Q3 2022 Dole PLC Earnings Call
Welcome to the adult plc third quarter 2022 earnings conference call and webcast.
Today's conference is being broadcast live over the Internet and it's also being recorded for playback purposes.
Time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session.
For opening remarks, and introductions I would now like to turn the call over to head of Investor Relations for Tor plc, James Ragan.
Thank you Elliot.
Welcome everybody and thank you for taking the time to join our third quarter 2022 earnings conference call joining.
Joining me on the call today is our Chief Executive Officer, Rory Burns, our Chief operating officer, and Linden and our Chief Financial Officer, Cynthia Devine.
During this call, we'll be referring to presentation slides that supplement our remarks and these along with our earnings release financial statements and other related materials are available on the Investor Relations section of <unk> website.
Please note our remarks today will include certain forward looking statements within the provisions of the Federal Securities Safe Harbor, though these reflect circumstances at the time. They are made and the company expressly disclaims any obligation to update or revise any forward looking statements actual results or outcomes may differ materially from those that may be expressed or implied due to a wide range of.
Factors, including those set forth in our SEC filings and press releases.
Information regarding the use of non-GAAP financial measures maybe found in our press release, which also includes the reconciliation to the most comparable GAAP measures.
Our financial statements for the third quarter also filed with the SEC earlier today and contained reported financial information for the quarters ended.
For 2022, and <unk> September 2021, and the nine months ended September 30 of 2022 and 2021.
Our earnings press release, and Investor presentation also referenced pro forma comparative financial information. This pro forma information illustrates <unk> results for the third quarter and first nine months of 2021 is that 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.
I am pleased to turn today's call over to Rory.
Thank you James and welcome everybody and thank you for joining us today.
Very pleased that the groups delivered strong results for the quarter on a pro forma comparative basis, excluding the impact of currency translation and Nash M&A activity revenue increased by approximately 5% as compared to third quarter of 2021.
Adjusted EBITDA of $73 million was ahead of expectations and significantly ahead of the prior year. The significant increase in adjusted EBITDA was driven by strong performance in our fresh food segment offset in part by the ongoing recovery in our <unk> business on a specific challenge in our diversified America segment in the quarter.
Adjusted net income and EPS also increased significantly compared to the prior year driven by the increase in adjusted EBITDA and.
In the third quarter, we continued our strong focus operationally on cash flow and we are pleased to announce today a cash dividend for the current quarter of <unk> <unk> per share. This continues our commitment to return cash to shareholders.
So turning to slide eight for our operational highlights in our fresh foods segment. We delivered a strong result for the quarter North America and commercial cargo operations continue to perform very well with healthy demand positive market pricing and good shipping rates.
Europe is high shipping rates and adverse currency movements continued to impact on performance. However, we are making good progress in managing these challenges.
<unk> demand dynamics in the banana market overall have been unprecedented in 2022 and this remains a key factor as we work towards the end of this year and continue with negotiations for 2023 overall with our diverse sourcing base, our leading customer profile. We believe we are well placed to have a strong finish to 2022 and a positive 2000.
23 of this division.
Our diversified EMEA segment continued to trade well on a like for like basis in Q3, despite increasing inflationary pressures in our core markets again, demonstrating the ability to price dynamically and benefit.
And geographic diversity.
Our diversified America segment was impacted by a specific issue at the end of the Chilean grape season in North America significant supply chain disruptions led to exceptional advanced disposal that impacted profitability.
The overall scale and range of activity in our diversified segments reduces the impact of the Chile, great issue. When we're looking at our results on a full year basis, demonstrating again, the benefit of a wide range of products and geographies.
Our third quarter performance and fresh vegetables remained disappointing and while we're making progress on our turnaround plan is slower than we would like.
Demand was softer in Q3 and ongoing inflation continues an important cost areas. In addition, we faced higher sourcing costs due to weather related events in key clinical in the growing regions, which impacted the entire industry.
More positively however, our detailed turnaround plan is beginning to yield benefits from a volume perspective, we recently achieved a number of important customer wins as we look to build back up our bonds a base for 2023 and all major area areas of operation with <unk> profit improvement plans and we are monitoring this closely.
We continue to explore all strategic alternatives for this segment and expect to see a recovery in 2023 with us on job to just to give the financial review.
Thank you Laurie good morning, and good afternoon, Please turn to slide 10.
As Rory mentioned, we delivered a strong performance for the third quarter when compared to the prior year revenue for the third quarter decreased marginally against the pro forma comparison, driven by negative FX movements and the impact of M&A and our diversified EMEA segment.
Lower volumes in our vegetable segment.
Like for like basis revenue increased 5% driven by inflation justified price increases.
Adjusted EBITDA for the third quarter increased 26% to $73 million with.
With the increase driven by a strong performance in the fresh foods segment.
Similar to Q2 foreign currency translation impacted results by $4 million and stripping this out adjusted EBITDA increased 2% on a like for like basis, turning to slide 11.
Adjusted net income was <unk> 5 million for the third quarter significantly ahead of the prior year.
Kris was driven by higher adjusted EBITDA, which offset an increase in interest expense.
Adjusted fully diluted EPS for the quarter was 14.
Compared to 7% prior year and three <unk> on a pro forma comparison basis again, driven by the increase in adjusted EBITDA.
I will now provide some more detail on each of the individual segments, starting with fresh foods on slide 13.
We continue to see good momentum in this segment with revenue for the third quarter, increasing 11, 7% compared to the pro forma comparison.
The increase was driven by higher worldwide pricing.
And our Chicago at higher volumes of bananas in North America.
This was partially offset by lower volume for bananas in Europe , and Latin America.
Adjusted EBITDA increased 200% from 17 million to $51 million for the quarter driven by higher revenue.
Moving to diversified fresh projects EMEA on slide 14.
As with prior quarters revenue in this segment continues to be impacted by foreign currency translation.
On a like for like basis revenue increased 4% driven by strong performance across the division and overall higher pricing.
Similarly, adjusted EBITDA decreased on a reported basis due to foreign currency translation. However, on a like for like basis, adjusted EBITDA increased slightly by 1%.
Then turning to diversified fresh project America's invest whereas.
Revenue for the third quarter increased five 8% continuing the good momentum seen in the first half of the year.
The increase was driven by higher overall average selling prices, particularly in north American market for avocados, potatoes, and onions.
Our results in this segment were impacted by a difficult and Chilean grape season in North America.
The loss in the quarter.
Finally, turning to fresh vegetables.
Lower volume contributed to a 5% reduction in revenue for the quarter.
The segment continues to recover from the impact of the value added solitary call unplanned suspensions at the.
The year as well as lower category demand.
Lower revenue along with persistent deflation.
Input costs and specific industry wide weather challenges in California, a growing region.
Led to an adjusted EBITDA loss of $9 million for the quarter.
Now turning to slide 17 capital expenditures for the third quarter were 27 million.
We now have invested $67 million year to date spread over Reinvestments and farm last sizes and outgrowing region.
The acquisition of an additional farm in Peru, and efficiencies and logistics warehousing and processing closer to the market.
We are now expecting capital expenditure of $95 million for the year, a reduction of $15 million from our previous guidance.
The reduction followed that reassessment of capital projects within the group.
Working capital remains elevated mainly due to the precautionary measures taken earlier in the year to build up inventories and also due to the inflationary impact of input costs.
We expect to see that the blind due to the enormous season working capital impact apex. At this time of year. However, we do still see higher underlying level of working capital this year compared to prior year.
Our net leverage at the end of the quarter was three four times, we expect leverage to decrease further in the final quarter of 2022.
Our working capital.
Frontline.
Turning to slide 18.
We also continue to focus on our disappointing share price and believe that our valuable strategic asset base is not being fully recognized.
To highlight that we have included slides in our investor presentation setting out some of the part valuation approach using a two division structure.
The asset division more than covered the total debt.
The operating division currently generate adjusted EBITDA of.
<unk> $250 million on a debt free basis after charging a proxy lease payments to service the debt.
This is one example of the real value until we believe it has not been reflected in our current share price.
Now I will hand, you back to <unk>, who will give an update on our full year outlook at closing remarks.
Thank you Justin.
Well the economic environment does remain dynamic as we progressed towards the end of 'twenty, two and we continue to see positive trends some ongoing challenges.
It's clear that the global economy is difficult with inflation and interest rates continue to rise we remain highly focused on operating efficiencies capital discipline and seeking price increases to compensate the cost increases. We believe we are well positioned with a broad portfolio of healthy and nutritious products and an industry that does continue to be underpinned.
Our strong fundamentals.
However, we now expect full year adjusted EBITDA to be at the lower end of the previously guided range due to the ongoing challenges in our fresh vegetable segment, which exploded recovery as well as the specific Q3 issue at the end of the Chilean grape season in North America.
In conclusion, we remain positive on our medium to long term outlook and are intensely focused on our short term priorities for the remainder of 2022 into 2023.
Our principal priorities are clearly the turnaround of our value added service business, focusing on cost control and operating efficiencies across all of our businesses, including the ongoing synergy projects.
With a disciplined approach to capital.
Before I conclude I would like to highlight the first nine months of the year three of our four segments have performed well, especially considering the complex operating environment and we're very focused on return on sales spreads.
Dutch sports business.
I want to finish.
Thinking again, all committed team for their ongoing efforts to drive the business forward and also by thanking our critical partners and customers for their ongoing support which allows us to look to the future with great confidence so with us.
Operator.
And the line for questions. Thank you.
Thank you.
To ask a question. Please press star followed by one on your telephone keypad now.
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Our first question today comes from Adam Samuelson from Goldman Sachs. Your line is open.
Hi, yes. Thank you good morning, everyone.
Good morning.
Good morning.
First question as we think about kind of the performance in the quarter and the outlook.
And fresh vegetables can we maybe talk about from where we are.
Ending the third quarter.
The EBITDA loss.
Thinking about the trajectory and pathway and what has to happen for that.
A positive EBITDA contributor if not in the fourth quarter.
Certainly in calendar 'twenty three.
Yes.
Yes, maybe I can take that one so.
We're very happy words that the division is doing right now.
We are focusing on servicing the customers and because we know good service and then leads to new customer contracts and much easier pricing discussions and.
And we are focusing and doing good progress on our turnaround plan.
And we executing on that plan and there is a lot of different facets to that plan. It's about reviewing all the costs that we're having is reviewing all the pricing that we have with customers. We're looking at our Skus do we have the right skus considering that we are potentially entering into a.
Into a recession, we know with high inflation out there. So people are looking for more value high value or affordable products and were looking at discussions with the customers to see if we can increase somewhat the volumes, but we are also looking at the structure, including our own capacity.
But what has happened in the end of Q3, and which will impact Q4 is that it has been a complete crop failure in the industry. This is not a dol isolated incident. This goes across the whole industry.
We're almost 30% to 40% of all the iceberg and remain had failed and.
That is due to an extreme heat that we head into beginning late summer beginning of the fall followed by grade that crop failure combined with market being somewhat soft for value added products value added just a little bit higher.
That could be.
Quarter to become challenging but this doesn't change how we look at 2023.
Going forward.
Okay.
Be clear and I know, you're not giving guidance, but can you help maybe give some parameters on how you might be thinking about 2023.
No.
Go ahead.
Yes, I think it's a little early to give more comprehensive update on 23 out of them and I think what we'll do is as we finish out the year.
We need more logical and sensible from an investor perspective to give a more comprehensive update in the next quarter on where we see 'twenty three.
Overall basis as Jan says.
Just getting a run of bad luck in this division and certainly the current production issues.
So, California has been very unhelpful.
Underlying work with the new management, we've put in place with the some of the legacy approaches guys come up with to help us to get to assist beyond that we're very good management team about that just need a little bit more input of some help to get over the hump at the moment, we're making good progress on all of the profit improvement plan.
Update on the next call on our view on 'twenty threes.
Okay, and then if I could just separate question.
The slide deck, you did introduce the kind of asset asset light.
Kind of some of the parts.
The sale leaseback type transaction or is that some sort of corporate split.
Effectuate that kind of earnings profile under serious consideration at this juncture.
Not just help us think about what would what would get you to that point.
Yes.
It's really just.
Sure.
Illustrate to investors the very valuable long term asset, but we do have in this business, we see them as integral to our existing business. So we don't actually have any any plans to separate them are D assignment and lease back of those assets.
They are very important to us we do you look around at some of the farm needs, particularly in the U S farm REIT space.
They have very high valuations people are seeing the value in long term planning and other assets and in.
In this slide with just at a macro level, just setting and I hope our investors look business what Joe when you have some good net assets in the long term asset division and you've got some asset life.
<unk> EBITDA with significant demand on that.
It should attract a significantly greater value, but in the short term, we're not actually thinking about splitting the company.
We like having the two pieces together, but you can actually look at the two separately valuable.
On the other one ownership structure.
Alright, Thats all really helpful. Thanks.
Thanks, Adam.
Our next question comes from Roland French from Davy Your line is open.
Yeah.
Thank you everybody.
Couple of questions as well if I could maybe just starting the banana business.
And maybe an update.
In terms of color around contracting since we last spoke.
I E I guess Vince.
Traction is going on across Europe , and North America as well as.
Maybe just some color around the supply situation.
Has it gotten better worse or remain the same.
So that's the first question on Banana contracting and then maybe just on the cost environment I know in the outlook you talked about currently seeing some positive trends and I guess your caveat that with some further challenges just maybe kind of breaking that ice in context of some of your key cost buckets.
And then finally and somewhat related just on this.
Supply chain I know this has clearly been frictions that US 12, 18 24 months, just generally had the supply chain has approved or disapproved.
Okay.
Maybe when you take the first one I'll pick up the other two.
Alright so.
When it comes to bananas, it's been an absolute.
Lee interesting year.
We started out with having done one view on how the year will develop and everything changed when Russia decided to invade Ukraine and what happened then is that we had a lot of demand disruptions the demand fell off.
We had to readjust supply.
Cost for important input.
Tears went up fertilizers, but actually also paper the box that were using and FX collapsed. The euro collapsed, we have been able to perform well under all they'll take them back.
Backdrop, we performed very well within the division.
Now entering in the most intense negotiation period, when we were negotiating with the customers and as we did on the last call.
As we said in last fall, we expect the supply situation to become tight and it has become tight supply have come down.
Even a little bit further than we have expected. So right now we are in a situation. When we are doing and how to meet customers, where we feel relatively comfortable that we would be able to pass on the cost increases that we had just because of the tight supply situation of course business also to a certain extent complicated in the negotiations.
We have with our suppliers, but I think if you put them altogether.
Being up in a good position here looking into the next year.
And then just following all material on a couple of questions gentlemen on the cost environment.
It's very hard to call.
Inflation has peaked or not peaks, we've seen even this week some of the European countries inflation rates were slightly down but on the other hand, the UK rates of inflation was considerably up something like 45 year highs as you would know so.
And some of our segments, we are seeing some easing of inflation.
But a little bit early to call on in terms of the supply chain I mean, obviously at the end of the second quarter, we had some really significant strong impact because port congestion, but how does it.
Unfortunately, the big impact on our Chilean grape business, where ships were part.
The courts for just too long to homes the quality of the solution.
Discharged they weren't suitable for supermarket programs.
It's a markdown consequences, but we're seeing some easing of port congestion.
Clearly in some of the areas in the U S.
And then fuels a little bit better <unk>.
Shipping and it's.
There are.
Some evidence that shipping rates.
Maybe.
Coming off the highs, we've yet to see it come through in a material way. So, let's just I mean I'll.
Thanks.
Supply chain is better than it has been.
Labor costs are probably a little too early to call either hit peak production.
Okay, Great and then maybe just a quick follow up.
Seasonal is the Chilean great business.
It's very seasonal.
I mean, it's just it runs for a number of a number of months.
Revenue from the early part of the year.
Okay, great. Thanks, so much.
Thanks Roland.
We now turn to Ben Bienvenu from Stephens. Your line is open.
Yes, thanks, so much good morning.
Good morning, Ben.
I want to ask about the comments you made on pricing.
Correct.
Some of these pricing increases as we move forward I'm curious are there categories in which you feel like you have more opportunity to take price versus others and what are you seeing so far with respect to consumer reaction to our pricing agreement that you've taken.
Yes.
You look at some of our most important category being benign on some it's starting from a low base.
So I think this is a willingness to acknowledge that cost cost increases, which could then get reflected in price increases from the consumer end.
There's been some ups and downs and scale them described in terms of availability of supply, but I don't think were seeing any any any fundamental change in consumer demand and I think pricing in some of the kind of the higher priced categories.
Okay.
Mangoes papayas organics products at the asset can be a little higher harder to get through significant price increases without affecting somewhat demand in those categories, but when we stand back from it though and we don't.
That can be ups and downs, there is quite a bit across all of the different markets. Even within Europe . There are different supply demand consumer demand, if you look at Spain versus Sweden.
And versus hold onto it does vary a lot, but standing back from us.
We do not see any fundamental shift in the consumer desire to each high quality proven bench that we supply.
Okay, Great and then my second question was just related to M&A can you talk a little bit about what the environment offers you are there particular opportunities that youre looking at your.
Writing about or focused on.
Yes.
If you could kind of characterize the robustness of the pipeline that you have ahead of you that would be helpful.
Yes.
We see that the year that we've been.
Ben huge an overwhelming focus with the entire management team is to try and get the beds division turned around.
We keep an eye on what's happening in the M&A world.
We know who the interest in companies or the different segments.
There is our bananas, sorry distribution marked the guidance. So we've got a very good base and.
And I think one of the interesting things about M&A is.
If you look at.
Three divisions being fresh fruit, Dr diversified in the markets and diversified in Europe pretty much all of our competitors are companies.
All right.
Performing similarly, well, so I don't want to tip any fundamental change in the value of those companies that were not seeing any fire sales or anything or any great opportunities to buy any companies cheaply because the sector is actually doing well and it's a little bit unfortunate where else. We've got the one division that we've got more work to do to fix but.
No.
We're keeping our eyes open on the opportunities that are out there short term, we've got probably some different priorities in terms of just getting more confidence with investors delivering the numbers getting the business back on track.
We have ongoing discussions with our M&A pipeline, our pipeline Im not appropriate time, we think we can add an interesting thesis to the group.
Okay, great. Thanks, so much.
Thank you Dan.
Our next question comes from Christopher bonds from Deutsche Bank. Your line is open.
Hi, Thanks for the question.
Rory I just wanted to pick up on a line that you just mentioned on the consumer.
So with the recession risks so palpable in place until high in absolute terms are you noticing any like shift in consumer behavior.
Whether that's trading down shifting shifting the shopping channels out there that they're in.
I think you mentioned that there is still a propensity to consume which is great. But has there been any shift whether in North America and Europe Thats concerning you from a consumer from a consumer behavior perspective.
Obviously all of the points you make Christopher ops that you guys have an inflation nervousness lack of disposable income.
Political events tend to be low down the list of discretionary items that people stop buying them.
We've seen it.
Difficult to measure it.
We haven't seen any material change in consumer behavior.
Some of the higher priced categories that I mentioned might be under a little more pressure, but it's not a material shift in demand for consumers are not continuing to buy things like mango sympathize that might be a little bit higher price per kilo.
So we don't we don't when we look back on some of those is that something around long enough you may have seen.
Periods of difficult economies in the past you go back to the European financial crisis back in the end of the 2000 and some short term dips in some demand from consumers.
Maybe some of the the discounters, who offer a narrower range.
North Dakota.
People can think about them a little bit more on this period.
We're not really concerned that there's any kind of fundamental shift in consumer behavior towards.
Fresh pollution vegetable consumption.
Okay. Thanks, that's helpful and then I just wanted to.
I know youre not youre not guiding for 'twenty three.
Just given given where we are but.
Since mid November .
There anything you can share on performance like quarter to date across the division, but it sounds like fresh vegetables would kind of be a little bit weaker than you had anticipated.
But.
How should we think about the other businesses just into <unk>.
Considering the range that you guided him again.
We're pretty happy with the other three divisions, obviously, we look at our European business the biggest impact.
Is that the FX rates, you look at things like currencies like the euro.
Year on year, 11%.
Depreciation of the Swedish krona, which is important to a 17% year on year movement against the dollar so when Youre re translation.
Reporting the dollar still has quite a material impact on the numbers I guess, even on a day to day trading paper based.
Basis, when you're importing as we do into euro markets on CK markets.
With the currency, that's significantly weaker and adding in inflationary pressures. So it does put a little bit of pressure on those business, but nothing nothing material. So we're pretty happy with.
Got it.
With.
Our diversified businesses, our fresh fruit business.
Got a really strong position in the banana and pineapple business number one guy in North America, We've got Enablis customer base will really appreciate about the support we get from our customers work hard to make sure. We made on service levels on requirements and we've done both bright through Covid times throughout through supply complication times.
Customers I think I appreciate that and work hard with them then to mature the cost chain items are appropriately reflected in the price. So.
With the exception of da Vinci business and foreign exchange.
We're feeling pretty good.
Okay, great. Thanks, I'll pass it on.
Our next question comes from Ken Zaslow from Bank of Montreal. Your line is open.
Hey, guys how are you.
Good Ken.
Just two questions. The first one is when you talked about the Chilean grape crop and then you talked about the extreme heat of the iceberg.
You said that it contained to this quarter does it not impact next year.
Uh huh.
Remote.
<unk> side, you said your outlook for 2023 would not change on that is there a reason why a 30% to 40% change is it seasonal or is there something to think about it and it sounds like Chilean crop is seasonal and then I have a second question.
Okay on the Chilean was actually had nothing to do particularly with the crop book.
Two issues that we had which meant that ships and large volumes of products couldnt get discharged and the right time, and obviously you're dealing with a perishable products and then it gets delayed and then the subsequent season product starts to arrive into the market at the same time. So we're working on it. It was just exceptionally unusual this year. So we're working on the basis.
Those supply chain disruptions going into 'twenty, three will not reoccur and we don't expect them to reoccur.
We're going to we're looking at how we manage that to avoid the same magnitude of profit per week comps that we had at the end of the season.
And then on the iceberg situations on the land situation.
Sure.
Very unusual situation in terms of the crop failures that youll have to ask.
Described.
We haven't seen such a dramatic one in quite a while but I think.
It's an unusual kind of weather circumstances has been partly.
In response to the carriers that we.
We see some other.
Other areas of production that can compensate for that or that you don't repeat tough comp later going into into 2023 also understanding that you want to add about when Johan put myself can understand a little better.
Yes, no the crop failure was at the tail end of the California system, we now moving into the Arizona. We are sooner it will have a little bit of an impact in Arizona, just because we were starting then a little bit earlier than expected, but we should have cycled out of that coming into January 2023.
My second and far more important question is.
I hear you on the asset value and how you think about it. My question is if you were to look back a year and now look forward three years.
You think your earnings power has changed based on the environment that we're in do you think it stays where you would've thought it would be and can you give the pluses and minuses of how that will.
Emerge given European.
Yes, I think youll be look back over the last year.
<unk>.
And I've said a couple of times on the call are.
Three segments from fresh for summer two diversified businesses.
We'll stand back and you say looked at home.
Pretty solid.
The European business on a like for like basis, we're pretty happy with what a few ups and downs here, but the bonds again against the backdrop bumps. The most unusual economic environment pretty much all of US on this call when I lived in our lives.
The war in Europe .
With the Russian Ukrainian situation the disruption.
So logistics caused by Covid on still enjoying.
So I think with that backdrop, we really performed grano fresh fruit business, given our market position and given.
Our diversity of sourcing our shipping capacity, our infrastructure capacity, our management capacity within that division.
We're feeling pretty good with those three divisions can continue to perform and hopefully build.
Our profitability by bringing even more so the two groups to legacy groups together.
The big problem has been the vegetable division I'm really focused on the turnaround plan.
Thank you I'll describe the reason that we just kind of catch a break at the moment.
Division.
At the unfortunate top labor situation, where you've got lower volumes going into plants that depend on.
Higher volumes to cover fixed costs and that will just make our turnaround plan.
Yes.
<unk> implementation, but we're doing well we're picking up volume we've got some great work going on in terms of.
All different aspects of the business from operational efficiency cost efficiency to management food safety or maybe some other areas under the microscope.
Kevin.
Hello.
Given the business backdrop in the world backdrop.
We need just maybe the exchange rate moves a little bit between the euro and dollar.
And if we got really lucky maybe somehow or another Russia can be convinced to step back from the Ukraine and I think even from.
A psychological point of view somebody could do Mastiffs would change to sell economies just from people signaled little less nervous about why the warranties. So.
Some of those macro effects, obviously, they're outside of our control, but overall.
Steve and Bob about nicely.
We're looking forward to the future pretty positively.
Great I appreciate it thank you.
Thank you Tim.
This concludes our Q&A.
It's a very bonds.
Final remarks.
Okay. So thank you everybody for joining us today.
Yes.
Good good Q3 numbers for say a huge improvement on the prior year.
Three out of our four divisions performed very well and there's been unlucky in our cash balance from division, but when we get there so I think.
Just to add a more medium to longer term view on this we've got a great business with some really fantastic product market position some really.
<unk> geographic positions and we look to the future with confidence so thank you very much.
Okay.
Today's call is now concluded.
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