Q1 2023 Tingo Group Inc Earnings Call
[music].
Greetings and welcome to the Tango Group first quarter 2023 financial results Conference call. All participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.
Before we begin the formal presentation I would like to remind everyone that statements made on the call and webcast may include forecasts estimates or other information that might be considered forward looking while these forward looking statements represent our current judgment of what the future holds they are not guarantees and are subject to risks and uncertainties that could cause actual results to differ.
Materially.
You are cautioned not to place undue reliance on these forward looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events throughout.
Throughout today's discussion we will attempt to present some information some important factors relating to our business that may affect our predictions.
You should also review our most recent Form 10-Q filed today and Form 10-K for a more complete discussion of these risks of these factors and other risks, particularly.
Particularly under the heading risk factors in.
A press release detailing these results crossed the wires. This morning, it's Kevin I am Eastern time and is available in the Investor Relations section of our company website.
10 group Doc can go 10 group dotcom.
Your host today, Darrin Mercer Tango group, Chief Executive Officer, though demand buoyancy bingo mobile and Tingled foods, founder and CEO and Kevin Chen can go group Chief Financial Officer will present, the results of operations for the quarter ended March 31 2020.
At this time I will turn the call over to Tingle Group, Chief Executive Officer Darrin Mercer.
Okay.
Yeah.
Okay.
Thank you operator, and good morning, everybody.
I'm pleased to welcome you to today's first quarter 2023 financial results Conference call.
I could not be more excited about the future Pachinko group and disrupted Lee expanding growing group of businesses.
For those of you joining us for the first time I would like to take a moment to introduce single group and recap on our remote remarkable story so Paul.
<unk> group has a diverse contract and the <unk> group of companies with operations in Africa, Southeast Asia, and the Middle East.
The company significantly expanded up was somewhat transformed when we acquired 100%. So 10 go mobile limited on November 30 of 2022.
And then acquired <unk> Foods plc on February seven 2023, before subsequently changing our names Qingdao grouping on February 27th 2023.
<unk> group is now comprised of the following businesses.
And the mobile which is a leading fintech and Agri fin Tech business in Africa that operates through a device as a service and a small U S. S D platform model.
Foods, which takes crops from jingo mobile's large customer base of farmers and processes those crops into finished products.
Tim Go D C C.
<unk> operates a commodity trading platform.
Commodity export business from Dubai.
Deals in both rule agricultural commodities, including from our single mobile phone listener and finished good products, including from <unk> foods.
Single pay.
<unk> has developed and operates the Shingo pay Super App that has a Pan Africa partnership with visa.
The full version of Jingo pay which will be rolled out later this year provides payment services and E wallets and a range of value added services to customers.
Pingo pay in partnership with Visa also offers a range of merchant services to businesses.
The company has been tech verticals, which operate platforms that offer a range of insurance and financial service products under currently focused on the southeast Asia market.
And finally <unk>.
Various businesses unless synergistic interlinking ecosystem creates a strong position from which we are confident that we can achieve significant further growth and expand internationally.
The senior group quarterly financial results reported in today's 10-Q filing which are presented here today include for the first time, the revenues and earnings of Jingo Foods, which are consolidated from MS dates of acquisition on February 17th of 2023.
In other words the income statements included within the 10-Q is comprised of the full quarter results of the consolidated company together with two months results of Jingo foods.
At the close of the Ting mobile acquisition on November 30 of 2022, we immediately became highly profitable.
And have continued to grow strongly since <unk>.
Including through the recent acquisition of Jingo foods and as also evidenced by the announcements of a number of major trade deals and partnerships, including Zynga mobiles recent exclusive agreements with the prime commodity exchange well P. CX and all farmers Association of Nigeria or offline.
Which is expected to locking considerable project supply for our single foods unchanged D MCC businesses as.
As well as a nationwide network of warehousing facilities were all farmers and significantly enhanced commodity trading opportunities.
All of which it was to further strengthen our I agree ecosystem.
The first quarter 2023 results highlights the group has shown on this slide are representative of our strong financial performance since the completion of acquisition of Zynga mobile on November 30th 2022.
Our subsequent acquisition of single Foods.
For the quarter ended March 31, 2023, the company generated over 851, many in U S dollars in revenue.
397.
Million U S dollars and gross profit and 372 million U S dollars and EBIT dull and nearly 263 million U S dollars and income before tax.
Furthermore.
Our cash balance as of March 31, 2023, which is reflected on our balance sheet.
The watershed by Deloitte LLP stood at just over 718 million U S dollars.
Our reason why I think our group is very important to us.
And those of you that have listened to all red our presentations before we'll most likely already be aware of our mission statements.
So those of you who are not familiar.
Our overarching mission that Qingdao group, it's the Boston digital and financial inclusion to our fintech platforms and to drive social and economic uplift.
Fintech businesses. Our mission includes our commitment to make a significant difference in improving global food supply in tackling the world's food security crisis by delivering farmer empowerment improve crop yields.
A reduction in post all of these losses.
Better access to both foreign and domestic markets.
At a regional level. We also aim to support Africa and this film is to achieve sustainable food self sufficiency, bringing an end to africa's food and security and poverty.
By way of a recap.
We entered into a definitive merger agreement to acquire Ting mobile on May 10th 2022.
Following this we.
Immediately appointed an elite team of World class advisers to undertake extensive due diligence and financial analysis.
The team, including Big for Accountants, and some young.
The world's leading law firm.
Our number one M&A investment bank Houlihan Lokey.
Our long standing New York legal counsel, I, Dunno Grossman and show.
We announced on June 15th of 2022 that the jujube diligence exercise as being complete.
The findings were positive with no material concerns.
The original merger agreement was amended and restated in October of 2022.
Facilitate the expedited acquisition of 100% of Zynga mobile as well as an improvement in terms to the company shareholders.
The acquisition was subsequently completed on November 30 of 2022.
With the benefits of the companies Untangled Mobile's collaboration the fourth quarter of 2022, so at the beginning of the geographical expansion of Qingdao mobile with the opening of new offices in Ghana, Malawi and Dubai.
The fourth quarter also saw US launch the thing of the MCC commodity trading platform and export business on.
On the soft launch of the single pay Super App in partnership with visa.
By January 2023, we have begun to pivot the company's insurance and Fintech verticals.
That's a compliment that single businesses with the aim of leveraging is already established brands and large customer base.
And then on February 7th of 'twenty, two 'twenty three we acquired the single food and beverage processing business. So as to further strengthen the shingo seed to sale ecosystem.
On February 27 to 2023, we changed our corporate name and ticker symbol to better reflect the importance of the pingo brands to the business.
And provide improved clarity to our external stakeholders.
And current and prospective partners customers and investors.
And finally, our reporting the full year 2020 to financial results on March 31, 2023 was followed by two material announcements in April .
The first being Tingled Mobile's exclusive partnership agreement with <unk> in that farm.
On the second.
Being the filing of our Deloitte audited full year 2022 financial statements and pro forma financial information for the recently acquired shingles.
I would now like to turn the call over to dosing of Buzzi, the founder and CEO of Zynga mobile and Shingo foods to further discuss tinder was operations dosing.
Thank you Darren and to everyone joining us today.
By way of recap and update on the genome of a business that I found out about 20 years ago will begin with a single mobile business as a service model and once our USA Fintech platform, which we believe is a leading fintech platform in Africa.
Following the signing of updated definitely give merger agreement with <unk> in October 2022, we set about accelerating our growth strategy.
In November and December 'twenty to 'twenty, two we signed trade agreements with two major partners with the aim of quickly expanding.
The mobile customer base from $9 3 million to one expect that 30 million by the end of 'twenty three.
We signed a partnership with all of our muscles to shelf, Nigeria, which included a commitment to enroll a minimum of 20 million new customers with single mobile.
Also launched in Ghana, and signed a trade agreement with the Kingdom of Ashanti.
Which included a commitment to enroll a minimum of 2 million new customers to pingo model.
And Thats, a real more than 4 million new customers soon afterwards.
Lunching to Malawi and begun to progress several other partnerships there with the aim of establishing base rollouts in the future across East Africa.
Into Tanzania, Mozambique, and Zambia.
Looking further ahead, we plan to expand in the future into other parts of Africa as well as into Asia.
All of the relevant markets in the world.
Through all of our businesses within the single family, namely single food done single the MCC.
Aimed to increase uptake and demand for produce from <unk> pharma, thereby creating that yourself.
Reinforcement cycle in.
In April 2023 as part of.
The further strengthening of our ecosystem single mobile and that into a tripartite agreement with Tcs.
Yes.
Jay will discuss in more detail shortly.
Lastly.
As we currently look to expand the reach of our marketplace platform.
Currently test in.
The forthcoming Wassat web platform, and Wassa up, which we intend to launch around the middle of this year to complement the already successful years as the GSM transaction platform.
Single food was brought into the group on February seven 2023.
This is a business that our team on that.
Have been developing for some time outside of single mobile we launched the business as a Standalone company in September 2022.
Focusing on supply in a relatively small product range to several large distribution and wholesale businesses.
Single foods creates significant demand and offtake footing going well summer while at the same time tritium supply for single DMT is commodity trading on export business.
Within the first four months of trading through December 31, 2022 single foods generated modern.
$466 2 million U S dollars.
One of the first quarter of 2023, then saw revenues grew to $5 $75 $77 $2 million generating.
Operating profit of $143 5 million U S dollars.
Single food is set for more supply capacity on revenue with a new set of eyes.
$1 6 billion dollar food processing facility.
In Delta State of Nigeria.
Our joint venture partner is already at an advanced stage of completion.
Look on the buildings foundations on the installation of infrastructure drainage and water supply.
Facility is on track to open by mid 2024.
We also recently partnered with E Vita Energy plc.
Build a $150 million 110 megawatt solar plant the facility.
So to achieve it.
Zero carbon emissions and reduce energy costs.
We believe Africa's farmers and agricultural sector will benefit from the significant expansion of the continents on processing capabilities, including crop demand, reducing post harvest losses, given from us higher prices and delivering financial a placement.
In December 2022, we launched single D. M C C.
<unk> is an agricultural commodity plus from an export business in partnership with the Dubai multi commodity center the MCC.
As part of the timber ecosystem single engine secrets significant uptake of new crops from thinking about summer.
And as always we expect that to be a major customer as it looks to export the finished food and beverage.
And they will produce of single foods.
We have made significant progress during Q1 2023.
The application of bulk volumes of produce for exports from our funds members.
The first export orders.
Due to be completed before the end of Q2 2023.
Through the farmers of Nigeria, which estimated at around $60 million as well as those in Ghana, Malawi and certain other territories.
Have access of several billion dollars per annum of agriculture produce for export business.
These export autozone below horizon liberalized single group.
While at the same time.
Even single Mobile's pharma that single foods direct access to international markets.
On April 26, 2023, it was announced that single about putting that with PCM and often.
Well the exclusive use of our funds exists and that's all about 2300 entry into warehouses across Nigeria for a minimum term of 30 years.
This strategic partnership uniquely positions <unk> to monetize and then duress Trump ecosystem.
It's a population of $213 million.
And the global export markets.
Under the terms of the agreement Kingdom of a husband rights of first refusal to purchase or trade any of these properties.
And the <unk> warehouses, which it intends to use primarily to serve the single foods processing business and single DMZ commodity trading and export business.
Tcs has installed is leading edge.
E Weyerhaeuser system.
And all of the partnership warehouses, enabling clubs on all the produce to be commodity commodity commoditized.
Created by Tingle from the date of delivery.
Single mobile is also to be granted a priority position on the PCL commodity trading platform, enabling single Dms as it would trade funding and produce all of our commodities.
On spot futures physical on the diabetes business.
I found the umbrella body for our main U S finance sector has committed to coordinate all its agricultural comparatives are members to utilize partnerships warehouses to handle their produce in addition to which the partnership has committed to targeted increase in the number of warehouses.
Yes.
80000 in the next two years.
Single Mobile also has the right to sublet the warehouse space. So preapproved third parties, such as e-commerce businesses and wholesale businesses.
This partnership with <unk> is expected to considerably increase our offtake of crops and all of that produce from farmers, which we believe will help to satisfy the substantial future.
Climates of a food processing and commodity trading and export business.
Importantly, the agreement also for that augments our seed to sale model.
<unk> also achieved our objectives are for deals.
And post harvest losses and truck wastage.
While also increasing food production levels meaningfully improving food security.
As explained previously single pay the Super App that offers a full range of value added services and partnership with visa.
But services include digital visa card.
Payment services marketplace E Commerce insurance and finance.
As a full market b to C and b to be offering the tingle peso Bob on visa partnership is helping us to diversify and expand single group into new sectors with the aim of making single day and single House and single household names.
As widely recognized as visa itself.
To assist us in achieving market penetration.
And I forgot partnership with visa includes the provision of marketing and customer acquisition support.
And so that means in all business sectors plan to benefit from a new range of 10 will be that much on services.
And it seems like a business.
Oh.
Where else are small.
From a customer of ours, we will see significant additional advantages through the integration of single B with Wassa.
Once I agree marketplace platform.
Single payer business portal and single visa much on services enables subscribe.
Amazon businesses in all sectors to easily and securely accept payments and use it to make online transactions.
They are domestic or foreign currencies.
Well as to manage because setup repeat payments and access transaction shipments.
That's version of a.
Single pay App, which now includes <unk>.
The addition of several new value added services is currently at an advanced stage of testing with visa ahead of a full scale launch.
Set for <unk> III.
Through single mobile Masa single B single food dancing with the MCC will have to create a full every fintech ecosystem.
We communicate with and push services from us through this through the smartphone handsets, we supply to them. The farmers can then use then embedded in Warsaw USA platform.
And the soon to be launched in Wassa and single pay ups to purchase <unk> for their family business to purchase all that says is to make payments and to sell their produce.
When single Foods is a valuable customer and sort of uptick for single Mobile's promise.
In relation to which it possesses that raw crops into finished food and beverage products.
Finally single the MCC can trade on export.
The raw crops of Kingdom of Las Palmas, and finished food and beverage production single foods, which it can sell to a global market where demand significantly outstrip supply.
This already strong seed to sale ecosystem now.
And for that by the recently signed deal between single move a <unk> alpha.
This now gives us access to a substantial nature nationwide network of warehouse facilities skills us a considerable increase in produce supply and gives us enhanced commodity trading opportunities.
All in all mid single ecosystem creates a.
Boston Loop financial and digital inclusion.
Alongside an increase in food supply and a reduction in post harvest losses, which in turn improves food security and reduced food poverty poverty.
And ultimately all these factors deliver financial and social uplift meant not only to our five months, but also to all.
Hold us.
Thank you Desi.
Before I hand over to Kevin I think it is important to also state that at the core of our values. We are highly committed to environmental social and governance factors.
We foster digital and financial inclusion through our technology platforms, driving the social and economic uplift and serve our customers.
We meaningfully improved the global food supply and tackle the world's food security crises by empowering the former helping them increase crop yields reduce post harvest losses gain from improved access to markets and benefit from Farah market prices.
Our technology and platforms also deliver significant environmental benefits, reducing wastage, improving farming and food production efficiency.
Promoting sustainable farming techniques and reducing freight miles.
As part of our commitment towards the environment and social uplift meant we all focused on adopting our mature ESG framework underpinned and guided by the United Nations Sustainable development goals.
I will now turn the call over to single group CFO , Kevin Chen to discuss our first quarter 2023 financial results as reported in this morning's 10-Q filing.
Thank you Darren.
I'm very pleased to present our financials.
Don.
On the first quarter ended March 31st 2023.
A full breakdown Barbara initial readout.
In number of regulatory filings and in the press release that crossed the wire earlier this morning.
Before going into numbers. It is important to note the significant impact of the acquisition of NGO Foods.
Each completed.
Okay.
Great.
And has to be about it.
Station at Ingalls and national down into a room from the date of completion.
Albert will be down.
For the first quarter ended March 31st.
<unk> thousand three in crude.
Pete.
Ballpark the midnight Tomorrow.
Now turning to some of the key speakers.
Our net revenues in the group for the first quarter ended March.
The 23 or <unk>.
851 2 billion.
Two 9 million for the first quarter ended March 31.
2022.
And increase the 8008, 1%, which was mainly attributed to a full quarter of the kimco mobile and foundation of E Mail after the readout.
Yes.
The company's gross profit for the first quarter I need 23 was 386 9 billion.
Path to gross profit of one 3 billion for the first quarter two.
<unk>.
Which again was attributable to the addition of T mobile and if you can go food applications.
The operating profit off of single group.
Quarter ended March 31st the 23, one 261 that can do it at.
Up from a loss of $10.
For the first quarter ended March 31st 2022.
After adding back depreciation and amortization, while the company's operating profit EBITDA for the first quarter ended March 31st the 'twenty two 'twenty three.
I would say that you hadn't Gordon $71 8 million compared to two <unk> EBITDA.
Oh nine point widen the audience first.
Quarter ended March 31st 2022.
After taking the appropriate attacks into account, which is charged and the retail 30% on the taxable profits off single mobile and I suppose the company's net income for the first quarter ended March 31st 2022 Green amounted to 170 is big.
That would be.
Compared to a net loss of eight 1 million for the first.
Corner ended March.
'twenty two.
Ingalls foods rapidly for the approximate two months peer yet for me its days off acquisition to March.
2023.
Well 500 761.
Two young.
As compared to $466 2 million.
The approximate one peer get probably a cheap option to December 31st 2022.
Ingo foods operating profit fall approximate two months period, yet from the date of the acquisition to March 31st 2023 was 143 5 million.
And compared to $2 50 on SaaS and the Odeon fault the approximate four month period from 18 adoption could you stand.
20th wanted too.
The consolidated cash balances in the group.
Growing too fast.
Eight 2 million at March 31st 23.
503.
Steinberg.
I just wanted to.
The first quarter 2023 revenues will meet alcohol.
Hum.
Leasing revenues.
413, Qantas definitely Odeon.
Mobile call Gamestop.
Gamestop E. One.
And what's up at one revenues of one Jordan undefined on screen.
Ingalls revenues of 577 2 billion.
And Mr <unk> insurance and financial services revenues of 21.
A summary of the income statement of single group.
And in March 2023, compared to two March 'twenty. Two is provided on page 16 of the presentation.
A reconciliation of GAAP operating income or loss to the non-GAAP EBITDA for the three months ended March 2023 compared to March 'twenty. Two is provided on page 17 of the presentation.
A summary of our balance sheet highlights is provided on page 18 of the presentation.
A summary of the income statement single group or the three months ended March three compared to March 2022 is provided on page 19 of the presentation.
I will now hand, the call back to Darren.
Thank you Kevin.
My boyfriend I believe Zynga group is in a very unique position, both as a company and as an attractive investment proposition.
We are a fast growth and highly profitable NASDAQ listed company generating.
Revenues of 851 2 million U S dollars.
Net income before tax of $262 5 million U S dollars for the three months ended March 31 2023.
We have a very strong balance sheet and cash flow positive.
Cash balance at March 31, 2023 amount to $780 2 million U S dollars.
We have a fast growth high margin and sticky revenue model with low customer acquisition costs and low attrition.
We have a full agri and food ecosystem from seed to sale, creating a virtuous circle for both us and our customers.
We are making a difference towards addressing the global food shortage.
Food security crises.
And we are a benefactor of price deflation.
All visa Tango partnership and single page Super App expands single significantly into new B to C and b to B markets.
We have program proprietary fintech platforms, which are replicable in new geographical markets and new sectors.
And we have a vast addressable global market.
We believe we have a significant ESG impact and that can grow considerably further in the future.
Operator, and my colleagues and died from Singapore and are ready to take questions from the participants.
Thank you.
Our first question comes from Howard Halpern of Tag.
Its brothers.
Howard asked can you describe how your food processing subsidiary operator is it in a small plant or if not how many co packing relationships do you have.
As of today, we use a third party food processing plants, which handle our processing requirements for the <unk>.
<unk> products that we currently handle it.
It's also worth remembering that our food processing business single foods. It was only launched eight months ago and since then we have intention limited our product range to the current byproducts just to enable us to focus to establish key and strong foundations for the business and strengthened the infrastructure at <unk>.
Capabilities that we have.
You can see from the numbers today, we are generating from these five products.
So the growth that we've achieved in the two months to March 31st compared to performance, we had at the backend of last year.
Which I'm sure the Greer impressive.
You can get a feel for what we should be able to achieve as we expand our product range and as we gain access to more projects for processing.
Once we open our new processing facility, which is state of the art, it's much bigger than all of these Ah if the biggest thing that's going to be the biggest of these type of in Africa, I'm asking about that about a year's time at the moment, we do that both our product range and processing capacity will multiply significantly.
But even ahead of them, we are looking to launch several new products to our offering all of which satisfy.
Demand that's already.
In the marketplace.
And as we begin to deal in energy products. For example, you know the pastors or noodles cocoa coffee tea carbonated beverages I can go on.
And if we do that ahead of opening our own facility. We expect to increase the number of third party food processing partners that we work with are to increase you know at a number of those we are talking to and already have lined up.
Although it is possible for us to achieve very strong growth through the use of external processing companies. It really will be a huge step change when we opened our new facility.
Not just because it went out to the enabled us to multiply our revenues and profitability, but because it will allow us to further delever breaking install mission of feeding Africa, improving food security and enabling Africa to become self sufficient in food.
And it's also I think I should point out how it.
Even went on new facility comes online you know in 12 months time or so.
Even though that's going to increase our capacity and as I've, just said, it's going to multiply it several times.
It already has.
He indications of pent up demand be it to all the host of other African nations be it through our partners with the MCC in Dubai, There is plenty of demand for that capacity and in fact, we probably not even have the capacity to be able to meet that.
It means a contribution from the single foods and a support for our export drive he's going to be significant.
Particularly from the middle of next year onwards.
You know I prefer again further validate the value we believe we deliver to Africa, you've got to understand that the finished food products, we're now processing and supply and domestically are replacing very expensive supply that was historically being imported.
And that's all you know.
And what's the Ting mobile platforms continue to deliver much higher crop yields from our partners.
What this shows really the underlying success of the Adwa, Sid Singh and mobile platforms.
We are getting much higher crop yields from all farmers as a results of our platforms because that providing the micro finance, enabling farmers to reinvest and increasing that capacity significantly.
They are enabling that was formed as to get that project to us in a timely basis through the cooperatives. We now have the warehousing capability to actually store all without projects.
As we're getting that food brought us into all warehouses.
Becoming available through finger foods interesting O D. M. C. C. You can see that we're making a real difference towards improving both domestic or more food supply.
Thank you team.
Other question from Howard Halpern.
What's brothers.
Howard asked.
How does your recently announced VCX, an app and warehouse deal impact both your commodity and food processing operations and long term revenue potential.
Yeah. Good question. Thank you.
Look you've often heard me talk about the importance of the single ecosystem.
And I think as we've already alluded today.
Two today.
Previous answer.
The success and increasing crop yields and food production levels is enabling us for the first time to talk about fulfilling the significant domestic and export demand for food and beverage products and other agricultural commodities.
An example has been a priority of ours to establish a very strong infrastructure and logistics capability, both for the procurement and supply side of the business as well as for the sell side is going to be the bedrock of which we are going to grow very very substantial business and David.
I'll deal with the CX knock on is the very small to this I think delivers perfectly against this particular priority. It gives us a really dominant position in warehousing and goods handling covering the whole of Nigeria, you know a significantly increasing our capability and capacity to fulfill orders.
Domestically and internationally be it for raw crops finished group.
Juice or beverage products.
And additionally to that how it all rights of first refusal to purchase or trade any of the projects received into those warehouses combined with the partnership's commitment to significantly increase the number of warehouses to 80, thousands if you had to say earlier and that sounds commitments with the oldest cooperatives and palms to use them.
It's very valuable to us not only to significantly increase the supply into our export commodity trading business, but also to significantly increase supply into watching our food processing business.
Yeah look we therefore expect that the deal has impact on both our export and processing businesses to be very very significant indeed.
Thank you team. Our next question is given the number of warehouses that you have mentioned today rises to 80000 over the next few years and you put that into context of this positions you in the market and what competition you have it seems to me that this would give you a very strong position, but how would the.
This impact other logistics companies.
That's a very good question. We previously reported that we currently have a little over 2300 warehouses in the network.
As I've just said in the previous tons of.
Partnership has committed to increase that number to around 80000 over the next couple of years.
But it isn't the context DHL is reported to have the largest logistics company warehouse that would in the United States with I think the numbers I saw about 417 warehouses and the likes of Amazon. The mall are reported to have around 1100 and 200, respectively.
Incentive distributions centers.
So is that fair to say the audio with P. C accident on the expansion plans of the partnership gives us a very dominant position in Nigeria with no real comparable competition.
I think also and in addition, our ability to sublet surplus capacity on the Partnership's warehouse network also creates a major opportunity for us to lease space to third parties, including logistics companies e-commerce retailers and the likes.
And indeed in itself should be an additional valuable source of unprofitable revenue.
Thank you team. Our next question asked I note the very significant contribution that tango foods is making to the group.
Is it possible for you to comment on how its performance will be impacted by the new food processing facility.
Okay.
Yeah, our policy only points I haven't already touched upon.
In answering the previous questions is that by having all those states are they all facility, we do expect to significantly be able to increase our margins.
All state of the art machinery will enable us to process food and beverage products very efficiently with minimal wastage, while at the same time, we'll be able to use a wide range of products in huge volumes of my Todd that neither we nor other food processes in Africa.
Previously been able to deal with.
It's a further validated to validate the value. We believe we are delivering to Africa, you have to understand that the finished good product to our processes and supplying domestically is replacing very expensive supply there's historically been imported.
And as a single mobile and then once the platform continues to deliver much higher crop yields from our bombers.
Our microfinance enabled farmers to reinvest and to increasing that capacity significantly more produce becomes available for zynga foods I'm thinking of the AMC see ultimately we can make a real difference towards improving both domestic will do supply.
And I think he's also fast just to add into this particular question.
Is that you have to look at the infrastructure, we now have in place as an organization.
We all 12 rising to $30 million in pharma is by the end of this year, we have a very sophisticated I'd guess, the increasingly better logistics network in place to deliver that produce to us into our warehouses and on a timely basis. We now have a very prominent and dominant position with the with those well.
It houses themselves.
All of this puts us in an unrivaled position.
To support the Tingle foods through food processing, all getting introduced to market for export.
Thank you team. Our next question asks is the focus of Pingo foods and the domestic market.
Or is it also intended to serve the export market.
A good question.
As we stand today, whilst we're still in the early stages of operation. We all focus on serving what is a huge domestic market with Nigeria more than $200 I think 220 million population.
That being said we are also gearing up our operations to increase capacity on commence export finished products in the in the not too distant future.
Current product range is focused on staple foods to the domestic market, including rice Bennett and cooking oil, but as we expand into the non staple products such as tea coffee cocoa and carbonated beverages. There is a much greater opportunity for us to move towards exports.
I mean, it goes without saying that went around one $6 billion of food processing facility comes online next year. It gives us the breadth of product range on the production capacity to serve a number of markets. We will be able to serve all of Nigeria, we will be able to set a pan Africa and we're very hopeful we'll be able to also demur.
From our export business internationally through the D. M C C.
Thank you team. Our next question, Yes, I know that there is no mention of <unk> expansion into China, given your experience in China can I ask why not.
Yeah, I mean, I mentioned in the earnings call I think for the full year results that the board of management to Tinder.
Really have a world where a significant number of opportunities that we shouldn't developed we're expanding the group.
When we evaluate each of these opportunities in turn.
The consideration when we have has a number of factors being return on capital employed beta contributions of property, so strategic and I think that's what I said at the time.
Clearly if amongst those opportunities and having had a wealth of experience in <unk>.
Mainland China for the last 15 years or so China is very much in full consideration.
And.
We are considering a number of ways in which we could utilize what could be very sizable market for us and thats. The best returns it would bring our group and enable our group to successfully deliver the products and that can be anything from the export business due to a version of mid single mobile itself.
I mean I can tell you that many of our team over there right now are already in contact with the key partners you'll be that local.
Oh provincial government level as well as those kind of large logistics providers, all large banks insurance and other financial institutions will needing to supporters.
And have been used many of the relationships that we have grown over the years.
I think the team and then we'll be in a position to be presenting the findings to the board in the not too distant future.
This moment in time the way, it's looking at could indeed be very exciting opportunity for us, but that's a decision the board will make at the appropriate time.
Thank you team. Our next question to ask given the company's very strong cash position together with a positive cash flow nature of the business can I asked will the company consider paying a dividend to its shareholders. If so will it be a one off special dividend or an ongoing.
<unk> program.
Yeah, It's a very fair question.
As you know I can't give out any nonpublic information on this call.
But I think you'll remember from our full year results again there'll be now it's just a few weeks ago.
But given the profitability of the group and the growth we're expecting to see this year and I think that we've just demonstrated in the first quarter. It makes sense that the payment of cash dividends to shareholders is something that the board.
Sure and in fact, it is considering.
In particular, we know once our export business starts to make material contributions to the group.
As a result of <unk> success is really dollarizing, the revenues or Joel polarizing, a significant policy group revenues.
I think we feel as a board that this would be the most appropriate and prudent time to commence with the dividend program.
If we achieve our plans and timelines that I think is the first quarter has demonstrated I think we're running ahead of schedule.
So I can't speak for the members of my Board My personal preference would be towards the payment of quarterly dividends that takes into account the combination of our profits and free cash flow on the media investment we need to make consort ambition.
So our ambitious long term growth of the pumps.
Thank you team. Our next question. He asked can you provide any update on the market manipulation in short selling investigations.
Yeah.
You know we undertook a very detailed investigation through through our lawyers special advisers.
And I think it's fair to say, that's progressing very well.
But the lawyers on that team of experts are continuing to examine data and collect the evidence.
I think as the exercise of advances we began we began to receive indications.
Possible quantum of a damages claim and while it is premature to give any specific details I think if he were to proceed with any such claims are likely to be very substantial or material. Indeed.
Thank you team. Our next question asks you previously stated there was a significant share price disconnect when the share price was sub $1.
Now that the share price is around $3 do you still feel a disconnect exists if so what is being done to address it.
Yes, good question.
Well not sure with our share price now sort of more than three times the level. It was when we first mentioned this disconnect.
The level of disconnect is technically lower but well from that point in time, although what we've done since we reported very significant increase in earnings. We've also announced several material developments all of which have materially increased shareholder value.
We've just had record Q1 numbers and when you take all of this into account I still believe that the disconnect yourself is very very significant, especially when you look at other NASDAQ listed company is being valued on forward earnings multiples, which are.
Many many times what were being valued on.
You know as a result demonstrated today, we're growing impressively on with the imminent completion of our first export deals unused food processing plant coming online next year.
Bearing in mind, the level of profitability and cash we're generating I think he should be clear for all to see that the disconnect is still very very significant indeed.
Okay.
This is a part of your question what are we doing about it.
I think my answers to the previous question spoke about the possibility of making quarterly dividend payments. The launch of a program of regular dividends. We believe will be a very effective way of addressing all disconnect you know.
I should also point out in addition that you know there are other measures to available to us.
Everything is.
Being assessed on a very live basis.
Thank you team the possible acquisition of Sheffield United Football club by dosing them, a boozy continues to attract press coverage in the U K, while I'm not particularly interested in deal itself I'm keen to know if the English football League proved Josie under the owners and directors tests, which as I understand.
It has very stringent criteria.
Yeah Fair question.
Look we call them really to comment on some of the transaction itself.
The right audience snow right setting and we used to do so but I think when we can confirm this is important that the English football league inform dosing in these.
And his advisors in April .
Had been approved under the Arab isn't the right. This test.
Thank you team.
Our next question asked.
I was very reassured when the company took a step of appointing big four global accounting firm Deloitte as its auditor can you explain a little about the audit process and whether Deloitte physically visited jingo business in Nigeria.
That's a very good question and I'm glad someone asked it.
I think as mentioned previously we felt it was very important so appoints a leading audience with a global reach so wanted to undertake the ore there and in our opinion and I think <unk> is the number one already certainly in Africa.
Globally on a worldwide basis.
In terms of the work they did not only did Deloitte involved Directv audit teams in both Israel and the U S. The United States of America.
The audit, but they also sent teams aboard as to Tango mobile I'm single Foods in Africa as.
As well as to the regional head offices, we have in China and Hong Kong.
And just to add to this you know because the full year of 2022 or was that first engagement for Tango group Deloitte undertook a much more detailed degree of already testing in accordance with the <unk> guidelines.
And let's not forget in addition to the separate what is performed by the way something go group I'm thinking of foods now we are.
Also engaged grant Thornton to undertake a sarbanes Oxley audit and review and they themselves also sent all it seems that zynga mobile in Nigeria as well as small regional head offices also in China, and Hong Kong and as you can see from our filings at no point in no time have there ever been any evidence of material weaknesses or adverse findings.
In those orders.
The next question. He asks when can we expect your export business to commence and how large do you expect its contribution to group revenues to be.
I think the short answer is very soon in very very large.
But to get basketball granularity around that I think we indicated in our presentation today, but you know as Ive just said, we expect the export business to start very imminently.
Hum.
As we outlined today.
Going back to this and then we have 12 million pharmacies produced we know how about how can we have a warehousing cases.
Paas city on capability for large volumes of storage that nobody else in Nigeria.
That's only going to increase as the number of Palm has increased from those 12 bidding to hopefully 30 million by year end.
I haven't even spoken today about the projects because they get from the Kingdom of Ashanti why we believe we're going to get between two 4 million followers, all plausible I haven't spoken about in Malawi, south it used to be the food basket of Africa.
15 years ago that how our platform does that help getting back to that level of status, which in turn will provide also a great deal of produce for export.
So the volume of projects that we're getting on that we'd planned for and we now have the logistical infrastructure into support is very significant and indeed, I'm not going to put a monetary amount at all that you can see today from the contribution of Zynga foods from just five products for Intel.
Demand in Nigeria South.
We have spoken in previous ounces, how that's going to increase the T. In cocoa and coffee are many of the products even carbonated drinks.
Opportunity for us.
From a demand side for.
Exports of produce.
A day seems value unlimited.
Our amount.
Our ability to satisfy that has only been helped.
With the contracts around PC acts and ask them for warehousing.
<unk> been helped by the fact that through outbound we're going to increase in a number of forms from 12 to 13 million. There's only been helped by our technological platform is helping get increased crop yields much more produce that goes through food security threshold and provides even more produce rather be processing for for internal consumption.
Oil for export the market is very very significant indeed, we believe that will only grow as we really start penetrating Ghana, and Malawi and other markets come on stream.
Thank you team I'm still confused about how your Washington marketplace works bearing in mind that neither the wassa website or Wassa app seems to be fully functional. Please can you explain.
Yeah, I think it's a good question we had.
Full year results back at the end of March and then we explain looking Nicola.
Perhaps the best as a recap.
Our EMR marketplace as oil prices U S. S T. A pool since it was launched in 2020.
For those of you who also see Whereabout, who may be new to the company and didn't hear what we said back in more U.
U S. S. T stands for unstructured supplementary service dates out.
It's a global system for mobile communication protocol.
She used to send text messages to execute certain transactions.
So there must be a USD platform allows single customers to execute the transactions across the marketplace not only in relation to the sale of the produce or the purchase of forming inputs, but also to purchase add time pay utility bills.
Mobile phone insurance on the course to arrange finance.
As part of our planned technological development, we today, all developing master website on their Mas Iraq.
Which are not yet operational are they all still in development and Sterling testing once that development and testing has been completed dated that'd be launched walk right alongside the existing and Wassa use testing platform.
It says the timing, we're aiming to perhaps achieve a launch of the website and they are during the early part of Q3 of 2023.
Thank you team I noticed that a beta version of Jingo pay was soft launched in February of this year. When is the full version expected to be launched.
Yes single pay is a very advanced stage of testing by both our own technology development teams on the teams of visa themselves.
During the testing phase. We've also added a number of new functions and products that we think are certainly believe and hands. Both the user experience and single Pes revenue generation capabilities are as things stand today, we're aiming for lunch.
The launch window really between at the end of Q2 on the early part of Q3 of 2023.
Thank you team I would now like to turn the call back over to Mr. Mercer for his closing remarks.
Thank you operator, I'd like to thank each of you for joining our earnings conference call today, and really what has been a momentous quarter for the company and I do look forward to continuing to update you on our ongoing progress and growth.
If however, we were unable to answer any of your questions. Today. Please reach out to our eye all firm MZ group, who will be more than happy to assist.
Thank you so much.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.