and protocols that will limit the future exposure of our plant to lengthy closures.

Johan: This is an important development to mitigate some of the other cost increases we have seen from inflation.

Johan: I will now give some more color on the value-added salad recall and plant suspension.

Johan: In December , we announced a voluntary recall for all packet salads processed at our Bessemer City and Yuma salad processing facilities and suspended operations at both facilities due to possible health risks from this area.

We are now back to operating at full capacity and are pleased that the investigation validated the leading industry food safety practices within our plants. We have taken additional steps in developing further protocols for the sanitation of harvest equipment and are pleased to be leading the industry forward again in these efforts. We have also used the lessons learned from our investigations to refine and improve processes and protocols that will limit the future exposure of our plant to lengthy closures.

Johan: As the investigation evolved, we established the source of contamination was likely from outside our over-processing plant and most likely from a single piece of harvest equipment that had become contaminated with listeria from the natural environment.

Johan: This resulted in the need to issue a second voluntary recall in January of salads containing products harvested with adequate care.

Johan: Genetic testing ultimately confirmed that the source was indeed the harvest equipment, but the time needed to complete that testing required us to implement a conservative return to operation plan that included test and hold procedures on finished products.

Johan Linden: This additional mitigation and remediation process resulted in additional costs that were not known in December. We expect exceptional one-time costs from the second phase to be approximately $15 million, reflecting the cost of disposal of affected inventory and packaging reimbursement to customers, direct labor costs, and additional cleaning and sanitation costs. We also estimate the reduction in Adjusted EBITDA in our full year 2022 numbers of approximately $25 million arising from the impact of temporary lost volumes, fixed cost absorption, and delays in initiating price increases needed to combat inflation. Looking ahead, we expect that the one-off cost and impact on the Adjusted EBITDA to be behind us from the beginning of Q2, and we expect the underlying business to recover well. Finally, we have been working with customers since late February in initiating price increases.

This additional mitigation and remediation process resulted in additional costs that were not known in December. We expect exceptional one-time costs from the second phase to be approximately $15 million, reflecting the cost of disposal of affected inventory and packaging reimbursement to customers, direct labor costs, and additional cleaning and sanitation costs. We also estimate the reduction in Adjusted EBITDA in our full year 2022 numbers of approximately $25 million arising from the impact of temporary lost volumes, fixed cost absorption, and delays in initiating price increases needed to combat inflation.

Johan: This in turn resulted in operating at a lower capacity and significant disposals of finished goods into mid-February.

Johan: We are now back to operating at full capacity and are pleased that the investigation validated the leading industry food safety practices within our community.

Johan: We have taken additional steps in developing further protocols for the sanitation of harvest equipment and are pleased to be leading the industry forward again in these efforts.

Johan: We have also used the lessons learned from our investigations to refine and improve processes and protocols that will limit the future exposure of our plant to lengthy closures.

Looking ahead, we expect that the one-off cost and impact on the Adjusted EBITDA to be behind us from the beginning of Q2, and we expect the underlying business to recover well. Finally, we have been working with customers since late February in initiating price increases. We believe that the tight industry capacity, strong category growth, and no current signs of consumer behavior being impacted by the recall event will allow us to recover the short term volume loss from the recall. With that, I will hand you over to Frank to give you the financial review.

Adjusted net income net debt and adjusted earnings per share.

The details of our statutory forward looking statements disclaimer can be found in our SEC filing and the presentation slides, we will be discussing today with that I'm pleased to turn today's call over to Rory.

Johan: This additional mitigation and remediation process resulted in additional costs that were not known in December .

Johan: We expect exceptional one-time costs from the second phase to be approximately 50%.

Johan Linden: We believe that the tight industry capacity, strong category growth, and no current signs of consumer behavior being impacted by the recall event will allow us to recover the short term volume loss from the recall. With that, I will hand you over to Frank to give you the financial review.

Thank you James and thank you all for joining us today, as we discuss our fourth quarter and full year 2021 results.

Johan: million dollars, reflecting the cost of disposal of affected inventory and packaging, reimbursement to customers, direct labor costs, and additional cleaning and sanitation.

During this call I will give some color on the performance of the business over the course of 2021 and our outlook for 2020 to Johan who will give an update on operations synergies and comment on some of the strategic initiatives being undertaken across the group and finally, Frank will take you through the financial review.

Johan: We also estimate a reduction in adjusted EBITDA in our full-year 2022 numbers of approximately $25 billion, arising from the impact of temporary lost volumes, fixed cost absorption, and delays in initiating price increases needed to combat inflation.

Frank Davis: Thank you, Johan. As Rory mentioned at the outset, the financial information referred to today and as outlined in our press release includes results prepared on a pro.

Frank Davis: Thank you, Johan. As Rory mentioned at the outset, the financial information referred to today and as outlined in our press release includes results prepared on a pro. forma basis illustrating Dole plc's earnings as. If the merger, IPO, and refinancing had occurred on 1 January 2020. This methodology is consistent with the pro. forma financial information presented in the Form F-1 filed with the SEC in connection with the IPO. Turning to slide 12, I would first like to comment on the transformational impact. On Total Produce plc of the merger. With Dole Food Company and the creation of Dole plc.

Our 20-F document, which will be filed with the SEC in due course contains reported financials for Dol TLC, including the first full quarter of consolidated financial information. We will also reference reported numbers today, but our earnings press release, and our Investor presentation. Additionally includes pro forma financial information.

Frank Davis: forma basis illustrating Dole plc's earnings as.

Frank Davis: If the merger, IPO, and refinancing had occurred on 1 January 2020.

Johan: Looking ahead, we expect that the once-off cost and impact on the adjusted EBITDA to be behind us from the beginning of Q2, and we expect the underlying business

Frank Davis: This methodology is consistent with the pro.

Frank Davis: forma financial information presented in the Form F-1 filed with the SEC in connection with the IPO. Turning to slide 12, I would first like to comment on the transformational impact.

Illustrating Doe Plc's results as if the merger IPO and refinancing had occurred on January one 2020. This is consistent with the pro forma financial information presented in the form F. One filed with the SEC in connection with the IPO.

Johan: Finally, we have been working with customers since late February in initiating pricing

Frank Davis: On Total Produce plc of the merger.

Johan: We believe that the tight industry capacity, strong category growth, and no current signs of consumer behavior being impacted by the recall event will allow us to recover the short-term volume loss from the recall.

Frank Davis: With Dole Food Company and the creation of Dole plc.

Frank Davis: Because of the merger, Dole plc is significantly larger than legacy Total Produce in.

Because of the merger, Dole plc is significantly larger than legacy Total Produce in. Both scale and geographical footprint. Reported revenue has increased 48.5% to $6.5. Billion for the full year 2021 compared to 2020 and increased 113.7% when comparing. Pro forma revenue for the full year. 2021 of $9.3 billion to reported revenue of $4.3 billion for 2020. Reported adjusted EBITDA has increased 15.3% to. $290.1 million for the full year 2021 compared to that reported for 2020 and up 56.5% when comparing pro forma adjusted EBITDA for the full year 2020 of.$393.6 million to reported Adjusted EBITDA for. 2020 of $251.5 million.

As discussed on our first earnings call in December 'twenty, one 'twenty 2021 was a transformational year for the group.

Frank Davis: Both scale and geographical footprint.

Frank Davis: Reported revenue has increased 48.5% to $6.5.

Johan: With that, I will hand you over to Frank to give you the financial.

Slide six illustrates the impact of the transition from total projects plc, two dose TLC. After the acquisition of the remaining 50, 55% adult food company.

Frank Davis: Billion for the full year 2021 compared to 2020 and increased 113.7% when comparing.

Frank: Thank you, Johan. As Rory mentioned at the outset, the financial information referred to today and as outlined in our press release includes results prepared on a pro forma basis, illustrating Dold PLC's earnings as if the merger IPO and refinancing had occurred on January 1, 2020. This methodology is consistent with the pro forma financial information presented in the form F1 filed with the SEC in connection with the IPO.

Frank Davis: Pro forma revenue for the full year.

Frank Davis: 2021 of $9.3 billion to reported revenue of $4.3 billion for 2020.

Revenue has more than doubled increasing from $4 $3 billion on a reported basis for 2020, 22020 293 billion on a pro forma basis for 2021, we are now the clear global leader in fresh projects at nearly two times larger in terms of revenue than the next largest company in this call.

Frank Davis: Reported adjusted EBITDA has increased 15.3% to.

Frank Davis: $290.1 million for the full year 2021 compared to that reported for 2020 and up 56.5% when comparing pro forma adjusted EBITDA for the full year 2020 of.

Frank: Turning to slide 12, I would first like to comment on the transformational impact on Total Projects PLC of the merger with Dole Food Company and the creation of Dole PLC.

Great.

There's also been a significant increase in adjusted EBITDA from 251 $5 million on a reported basis for 2022 $393 $6 million on a pro forma basis for 2021.

Frank Davis: $393.6 million to reported Adjusted EBITDA for.

Frank: Because of the merger, Dole PLC is significantly larger than legacy total projects in both scale and geographical footprint.

Frank Davis: 2020 of $251.5 million.

Finally, our overall scale and global footprint has significantly increased with our total assets, increasing 148% from $1 $9 billion in 2020 to $4 7 billion. In 2021, we now have a strategic asset base encompassing over 114000 acres of owned land another line.

Frank Davis: Total assets have materially increased by 147%.

Total assets have materially increased by 147%. To $4.7 billion following the merger.As Rory has mentioned, Dole plc delivered strong results for the full year 2021 with pro forma revenue up 3.5% to. $9.3 billion when compared to pro forma revenue in 2020 with increases in all segments. Pro forma Adjusted EBITDA increased 5.9% for full year 2021 to $393.6 million. Diversified fresh produce, EMEA, and fresh fruit were the primary drivers of growth the full year 2021. Pro forma revenue and adjusted EBITDA were in line with guidance provided during our Q3 earnings call.

Frank: Reported revenue has increased 48.5% to $6.5 billion for the full year 2021 compared to 2020, and increased 113.7% when comparing pro forma revenue for the full year 2021 of $9.3 billion to reported revenue of $4.3 billion for 2020.

Frank Davis: To $4.7 billion following the merger.

Frank Davis: As Rory has mentioned, Dole plc delivered strong results for the full year 2021 with pro forma revenue up 3.5% to.

Frank Davis: $9.3 billion when compared to pro forma revenue in 2020 with increases in all segments.

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Over 160 distribution or manufacturing facilities, 75 pack 12 cold storage.

Frank Davis: Pro forma Adjusted EBITDA increased 5.9% for full year 2021 to $393.6 million. Diversified fresh produce, EMEA, and fresh fruit were the primary drivers of growth the full year 2021.

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Frank: reported adjusted EBITDA has increased 15.3% to $290.1 million for the full year 2021 compared to that reported for 2020 and up 56.5% when comparing pro forma adjusted EBITDA for the full year 2020 of $393.6 million to reported adjusted EBITDA for 2020 of $251.5 million.

Back in July we successfully completed the IPO of adult plc, and the refinancing in syndication of $144 billion of new credit facilities and approximately $400 million of net proceeds raised from the IPO. We're all used to strengthen our balance sheet and the refinancing has resulted in annual interest.

Frank Davis: Pro forma revenue and adjusted EBITDA were in line with guidance provided during our Q3 earnings call.

Frank Davis: Now turning briefly to Slide 14.

Frank Davis: Now turning briefly to Slide 14. On a pro forma basis, adjusted net income was $141.2 million for full year 2021, which corresponds to 11.8% increase compared to full year 2020. This was primarily driven by the increase in pro forma adjusted EBITDA and pro. Former reduction in pro forma effective tax rate.Because the results are prepared on a. Pro forma basis, this does not highlight. The benefit of circa $40 million reduction in the annual interest expense achieved through the refinancing.

Cost savings of $40 million with a net leverage ratio of 287 times, which is below our targeted level of three the group is well positioned to deliver long term sustainable growth. Our focus is on the generation of substantial free cash flow to fund. The further development of the group and to return value to our shareholders.

Frank Davis: On a pro forma basis, adjusted net income was $141.2 million for full year 2021, which corresponds to 11.8% increase compared to full year 2020.

Frank: Total assets have materially increased by 147% to $4.7 billion following the merger.

Frank: As Rory has mentioned, Dole PLC delivered strong results for the full year 2021 with pro-former revenue up 3.5% to $9.3 billion when compared to pro-former revenue in 2020 with increases in all segments.

Frank Davis: This was primarily driven by the increase in pro forma adjusted EBITDA and pro.

Yeah.

Turning to slide seven on a pro forma basis. The group delivered strong results for the full year with revenue growth of three 5% on adjusted EBITDA growth of five 9% in line with the guidance, we outlined during our Q3 earnings call the.

Frank Davis: Former reduction in pro forma effective tax rate.

Frank Davis: Because the results are prepared on a.

Frank Davis: Pro forma basis, this does not highlight.

Frank: Proforma adjusted EBITDA increased 5.9% for full year 2021 to $393.6 million. Diversified fresh produce, EMEA, and fresh fruit were the primary drivers of growth.

Frank Davis: The benefit of circa $40 million reduction in the annual interest expense achieved through the refinancing.

The group has also generated double digit growth in adjusted EPS with adjusted EPS growing 11, 8% from one point to $33 per share too.

Frank Davis: Looking at each of the segments in more detail, and starting with fresh fruit, throughout the year we faced cost pressures from the supply chain impact caused by Hurricanes Eta and Iota in Honduras and Guatemala in November 2020, and from industry-wide inflationary pressures.

Looking at each of the segments in more detail, and starting with fresh fruit, throughout the year we faced cost pressures from the supply chain impact caused by Hurricanes Eta and Iota in Honduras and Guatemala in November 2020, and from industry-wide inflationary pressures. However, having regard to those challenges, the. Division delivered a strong performance for the year with growth in revenue and Adjusted EBITDA.

Frank: full year 2021 pro forma revenue and adjusted EBITDA were in line with guidance provided during our Q3 earnings call.

$149 per share. We're also pleased to announce today a dividend for the quarter up eight cents per share.

Frank: Now turning briefly to slide 14, on a pro-forma basis, adjusted net income was $141.2 million for full year 2021, which corresponds to an 11.8% increase compared to full year 2020.

2021 has been an exciting year for our group with plenty of positives, but also a year of some complexity with the impact of Hurricanes Isa and I also want Honduras, Guatemala supply chain pressure across the globe globe and the emergence of significant cost inflation and concluding with the product recall and temporary plant closures in our body.

Frank Davis: However, having regard to those challenges, the.

Frank Davis: Division delivered a strong performance for the year with growth in revenue and Adjusted EBITDA.

Frank Davis: Fourth quarter pro forma revenue was up 6.9% versus the prior year predominantly due.

Fourth quarter pro forma revenue was up 6.9% versus the prior year predominantly due. To the higher banana pricing in North America and continued growth in commercial cargo. For the full year, pro forma revenue. Increased 2.9% due to higher banana pricing in North America, higher pineapple pricing in North America and in Europe, and the strong commercial cargo performance. Q4 2021 pro forma Adjusted EBITDA. Was down 10.3% year on year, with the reduction mainly experienced in Europe due to inflationary pressures that were not offset onto pricing. Was reflected in the new contracts in 2022.

Frank: This was primarily driven by the increase in pro-forma adjusted EBITDA and pro-forma reduction and pro-forma effective tax rates.

Frank Davis: To the higher banana pricing in North America and continued growth in commercial cargo.

You added salad business in December .

Frank Davis: For the full year, pro forma revenue.

When set against this backdrop and the strong prior year. We are very pleased with how we have navigated these challenges and with the full year outcome. The diversity of our product and service offerings why geographic footprint on the strategic asset base allows us to more than offset these challenges and deliver strong full year performance and earnings growth.

Frank Davis: Increased 2.9% due to higher banana pricing in North America, higher pineapple pricing in North America and in Europe, and the strong commercial cargo performance.

Frank: Because the results are prepared on a pro forma basis, this does not highlight the benefit of circa $40 million reduction in the annual interest expense achieved through the refinancing.

Frank Davis: Q4 2021 pro forma Adjusted EBITDA.

Frank Davis: Was down 10.3% year on year, with the reduction mainly experienced in Europe due to inflationary pressures that were not offset onto pricing. Was reflected in the new contracts in 2022.

Frank: Look at each of the segments in more detail, and starting with fresh fruit. Throughout the year, we faced cost pressures from the supply chain impact caused by hurricanes Eta and Iota in Honduras and Guatemala in November 2020, and from industry-wide inflationary pressures. However, having regard to those challenges, the division delivered a strong performance for the year with growth in revenue and adjusted EBITDA.

We're also very fortunate to have a dedicated and resilient group of people within our company and I would like to thank them.

Thank them all for their significant contribution efforts, especially when faced with a unique circumstances brought about by the COVID-19 pandemic over the last couple of years. Our team is very strong in responding to and overcoming challenges. This has definitely borne out by our 2021 results.

Frank Davis: In North America, the price increases referred.

In North America, the price increases referred. To earlier by Johan helped to offset input cost pressure as well as increases in transportation and handling costs. For the full year, Pro forma Adjusted EBITDA increased 21.6% largely due to higher revenue as outlined above. Moving to Diversified Fresh Produce EMEA, this segment had a strong performance in 2021. As Paul does on our Q3 earnings call. A reorganization of our Dutch businesses, recovery. In food service channels and continued focus on superior service delivery for our customers contributed to the strong growth.

Frank Davis: To earlier by Johan helped to offset input cost pressure as well as increases in transportation and handling costs. For the full year, Pro forma Adjusted EBITDA increased 21.6% largely due to higher revenue as outlined above.

Frank: Fourth quarter pro forma revenue was up 6.9% versus the prior year, predominantly due to the higher banana prices in North America and continued growth in commercial cargo.

Our industry has continued to grow particularly within categories. Abdul plc has an established leader leadership position, such as bananas, and pineapples and bundling value added solid we continue to focus our efforts on expanding our presence in the faster growing categories such as berries.

Frank Davis: Moving to Diversified Fresh Produce EMEA, this segment had a strong performance in 2021.

Frank: For the full year, pro forma revenue increased 2.9% due to higher banana pricing in North America and higher pineapple pricing in North America and in Europe , and the strong commercial cargo performance.

Frank Davis: As Paul does on our Q3 earnings call.

Frank Davis: A reorganization of our Dutch businesses, recovery.

Caddo exotic exotics organic projects.

Frank Davis: In food service channels and continued focus on superior service delivery for our customers contributed to the strong growth. Pro forma revenue increased 4.3% in Q4.

Each of these categories has expanded at a faster rate than the industry average over the last three years. This industry growth is driven by the Mega trend of health and wellness as well as the clear sustainability credentials provided by fresh projects consumers are increasingly focused on their physical and mental well being and the shifting towards plant based.

Frank: Fourth quarter 2021, pro forma adjusted EBITDA was down 10.3% year-on-year, with the reduction mainly experienced in Europe due to inflationary pressures that were not offset onto pricing was reflected in the new contracts in 2022.

Pro forma revenue increased 4.3% in Q4.Of 2021 and increased 5.4% for the full year. Q4 pro forma Adjusted EBITDA increased. 1.9% and on a full year basis increased 24%, driven by recovery in our Dutch businesses overall, strong trading across the segment, and the continued recovery in food. Service channels as European government relaxed COVID-19 measures. We also benefited from positive foreign currency. Translation during the fiscal year. However, we are currently forecasting some foreign currency translation headwinds for the forthcoming financial. Year following a weakening of European currencies versus the US Dollar.

Frank Davis: Of 2021 and increased 5.4% for the full year. Q4 pro forma Adjusted EBITDA increased.

Frank Davis: 1.9% and on a full year basis increased 24%, driven by recovery in our Dutch businesses overall, strong trading across the segment, and the continued recovery in food.

Terry on Vega died as a way to improve their health and reduce their own carbon footprint. We believe that these trends provide a solid foundation for our company to grow.

Frank: In North America, the price increases referred to earlier by Johan helped offset input cost pressure as well as increases in transportation and handling costs. For the full year, pro forma adjusted EBITDA increased 21.6 percent, largely due to higher revenue as outlined above.

For the current financial year, our strategic priorities include managing pricing within a complex economic environment delivering on our integration and synergy goals.

Frank Davis: Service channels as European government relaxed COVID-19 measures. We also benefited from positive foreign currency.

Frank Davis: Translation during the fiscal year.

Frank: Moving to diversify fresh projects EMBA, this segment had a strong performance in 2021. As Paul does on our Q3 earnings call, a reorganization of our Dutch businesses, recovery and food service channels, and continued focus on superior service division for our customers contributed to the strong growth.

Seeking out value enhancing M&A opportunities and of course rebuilding profitability within the fresh vegetables segment.

Frank Davis: However, we are currently forecasting some foreign currency translation headwinds for the forthcoming financial.

Frank Davis: Year following a weakening of European currencies versus the US Dollar.

Provide further color on these later in the presentation, but for now I would like to pass you over to Johan to give the operational review.

Frank Davis: Looking next at Diversified Fresh Produce Americas.

Looking next at Diversified Fresh Produce Americas. Rest of the World Q4 2021 pro forma revenue was up 0.8%. Versus the prior year. Pro forma revenue for the full year. Was up 3.8% primarily due to higher revenue from berries, and more incrementally from growth in the South American export fruit business. Pro forma adjusted EBITDA for the fourth. Quarter was up 42.6% mainly due to a good start to the Peruvian grape.The Chilean cherry season.

Frank Davis: Rest of the World Q4 2021 pro forma revenue was up 0.8%.

Thanks, Lori and good morning, everyone turning to slide nine.

Frank: Proforma revenue increased 4.3% in the fourth quarter of 2021 and increased 5.4% for the full year.

Frank Davis: Versus the prior year. Pro forma revenue for the full year.

On our last call to engage with our customers.

One to address rising inflation through negotiating price increases have been all critical strategic importance.

Frank Davis: Was up 3.8% primarily due to higher revenue from berries, and more incrementally from growth in the South American export fruit business.

Frank: fourth quarter pro forma adjusted EBITDA increased 1.9% and on a full year basis increased 24%, driven by recovery in our Dutch businesses, overall strong trading across the segment and the continued recovery in food service channels as European governments relaxed COVID-19 measures.

In fresh fruit reenter the price increases in North America in November 2021, and in Europe , we have seen price adjustment since January .

Frank Davis: Pro forma adjusted EBITDA for the fourth.

Frank Davis: Quarter was up 42.6% mainly due to a good start to the Peruvian grape.

Why do we feel good about delivering our strongest COVID-19 pressure.

Frank Davis: The Chilean cherry season. Adjusted EBITDA measured on the same basis for the year was down slightly by.

Adjusted EBITDA measured on the same basis for the year was down slightly by. 1.4%, with the decrease largely due to the impact of adverse weather events on the Chilean grape season at the outset of the year as well as inflation and logistics pressures faced by some of our North American businesses. This was offset in part by good. Underlying development in the business with continued growth in the berry category, in the Chilean cherry business, in kiwi, together with our recovery in apples and pears after. Challenges in the prior year.

We are also closely monitoring the impact of the war in Ukraine on the industry as it relates to early to say what impact will have on our business, but we are closely monitoring the situation and.

Frank: We also benefited from positive foreign currency translations during the fiscal year.

Frank Davis: 1.4%, with the decrease largely due to the impact of adverse weather events on the Chilean grape season at the outset of the year as well as inflation and logistics pressures faced by some of our North American businesses.

Frank: However, we are currently forecasting some foreign currency translation headwinds for the forthcoming financial year following a weakening of European currencies versus the US dollar.

Are staying close to our suppliers and customers to navigate and issues that emerge.

Direct exposure is minimal and we do not have any operations or facilities and Ukraine or Russia.

Frank Davis: This was offset in part by good.

Frank Davis: Underlying development in the business with continued growth in the berry category, in the Chilean cherry business, in kiwi, together with our recovery in apples and pears after.

Frank: Looking next at diversified fresh produce Americas and Western world, fourth quarter 2021, pro forma revenue was up 0.8% versus the prior year. Pro forma revenue for the full year was up 3.8%, primarily due to higher revenue from berries and more incrementally from growth in the South American export fruit business.

And fresh vegetables after implementing a price increase in the summer the value added solid three calls delayed all require a second price adjustment.

Frank Davis: Challenges in the prior year. Finally turning to fresh vegetables on slide.

Finally turning to fresh vegetables on slide. 2018, this division has had a challenging year.In addition to the reasons outlined during. Our Q3 earnings call. This division was. Further impacted by a voluntary salad recall in December. As Johan has expanded upon, this was the primary driver behind pro forma revenue decrease in 8.5% in Q4 2021.For the full year, pro forma revenue. Increased 1% due to overall higher volumes and pricing in the value-added salad. Business driven by strong market demand and. A better mix of products sold.

Now actively negotiating and expect price increases to be quicker.

Frank Davis: 2018, this division has had a challenging year.

Quickly.

Frank Davis: In addition to the reasons outlined during.

Our diversified business, a more dynamic pricing because of the shorter season caused these changing sourcing locations. Therefore in 2021.

Frank Davis: Our Q3 earnings call. This division was.

Frank: Proforma-adjusted EBITDA for the fourth quarter was up 42.6%, mainly due to a good start to the Peruvian grape and the Chilean cherry season.

Frank Davis: Further impacted by a voluntary salad recall in December.

Frank Davis: As Johan has expanded upon, this was the primary driver behind pro forma revenue decrease in 8.5% in Q4 2021.

The operating environment was challenging we were able to adapt to specific pressures that emerge and maintain our expected margins over the course of the year.

Frank: adjusted EBITDA measured on the same basis for the year was down slightly by 1.4%, with a decrease largely due to the impact of adverse weather events on the Chilean grape season at the outset of the year, as well as inflation and logistics pressures faced by some of our North American businesses.

Frank Davis: For the full year, pro forma revenue.

The diversified business to bulk in a similar way.

Frank Davis: Increased 1% due to overall higher volumes and pricing in the value-added salad.

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Moving to synergies and continue to make good progress towards other short term targets.

Frank Davis: Business driven by strong market demand and.

Frank Davis: A better mix of products sold.

I've seen some notable recent developments in the important barriers avocado category.

Frank Davis: We incurred a loss in Q4.

We incurred a loss in Q4. Quarter due to the impact of the recall, and on a full year basis due to the impact of weakness. Packaged vegetables, markets, inflationary challenges, and the December recall. As confirmed earlier, we are now operating. Again at full capacity and have taken steps to increase pricing, so we look forward to an improved performance through 2022.

Frank Davis: Quarter due to the impact of the recall, and on a full year basis due to the impact of weakness.

Frank: This was offset in part by good underlying development in the business, with continued growth in the berry category, in the Chilean cherry business, in kiwi, together with a recovery in apples and pears after challenges in the prior year.

Julie can increase the collaboration between the businesses the previously operated independently.

Frank Davis: Packaged vegetables, markets, inflationary challenges, and the December recall. As confirmed earlier, we are now operating.

Targeted investments that will support our growth plan.

In the vanilla category, we are continuing to see enhanced collaboration in Europe with successes in our development of the French market our growth plan for your business.

Frank Davis: Again at full capacity and have taken steps to increase pricing, so we look forward to an improved performance through 2022.

Frank: finally turn into fresh vegetables on slide 18. This division has had a challenging year. In addition to the reasons outlined during our Q3 earnings call, this division was further impacted by a voluntary salad recall in December as Johan has expanded upon.

Frank Davis: Next I will discuss our capital allocation and leverage. We successfully completed a refinance and syndication.

Next I will discuss our capital allocation and leverage. We successfully completed a refinance and syndication. Of $1.44 billion of new credit facilities. Concurrent with our IPO in July of last year. This refinancing enabled us to materially lower. Our cost of capital and annual interest. Expense by repaying expensive debt within Dole Food Company. Our annual interest expense savings and incremental. Free cash flow following this refinance is in the order of $40 million.

Across the company, we are enhancing our growth our group collaboration.

That is already providing benefit it will continues to be a complex global logistics market.

Frank Davis: Of $1.44 billion of new credit facilities.

Frank: This was the primary driver behind pro-former revenue decrease in 8.5% in the fourth quarter of 2021. For the full year, pro-former revenue increased 1% due to overall higher volumes and pricing in the value-added salad business, driven by strong market demand and a better mix of products sold.

Frank Davis: Concurrent with our IPO in July of last year. This refinancing enabled us to materially lower.

Turning to investment 2021 was an important year for the group with several significant investment that we expect will underpin the business moving forward.

Frank Davis: Our cost of capital and annual interest.

Frank Davis: Expense by repaying expensive debt within Dole Food Company. Our annual interest expense savings and incremental.

As communicated in our last call, we took delivery of two new vessel.

Frank Davis: Free cash flow following this refinance is in the order of $40 million.

Vic and Don.

Services use the U S Gulf region, and they are performing very well.

Frank: We incurred a loss in the fourth quarter due to the impact of the recall and on a full year basis due to the impact of weak packed vegetables markets, inflationary challenges and the December recall.

Frank Davis: Our capital expenditure strategy is focused on.

Our capital expenditure strategy is focused on. Investing where we see the greatest opportunity for profitable growth to support our existing strong market positions in core products. Typically, we expect our capital expenditure to be in line with our annual depreciation. Expense of circa $120 million. This can vary depending on where we. Are in our reinvestment cycle and for certain larger capital assets such as vessels.

Frank Davis: Investing where we see the greatest opportunity for profitable growth to support our existing strong market positions in core products.

Our entire vessel fleet continues to be of enormous strategic importance for the business, providing critical insulation from the worst of the <unk>.

Frank Davis: Typically, we expect our capital expenditure to be in line with our annual depreciation.

Frank: As confirmed earlier, we are now operating again at full capacity and have taken steps to increase pricing, so we look forward to an improved performance through 2022.

Supply chain challenges to our ability to manage overall cost and timetables and also due to the growth in our commercial cargo business, especially with global shipping capacity is costly.

Frank Davis: Expense of circa $120 million.

Frank Davis: This can vary depending on where we.

Frank Davis: Are in our reinvestment cycle and for certain larger capital assets such as vessels.

Frank: Next, I will discuss our capital allocation and leverage. We successfully completed a refinancement syndication of $1.44 billion of new credit facilities concurrent with our IPO in July of last year.

Moving to production.

Frank Davis: In 2021 we had capital expenditure of.

In 2021 we had capital expenditure of. Approximately $190 million, as we made a number of strategic investments, including the final payments on delivery of two new vessels in Q4. We continued our investments in Honduras as. Part of the rehabilitation programs following Hurricanes Eta and Iota and have now successfully replanted over 2,900 acres of banana farms.

Very pleased to announce that the end of 2021, we had completed the refinancing of 2900 acres.

Frank Davis: Approximately $190 million, as we made a number of strategic investments, including the final payments on delivery of two new vessels in Q4. We continued our investments in Honduras as.

Frank: This refinancing enabled us to materially lower our cost of capital and annual interest expense by repaying expensive debts within Dole Food Company. Our annual interest expense saving and incremental free cash flow following this refinance is in the order of $40 million.

And Honduras that were destroyed by the hurricane in Q4 'twenty.

Leaving only approximately 200 acres to be planted in 2022 to complete our recovery program.

Frank Davis: Part of the rehabilitation programs following Hurricanes Eta and Iota and have now successfully replanted over 2,900 acres of banana farms.

The decision to reinvest quickly what's not only critical for a large employee base in the Dora, but it's now starting to show benefits with a good recovery in yields and cost.

Frank Davis: We are pleased to announce today a cash dividend for Q4 2021 of $0.08 per share, which we will pay on 12 April 2022 to shareholders of record on 29 March 2022.

We are pleased to announce today a cash dividend for Q4 2021 of $0.08 per share, which we will pay on 12 April 2022 to shareholders of record on 29 March 2022. Finally, we continue to focus on retaining leverage within our target level of 3x Adjusted EBITDA. At the end of Q4, our net leverage ratio was 2.87x. Now I'd like to hand you back to Rory who provide more detail on our full year 2022 outlook.

Frank: Our capital expenditure strategy is focused on investing where we see the greatest opportunity for profitable growth to support our existing strong market positions and core products.

<unk> starting to come through in early 2020.

This is an important development to mitigate some of the other cost increases we are seeing.

Frank: Typically, we expect our capital expenditure to be in line with our annual depreciation expense of circa $120 million.

Frank Davis: Finally, we continue to focus on retaining leverage within our target level of 3x Adjusted EBITDA.

From inflation.

Yes.

Frank Davis: At the end of Q4, our net leverage ratio was 2.87x. Now I'd like to hand you back to Rory who provide more detail on our full year 2022 outlook.

Turning to slide 10.

Frank: This can vary depending on where we are in our reinvestment cycle and for certain larger capital assets such as vessels.

I will now give some more color on the value added solid recall and planned suspensions.

In December we announced a voluntary recall for all packaged processed at our Bessemer City, and you must solids processing facilities.

Frank: In 2021, we had capital expenditure of approximately $190 million as we made a number of strategic investments including the final payments on delivery of two new vessels.

Rory Byrne: Thank you, Frank. While looking out to the full year, we are targeting revenue in the range of $9.6 to 9.9 billion. As Johan has already explained, the impact from the value added salads product recall has been significant and we currently anticipate that this will have an approximately $25 million negative impact on our targeted adjusted EBITDA for 2022. Additionally, currencies as Frank has already outlined may cause some reduction on translation of Euro earnings to US Dollars this year. With the exception of our value added salad business, underlying trading within all of our other businesses has been in line with our expectations for the start of this year. Taking all of these factors into account, our full year guidance for adjusted EBITDA is in the range of $370 to 380 million.

<unk> operations at both facilities.

Possible health risks from this period.

Frank: In the fourth quarter, we continued our investments in Honduras as part of the rehabilitation programs following hurricanes Eta and Iota, and have now successfully replanted over 2,900 acres of banana farms.

As a mitigation of bowl, we established a source of contamination was likely outside over processes that most likely from a single piece of harvested.

<unk> had become contaminated with listeria from the natural environment.

Frank: We are pleased to announce today a cash dividend for the fourth quarter of 2021 of 8 cents per share, which we will pay on the 12th of April to shareholders of record on 29th of March 2022.

This resulted in the need to issue a second voluntary recall in January .

Solids containing products harvested with that equipment.

With the exception of our value added salad business, underlying trading within all of our other businesses has been in line with our expectations for the start of this year. Taking all of these factors into account, our full year guidance for adjusted EBITDA is in the range of $370 to 380 million. In relation to the other financial metrics, we are targeting Capex of approximately $125 million, which is in line with our annual depreciation charge. Additionally, we expect an annual interest expense of approximately $45 million, reflecting the full year reduction in interest of over $40 million as a result of the refinancing and an effective tax rate in the range of 25% to 28%.

Domestic testing ultimately confirmed that the source.

Frank: Finally, we continue to focus on maintaining leverage within our target level of three times adjusted EBITDA. At the end of the fourth quarter, our net leverage ratio was 2.87 times.

The harvest equipment, but the time needed to complete that testing required to implement the conservative return to operation plan that included just on hold.

Frank: Now I'd like to hand you back to Rory who will provide more detail on our full year 2022 outlook.

Seizures of finished products.

This in turn resulted in operating at a lower capacity and significant disposals of finished goods into mid February .

Rory Byrne: In relation to the other financial metrics, we are targeting Capex of approximately $125 million, which is in line with our annual depreciation charge. Additionally, we expect an annual interest expense of approximately $45 million, reflecting the full year reduction in interest of over $40 million as a result of the refinancing and an effective tax rate in the range of 25% to 28%.

Rory: Thank you, Frank. Well, looking out to the full year, we are targeting revenue in the range of $9.6 to $9.9 billion. And as Johan has already explained, the impact from the value added solid product recall has been significant, and we currently anticipate that this will have an approximately $25 million negative impact on our targeted adjusted EBITDA for 2022.

We are now back to operating at full capacity and are pleased that the investigation validated the leading industry.

<unk> practices within our plan.

Yeah.

We have taken additional steps in developing further protocols for the <unk>.

<unk> of harvest equipment, and we're pleased to be leading the industry forward again these efforts.

Rory Byrne: Looking at the macroeconomic environment, the current conflict in Ukraine and the resulting sanctions in Russia were very unexpected. It's very difficult to accurately predict today what impact this may have on global trade flows, cost, inflation, and foreign exchange rates, and to what extent this might impact our business. We are obviously very focused on all of these issues and we'll take whatever action necessary to minimize any potential impact. Moving on to Slide 22, I'll finish by outlining our strategic priorities for 2022. Obviously, our key priority is clearly to rebuild profitability within the fresh vegetable segment and in particular our value added salads business. The sector continues to show strong demand and tight industry capacity, and this combined with the necessary price increases, gives us confidence that profitability will be restored during 2022. We continue to concentrate on the integration of our businesses.

Looking at the macroeconomic environment, the current conflict in Ukraine and the resulting sanctions in Russia were very unexpected. It's very difficult to accurately predict today what impact this may have on global trade flows, cost, inflation, and foreign exchange rates, and to what extent this might impact our business. We are obviously very focused on all of these issues and we'll take whatever action necessary to minimize any potential impact. Moving on to Slide 22, I'll finish by outlining our strategic priorities for 2022. Obviously, our key priority is clearly to rebuild profitability within the fresh vegetable segment and in particular our value added salads business.

Rory: Additionally, currencies, as Frank has already outlined, may cause some reduction on translation of euro earnings to US dollars this year.

We have also used the lessons learned.

From our investigations to refined and improved.

Process is the protocols that will limit the future exposure of our plan to legacy closer.

Rory: With the exception of our value-added salad business, underlying trading within all of our other businesses has been in line with our expectations for the start of this year.

Additionally, litigation and remediation process resulted in additional cost that would not known in December .

Rory: Taking all of these factors into account, our full year guidance for adjustability is in the range of $370 to $380 million.

We expect exceptional onetime costs from the second phase to be approximately $15 million.

Rory: In relation to the other financial metrics, we are targeting CapEx of approximately $125 million, which is in line with our annual depreciation charge. Additionally, we expect an annual interest expense of approximately $45 million, reflecting the full-year reduction in interest of over $40 million as a result of the refinancing, and an effective tax rate in the range of 25% to 28%.

Reflecting the cost of disposal of affected inventory packaging reimbursement to customers direct labor cost and additional cleaning and sanitation.

The sector continues to show strong demand and tight industry capacity, and this combined with the necessary price increases, gives us confidence that profitability will be restored during 2022. We continue to concentrate on the integration of our businesses. Our management teams and people are continuing the process of working ever more closely together following the creation of Dole plc. This integration and collaboration is of high strategic importance, especially as we seek to deliver on the targeted synergies we set at the time of the IPO.

We also estimate the reduction in adjusted EBITDA in our full year two weighted toward the June numbers are approximately $25 million.

Writes it from the impact of temporary lost volumes fixed.

Fixed cost absorption and delays in initiating price increases needed to combat inflation.

Rory: Looking at the macroeconomic environment, the current conflict in Ukraine and the resulting sanctions in Russia were very unexpected. It's very difficult to accurately predict today what impact this may have on global trade flows, cost inflation and foreign exchange rates, and to what extent this might impact our business.

Rory Byrne: Our management teams and people are continuing the process of working ever more closely together following the creation of Dole plc. This integration and collaboration is of high strategic importance, especially as we seek to deliver on the targeted synergies we set at the time of the IPO. Another pivotal element of our strategy is to focus on expanding our presence in faster growing categories such as berries, avocados, and organic produce, as well as bringing the Dole brand to new customers, particularly to new markets across Europe. We also continue to actively seek out synergistic and value-enhancing M&A opportunities. The market is fragmented and growing, and we believe we are well positioned to capitalize on the opportunities that our industry may present.

Looking ahead, we expect that.

Once off cost and impact on the adjusted EBITDA to be behind us from the beginning of Q2 and.

And we expect the underlying business to recover.

Another pivotal element of our strategy is to focus on expanding our presence in faster growing categories such as berries, avocados, and organic produce, as well as bringing the Dole brand to new customers, particularly to new markets across Europe. We also continue to actively seek out synergistic and value-enhancing M&A opportunities. The market is fragmented and growing, and we believe we are well positioned to capitalize on the opportunities that our industry may present.

Rory: We are obviously very focused on all of these issues and we'll take whatever action necessary to minimize any potential impact.

Finally, we have been working with customers in late February and initiating price increases.

Please at the tight industry capacity.

Rory: Moving on to slide 22, I'll finish by outlining our strategic priorities for 2022. Obviously our key priority is clearly to rebuild profitability within the fresh vegetable segment and in particular our value-added salads business. The sector continues to show strong demand and tight industry capacity and this combined with the necessary price increases gives us confidence that profitability will be restored during 2022.

<unk> category growth.

<unk> signed consumer behavior being impacted by the recall the bank will allow us to recover the short term volume loss probably recall is.

Is that I will hand, you over to Frank to give you the international region.

Rory Byrne: We will also finalize a new combined set of sustainability goals, framework, and materiality assessment during 2022, as well as publishing our first sustainability report for Dole plc. In closing, we're very pleased with what the company has achieved during 2021, the merger of Dole Food Company, the creation of Dole plc, the listing on the New York Stock Exchange, and the completion of a $1.44 billion refinancing. The group delivered strong financial results during 2021 and I would once again like to thank all our people for their significant contribution, and dedication without which none of this would have been achieved. Before we open the call to questions, I would just like to note that earlier today we announced an upcoming change in the management team here at Dole.

Thank you Joanne as already mentioned at the outset, the financial information referred to today and as outlined in our press release includes results prepared on a pro forma basis illustrating <unk> Plc's earnings. This the merge our IPO and refinancing had occurred on January one 2020 this mess.

Rory: We continue to concentrate on the integration of our businesses, our management teams and people are continuing the process of working ever more closely together following the creation of Dole PLC. This integration and collaboration is of high strategic importance, especially as we seek to deliver on the targeted synergies we set out at the time of the IPO.

This allergy is consistent with the pro forma financial information presented in the form F. One filed with the SEC in connection with the IPO.

Rory: Another pivotal element of our strategy is to focus on expanding our presence in faster growing categories such as berries, avocados and organic produce, as well as bringing the Dole branch to new customers, particularly to new markets across Europe .

Turning to slide 12, I would first like you like to comment on the transformational impact on quoted projects plc of the merger with Dow recruit company and the creation of <unk> plc.

Before we open the call to questions, I would just like to note that earlier today we announced an upcoming change in the management team here at Dole. Frank Davis has informed us that he has decided to retire and step down from his position on the board and as CFO from 30 June 2022. Frank has been with the group since 1983, and I have had the great pleasure of working very closely with him for many years.

Because of the merger Dolby is significantly larger than legacy total projects in both scale and geographical footprint.

Rory: We also continue to actively seek out synergistic and value-enhancing M&A opportunities. The market is fragmented and growing, and we believe we are well positioned to capitalise on the opportunities that our industry may present.

Rory Byrne: Frank Davis has informed us that he has decided to retire and step down from his position on the board and as CFO from 30 June 2022. Frank has been with the group since 1983, and I have had the great pleasure of working very closely with him for many years. He's been a big part of our success, and we will definitely miss him. He has more than earned the right to a happy, healthy, and enjoyable retirement, and we wish him the very best in the future. In the future, Jacinta Devine, our Company Secretary and the Finance Director of our Ireland and UK businesses, will take over as CFO and will join the board when Frank retires. With her over 25 years of experience in the group, I have every confidence that this will be a seamless transition.

<unk> revenue has increased 48, 5% to $6 $5 billion for the full year of 2021 compared to 2020 and increased $113, 7% when comparing pro forma revenue for the full year of 2021 of $9 $3 billion to reported revenue of $4.

Rory: We will also finalize a new combined set of sustainability goals, framework and materiality assessment during 2022, as well as publishing our first sustainability report for Dole PLC.

He's been a big part of our success, and we will definitely miss him. He has more than earned the right to a happy, healthy, and enjoyable retirement, and we wish him the very best in the future. In the future, Jacinta Devine, our Company Secretary and the Finance Director of our Ireland and UK businesses, will take over as CFO and will join the board when Frank retires. With her over 25 years of experience in the group, I have every confidence that this will be a seamless transition. So with that in mind, I'll hand you back to the operator and we can open the line for questions. Thank you.

Rory: In closing, we're very pleased with what the company has achieved during 2021, the merger with Dole Food Company, the creation of Dole TLC, the listing on the New York Stock Exchange and the completion of a $1.44 billion refinance.

$3 billion for 2020.

Reported adjusted EBITDA has increased 15, 3% to $291 million for the full year 2021, compared to that reported for 2020 and up to 56, 5% when comparing pro forma adjusted EBITDA for the full year 2020.

Rory: The group delivered strong financial results during 2021 and I would once again like to thank all our people for their significant contribution and dedication, without which none of this would have been achieved.

$393 $6 million to reported adjusted EBITDA for 2020 of $251 $5 million.

Rory Byrne: So with that in mind, I'll hand you back to the operator and we can open the line for questions. Thank you.

Rory: Before we open the call to questions, I would just like to note that earlier today we announced an upcoming change in the management team here at Dole. Frank Davis has informed us that he has decided to retire and step down from his position on the board and a CFO from the 30s of June of this year.

Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to remove your question, please press star followed by two. When preparing to ask your question, please ensure your phone is unmuted locally.

Total assets have materially increased by 147% to $4 7 billion following the merger.

As rhodium as mentioned Dole plc delivered strong results for the full year 2021 with pro forma revenue up three 5% to nine $3 billion when compared to pro forma revenue in 2020 with increases in all segments.

Rory: Frank has been with the group since 1983 and I have had the great pleasure of working very closely with him for many years. He has been a big part of our success and we will definitely miss him. He has more than earned the right to a happy, healthy and enjoyable retirement and we wish him the very best in the future.

Operator: We take our first question from Adam Samuelson from Goldman Sachs. Please go ahead.

Adam Samuelson: Yes, thank you.

Adam Samuelson: Yes, thank you. Good morning, everyone.

Christopher Barnes: Good morning, everyone.

Pro forma adjusted EBITDA increased five 9% for full year 2021 to $393 $6 million.

Johan Linden: Good morning, Adam.

Rory: Jacinta Devine, our company secretary and the finance director of Ireland and UK businesses will take over as CFO and will join the board when Frank retires. With her over 25 years of experience in the group, I have every confidence that this will be a seamless transition. So with that in mind, I'll hand you back to the operator and we can open the line for questions.

Christopher Barnes: Morning.

Adam Samuelson: Morning.

Adam Samuelson: So I guess my first question is to make sure I understand kind of how you're framing the 2022 outlook. So it includes the $25 million headwinds from the Salads business. But what I wasn't clear on was kind of how you're framing kind of market uncertainty related to Russia, Ukraine. So maybe help us just frame the inflationary kind of dynamics in terms of bunker fuel, in terms of fertilizer, logistics broadly, that the effects that are assumed in the EBITDA guidance, and maybe just then think about kind of the things you're most closely watching that would further impact your outlook as we understand kind of how markets unfold.

<unk> fresh projects EMEA and fresh fruit, what the primary drivers of growth.

The full year 2021 pro forma revenue and adjusted EBITDA were in line with guidance provided during our Q3 earnings call.

Now turning briefly to slide 14 on a pro forma basis. Adjusted net income was $141 $2 million portfolio for full year 2021, which corresponds to.

Speaker Change: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad.

Speaker Change: If you'd like to remove your question, please press star for Labour 2.

Speaker Change: and when preparing to ask your question please ensure your phone is unmuted locally.

11, 8% increase compared to full year 2020. This was primarily driven by ink by the increase in pro forma adjusted EBITDA and pro forma reduction in pro forma effective tax rates.

Speaker Change: We take our first question from Adam Samuelson from Goldman Sachs, please go ahead.

Because the results are prepared on a pro forma basis.

This does not highlight the benefit of circa $40 million reduction in the annual interest expense of three achieved through.

Adam Samuelson: Morning Evan. Morning. So I guess my first question is to make sure I understand kind of how you're framing the 2022 outlook. So it includes the 25 million headwinds from the salads business.

Rory Byrne: Okay, I'll take that, Adam, and Rory here. Yeah, I mean we've taken our expected outcome for 2022. We've the 25 known impact in the VA, and pretty much the balance of it is down to the FX translation impact that Frank [mentioned] with the strengthening of the dollar against the European currencies. In relation to the other aspects in terms of inflation, as Johan outlined in his presentation, we have taken the necessary primarily pricing actions across the group to reflect that. There's a little bit further to come, hopefully on the VA side with the delay in implementing some of the second price increases because of the Listeria recall. With regard to the macro geopolitical situation, we have just highlighted that we are heading into uncharted territory here.

Refinancing.

Looking at each of the segments in more detail and starting with fresh fruit throughout the year, we faced cost pressures from the supply chain impact caused by Hurricanes.

Adam Samuelson: But what I wasn't clear on was kind of how you're framing.

<unk> in Honduras, Guatemala, and November 2020, and from industry wide inflationary pressures.

Adam Samuelson: kind of market uncertainty related to Russia, Ukraine. So maybe, can you help us just frame the...

Having regard to those challenges the division delivered a strong performance for the year with growth in revenue and adjusted EBITDA.

Adam Samuelson: inflationary kind of dynamics in terms of bunker fuel, in terms of fertilizer, logistics, broadly the effects that are assumed in the EBITDA guidance, and maybe just then think about kind of the things you're most closely watching that would further, could further impact your outlook as we understand kind of how markets unfold.

There's a little bit further to come, hopefully on the VA side with the delay in implementing some of the second price increases because of the Listeria recall. With regard to the macro geopolitical situation, we have just highlighted that we are heading into uncharted territory here. It is very difficult to predict today what medium or long term impact that situation can have on trade flows, can have on cost inflation.

Fourth quarter pro forma revenue was up six 9% versus the prior year predominantly due to the higher banana pricing in North America and continued growth in commercial cargo for.

For the full year pro forma revenue increased two 9% due to higher banana pricing in North America, and higher paying out with pricing in North America and in Europe , and the strong commercial cargo performance.

Rory Byrne: It is very difficult to predict today what medium or long term impact that situation can have on trade flows, can have on cost inflation. As you say, we're seeing volatility around fuel. We may see a softening of the freight market with excess capacity now available because of the lack of trade flows into Russia, in particular. And then there's FX uncertainty in terms of, particularly, translation and where the dollar might or might not go against the main European currencies. So our forecast is based on the known information we've got today. And you know, we haven't built in any significant adjustment, but we have highlighted that there is an uncertainty around the macro geopolitical situation. So I don't know if that clarifies it.

Speaker Change: Okay, I'll take that Adam story here. Yeah, I mean we've taken our expected outcome for 2022, we've the 25 known impact in the VA and pretty much the balance of it is down to the FX translation impact that Frank outlined with the strengthening of the dollar against the European currency.

Fourth quarter 2021 pro forma adjusted EBITDA was down 10, 3% year on year with the reduction mainly experienced in Europe due to inflationary pressures that were not offset onto pricing was reflected in the new contracts in 2022.

As you say, we're seeing volatility around fuel. We may see a softening of the freight market with excess capacity now available because of the lack of trade flows into Russia, in particular. And then there's FX uncertainty in terms of, particularly, translation and where the dollar might or might not go against the main European currencies. So our forecast is based on the known information we've got today. And you know, we haven't built in any significant adjustment, but we have highlighted that there is an uncertainty around the macro geopolitical situation. So I don't know if that clarifies it. Adam, for you.

Speaker Change: Relation to the other aspects in terms of inflation, as Johan outlined in his presentation, we have taken the necessary primarily pricing actions across the group to reflect that. There's a little bit further to come hopefully on the VA side with the delay in implementing some of the second price increases because of the Listeria recall.

In North America, the price increases referred to earlier by Johan helped offset input cost pressure as well as increases in transportation and handling costs for the full year pro forma adjusted EBITDA increased 21, 6% largely due to higher revenue as outlined above.

Moving to diversify such projects EMEA. This segment had a strong performance in 2021 is called out on our Q3 earnings call a reorganization of our Dutch businesses recovery and foodservice channels and continued focus on superior service provision for our customers contributed to the strong growth.

Speaker Change: With regard to the macro geopolitical situation, we have just highlighted that we are heading into uncharted territory here.

Adam Samuelson: Adam, for you.

Adam Samuelson: It's helpful and maybe, and I understand there's an offsetting kind of pricing impact that's both kind of direct and indirect. But can you help just frame as we watch the external environment, how you think about your cost sensitivity to changes in fuel, fertilizer, some of the key purchase raw materials that you actually have in your operations beyond just the produce?

Speaker Change: and it is very difficult to predict today what medium or long-term impact that situation can have on trade flows, can have on cost inflation, as you say we're seeing volatility around fuel, we may see a softening of the freight market with excess capacity now available because of the lack of trade flows into Russia in particular.

Pro forma revenue increased four 3% in the fourth quarter of 2021 and increased five 4% for the full year.

First quarter pro forma adjusted EBITDA increased one 9% and on a full year basis increased 24% driven by recovery in our Dutch businesses overall strong trading across the segment and the continued recovery in foodservice channels as European governments relaxed COVID-19 measures.

Speaker Change: and then there's FX uncertainty in terms of particularly translation and where the dollar might or might not go against the main European currencies.

Rory Byrne: That you buy from third parties?

Rory Byrne: Yeah, I mean, fuel, you know, in our biggest market, where the biggest impact on fuel is into the North American market, and we have variable clauses built into our contractual arrangements for the North American market, European market. We don't, we have less variability, we have some hedging and. There is a variability around that. Fuel has gone up and down as you know, over the last while, you know, we built in normal levels of. Our known levels of inflation around input costs, around fertilizer, when we were doing our pricing adjustments.

Speaker Change: So our forecast is based on the known information we've got today and

Speaker Change: you know, we haven't built in any significant adjustment, but we have highlighted that there is an uncertainty around the macro geopolitical situation. So I don't know if that clarifies it, Adam, for you.

We also benefited from positive foreign currency translation route during the fiscal year.

However, we are currently forecasting some foreign currency translation headwinds for the forthcoming financial year part of it a weakening of European currencies versus the U S dollar.

Rory Byrne: There is a variability around that. Fuel has gone up and down as you know, over the last while, you know, we built in normal levels of.

Adam Samuelson: It's helpful and maybe.

Speaker Change: And I understand there's an offsetting kind of pricing impact that's both kind of direct and indirect, but can you help us frame as we watch the external environment?

Looking next at diversified fresh projects Americas, and rest of the world fourth quarter of 2021 pro forma revenue was up <unk>, 8% versus the prior year pro forma revenue for the full year was up three 8% primarily due to higher revenue from berries and more incrementally from growth in the south about.

Rory Byrne: Our known levels of inflation around input costs, around fertilizer, when we were doing our pricing adjustments. So it's too early to call any other impact on our business arising from that geopolitical situation. And you know, we're hopeful that with, you know, different options open to us in terms of managing some of these variabilities that, you know, our guidance is that is the number we've given with, with that overriding qualification that, you know, we. Nobody knows how long this invasion is going to last. Nobody knows, you know, what the, the longer term consequences of that. And that's all we're flagging at the moment.

Speaker Change: how you think about your cost sensitivity to changes in fuel.

So it's too early to call any other impact on our business arising from that geopolitical situation. And you know, we're hopeful that with, you know, different options open to us in terms of managing some of these variabilities that, you know, our guidance is that is the number we've given with, with that overriding qualification that, you know, we. Nobody knows how long this invasion is going to last. Nobody knows, you know, what the, the longer term consequences of that. And that's all we're flagging at the moment.

Speaker Change: fertilizer, some of the key purchase raw materials that you actually have in your operations beyond just the produce that you buy from third parties.

You can export fruit business.

Pro forma adjusted EBITDA for the fourth quarter was up 42, 6%, mainly due to a good start to the Peruvian grape.

Speaker Change: The biggest impact on fuel is into the North American market and we have variable clauses built into our contractual arrangements for the North American market.

The Chilean Cherry season.

Adjusted EBITDA measured on the same basis for the year was down slightly by one 4% with the decrease largely due to the impact of adverse weather events on the Chilean grape season at the outset of the year as well as inflation and logistics pressures faced by some of our North American businesses.

Speaker Change: European markets, we have less variability, we have some hedging and there is variability around that. Fuel has gone up and down as you know over the last while.

Adam Samuelson: Okay, I appreciate all that color.

Adam Samuelson: Okay, I appreciate all that color.I'll pass it on.

Roland French: I'll pass it on.

Rory Byrne: Thank you.

Operator: The next question comes from Christopher Barnes from Deutsche Bank. Please, go ahead.

This was offset in part by good underlying development in the business with continued growth in the beauty category in the Chilean charity business and Kiwi together with a recovery in apples and pears after challenging challenges in the prior year.

Speaker Change: You know, we built in normal levels of known levels of inflation around input costs around fertilizer when we were doing our pricing adjustments.

Christopher Barnes: Hey, good afternoon, and thanks for the question. And Frank, best of luck in retirement. I guess I just wanted to dig a little bit more into the revenue guidance. I mean, you're targeting mid single digit growth, but maybe could you just unpack that in terms of how much you're expecting from pricing versus volume? Like, do you expect volumes to grow in 2022, like given the like levels of pricing you've taken so far? And then just also like maybe if you could provide additional color on what you're expecting by segment, like fruit versus vegetable versus diversified.

Speaker Change: So it's too early to call any other impact on our business arising from that geopolitical situation, Adam. We're hopeful that with different options open to us in terms of managing some of these variabilities, that our guidance is the number we've given with that overriding qualification, that nobody knows how long this invasion is going to last. Nobody knows what the longer term consequences of that are. That's all we're flagging at the moment.

Finally, turning to fresh vegetables on slide 18. This division has had a challenging year. In addition to the reasons outlined journey joined our Q3 earnings call. This division was further impacted by a voluntary recall in December as Johan has expanded upon.

This was the primary driver behind pro forma revenue decreased eight 5% in the fourth quarter of 2021 for the full year pro forma revenue increased 1% due to overall higher volumes and pricing and the value added solid business driven by strong market demand.

Rory Byrne: Thanks. Yeah, I mean, Christopher. Yeah, thanks. We don't actually break out the guidance by, you know, in much more detail, and obviously we're more focused on profitability rather than the revenue guidance. I think it'll be, you know, there is some variability depending on production seasons and diversified. You know, we're going to have more volume and less price or vice versa depending on the outcome of production cycle. It's actually very difficult to project with any degree of sensible precision. Our primary focus here is around our profitability. Our profit number and the revenue number is a sum of the parts guidance based on our historical assessment of where we were based on the circumstances we know today, based on the price increases that we've already known are inputted into our system.

Rory Byrne: Yeah, I mean, Christopher. Yeah, thanks. We don't actually break out the guidance by, you know, in much more detail, and obviously we're more focused on profitability rather than the revenue guidance. I think it'll be, you know, there is some variability depending on production seasons and diversified. You know, we're going to have more volume and less price or vice versa depending on the outcome of production cycle. It's actually very difficult to project with any degree of sensible precision. Our primary focus here is around our profitability.

Adam Samuelson: OK, I appreciate all that, Colin. I'll pass it on. Thank you.

Our mix of products sold.

We incurred a loss in the fourth quarter due to the impact of the recall and on a full year basis due to the impact of weak weak packed vegetables markets inflationary challenges under December record.

Speaker Change: The next question comes from Christopher Barnes from Deutsche Bank, please go ahead.

As confirmed earlier, we are now operating again to full capacity and taken steps to increase pricing. So we look forward to an improved performance through 2022.

Our profit number and the revenue number is a sum of the parts guidance based on our historical assessment of where we were based on the circumstances we know today, based on the price increases that we've already known are inputted into our system. You know, beyond that, you know, we don't get into a greater level of detail of splitting out by division, price, or volume. You know, obviously our primary focus is on the EBITDA and indeed on the earnings number.

Next I will discuss our capital allocation and leverage we successfully completed our refinancing and syndication of $144 billion of new credit facilities concurrent with our IPO in July of last year.

Christopher Barnes: given the levels of pricing you've taken so far, and then just also maybe if you could provide additional color on what you're expecting by segment, like fruit versus vegetable versus diversified, thanks.

Rory Byrne: You know, beyond that, you know, we don't get into a greater level of detail of splitting out by division, price, or volume. You know, obviously our primary focus is on the EBITDA and indeed on the earnings number.

This refinancing enabled us to materially lower our cost of capital and annual interest expense by repaying expensive desk within toward food company, our annual interest expense savings and the incremental free cash flow. Following this refinance is in the order of $40 million.

Speaker Change: Yeah, I mean, Christopher, yeah, thanks for that. We don't actually break out the guidance by, you know, in much more detail and obviously we're more focused on profitability rather than.

Christopher Barnes: Okay, that's fair. I mean, are you able to provide any sense for like where you see growth biasing by segment, like just overall, like not, not breaking out volume versus price?

Speaker Change: the revenue guidance. I think it'll be, you know, there are some variability depending on production seasons and diversified, you know, we're going to have more volume and less price or vice versa, depending on the outcome of production cycles. So it's actually very difficult to protect, to project with any degree of sensible precision. But our primary focus here is around our profitability, our profit number and

Our capital expenditure strategy is focused on investing where we see the greatest opportunity for profitable growth to support our existing strong market positions in core products.

Rory Byrne: Yeah, I mean it's, we don't again break it out by individual segments. You know, if you look at our history over the years, you can have a few ups and downs within the different segments, and they tend to give us the right growth number at the end of it. You know, there is some variability with supply demand in different markets. And again we don't, you know, we don't think it's sensible to break that out on a subdivision basis. That's the way we look at it. The sum of the parts has added up. We focus on each of our individual divisions. We get the growth that we think we can achieve in each of those divisions.

Typically we expect our capital expenditures to <unk>.

<unk> to be in line with our annual depreciation expense of circa $120 million.

Speaker Change: The revenue number is the sum of the parts guidance based on our historical assessment of where we are, based on the circumstances we know today, based on the price increases that we've already known and are inputted into our system.

This can vary depending on where we are in are we.

Reinvestment cycles for certain large capital assets such as vessels.

In 2021, we had capital expenditure of approximately $119 million as we made a number of strategic investments, including the final payment on delivery of two new vessels.

Speaker Change: you know, beyond that, you know, we don't get into a greater level of detail of splitting up by division.

We focus on each of our individual divisions. We get the growth that we think we can achieve in each of those divisions. The guidance I think is pretty comprehensive that we've given across a range of financial metrics, and we think that gives analysts and investors a good set of information to work on in terms of evaluating our stock.

The fourth quarter, we continued our investments in Honduras as part of the rehabilitation programs following hurricanes.

Speaker Change: price or volume and obviously our primary focus is on the EBITDA and indeed on the earnings numbers.

Rory Byrne: The guidance I think is pretty comprehensive that we've given across a range of financial metrics, and we think that gives analysts and investors a good set of information to work on in terms of evaluating our stock.

And have now successfully re planted over 2900 acres of banana farms.

Speaker Change: Okay, that's fair. I mean, are you able to provide any sense for like where you see growth biasing by segment like just overall like not not breaking out volume versus price?

We are pleased to announce today, a cash dividend for the fourth quarter of 2021, eight cents per share, which we would pay on the 12th the paper to shareholders of record on 29 of March 2022.

Christopher Barnes: Okay, that's fair. I guess just the last one for me is just like opportunities for incremental pricing from here. I think you mentioned there's some on the come in fresh vegetables. Do you see, just given that like inflation in a lot of areas hasn't really abated as much as we would have expected or hoped back in December, like back when you first layered in price in North America and like you, you've reset the contract in Europe. I mean, we're hearing from other European peers, just not in fresh produce specifically, but just in CPG, like broadly, that the landscape is changing just given the inflationary environment. Like there's opportunities for more than a single round of pricing. Are you seeing the same thing there?

Speaker Change: Yeah, I mean we don't again break it out by individual segments and you know if you look at our history over the years you can have a few ups and downs within the different segments and they tend to give us the right growth number at the end of it and you know there is some variability with supply demand in different markets and again we don't think it's sensible to break that out on a subdivision basis.

Finally, we continue to focus on maintaining leverage within our target level of three times adjusted EBITDA at.

At the end of the fourth quarter, our net leverage ratio was 287 times.

Now I would like to hand, you back to Roy will provide more detail on our full year 2022 outlook.

Thank you Frank when looking out to the full year, we are targeting revenue in the range of $9 six to nine $9 billion.

Speaker Change: and that's the way we look at it. The sum of the parts has added up. We focus on each of our individual divisions. We get the growth that we think we can achieve in each of those divisions and the guidance I think is pretty comprehensive that we've given across a range of financial metrics and we think that gives analysts and investors a good set of information to work on in terms of evaluating our stock.

I mean, we're hearing from other European peers, just not in fresh produce specifically, but just in CPG, like broadly, that the landscape is changing just given the inflationary environment. Like there's opportunities for more than a single round of pricing. Are you seeing the same thing there? Or.

As Johan has already explained the impact from the value added silence product recall has been significant on the currently anticipate that this will have an approximately $25 million negative impact on our target of adjusted EBITDA for 2022.

Adam Samuelson: Or.

Additionally, currencies as Frank has already outlined may cause some reduction on translation of Euro earnings to U S dollars. This year.

Speaker Change: OK, that's fair. I guess just the last one for me is just like.

Johan Linden: Rory, if I might give it a shot there, I think it's relatively, if you look at diversified, which is a little bit over half of our business, that one is dynamic pricing all season along. There you will, and you saw we did well during 2021 to adapt to increases in price in diversified, and we expect to do the same in 2022. There you have over half of the business. You have the vegetable business, which is in revenue terms some additional, whatever, 40%, 50% of what we do. We are just going up with a price increase right now. The fresh fruit, which is the last 1/3, we also just implement the price increases that were implemented late in the last quarter and beginning of this year.

Speaker Change: like opportunities for like incremental pricing from here and I think you mentioned like there's some some to cut on the come and fresh vegetables.

The exception of our value added solid business underlying trading within all of our all of our businesses has been in line with our expectations at the start of this year.

Taking all of these factors into account our full year guidance for adjusted EBITDA is in the range of $370 million to $318 million.

Speaker Change: But do you see, just given that inflation in a lot of areas hasn't really abated as much as we would have expected or hoped back in December ?

Nation to the other financial metrics, we are targeting capex of approximately $125 million, which is in line with our annual depreciation charge.

Speaker Change: like back when you first layered in price in North America and like you've reset the contract in Europe .

Speaker Change: I mean, we're hearing from other European peers, not in fresh produce specifically, but just in CPG, like broadly, that the landscape is changing just given the inflationary environment.

<unk>.

And annual interest expense of approximately $45 million, reflecting the full year reduction in interest of over $14 million as a result of the refinancing.

On an effective tax rate in the range of 25% to 28%.

Speaker Change: there's there's opportunities for more than a single round of pricing like are you seeing the same thing there or is there any perspective you can add there? Rory if I might give it a shot there I think it's relatively if you look at diversified which is a little bit over half of our business

Johan Linden: What we also said in the script here in the beginning is that we see it of the utmost strategic importance that we are willing to take price increases again if the environment would change. We are actually kind of just fresh out of price increases right now, and right now we feel comfortable.

What we also said in the script here in the beginning is that we see it of the utmost strategic importance that we are willing to take price increases again if the environment would change. We are actually kind of just fresh out of price increases right now, and right now we feel comfortable.

Looking at the macroeconomic environment and the current conflict in Ukraine, and the resulting sanctions in Russia were very unexpected signing just wants to accurately predict today what impact. This may have on global trade flows cost inflation and foreign exchange rates and to what extent this might impact our business.

Speaker Change: That one is dynamic pricing, all season long. So there you will.

Christopher Barnes: Okay, great. Thanks for that. I'll pass it on.

We are obviously very focused on all of these issues.

Speaker Change: And you saw we did well during 2021 to adapt to increases in price and diversify, and we expect to do the same in 2022. So there you have over half of the business.

Whenever action necessary to minimize any potential impact.

Operator: Our next question is from Ben Bienvenu from Stephens. Please go ahead.

Moving on to slide 22, I will finish by outlining our strategic priorities for 2022, obviously, a key priority is clearly to rebuild profitability within the fresh vegetables segment and in particular, our value added service business.

Speaker Change: Then you have the vegetable business, which is, in revenue terms, some additional, whatever, 14, 15 percent of what we do. We're just going up with the price increase right now. And the fresh fruit, which is the last one-third, we also just implement the price increases that were implemented late in this last quarter and beginning of this year. But what we also said in the script here in the beginning is that we see it of the utmost

Adam Samuelson: Hey, thanks for taking my questions, everybody.

Ben Bienvenu: Hey, thanks for taking my questions, everybody. I want to ask with respect to the value added salads recalls, what do you typically see. In the wake of events like this as it relates to demand destruction or customer loss, what are the processes that you. Go through to. Reestablish. Kind of the trust level with customers and with consumers as it relates to these products? I know they happen with some degree of frequency, but I'd be curious to get your perspective on the after effects.

Adam Samuelson: I want to ask with respect to the value added salads recalls, what do you typically see.

<unk> continues to show strong demand tight industry capacity capacity on this combined combined with the necessary price increases gives us confidence that profitability will be restored during 2022.

Adam Samuelson: In the wake of events like this as it relates to demand destruction or customer loss, what are the processes that you.

Johan Linden: Go through to.

Adam Samuelson: Reestablish.

We continue to concentrate in the integration of our businesses our management teams and people are continuing the process of working more closely together following the creation of <unk> plc. This integration and collaborations high strategic importance, especially as we seek to deliver on the targeted synergies we set out at the time of the IPO.

Adam Samuelson: Kind of the trust level with customers and with consumers as it relates to these products? I know they happen with some degree of frequency, but I'd be curious to get your perspective on the after effects.

Speaker Change: that we are willing to take price increases again if the environment would change. But we are actually kind of just fresh out of price increases right now, and so right now we feel comfortable.

Rory Byrne: Johan?

Johan Linden: Yeah, when it comes to consumers, there has been no impact on the consumer behavior from this recent recall. We have monitored the shadow on social media and all that, and it's basically nothing. We don't feel there's anything that needs to be done. When it comes to consumers, we see their behavior when it comes to value added is the same now as it was in mid year of last year. When it comes to the retailers, we have not lost any of the big contracts that we have because of this. We have lost single SKUs and single divisions as they wait for us to get back up to normal operations. We expect to get that volume back during the next couple of weeks, next couple of months.

Another pivotal element of our strategy is to focus on expanding our presence in faster growing categories, just berries, avocados and organic projects as well as bringing the Dolby brand to new customers, particularly to new markets across Europe .

Speaker Change: Our next question is from Ben Binevenue from Stevens. Please go ahead.

We also continue to actively seek out soon just stick in value enhancing M&A opportunities. The market is fragmented and growing and we believe we are well positioned to capitalize on the opportunities that our industry 9%.

Ben Binevenue: I want to ask, with respect to the value-added sales recalls, what do you typically see?

Ben Binevenue: in the wake of events like this, as it relates to demand destruction or customer loss, and what are the processes that you go through to

We will also finalized a new combined set of sustainability goals framework and materially obviously assessment during 'twenty two as well as publishing our first sustainability report for Dolby P&C.

Ben Binevenue: you know, reestablish kind of the trust level with customers and with consumers as it relates to these products. I know they happen.

In closing, we're very pleased with what the company has achieved during 2021 the margin adult food company the creation of build TNC. The listing on the New York stock exchange and the completion of.

Johan Linden: We haven't had any major customer loss or consumer customer retailer loss, but we have some SKUs that we need to pull back, and it's just about dialogue with retailers, showing them that we're back up and running and that we have the capacity. We feel relatively optimistic going in here to Q2.

Ben Binevenue: some degree of frequency, but I'd be curious to get your perspective on the aftereffects.

A $1 4 billion refinancing.

Speaker Change: Johan? Yeah. So, when it comes to consumers, there has been no impact on the consumer behavior from this recent recall. We have monitored the chatter on social media and all that, and it's basically been nothing. So we don't feel there's anything that needs to be done when it comes to consumers. We see their behavior when it comes to value-added is the same now as it was in mid-year of last

The group delivered strong financial results during 2021 kind of a once again like to thank all of our people.

<unk> contribution on dedication without which none of this would have been achieved.

Before we open the call to questions I would just like to note that earlier today, we announced an upcoming change in the management team here at <unk>.

Johan Linden: Okay.

Ben Bienvenu: Okay. Okay, great. My second question is just related to M&A. You've gotten your leverage profile down below your targeted range. I know you have aspirations of incorporating M&A to your growth profile of the business. That's something you've done successfully for decades. When we think about the receptivity of the market to M and A in terms of, you know, potential targets being willing to sell, and valuation being within the palatable range for you all, what does the market look like, and could you give us some sense as to. How you think that is likely to unfold in light of geopolitical events underway? Thanks.

Adam Samuelson: Okay, great. My second question is just related to M&A. You've gotten your leverage profile down below your targeted range. I know you have aspirations of incorporating M&A to your growth profile of the business. That's something you've done successfully for decades.

Thanks, Davis has informed us that he has decided to retire and step down from his position on board. The CFO from the <unk> of June of this year.

Speaker Change: When it comes to the retailers, we have not lost any of the big contracts that we have because of this. We have lost single SKUs.

Frank has been with the group since 1983 to <unk> upon the great pleasure of working very closely with them for many years. He has been a big part of our success.

Adam Samuelson: When we think about the receptivity of the market to M and A in terms of, you know, potential targets being willing to sell, and valuation being within the palatable range for you all, what does the market look like, and could you give us some sense as to.

Speaker Change: and single divisions as they wait for us to get back up to normal operation.

Definitely miss him.

Speaker Change: And we expect to get that volume back during the next couple of weeks, next couple of months. So we haven't had any major customer loss or consumer, customer retailer loss, but we have some SKUs that we need to pull back. And it's just about just dialogue with retailers, showing them that we're back up and running and that we have the capacity.

He has more than earned the right to a happy healthy and enjoying the drill times and wish him the very best over the future and the future.

Cynthia Devine, our company Secretary and the finance director of our Ireland and U K businesses will take over as CFO and will join the board one Frank retires with her over 25 years of experience in the group I have every confidence that this will be a seamless transition transition so with that in mind I'll hand, you back to the operator, we can open the line for <unk>.

Adam Samuelson: How you think that is likely to unfold in light of geopolitical events underway?

Frank Davis: Thanks.

Rory Byrne: Yeah, I think it's a good question, Ben. I mean, we do think that there may potentially be some opportunities emerging from the current geopolitical scenario. You know, we'll keep our eyes on those very carefully, and certainly companies that have a particular exposure to the Russian market in terms of sales, which as Johan said, we've got minimal exposure to it, that may create some opportunity. I guess the other interesting macro issue around it is that there is a bit of a disconnect between the public market valuations and the private markets. A lot of the companies in our sector are continuing to trade solidly over the last number of years.

Speaker Change: But we feel relatively optimistic going in here today.

Speaker Change: Okay. Okay, great. My second question is just related to M&A. You've gotten your leverage profile down below your targeted range.

Thank you.

I'd like to ask a question. Please press star followed by one on your telephone keypad.

Speaker Change: I know you have aspirations of incorporating M&A to your

If you'd like to remove your question. Please press star followed by <unk>.

Speaker Change: to your growth profile of the business, that's something you've done successfully for decades.

When preparing to ask a question. Please ensure your phone is muted.

Speaker Change: When we think about the receptivity of the market to M&A in terms of potential targets being willing to sell and valuation being within the palatable range for you all, what does the market look like? And could you give us some sense as to, you know...

We take our first question from Adam Samuelson from Goldman Sachs. Please go ahead.

Yes, Thank you and good morning, everyone.

Rory Byrne: You know, further in similar segments like the diversified inflation issues, they're dealing with them, they're getting the price increases, they're putting it through. Certainly we're not seeing any lowering of valuation expectations of vendors of well-run, well-managed companies. That's a little bit of a challenge that the public market is a little bit disconnected from the private market. You know, with plenty of opportunities out there, we will be disciplined to get the right opportunities. It may be that some specific opportunities arise as a result of the current geopolitical scenario. We'll monitor it and see, and you know, at the right time, we believe we're well positioned to take advantage of those opportunities going forward.

You know, further in similar segments like the diversified inflation issues, they're dealing with them, they're getting the price increases, they're putting it through. Certainly we're not seeing any lowering of valuation expectations of vendors of well-run, well-managed companies. That's a little bit of a challenge that the public market is a little bit disconnected from the private market.

Good morning, Adam.

Good morning.

So I guess my first question is.

Make sure I understand kind of how you're framing this.

Speaker Change: that is likely to unfold in light of geopolitical events underway.

<unk> 2022 outlook. So it includes the 25 million headwind from the salads business, but what I wasn't clear on was kind of how you're framing.

Speaker Change: Yeah I think it's a good question Ben, I mean we do think that there may potentially be some opportunities emerging from the current geopolitical scenario, we'll keep our eyes on those very carefully, certainly companies that have a particular exposure to the Russian market in terms of sales, which as Johan said we've got minimal exposure to it.

Kind of market uncertainty related to Russia, Ukraine, So maybe.

You know, with plenty of opportunities out there, we will be disciplined to get the right opportunities. It may be that some specific opportunities arise as a result of the current geopolitical scenario. We'll monitor it and see, and you know, at the right time, we believe we're well positioned to take advantage of those opportunities going forward.

Help us just frame the.

Inflationary kind of dynamics in terms of bunker fuel in terms of fertilizer logistics broadly that the FX that are assumed in any EBITDA guidance.

Speaker Change: that may create some opportunity. I guess the other interesting macro issue around it is that there is a bit of a disconnect between the public market valuations and the private markets. A lot of the companies in our sector are continuing to trade.

And maybe just see that and think about kind of the things you're most closely watching that.

Johan Linden: Okay, sounds good.

Ben Bienvenu: Okay, sounds good. Thanks so much, Beth. A lot.

Adam Samuelson: Thanks so much, Beth. A lot.

Rory Byrne: Thank you.

Further <unk>.

Could further impact your outlook is.

Speaker Change: solidly over the last number of years.

We understand how markets unfold.

Operator: As a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad. Our next question comes from Roland French from Davy, please go ahead.

Speaker Change: uh and you know further in similar segments like the diversified

Okay, I'll take that out of the story here yeah.

Speaker Change: inflation issues, they're dealing with them, they're getting the price increases, they're putting it through so certainly we're not seeing any lowering of valuation expectations of vendors of well-run, well-managed companies. So that's a little bit of a challenge that the public market is a little bit disconnected from the private market but you know we've plenty of opportunities out there. We will be financially disciplined to get the right opportunities. It may be that some

We have taken are expect.

Operator: Our next question comes from Roland French from Davy, please go ahead.

Expect to Doug <unk> for 2022.

The 25 known impact in the VA and pretty much the balance of it is down to the FX translation impact that Frank outlined with the strengthening of the dollar against European currencies relation to the other aspects in terms of the inflation.

Roland French: Hi everyone, thanks for taking my questions, and congratulations. Frank, good innings.

Frank Davis: Thank you.

Frank Davis: Thank you. Roland,

Rory Byrne: Roland, maybe just starting with the sellers.

Roland French: maybe just starting with the sellers. Business, the impact you've quantified it at an EBITDA level, the $25 million through the P and L, can you maybe. Provide some color around the volumes lost. Even the sales lost? Just trying to work out how many weeks or months maybe that business has been, I guess not out of the market, but trying to rebuild volumes. Maybe allied to that, what processes from here might change going forward just in terms of that preemptive behavior around future outbreaks potentially.

Roland French: Business, the impact you've quantified it at an EBITDA level, the $25 million through the P and L, can you maybe.

Johan Linden: Provide some color around the volumes lost.

<unk> outlined in his presentation, we have taken the necessary primarily pricing actions across the group to reflect best isn't that far that should come hopefully on the VA side with the delay in implementing some of the second price increases because of the listeria recall.

Roland French: Even the sales lost? Just trying to work out how many weeks or months maybe that business has been, I guess not out of the market, but trying to rebuild volumes. Maybe allied to that, what processes from here might change going forward just in terms of that preemptive behavior around future outbreaks potentially. The second question is just around the fixed price contract. I think from memory, Johan mentioned at the Q3 stage that those contracts were looking to include other costs into the matrices. Just wondering, have those additional costs landed in some of the contracts and what they might entail? Finally, just any color or comment on the supply situation in the banana category. I know last year there was a lot of volatility through 2021. Just wondering, has that normalized?

Speaker Change: specific opportunities arise as a result of the current geopolitical scenario.

Speaker Change: and we'll monitor and see, and at the right time, we believe we're well positioned to take advantage of those opportunities going forward.

With regard to the macro geopolitical situation.

We have just highlighted that we are heading into uncharted territory here.

The second question is just around the fixed price contract. I think from memory, Johan mentioned at the Q3 stage that those contracts were looking to include other costs into the matrices. Just wondering, have those additional costs landed in some of the contracts and what they might entail? Finally, just any color or comment on the supply situation in the banana category. I know last year there was a lot of volatility through 2021. Just wondering, has that normalized?

Speaker Change: As a reminder, if you would like to ask a question, please press star followed by 1 on your telephone keypad now.

It is very difficult to predict today, what medium or long term impact that situation can hop on trade flows can have on cost inflation, let's just say, we're seeing volatility around few we may see a softening of the freight market with excess capacity nowadays because of the lack of trade flows into.

Speaker Change: Our next question comes from Roland French from Davie, please go ahead.

Roland French: and she will eventually but the public business

And to Russia in particular.

Roland French: The impact, you've quantified it at an EBITDA level of $25 million through the P&L. Can you maybe provide some color around...

And then there's FX uncertainty in terms of predicting translation on part of the dollar.

Nigel might not go against the main European currencies.

Johan Linden: Do you expect us to remember all the questions?

Roland French: volumes last, or even the sales last. I'm just trying to work out how many weeks or months. Maybe that gives us...

Our forecast is based on the known information we've got today.

Rory Byrne: I can repeat them.

Roland French: I can repeat them.

Johan Linden: Let's start with the value added. The timeline is it was right.

Johan Linden: Let's start with the value added. The timeline is it was right. Before Christmas that we shut down the. Plant, and it's approximately 1/3 of the capacity that we then take down. That lasted, if you take also all the startup problems, until approximately mid February. That's the time frame where we had more or less 1/3 of our capacity out. Now we are full, we are back to full capacity. We deliver to all the retailers that we delivered before. We're still in the process of, yes, getting single SKUs back and single divisions back. We believe that to be behind us as we are facing into Q2. That's kind of when it comes to the volumes.

We haven't built in any significant adjustment that we have highlighted that there is an uncertainty around the <unk>.

Roland French: not out of the market but trying to rebuild volumes and then maybe allied to that what processes from here might change going forward and just in terms of that pre-emptive

Frank Davis: Before Christmas that we shut down the.

Johan Linden: Plant, and it's approximately 1/3 of the capacity that we then take down. That lasted, if you take also all the startup problems, until approximately mid February. That's the time frame where we had more or less 1/3 of our capacity out. Now we are full, we are back to full capacity. We deliver to all the retailers that we delivered before. We're still in the process of, yes, getting single SKUs back and single divisions back. We believe that to be behind us as we are facing into Q2. That's kind of when it comes to the volumes.

Macro geopolitical situation. So I don't know if that clarifies it Adam.

It's helpful and maybe.

Roland French: And then the second question is just around the fixed price contract. I think from memory, Johan mentioned at the Q3 stage that those contracts were looking to include other costs into the matrices, so just wondering have those additional costs landed in some of the contracts and what they might entail? And then finally, just any color or comment on the supply situation in the banana category, I know last year there was a lot of volatility through 21, so just wondering, has that normalized?

I understand there is an offsetting kind of pricing impact that spoke kind of direct and indirect but.

Can you help just frame as we watch the external environment.

How you think about your your cost sensitivity to changes in fuel.

Fertilizer or some of the key purchase raw materials that you actually have in your operations beyond just the produce that you buy from third parties.

Yes.

Phew.

Speaker Change: Do you expect us to remember all the questions? I can repeat them. Okay, let's start with a bad lad, and the timeline is it was right before Christmas that we shut down the plant.

And our biggest market for us the biggest impact on fuel and listen to the North American market and we have very little clause is built into our contractual arrangements for the North American market.

Johan Linden: When it comes to fixed price contracts, yes, we have, but it's a very limited amount where we have been able to put.

When it comes to fixed price contracts, yes, we have, but it's a very limited amount where we have been able to put. Indexes in that we did not have before. Please remember that already in the North American market for our tropical fruit, the bananas, we already have fuel surcharges in place. What we have been looking at is to get indexes in Europe, and we do have them, but it's very limited and will not have an impact on our business as it is today.

Johan Linden: Indexes in that we did not have before. Please remember that already in the North American market for our tropical fruit, the bananas, we already have fuel surcharges in place. What we have been looking at is to get indexes in Europe, and we do have them, but it's very limited and will not have an impact on our business as it is today.

European markets.

Speaker Change: And it's approximately one-third of the capacity that we then take down.

We don't we have less variability and we have some hedging.

And if.

Speaker Change: That lasted, if you take also all the startup problems until approximately mid-February.

There is a barrier there and your bullish here Rob.

Seamless has gone up and down as you know over the last few last words.

Speaker Change: So that's the time frame where we had more or less one third of our capacity out. And now we are back full capacity, we deliver all the retailers that we delivered before, but we're still in the process of just getting single SKUs back and single divisions back. And we believe that to be behind us as we are facing into Q2. So that's kind of.

We built in normal levels.

Sure.

None level sub inflation around input costs or I'm, sorry, analyzer, when we were doing our pricing adjustments. So it's too early to call any other impact on our business.

Johan Linden: I think that was the second question. When it comes to the third question, supply situation, the whole situation now with Russia is new from a supply perspective. They are a major buyer of several different fruits and vegetable categories. Of course, they are big. Also, we're looking at bananas here. They're very big in Ecuador, and it will have an impact in Ecuador and their ability to export that volume to Russia. As we see right now, approximately two thirds of that volume is still able to make it onto ships in one way or another to go to Russia, but 1/3 is left behind. That is going to mean that there is going to be a supply demand imbalance. A lot of that fruit does not have the right certifications, and it also does not have the shipping capacity to reach other destinations.

I think that was the second question. When it comes to the third question, supply situation, the whole situation now with Russia is new from a supply perspective. They are a major buyer of several different fruits and vegetable categories. Of course, they are big. Also, we're looking at bananas here. They're very big in Ecuador, and it will have an impact in Ecuador and their ability to export that volume to Russia.

Rising from best champion geopolitical situation.

We're hopeful that.

With different options open to us in terms of managing some of these variable machines that.

Our guidance is that is the number we've given but without overwriting qualification but.

Speaker Change: When it comes to fixed price contracts, yes, we have, but it's a very limited amount where we have been able to put indexes in that we did not have before. But please remember that already in the North American market for our tropical fruit, the bananas, we already have few surcharges in place. So what we have been looking at is to get indexes in Europe , and we do have them, but it's very limited and will not have an impact on our business as it is today.

Nobody knows how long this innovation is going to lost nobody knows.

As we see right now, approximately two thirds of that volume is still able to make it onto ships in one way or another to go to Russia, but 1/3 is left behind. That is going to mean that there is going to be a supply demand imbalance. A lot of that fruit does not have the right certifications, and it also does not have the shipping capacity to reach other destinations.

In the longer term consequences of SaaS thoughtful we're flagging at the moment.

Okay I appreciate all that color I'll pass it on thank you.

The next question comes from Christopher bonds from Deutsche Bank. Please go ahead.

Hey, good afternoon, and thank you for the question and Frank Best of luck in retirement.

Johan Linden: It's at least what we see now, more an issue of some of the independent farmers than an impact on the market as it is right now. Of course, some of this market volume will make it into the market and will then have an impact on the open fruit that we have. We do not have that much of an open fruit. Remember, we have almost 80% of all the volumes going into.

It's at least what we see now, more an issue of some of the independent farmers than an impact on the market as it is right now. Of course, some of this market volume will make it into the market and will then have an impact on the open fruit that we have. We do not have that much of an open fruit. Remember, we have almost 80% of all the volumes going into. Europe on fixed price contracts when it comes to bananas.

Speaker Change: I think that was the second question, and when it comes to the third question, supply situation. So the whole situation now with Russia is...

I just wanted to dig a little bit more into the revenue guidance. I mean, you are targeting mid single digit growth.

Speaker Change: new from a supply perspective. They are a major buyer of several different fruit and vegetable categories.

But maybe could you just unpack that in terms of how much how much youre expecting from pricing versus volume.

Do you expect volumes to grow in 'twenty two.

Speaker Change: But, of course, they are big also, we're looking at bananas here, they're very big in Ecuador and it will have an impact in Ecuador and their ability to export that volume to Russia, as we see right now, approximately two-thirds of that volume is still able to be exported.

Given given the like level the pricing you've taken so far and then just also like maybe if you could provide additional color on what you're expecting by segment like fruit versus vegetable versus diversified.

Johan Linden: Europe on fixed price contracts when it comes to bananas.

Roland French: That's good color. Just going back maybe to my last question in regards to salads, just in terms of process and procedures that might.

Roland French: That's good color. Just going back maybe to my last question in regards to salads, just in terms of process and procedures that might. Be either enforced or internally. I guess arisen post the listeria outbreak of the product recalls. Is there anything there to call out?

Yes, im going to ask a question for it yet so we don't actually break out the guidance by end much more detail and obviously more and more focused on profitability rather than the revenue guidance I think it will be and there are some variability depending on production seasons and diversified and we're going to have more volume.

Speaker Change: make it onto ships and one way or another go to Russia, but one-third is left behind. So that is going to mean that there is going to be a supply-demand imbalance, but a lot of that fruit does not have the right...

Adam Samuelson: Be either enforced or internally.

Roland French: I guess arisen post the listeria outbreak of the product recalls. Is there anything there to call out?

Johan Linden: Yeah, I think so. I think first of all I want to call out the good news, and that is that when this happened we got the advice that the authorities believe that we had an issue in our plants. We were very surprised at that because we know we have industry leader practices in our plant. It turned out we did not have an issue with our plant. It turned out that we did find an issue with a single piece of harvesting equipment. There are different now processes put in place when it comes to handling these kind of equipment, and that is going to lead to changes not only for us, but also for the industry.

Speaker Change: certifications and it also doesn't have the shipping capacity to reach other destinations so it's at least what we see now more an issue of some independent farmers than an impact on the market as it is right now but of course some of this volume will make it also into the market and will then have an impact on the open fruit that we have but we do not have that much of an open fruit. Remember we have almost 80% of all the volumes going into

<unk> price or vice versa, depending on the outcome.

Production cycle, so it's actually very difficult to protect.

Project with any degree of precision, but our primary focus here is around our profitability or profit number. The revenue number is a sum of the parts guidance based on our historical assessment of overlap based on the circumstances. We know today based on the price increases that we've already known or importantly enforced.

Speaker Change: Europe on fixed-price contracts when it comes to bananas.

System and.

Beyond that we don't get into a greater level of detail and splitting out by division price or volume.

Johan Linden: We see new kind of, let's say, cleaning processes to maybe oversimplify it a little bit when it comes to the harvest equipment that is put in place already. That is, we have already invited actually the whole industry to learn from it. We have had the Food Safety Summit. That is being implemented across the industry. Secondly, what we're going to do going forward is that we are going to test if we have a kit where we see that we have a bacteria of some sort, let's say Listeria. We will now do more whole genome sequencing of that bacteria to see if we can use that big data and see if there can be any other kind of correlation out there that maybe matches with some other supplier or other facilities.

We see new kind of, let's say, cleaning processes to maybe oversimplify it a little bit when it comes to the harvest equipment that is put in place already. That is, we have already invited actually the whole industry to learn from it. We have had the Food Safety Summit. That is being implemented across the industry. Secondly, what we're going to do going forward is that we are going to test if we have a kit where we see that we have a bacteria of some sort, let's say Listeria.

Speaker Change: to my last question in terms of processes and procedures that might be either enforced or internally.

Obviously, our primary focus is on the EBITDA and indeed on the earnings number.

Speaker Change: arisen post the Listeria outbreak of the product recalls. Is there anything there to call out?

Okay. That's fair I mean are you able to provide any sense for like where you think growth biasing by segment like just overall like not not breaking out volume versus price.

Speaker Change: Yeah, I think so. I think, first of all, what it called out to good news, and that is that when this happened, we were, we got the advice that the authorities believed that we had an issue with our, in our plans. And we were very surprised with that because we know we have industry-leading practices in our plans. And it turned out we did not have an issue with our plans.

Yeah.

We we don't want again break it out by individual segments and if you look at our history over the years you can have a few ups and downs within the different segments and they tend to give us the right growth number at the end of it.

We will now do more whole genome sequencing of that bacteria to see if we can use that big data and see if there can be any other kind of correlation out there that maybe matches with some other supplier or other facilities. We will use big data a little bit more to find correlations to quicker find if there is any systemic issues out there. I also want to call out that. The whole process and the collaboration with the authorities worked very well.

Speaker Change: Then it turned out that we did find an issue with a single piece of harvesting equipment and there are different now processes put in place when it comes to handling these

There is some variability, but supply and demand in different markets.

Again, we don't we don't we don't think it's sensible to break that out on a subdivision basis.

Speaker Change: these kind of equipment, and that is going to lead to changes not only for us but also for the industry. So we see a new kind of, let's say, cleaning processes to maybe oversimplify it a little bit when it comes to the harvest equipment, that is put in place already, and we have already invited actually the whole industry to learn from it. We have had the Food Safety Summit.

Johan Linden: We will use big data a little bit more to find correlations to quicker find if there is any systemic issues out there. I also want to call out that.

And the Ducks.

That's the way we look at the sum of the parts has either don't we focus on each of our individual divisions. We've got the growth that we think we can achieve in each of those divisions.

And the guidance I think it's pretty comprehensive, but we've given across a range of financial metrics and we think that gives analysts and investors a good set of information to work.

Johan Linden: The whole process and the collaboration with the authorities worked very well.

Speaker Change: So that is being implemented across the industry. And secondly, is that when

In terms of evaluating livestock.

Johan Linden: I think our credibility with the FDA and CDC has increased because of this, because of our openness, our transparency, the way we cooperated, and the way we took this seriously, and that we actually found a root cause. We believe that with this credibility and the learning, it's very much, it's less likely that we will have these lengthy closures going into the future. We believe if anything similar happens again, we will only take it lying down and do the investigation and not the plant.

I think our credibility with the FDA and CDC has increased because of this, because of our openness, our transparency, the way we cooperated, and the way we took this seriously, and that we actually found a root cause. We believe that with this credibility and the learning, it's very much, it's less likely that we will have these lengthy closures going into the future. We believe if anything similar happens again, we will only take it lying down and do the investigation and not the plant.

Okay, that's fair.

There and I guess just the last one for me is just like.

Speaker Change: What we're going to do going forward is that we are going to test if we have a hit, where we see that we have a bacteria of some sort, let's say Listeria, we will now do more whole genome sequences, sequencing of that bacteria to see if we can do, use that big data and see if there can be any other kind of correlation out there.

Like opportunities for incremental pricing from here I think you mentioned like there's some something on the come and fresh vegetables.

But do you see just given that like inflation in a lot of areas hasn't really abated as much as we would've.

<unk> or hope back in December like like back when you first layered in price in North America.

Speaker Change: that maybe matches with some other supplier or other facilities. So we will use big data a little bit more to find correlations.

You've reset the contract in Europe , but we're hearing from other European peers.

Speaker Change: to quicker find if there is any systemic issues out there.

Roland French: Good, that's great color. Thanks a lot.

Roland French: Good, that's great color. Thanks a lot.I'll pass it on.

Frank Davis: I'll pass it on.

Non non fresh protein specifically, but just in in CPG like broadly that the landscape is changing just given the inflationary environment like there.

Speaker Change: But I also want to call out that the...

Operator: Our next question comes from Ken Zaslow from Bank of Montreal. Please go ahead.

Speaker Change: and the collaboration with the authorities worked very well.

Theres opportunities for more than a single round of pricing like are you seeing the same thing there or.

Ken Zaslow: Hello everyone.

Speaker Change: I think our credibility with the FDA and CDC has increased because of this, because of our openness, our transparency, the way we cooperated and the way we took this seriously and that we actually found a root cause. So we believe that with this credibility and the learning, it's...

Johan Linden: Hi, Ken.

Ken Zaslow: Hello, can you hear me?

Rory Byrne: Yeah, we got you.

Yes.

If I might give it a shot there I think.

Ken Zaslow: Yes, one is morning about 2020. When I think about 2023, the $25 million, does that fully come back? Is there any sort of reason that it wouldn't come back, and then do we just kind of move on? Is it completely a one term time item that, you know, it just affects 2022, and then, you know, everything changes in 2023.

Relatively.

Look at diversified which is a little bit over half of our business.

It's dynamic pricing all season, along so there you will.

And you saw we did well during 'twenty to 'twenty one to adapt.

This is comprised of diversify that we expect to do the same in 2020.

Speaker Change: less likely that we will have to link the closures going into the future we believe you can if you have to get rid of the ticket lying down and do the investigation about

Frank Davis: That's my first.

So there you have over half of the business.

Rory Byrne: That's what we're hoping for, Ken. Yes, absolutely.

And then you have the vegetable business, which is in revenue terms, some additional whatever 40% 50% of what we do which is just going out with a price increase right now and the fresh fruit, which is the last one third we also just implement the price increases that were implemented late in the last quarter and the beginning of this year, but.

Christopher Barnes: Great.

Ken Zaslow: Great. Can you talk about if there's any price elasticity that you're seeing in any of your price increases?

Ken Zaslow: Can you talk about if there's any price elasticity that you're seeing in any of your price increases?

Rory Byrne: We haven't seen any negative elasticity with regard to demand on the price increases?

Rory Byrne: We haven't seen any negative elasticity with regard to demand on the price increases? No.

Speaker Change: Our next question comes from Ken Savlo from Bank of Montreal, please go ahead.

Christopher Barnes: No.

Johan Linden: Great.

Ken Zaslow: Great. My last question is, can you just take us a tour around the world on any major crop, either things, crops that are actually exceeding expectations. Falling short of expectations?

Ken Zaslow: My last question is, can you just take us a tour around the world on any major crop, either things, crops that are actually exceeding expectations.

What we also said in the script here in the beginning is that we see at the utmost strategic importance.

Ken Savlo: I guess. Hello? Can you hear me? Yeah, we got you. We can hear you, Jeff.

Rory Byrne: Falling short of expectations?

That we are willing to take price increases again, if the environment would change, but we are actually kind of just fresh out of price increases right now.

Jeff: Yes, a couple of questions. One is, when I think about 2023, the $25 million, does that fully come back? Is there any sort of reason that it wouldn't come back? And then do we just kind of move on? So is it a completely a one-time item that it just affects 2022 and then everything changes in 2023, that's my question. That's what we're hoping for, Ken. Yes, absolutely.

Rory Byrne: I don't think we've got any standout call outs on that, Ken. You know, banana volume, as Johan said, is a little bit more stable with the impact of the 2020 hurricanes. Bananas, pineapples, obviously the macro political situation can create some imbalance in supply and demand. There's no other major weather events today that are going to have any kind of other supply that are going to create any major supply chain availability or legitimate differences that we're aware of today.

And so right now we feel comfortable.

Okay, great. Thanks for that help ethanol.

Our next question is from Ben <unk> from Stephens. Please go ahead.

Hey, Thanks for taking my questions everybody.

Jeff: Can you talk about if there's any price elasticity that you're seeing in any of your price increases?

I wanted to ask with respect to the value added salaries recalls what do you typically see.

Frank Davis: Great.

Ken Zaslow: Great. Let me just sneak in one more. This is probably a softball question, but why do you think there's a difference between public and private valuations? I'll leave it there.

Jeff: So far we haven't seen any negative elasticity as with regard to demand on the price increases, no.

Ken Zaslow: Let me just sneak in one more. This is probably a softball question, but why do you think there's a difference between public and private valuations? I'll leave it there.

In the wake of events like this as it relates to demand destruction or customer loss.

Speaker Change: Great, and then my last question is, can you just take us a tour around the world on any major crops, either?

Rory Byrne: That's a good question, Ken. I wish I knew the answer to that. I mean, I think, you know, public markets perhaps lately are maybe taking a shorter term view of life, and private markets, whether it's other buyers or private equity, are starting to do the opposite and take a longer view that this is a great sector to be in. It's cheaply valued, it's consistent profitability. I think that's why they are valuing a little bit higher in the private markets. Yeah.

What are the processes that you go to through too.

Reestablish.

Speaker Change: things, crops that are actually exceeding expectations or falling short of expectations.

Kind of the trust level with customers and end with consumers as it relates to these products and are they happen with some degree of frequency, but I'd be curious to get your perspective on an after effect.

Speaker Change: I don't think we've got any standout call-outs on that, Ken. You know, banana volume, as Johan said, is a little bit more stable with the impact of the 2020 hurricanes.

Johan.

Yes, so what were the causes of consumers there has been no impact on the consumer behavior from this recent recall, we have to monitor the chatter on social media and all of that and it's basically been nothing. So we don't feel that it's lifting needs to be done when it goes to consumers we see their behavior. When it comes to value added is the same.

Speaker Change: bananas and pineapples. Obviously the macro political situation can create some imbalance in supply and demand but there's no other major weather events today that are going to have any kind of supply that are going to create any major supply chain availability or logistical differences that we're aware of today.

Christopher Barnes: Great.

Ken Zaslow: Great. I appreciate it, guys. Thanks.

Frank Davis: I appreciate it, guys.

Christopher Barnes: Thanks.

Rory Byrne: Thank you.

Operator: As a final reminder to ask any questions, please press star followed by one on your telephone keypad.

Now as it was in mid year of last year. When it comes to the retailers, we have not loss Amy all the big contracts that we have because of this we have lost single skus at the single divisions, the way for us to get back up to normal operations.

Christopher Barnes: Now.

Speaker Change: Great. Let me just sneak in one more and this is probably a softball question, but why do you think there's a difference between public and private valuations? And I'll leave it there.

Operator: I can confirm we have no further questions. I'll hand it back to our speaker team for any closing remarks.

Speaker Change: It's a good question Ken and I wish I knew the answer to that.

Johan Linden: Yeah.

Rory Byrne: Yeah. Thank you very much, and thank you to everybody for participating today. Obviously we're very pleased with the significant achievements over the course of 2021. Getting the IPO away, getting the refinancing in place, starting the process of bringing the two companies together to create the world's leading fresh produce company. Disappointed about the one-off incident in the value added salad business. But we think, and as Johan has outlined, we've taken a lot of action, a lot of steps, and hopefully we can get that behind us and move forward over 2022 and have another successful 2022. So thank you very much, everybody.

Rory Byrne: Thank you very much, and thank you to everybody for participating today. Obviously we're very pleased with the significant achievements over the course of 2021. Getting the IPO away, getting the refinancing in place, starting the process of bringing the two companies together to create the world's leading fresh produce company. Disappointed about the one-off incident in the value added salad business. But we think, and as Johan has outlined, we've taken a lot of action, a lot of steps, and hopefully we can get that behind us and move forward over 2022 and have another successful 2022. So thank you very much, everybody.

Speaker Change: you know, public markets perhaps take in, you know, lately maybe taking a shorter term view of life and private markets, whether it's other buyers or private equity, are starting to do the opposite and take a longer view that this is a great sector to be in. It's cheaply valued, it's consistent profitability and so I think that's why they are valuing it a little bit higher, the private markets, yeah.

Expect to get that volume back during the next couple of weeks next couple of months. So we haven't had any major customer loss or consumer customer retailer loss, but we have some skus that we need to go back and adjust the bus.

Dialogue with retailers showing them that we are back up and running and that we have the capacity.

We feel they are relatively optimistic going in here to Q2.

Okay, Okay great.

My second question is just related to M&A.

Speaker Change: As a final reminder, to ask any questions, please press star followed by 1 on your telephone keypad now.

You've gotten your leverage profile down below your targeted range.

I know you have aspirations of incorporating M&A to your.

To your growth profile of the business. So it's something we've done successfully for for decades.

Speaker Change: I can confirm we have no further questions, so I'll hand it back to our speaker team for any closing remarks.

Yeah.

When we think about the receptivity of the market M&A in terms of potential targets being willing to sell and valuation being within the <unk> range for you all what does the market look like and could you give us some sense as to.

Speaker Change: Yeah, thank you very much and thank you to everybody for participating today. Obviously, we're very pleased with the significant achievements over the course of 2021, getting the IPO away, getting the refinancing in place, starting the process of bringing the two companies together to create the world's leading fresh projects company.

How you think.

Speaker Change: Disappointed about the one-off incident in the value-added salad business but we think and as Joanne has outlined we've taken a lot of action a lot of steps and hopefully we can get that behind us and move forward over 22 and have a another successful 22. So thank you very much everybody.

That is likely to unfold in light of geopolitical events.

Hey, thanks.

Yes, I think it's a good question Ben I mean, we do think that there may potentially be some opportunities emerging from the current geopolitical scenario.

Keep our eyes on those very carefully.

Speaker Change: Thank you. Thank you.

And certainly companies that have a particular exposure to the Russian market in terms of sales, which is real and said we've got minimal exposure to us that may create some opportunity I guess the other interesting macro issue around it is that there is a bit of a disconnect between the public market valuations on the private markets.

But a lot of the companies in our sector continuing to trade solidly over over the last number of years.

Further in some other segments like the diversified inflation issues, they're dealing with them by getting the price increases that putting a true. So certainly we're not seeing any.

Lowering our valuation expectations of their doors.

Well run well managed companies so that's a little bit of a challenge that the public market.

Is it a little bit disconnected from the private market, but with plenty of opportunities out there we will be financially disciplined to get the right opportunities.

It may be that some specific opportunities seems arise as a result of the current geopolitical scenario.

Monitoring and see them at the right time, we believe we are well positioned to take advantage of those opportunities going forward.

Speaker Change: .

Yes.

Okay sounds good thanks, so much best of luck.

Thank you.

As a reminder, if you would like to ask a question. Please press star followed by one on your telephone keypad now.

Our next question comes from Ryan <unk> from Davy. Please go ahead.

Speaker Change: Transcribed by https://otter.ai

Hi, everyone. Thanks for taking my questions and congratulations Frank.

Good earnings.

Maybe just starting with the <unk> business.

The impact you've quantified it at an EBITDA level, the 25 billion through the P&L can you maybe provide some color around the volumes lost or even the sales lost just trying to kind of work out how many weeks or months, maybe that business has been.

I guess that.

Got out of the market, but trying to rebuild volumes.

And then maybe I'd like to ask.

Offices from here might change going forward just in terms of us.

Pmt's behavior and future outbreaks potentially.

Then the second question is just around the fixed price contracts I think from memory.

You had mentioned that the Q3 stage. Thus those contracts. We're looking to include other costs into the matrices. So just wondering.

Have those additional costs landed in some of the contract.

What they might entail.

And then finally, just any color or comment on the supply situation in the banana cost for you I know last year.

There's a lot of volatility through 'twenty. One so just wondering is that does that normalize.

Do you expect them to remember all the questions.

I can repeat them.

Hey.

Just to start with Starwood.

So what about the timeline as it was right before Christmas that we shut down the plant.

Adam Samuelson: It.

And it's approximately one third of the capacity that we then take down.

And.

That last that if you take also the all the startup problems until approximately the mid February .

So thats the timeframe, where we had more or less one third of our capacity out.

And now we are now we are full.

Speaker Change: Thank you.

We're back to full capacity, we deliver all the retailers that we deliver before or are we still in the process of just getting single SKU spot single ambitious back and we believe that to be behind us as we are facing in Q2, So thats kind of when it comes to the volumes.

When it comes to fixed price contract, yes, we have but it's a very limited amount, where we haven't been able to put.

Speaker Change: Thank you. Thank you. Thank you. Thank you.

Index has seen that we did not have before but please remember that already in the north American market for it.

For our tropical fruit the bananas, we already have fuel surcharges in place. So we have been looking at is to get indexes.

Europe , and we do have them, but it's very limited and will not have an impact on our business as it is to date.

Johan Linden: Sa.

I think that was the second question when it closer to the third question supply situation. So the whole situation now with Russia.

New from a supply perspective.

We are a major <unk>.

Fear of several different fruit and vegetable categories, but of course. They are big also looking at banana here, they're very big in Ecuador, and it will have an impact in Ecuador, and their ability to export that volume to Russia as we see right now approximately two third of that volume is still able to.

Operator: Sam.

It onto ships in one way or another go to Russia, but one third is left behind.

That is going to mean that there is going to be a supply demand imbalance, but a lot of that fruit does not have the right.

Certifications and it also doesn't have the shipping capacity to reach other destinations.

Yes.

At least what do we see it now more an issue of some independent farmers and then the impact of the market as it is right now but of course some of its more volume will make it into the market.

We'll then have an impact on the open fruit that we have but we do not have that much of an older proves remember we have almost 80% of all the volumes going into.

Europe on fixed price contracts when it comes to us.

That's good color just going back maybe.

To my last question with regards to <unk> I was just in terms of processes and procedures that might be either enforced or internally.

Speaker Change: You

Yeah.

I guess.

Arisen post post the listeria outbreak in Nevada pretty close is there anything there to call out.

Yes, I think so I think first of all what I called out the good news in that is that when this happened we were we got the device that.

The authorities believe that we had an issue with our in our plants and we were very surprised by that because we know we have industry leading practices in our plants and it turned out we did not have an issue with our client.

Then it turned out that we did fine.

Issue with a single piece of harvesting equipment and there are different now processes put in place when it comes to handling these.

Capital equipment and that is going to lead to changes not only for us but also for the industry. So we see it knew kind of let's say cleaning processes to oversimplify it a little bit when it closer to harvest equipment that is put in place already.

We are already in buybacks for the whole industry to learn from it we have had food safety summit.

So that is being implemented across the industry and secondly is that.

When normally what.

We're going to do going forward is that we are going to test. If we have a hit where we see that we have a bacteria of some sorts, let's say listeria, we will now do more whole genome sequences sequencing of that bacteria to see if we can do use the big data and see if it can be any other kind of correlate.

<unk> out there that may be matches with some other supplier or other.

<unk>.

We would use big data a little bit more to find correlations to quicker five if there is any systemic issues out there, but I also want to call out that the.

The whole process.

And the collaboration with the authorities work very well.

The.

I think our credibility.

With the FDA and CDC has increased.

Because of our openness our transparency.

The way we cooperated in the way we took this seriously and that we actually found the root cause. So we believe that with this credibility in the journey.

Very much.

It's less likely that we will have this link the closures going into the future. We believe if anything similar happens again, we will only ticket lying down and do the investigation in north Platte.

Got it that's great color. Thanks, a lot with us at all.

Our next question comes from Ken Zaslow from Bank of Montreal. Please go ahead.

Hello, everyone.

Hello can you hear me.

Yes, we got you.

Yes couple of questions. One is good morning thinking about 2020.

What do you think about 2000 $23 million to $25 million does that fully come back is there any sort of reason that it wouldn't come back and then do we just kind of move on so is it a completely a one time item that it just affects 2022 and then.

Everything changes in 2023, that's my first and that's what we're hoping for Ken Yes, absolutely.

Great.

Can you talk about if there's any price elasticity are you seeing any of your price increases.

So far we haven't seen any negative elasticity answer with regards to demand on the price increases note.

Great and then my last question is can you just take US a tour around the world on any major crop either.

They are actually exceeding expectations or falling short of expectations.

I think we've got any standout callouts on that Ken.

Banana volume CEO incentives, a little bit more stable.

The impact of the 2020 Hurricanes.

The analysis plan, obviously the macro.

Situations can create some imbalance in supply and demand, but there is no. Other major weather events today that are going to have any kind of.

All the supply that are going to create any major supply chain availability logistical differences, but where we're at today.

Okay. Let me just sneak in one more and this is probably a softball question, but why do you think there is a difference between public and private valuations and I'll leave it there.

It's a good question Ken.

I wish I knew the answer to that.

<unk>.

Public markets, perhaps take.

19 might be taking a shorter term view of life and.

Private markers markets, whether it's other buyers or private equity are starting to do the opposite and take a longer view that this is a great sector to be in it cheaply.

Consistent profitability.

I think that's correct.

<unk>.

They are finding it a little bit higher in the private market.

Great I appreciate it guys. Thanks.

Thank you.

As a final reminder to ask any questions. Please press star followed by one on your telephone keypad now.

I can confirm we have no further questions I'll hand, it back to <unk> for any closing remarks.

Yes. Thank you very much. Thank you to everybody for participating today, obviously, we're very pleased with the significant achievements over the course of 2021 getting the IPO way getting the refinancing in place started the process of bringing the two companies together to create the world's leading fresh purchase company.

Im disappointed about the one off incident and the value added solid business, but within Ken does your line is outlined we've taken a lot of action a lot of steps and hopefully we can get that behind us and move forward over 2002 and have another successful 'twenty. Two so thank you very much everybody.

Yes.

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Okay.

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Okay.

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Yeah.

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