Q4 2023 Balchem Corp Earnings Call

Operator: Greetings and welcome to the Balchem Corporation fourth quarter and year-end 2023 earnings conference. At this time, all participants are in a listen-only mode.

Greetings and welcome to the <unk> Corporation fourth quarter and year end 2023 earnings conference call.

At this time all participants are in a listen only mode.

Operator: A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the call... Please press star zero on your telephone keypad.

A brief question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Martin Bengtsson, Chief Financial Officer of Balchem Corporation. Thank you. Good morning, everyone.

It is now my pleasure to introduce your host Martin Bengtsson, Chief Financial Officer of Bell Chemed Corporation.

Sir you may begin.

Good morning, everyone. Thank you for joining our conference call. This morning to discuss the results of <unk> Corporation for the quarter ending December 31, 2023. My name is Martin Bengtsson, Chief Financial Officer, and hosting this call with me is Ted Harris, our chairman President and CEO.

Martin Bengtsson: Thank you for joining our conference call this morning to discuss the results of Balchem Corporation for the quarter ending December 31st, 2023. My name is Martin Bengtsson, Chief Financial Officer, and hosting this call with me is Ted Harris, our Chairman, President, and CEO. Following the advice of our council, auditors, and the SEC, at this time, I would like to read our forward-looking statement. Statements made in today's call that are not historical facts are considered forward-looking statements. We can give no assurance that the expectations reflected in forward-looking statements will prove correct, and various factors could cause actual results to differ materially from our expectations, including risks and factors identified in Balchem's most recent Form 10-K, 10-Q, and 8-K reports. The company assumes no obligation to update these forward-looking statements.

Following the advice of our counsel auditors and the FCC at this time I would like to read our forward looking statement.

<unk> made in today's call that are not historical facts are considered forward looking statements. We can give no assurance that the expectations reflected in forward looking statements will prove correct and various factors could cause actual results to differ materially from our expectations, including risks and factors identified in <unk> most.

<unk> Form 10-K, 10-Q, and 8-K reports.

The company assumes no obligation to update these forward looking statements today's call and commentary include non-GAAP financial measures. Please refer to the reconciliation in our earnings release for further details.

Martin Bengtsson: Today's call and commentary includes non-GAAP financial measures. Please refer to the reconciliation in our earnings release for further details. I will now turn the call over to Ted Harris, our Chairman, President, and CEO.

I will now turn the call over to Ted Harris, our chairman President and CEO. Thanks.

Theodore L. Harris: Thanks Martin, good morning and welcome to our conference call. We were pleased with the financial results for the fourth quarter of 2023, which capped off another solid year for Balchem. We delivered record fourth-quarter adjusted EBITDA and record free cash flow on modestly lower sales in what continues to be a challenging demand environment. I am particularly pleased with our Human Nutrition and Health segment posting record fourth-quarter sales and earnings. Before we get into more detail on the quarter, I would like to reflect for a few minutes on some of the significant accomplishments the Balchem team achieved over the past year. Overall, 2023 was another solid year for Balchem. While full-year 2023 net sales were down 2.1%, we delivered record earnings from operations of $159.2 million, an increase of 9.6%, and record adjusted EBITDA of $231 million, an increase of 7.1% from the prior year. Additionally, we have fully restored our margin profile to more normalized levels following the inflationary pressures we experienced over the last few years. And we also generated record-free cash flow, allowing us to further pay down our debt and reduce our leverage ratio on a net debt basis to 1.1 times.

Thanks, Martin Good morning, and welcome to our conference call. We were pleased with the financial results for the fourth quarter of 'twenty, 'twenty, three which capped off another solid year for Balco.

We delivered record fourth quarter, adjusted EBITDA and record free cash flow on modestly lower sales in what continues to be a challenging demand environment I am, particularly pleased with our human nutrition and health segment, posting record fourth quarter sales and earnings.

Before we get into more detail on the quarter I would like to reflect for a few minutes on some of the significant accomplishments the balcom team achieved over the past year.

Overall 2023 was another solid year for biochem, while full year 2023, net sales were down 2.1%. We delivered record earnings from operations of $159 $2 million, an increase of 9.6% and record adjusted EBITDA of two.

$231 million, an increase of 7.1% from the prior year and we are fully restored our margin profile to more normalized levels. Following the inflationary pressures we experienced over the last few years and we also generated record free cash flow, allowing us to <unk>.

Further pay down our debt and reduce our leverage ratio on a net debt basis to 1.1 times.

Theodore L. Harris: We also made good progress on our strategic initiative. In 2023, we fully integrated the Kappa Bioscience and Bergstrom Nutrition acquisitions that we made in the second half of 2022. The addition of vitamin K2 and methyl sulfonylmethane, or MSM, to our product portfolio is starting to play out as we expected, with our now broader portfolio indeed enhancing our ability to provide a broader array of innovative solutions for the health and nutritional needs of our customers and the world at large.

We also made good progress on our strategic initiatives.

In 2023 we fully integrated the cap of Bioscience, and Bergstrom nutrition acquisitions that we made in the second half of 2022.

The addition of vitamin K, two and methyl sulfinyl methane or M. S. M to our product portfolio is starting to play out as we expected with her now broader portfolio, indeed, enhancing our ability to provide a broader array of innovative solutions for the health and nutritional needs of our customers.

And the world at large.

Theodore L. Harris: We have shared with you over the course of the year a number of exciting new studies that support the supplementation of our portfolio of minerals, nutrients, and vitamins for both human and animal nutrition. These studies augment existing science and bring new science to light, and they ultimately will support and strengthen our efforts to drive increased awareness and market penetration. I am particularly pleased with the progress we made in 2023 to more effectively market, communicate, and promote the positive results from these studies to both our customers as well as end consumers. We have clearly enhanced our marketing capabilities to leverage the strong science behind our products so that we can build awareness and ultimately drive penetration. While there is clearly more work to be done here, we are making good progress.

We have shared with you over the course of the year a number of exciting new studies that support the supplementation of our portfolio of minerals nutrients and vitamins for both human and animal nutrition.

These studies augment existing science, and bringing new science delight and they ultimately will support and strengthen our efforts to drive increased awareness and market penetration.

I'm, particularly pleased with the progress we made in 'twenty twenty-three to more effectively market communicate and promote the positive results from these studies to both our customers as well as the end consumers, we have clearly enhanced our marketing capabilities to leverage the strong science behind their products. So that we can.

Build awareness and ultimately drive penetration.

While there's clearly more work to be done here, we are making good progress overall, we are very excited about the opportunities that exist with our portfolio of products and we believe that as the library of science keeps growing and our marketing capabilities continue to be enhanced the market opportunity.

Theodore L. Harris: Overall, we are very excited about the opportunities that exist with our portfolio of products, and we believe that as the Library of Science keeps growing and our marketing capabilities continue to be enhanced, the market opportunity for our unique portfolio of products and technologies will grow as well. We are also encouraged by the recent progress by Curemark, the biopharmaceutical company that uses our microencapsulation technology as a delivery system for their unique treatment for autism that is currently in development. In December, their long-term clinical data demonstrating disease disorder modification in maladaptive behaviors in children as young as three years of age with autism spectrum disorder were published. The paper, entitled Pancreatic Replacement Therapy for Maladaptive Behaviors in Preschool Children with Autism Spectrum Disorders, was published in the Journal of the American Medical Association, or JAMA.

For our unique portfolio of products and technologies will grow as well.

We're also encouraged by the recent progress by Caremark. The biopharmaceutical company that uses our micro encapsulation technology as a delivery system for their unique treatment for autism that is currently in development in.

In December their long term clinical data demonstrating disease disorder modification in maladaptive behaviors in children as young as three years of age with autism spectrum disorder was published the paper in Typal entitled pancreatic replacement therapy for maladaptive behaviors.

Preschool children with autism spectrum disorders was published in the journal of the American Medical Association or Jama disc.

Despite the protracted timeline of this initiative, we are encouraged by the progress made over the past year toward reaching the important milestone of filing their biologics license application with FDA, which we believe now will happen in 'twenty 'twenty four and we remain excited about the potential for this.

Theodore L. Harris: Despite the protracted timeline of this initiative, we are encouraged by the progress made over the past year toward reaching the important milestone of filing their biologics license application with FDA, which we believe will happen in 2024, and we remain excited about the potential for this collaboration. Additionally, we made important investments in plants and equipment in 2023. Of particular note was the completion of our expanded manufacturing facility for Vitacholine, Balchem's market-leading brand of human choline.

Collaboration.

Additionally, we made important investments in plant and equipment in 'twenty twenty-three of particular note was the completion of our expanded manufacturing facility for Vida choline, Val chems market, leading brand of human choline, the expansion and upgrade will increase output by 50% and will allow the company.

Theodore L. Harris: The expansion and upgrade will increase output by 50 percent and will allow the company to better meet the rising demand for this essential nutrient, well known in the supplement industry in relation to cognitive, liver, and overall health. We also made significant progress in 2023 relating to the company's corporate social responsibility. Balchem released its fifth sustainability report in 2023, in which we provided an update on our progress toward our 2030 goals to reduce both greenhouse gas emissions and water usage by 25%.

To better meet the rising demand for this essential nutrient well known in the supplement industry in relation to cognitive liver and overall health.

We also made significant progress in 2023 relating to the company's corporate social responsibilities Biochem released its fifth sustainability report in 2023, and which we provided an update on our progress toward our 2030 goals to reduce both greenhouse gas emissions and water usage by two.

85%.

Theodore L. Harris: We're extremely pleased to report that we're already tracking ahead of our 2030 goal on greenhouse gas emissions reduction. Balchem's approach remains unchanged as we continue to focus on our two main objectives, providing innovative solutions for the health and nutritional needs of the world and operating with excellence as strong stewards of our stakeholders. As a result of our efforts, Balchem was recently named one of America's most responsible companies by Newsweek magazine for the fourth consecutive year.

And we are extremely pleased to report that we're already tracking ahead of our 2030 goal on greenhouse gas emissions reductions.

<unk> approach remains unchanged as we continue to focus on our two main objectives, providing innovative solutions for the health and nutritional needs of the world and operating with excellence as strong stewards of our stakeholders as a result of our efforts bow Cam was once again recently named one of America's most.

Responsible companies by Newsweek magazine for the fourth consecutive year.

Theodore L. Harris: And lastly, in December, we announced another increase to our annual dividend, taking the dividend from $0.71 to $0.79 per share, an 11% increase year-over-year. This most recent increase marked the 15th consecutive year of double-digit growth in our dividend, which once again reinforced our commitment to our long-standing dividend strategy. All in all, another solid year both financially and strategically for Balchem. Now, regarding the fourth quarter of 2023.

And lastly in December we announced another increase to our annual dividend, taking the dividend from 71 to 79 cents per share an 11% increase year every year. This most recent increase marked the 15th consecutive year of double digit growth of our dividend, which once again.

Again reinforced our commitment to our long standing dividend strategy.

All in all another solid year, both financially and strategically for biochem.

Now regarding the fourth quarter of 'twenty twenty-three.

While our revenue of $229 million was down 1.6%, we delivered strong profitability with growth in gross margin earnings from operations and net income on expanded margin percentage rates in the quarter, we delivered earnings growth in two of our three reporting segments.

Theodore L. Harris: While our revenue of $229 million was down 1.6%, we delivered strong profitability with growth in gross margin, earnings from operations, and net income on expanded margin percentage rates in the quarter. We delivered earnings growth in two of our three reporting segments, with the human nutrition and health segment posting record fourth-quarter sales and earnings. Our net income of $27 million, an increase of 24.5%, resulted in earnings per share of $0.82 on a gap-based basis, up $0.16 compared to the prior year. On an adjusted basis, our fourth quarter non-GAAP net earnings were $31 million, an increase of 1.8 percent, resulting in earnings per share of 95 cents on a non-GAAP basis. And we continue to deliver strong cash flows, which is a strong reflection of the quality of our earnings. Cash flows from operations were a record $67 million, with record quarterly free cash flow of $56 million for the fourth quarter. I'm now going to turn the call back over to Martin to go through the fourth quarter consolidated financial results for the company and the results for each of our business segments. Thank you, Ted.

<unk> with the human nutrition, <unk> health segment, posting record fourth quarter sales and earnings our net income of $27 million, an increase of 24.5% resulted in earnings per share of 82 cents on a GAAP basis up 16 cents compared to the.

Fire year.

On an adjusted basis, our fourth quarter non-GAAP net earnings were $31 million, an increase of 1.8%, resulting in earnings per share of 95 cents on a non-GAAP basis.

And we continued to deliver strong cash flows which is a strong reflection of the quality of our earnings cash flows from operations were a record $67 million with record quarterly free cash flow of $56 million for the fourth quarter.

I'm now going to turn the call back over to Martin to go through the fourth quarter consolidated financial results for the company and the results for each of our business segments. Thank.

Thank you Ted.

Martin Bengtsson: As Ted mentioned, overall, the fourth quarter was another solid quarter for Balchem with strong margin performance and cash flows. However, our fourth quarter net sales of $229 million were 1.6% lower than the prior year. Our human nutrition and health segment grew nicely in the quarter, but this was offset by continued softness in our animal nutrition and health segment. Foreign currency exchange, driven primarily by the stronger Euro, had a favorable impact on our sales growth of 0.9%. Our fourth quarter gross margin dollars of $75 million were up 9.3% compared to the prior year. Our gross margin percent was 32.8% of sales in the quarter, up 327 basis points compared to the prior year, primarily due to a favorable mix and lower manufacturing input costs. Consolidated operating expenses for the fourth quarter were $37 million, up 3.7% compared to the prior year.

As Ted mentioned overall, the fourth quarter was another solid quarter for biochem with strong margin performance and cash flows.

Our fourth quarter net sales of $229 million were 1.6% lower than the prior year, our human nutrition and health segment grew nicely in the quarter, but this was offset by continued softness in our animal nutrition and health segment.

Foreign currency exchange, driven primarily by the stronger Euro had a favorable impact to our sales growth of 0.9%.

Our fourth quarter gross margin dollars of $75 million were up 9.3% compared to the prior year.

Our gross margin percent was 32.8% of sales in the quarter up 327 basis points compared to the prior year, primarily due to a favorable mix and lower manufacturing input costs.

Consolidated operating expenses for the fourth quarter were $37 million up 3.7% compared to the prior year.

Martin Bengtsson: The increase was primarily due to outside services and higher compensation-related expenses, partially offset by a favorable adjustment to transaction costs. Gap earnings from operations for the fourth quarter were 38 million dollars, an increase of 15.1 percent compared to the prior year. On an adjusted basis, as detailed in our earnings release this morning, non-GAAP earnings from operations of $45 million were up $2 million, or 3.7%; adjusted EBITDA of $55 million was $3 million, or 5.4%, above the fourth quarter of 2022. Interest expense was $5 million, and our net debt was $245 million with an overall leverage ratio on a net debt basis of 1.1 times. The effective tax rates for the fourth quarters of 2023 and 2022 were 19.9% and 17%, respectively.

The increase was primarily due to outside services and higher compensation related expenses, partially offset by a favorable adjustment to transaction costs.

GAAP earnings from operations for the fourth quarter were $38 million, an increase of 15.1% compared to the prior year.

On an adjusted basis as detailed in our earnings release. This morning, non-GAAP earnings from operations of $45 million were up $2 million or 3.7%.

Adjusted EBITDA of $55 million was $3 million or 5.4% above the fourth quarter of 2022.

Interest expense was $5 million and our net debt was $245 million with an overall leverage ratio on a net debt basis of one one times.

The effective tax rates for the fourth quarters of 'twenty, 'twenty, three and 'twenty, 'twenty, two or 19.9% and 17% respectively.

Martin Bengtsson: The increase in the effective tax rate from the prior year was primarily due to an increase in certain state taxes and lower tax benefits from stock-based compensation. Consolidated net income closed the quarter at $27 million, an increase of 24.5% from the prior year. This quarterly net income translated into diluted net earnings per share of 82 cents, an increase of $0.16 or 24.2% from last year's comparable quarter. On an adjusted basis, our fourth-quarter adjusted net earnings were $31 million, translating to 95 cents per diluted share, an increase of 1.6%. Cash flows from operations for the quarter were $67 million, and we closed out the quarter with $64 million of cash on the balance sheet.

The increase in the effective tax rate from the prior year was primarily due to an increase in certain state taxes and lower tax benefits from stock based compensation.

Consolidated net income close to quarter at $27 million, an increase of 24.5% from the prior year.

This quarterly net income translated into diluted net earnings per share of 82 cents, an increase of 16 cents or 24.2% from last year's comparable quarter.

On an adjusted basis, our fourth quarter adjusted net earnings were $31 million translate into 95 cents per diluted share an increase of one 6%.

Cash flows from operations for the quarter were $67 million and we closed out the quarter with $64 million of cash on the balance sheet.

Martin Bengtsson: As we look at the fourth quarter from a segment perspective, our human nutrition and health segment generated sales of $138 million, an increase of 5.8% from the prior year. This increase was driven by higher sales within both the minerals and nutrients business and food and beverage markets. Our human nutrition and health segment delivered quarterly earnings from operations of $25 million, an increase of 43.8% compared to prior years, primarily due to the aforementioned higher sales, favorable mix, and lower manufacturing input costs, partially offset by higher operating expenses as we continue to invest in our selling and marketing capabilities. Fourth quarter adjusted earnings from operations for this segment were $30 million, an increase of 26.7%.

As we look at the fourth quarter from a segment perspective.

Our human nutrition, and health segment generated sales of $138 million, an increase of 5.8% from the prior year.

This increase was driven by higher sales within both the minerals and nutrients business and food and beverage markets.

Our human nutrition and health segment delivered quarterly earnings from operations of $25 million, an increase of 43, 8% compared to prior year.

Primarily due to the aforementioned higher sales favorable mix and lower manufacturing input costs, partially offset by higher operating expenses as we continue to invest in our selling and marketing capabilities.

Fourth quarter adjusted earnings from operations for this segment were $30 million, an increase of 26.7% we.

Martin Bengtsson: We were very pleased with the overall performance of our human nutrition and health segment, delivering record fourth-quarter sales and earnings from operations. The overall demand picture appears to be improving in the food and beverage markets, and on the minerals and nutrients side, we are seeing healthy demand growth. The acquisitions we made in 2022 are now fully integrated and growing year over year. While some volatility and uncertainty remain, we're encouraged by the year-over-year top and bottom line growth in our human nutrition and health segment and feel they are well positioned heading into 2024. Our animal nutrition and health segment generated quarterly sales of 58 million dollars, a decrease of 10.2% compared to the prior year. The decrease in sales was driven by lower sales in both the ruminant and monogastric markets.

We were very pleased with the overall performance of our human nutrition and health segment delivering record fourth quarter sales and earnings from operations. The overall demand picture appears to be improving and the food and beverage markets and on the minerals and nutrients side, we are seeing healthy demand growth.

Acquisitions, we made in 2022 are now fully integrated and growing year over year.

While some volatility and uncertainty remain we're encouraged by the year over year top and bottom line growth in our human nutrition and health segment and feel they are well positioned heading into 'twenty 'twenty four.

Our animal nutrition, and health segment generated quarterly sales of $58 million, a decrease of 10, 2% compared to the prior year.

The decrease in sales was driven by lower sales in both the ruminant and mono gastric markets.

Martin Bengtsson: Animal Nutrition Health delivered earnings from operations of $5 million, a decrease of 41.3% from the prior year, primarily due to the aforementioned lower sales partially offset by lower manufacturing input costs. Fourth quarter adjusted earnings from operations for this segment were $6 million, a decrease of 44.5%. Similar to what we discussed in our Q3 earnings call, our animal nutrition and health segment is experiencing challenging market conditions, particularly in Europe, but also in the North American dairy market. Market conditions appear to have stabilized, but have yet to show real signs of improvement. The European animal feed market continues to show soft market demand and continued competition from low-cost Chinese products. And the North American dairy market is still experiencing low U.S. milk and milk protein prices, impacting demand for our rumen-protected encapsulated nutrients in North America.

Animal nutrition health delivered earnings from operations of $5 million.

A decrease of 41, 3% from the prior year, primarily due to the aforementioned lower sales, partially offset by lower manufacturing input costs.

First quarter adjusted earnings from operations for this segment were $6 million a decrease of 44.5%.

Similar to what we discussed in our Q3 earnings call, our animal nutrition and health segment is experiencing challenging market conditions, particularly in Europe, but also in the North American dairy market.

The market conditions appear to have stabilized, but have yet to show real signs of improvement the European animal feed market continues to show soft market demand and continued competition from low cost Chinese products.

And the North American data market is still experiencing low U S milk and milk protein prices impacting demand for our rumen protected encapsulated nutrients in North America.

We continue to believe the animal protein markets provide significant growth opportunity for <unk> over the longer term.

With a European situation, starting to stabilize and U S milk futures, suggesting improved daily economics to water toward the later part of the first half of the year and certainly in the early part of the second half, we expect to be able to deliver year over year growth in this segment in the second half of 'twenty 'twenty four.

Martin Bengtsson: We continue to believe the animal protein market provides significant growth opportunities for Balchem over the longer term. With the European situation starting to stabilize and U.S. milk futures suggesting improved dairy economics toward the latter part of the first half of the year and certainly in the early part of the second half, we expect to be able to deliver year-over-year growth in this segment in the second half of 2024. We were encouraged to see the sequential improvement in our animal nutrition business in the fourth quarter compared to the third quarter, but having said all of that, the animal protein markets remain challenging at the moment. Our specialty product segment delivered quarterly sales of $31 million, a decrease of 2.6% compared to the prior year, due to lower sales in both the performance gases business and the plant nutrition business. Specialty products delivered earnings from operations of $9 million, an increase of 7.4% versus the prior year. The increase was primarily driven by lower manufacturing input costs.

We were encouraged to see the sequential improvement in our animal nutrition business in the fourth quarter compared to the third quarter, but having said all of that the animal protein markets remain challenging at the moment.

Our specialty products segment delivered quarterly sales of $31 million, a decrease of 2.6% compared to the prior year due to lower sales in both the performance gases business and the plant nutrition business.

Specialty products delivered earnings from operations of $9 million, an increase of 7.4% versus the prior year.

The increase was primarily driven by lower manufacturing input costs.

Fourth quarter adjusted earnings from operations for this segment were $10 million, an increase of seven 1%.

We were pleased with the performance of specialty products in the fourth quarter as improved margins delivered good earnings growth.

We also continue to see further stabilization in volumes as the quarter progressed, and we believe specialty products is in a great position to continue to deliver year over year earnings growth again in 'twenty 'twenty four while returning to topline growth.

Martin Bengtsson: Fourth quarter adjusted earnings from operations for this segment were $10 million, an increase of 7.1%. We were pleased with the performance of specialty products in the fourth quarter, as improved margins delivered good earnings growth. We also continue to see further stabilization in volumes as the quarter progressed, and we believe Specialty Products is in a great position to continue to deliver year-over-year earnings growth again in 2024 while returning to top-line growth. So overall, the fourth quarter was another solid quarter for Balchem with earnings growth in two out of our three reporting segments in what continues to be a challenging market environment. I'm now going to turn the call back over to Ted for some closing remarks. Thanks, Martin.

So overall the fourth quarter was another solid quarter for biochem with earnings growth in two out of our three reporting segments and what continues to be a challenging market environment.

I'm now going to turn the call back over to Ted for some closing remarks. Thanks Martin.

We are pleased with <unk> financial results reported earlier this morning for the fourth quarter of 'twenty twenty-three capping off another solid year for Balco.

Full year 2023 results highlight the resilience of our business model in a challenging and volatile market environment.

Our human nutrition, and health segment is performing well as evidenced by the mid single digit organic growth, we delivered in Q4 and the record fourth quarter earnings and we expect this to continue in 'twenty 'twenty four <unk>.

Theodore L. Harris: We are pleased with Balchem's financial results reported earlier this morning for the fourth quarter of 2023, capping off another solid year for Balchem. Our full year 2023 results highlight the resilience of our business model in a challenging and volatile market environment. Our human nutrition and health segment is performing well, as evidenced by the mid-single-digit organic growth we delivered in Q4 and the record fourth-quarter earnings, and we expect this to continue in 2024. Specialty Products is also performing well, with strong margins fueling earnings growth in Q4.

Specialty products is also performing well with strong margins fueling earnings growth in Q4, we expect this momentum to also continue in 'twenty 'twenty four further supported by unexpected returned to revenue growth for specialty products.

The area, where we expect to see some continued challenges in our animal nutrition and health segment, where the competitive dynamics internationally combined with poor U S. Dairy economics will continue to challenge this segment in the near term.

Theodore L. Harris: We expect this momentum to also continue in 2024, further supported by an expected return to revenue growth for Specialty Products. The area where we expect to see some continued challenges is in our animal nutrition and health segment, where the competitive dynamics internationally, combined with poor U.S. dairy economics, will continue to challenge this segment in the near term. I am excited about 2024, and I believe the company is well positioned to deliver both top and bottom line growth on a full year basis while further advancing our important growth initiatives. I will now hand the call back over to Martin, who will open up the call for questions. Thank you, Ted.

I am excited about 'twenty 'twenty, four and I believe the company is well positioned to deliver both top and bottom line growth on a full year basis, while further advancing our important growth initiatives I will now hand, the call back over to Martin who will open up the call for questions. Thank you Ted.

This now concludes the formal portion of the conference at this point, we will open up the conference call for questions.

Thank you we will now be conducting a question and answer session.

If you would like to ask a question. Please press star one on your telephone keypad.

A confirmation tone will indicate your line is my question queue you.

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Operator: This now concludes the formal portion of the conference. At this point, we will open up the conference call to questions. Thank you.

For participants using speaker equipment.

Sorry to pick up your handset before pressing the star keys.

One moment, please while we poll for questions.

Thank you. Our first question comes from the line of Bob <unk> with CJS Securities. Please proceed with your question.

Operator: We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Good morning, and congratulation.

Sure.

Hi.

Thank you Bob Thanks, Bob Oh, perfect Yep, great. Okay. So, yes from a piano.

El perspective, you've kind of operating in a in a tight band for the last five quarters, both on the top and bottom line and you've really been working hard getting through various.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment, please, while we poll for questions. Thank you. Our first question comes from the line of Bob Ladeck with CJS Securities. Please proceed with your question. Alright, can you hear me?

Headwinds that you've outlined.

There's obviously a lot going on under the surface, but maybe if you can help us think about it.

As we go into 'twenty 'twenty four.

What changes do you see to get that resumption to topline growth and maybe discuss new product pipeline and potential impacts for that in 'twenty four as well.

Theodore L. Harris: Thank you, Bob. Thanks, Bob. Oh, perfect.

Yeah sure I'll I'll take that one Bob and thanks for joining the call.

Theodore L. Harris: Yep, great. Okay. So, yes, from a P&L perspective, you've kind of operated in a tight band for the last five quarters, both on the top and bottom line, and you've really been, you know, working hard getting through the various headwinds that you've outlined. I know there's obviously a lot going on under the surface, but maybe if you could help us think about, you know, as we go into 2024, what changes do you see to get that resumption of top-line growth and maybe discuss, you know, the new product pipeline and potential impacts for that in 2024 as well? Yeah, sure. I'll take that one, Bob.

You know I think that as we look at 'twenty 'twenty four as I said in the prepared.

Statements. Yeah. We are excited about the outlook for 'twenty 'twenty four our human nutrition and health business really is is performing well the the markets have.

Recovered to some extent after that Destocking period end and that's going to kind of return that portion of our growth to that business I can't market growth. So.

That was lacking for a year or so and so we really feel like that is back.

We also.

Theodore L. Harris: And thanks for joining the call. I think that as we look at 2024, as I said in the prepared statements, we are excited about the outlook for 2024. Our human nutrition and health business really is performing well. The markets have recovered to some extent after the de-stocking period, and that's going to kind of return that portion of our growth to that business, i.e., kind of market growth. So that was lacking for a year or so, and so we really feel like that is back. We also feel like the acquisitions that we made in 2022 are really performing now at the levels that we expected them to perform, and year over year, that's going to provide further growth for us. We also have some of the growth platforms that we've been talking about for years in human nutrition and health starting to contribute incremental additional sales, both from new products, new applications, as well as geographic expansion.

I feel like the acquisitions that we made in 2022 are really performing now at.

The levels that we expected them to perform and year over year, that's going to provide further.

Growth for US. We also have some of the growth platforms that we've been talking about for years in our human nutrition and health are starting to contribute incremental additional sales both from a new products new applications as well as geographic expansion.

So you know much of the momentum that we saw in in Q4, we really feel good about that continuing.

And 'twenty 'twenty four and.

And I'll kind of jump to specialty products and then go back to animal nutrition health, but specialty products really has been a performing solidly for awhile.

But last year the plant nutrition portion of that business had a very poor start to the year with all the the rains in California, and kind of the wet fields and so forth so that business was.

Theodore L. Harris: So, you know, much of the momentum that we saw in Q4, we really feel good about that continuing in 2024. And I'll kind of jump to specialty products and then go back to animal nutrition health, but specialty products really have been performing solidly for a while. But last year, the plant nutrition portion of that business had a very poor start to the year with all the rains in California and kind of the wet fields and so forth. So that business was materially impacted negatively in 2023. And we really don't see, based on what we see now, and we don't necessarily like to talk about weather too much as a reason for the performance of that business, but last year, certainly, the weather was a negative. And this year, we don't see that reoccurring based on what we see right now.

Materially impacted negatively in 2023, and we really don't see based on what we see now and we don't necessarily like to talk about weather too much as a reason for performance of that business, but last year certainly the rats.

The weather was a negative and this year, we don't see that that reoccurring based on what we see right now so we really feel like.

Plant nutrition will have a much stronger year in 'twenty 'twenty four than they did in 2023. We've also launched some new products in that business recently that.

Should start to pay off in 2024, so that return to topline growth is primarily driven by that.

That in our specialty products, but also elective surgeries, you know or are coming back to pre pandemic levels and that will also help volumes in the a P.

Theodore L. Harris: So we really feel like plant nutrition will have a much stronger year in 2024 than it did in 2023. We've also launched some new products in that business recently that should start to pay off in 2024. So the return to top-line growth is primarily driven by that in specialty products, but also elective surgeries are coming back to pre-pandemic levels, and that will also help volumes in the performance gases business. So that's a little bit about the specialty products business and why we're encouraged about Q4, but also the outlook for 2024. Obviously, as we talked about in the prepared statements, animal nutrition health is a bit more difficult. But even there, we feel as though the second half of 2024 will be better, and we will be able to deliver year-over-year growth. Part of that is simply that we're going to lap the difficult quarters that we've been experiencing for a while.

Performance gases business, so that's a little bit about the the specialty products business and why were.

Encouraged about Q4, but also the outlook for 2024, obviously as we talked about in the prepared statements animal nutrition health.

<unk> is is a bit more difficult, but even there we feel as though the second half of 'twenty 'twenty four.

Will be improved and we will be able to deliver a year over year growth part of that is just simply we're going to lap the the the difficult quarters that we've been experienced firm for a while we're taking some some solace in the fact that for the last few quarters with <unk>.

Sequential improvement in that business volumes were actually up nicely sequentially.

Sequentially in Q4 compared to Q3 in animal nutrition and health.

The situation in Europe, really isn't getting any worse and in fact, you know we see some signs with lower energy costs lower.

Theodore L. Harris: We're taking some solace in the fact that for the last few quarters, we've seen sequential improvement in that business. Volumes were actually up nicely sequentially in Q4 compared to Q3 in animal nutrition and health. The situation in Europe really isn't getting any worse.

Got feedstock costs that that the market is becoming a little bit healthier. So we expect as the year progresses, some modest improvement.

There and our ruminant business, which really is the more specialty.

Theodore L. Harris: And, in fact, we see some signs of lower energy costs, lower feedstock costs, that the market is becoming a little bit healthier. So we expect, as the year progresses, some modest improvement there. And our ruminant business, which really is the more specialty business within animal nutrition health, when you really peel that onion back, there are many components of it that are performing extremely well. For example, our flagship product, Reassure, which is our encapsulated choline product, grew significantly, double digits, in the U.S. in 2023, despite poor dairy economics and low prices. And we feel like that momentum will continue.

Ah business within animal nutrition health, when you really peel that onion back there are many components of it that are performing extremely well.

Our flagship product reassure, which is our encapsulated choline product.

Grew significantly double digits in the U S. In 2023, despite poor.

Dairy economics, and low low prices and we feel like that momentum will continue we do believe that that the dairy prices will start to pick back up in the U S and that will help some of our other products are.

Returned to growth and as I also mentioned in previous calls we expect to launch a new product in <unk> and 'twenty 'twenty four within our animal nutrition and health business that should provide some some additional growth there. So yeah, when we wrap all of that.

Theodore L. Harris: We do believe that dairy prices will start to pick back up in the U.S., and that will help some of our other products return to growth. And as I also mentioned in previous calls, we expect to launch a new product in 2024 within our animal nutrition health business that should provide some additional growth there. When we wrap all of that together, that really does give us confidence that we can continue the positive momentum that we've had for the last few years of earnings growth year over year and that we will return to top-line growth after the 2%-ish reduction in 2023.

Together that really does give us a.

Confidence that.

We can continue the positive momentum that we've had for the last few years of earnings growth.

Year over year end and that we will return to top line growth after that the 2% ish a reduction in our 2023.

Theodore L. Harris: Great. That was super helpful. And then I'll just ask one more question and jump back in line. You talked about investment and boosting your marketing a little bit. I was just wondering, how do you measure awareness for choline and K2 and other products that you're measuring? And how do they compare to maybe some core vitamins out there like C and D? and things like that. Can you get them close, or how do you think about that?

Got it great that was Super helpful. And then one more question and jump back in queue.

You talked about our investment in boosting your marketing a little bit I was just wondering how do you measure the awareness for choline in K, two and other products that you're measuring them how do they compare to maybe some core vitamins out there like C and D and and things like that and where can you get them close or how do you think about.

That.

Yeah. We are you know it's difficult to measure, but but one way. We have tried to measure is we've done our own surveys and.

Theodore L. Harris: Yeah, we, you know, it's difficult to measure, but one way we have tried to measure it is by doing our own surveys. And, you know, we have surveyed consumers, we have surveyed supplement users. Again, unfortunately, and fortunately, depending on how you look at it, but unfortunately, I'll lead with that, awareness is relatively low. So if you take vitamin C or D, the awareness would be as high as 80% or higher. Most people have certainly heard of those vitamins. We're down more in the 20s and 30s.

You know we have we have surveyed are consumers of surveyed supplement users and.

You know again, unfortunately, unfortunately, depending on how you look at it but unfortunately I'll lead with that the awareness is relatively low. So if you take a vitamin C or D. The awareness would be you know as high as 80% or higher.

People have certainly heard of those vitamins, we're down more in the Twenty's and Thirty's.

And so that's a that's really our challenge, but you know looking at it positively that's really our opportunity and we do believe we can make headway relative to the awareness and that's.

Theodore L. Harris: And so that's really our challenge. But looking at it positively, that's really our opportunity. And we do believe we can make headway relative to awareness. And that's largely why we've been talking about not only the science that we're bringing to light, because that ultimately will help build awareness and drive penetration, but also just simply the marketing that we really haven't done historically, that we're starting to do now, and we need to do even more of. And you'll see some things coming out from us in 2024 that, you know, we haven't done before that are more consumer awareness programs and so forth. And so we can measure it, going back to your fundamental question, around, you know, by doing surveys such as those.

Largely why we have been talking about.

Not only the science that we're bringing to light because that ultimately will help build awareness and drive penetration, but also just simply the marketing.

That we really haven't done historically that we're starting to do now and we need to do even more of a and you'll see some things coming out from us and 2024 that that you know we haven't done before that are more consumer awareness programs and and so forth and so we can measure it gone.

Back to your fundamental question around.

By doing surveys such such as as as those and we'll continue to do that and do expect to see numbers improve over time based on what we're doing but we also measure awareness based on new product launches that include our ingredients you know as we talk to our key customers.

Theodore L. Harris: And we'll continue to do that, and we do expect to see numbers improve over time based on what we're doing. But we also measure awareness based on new product launches that include our ingredients. You know, as we talk to our key customers and they start to launch products that include our nutrients, it's, you know, partly because, you know, they're doing the analysis around consumer demand and what consumers care about. And so, you know, we are seeing an increased number of launches that include our ingredients, many of which we're super excited about, you know, kind of co-branded with our Balcom brands, and we see that as a way for us to kind of reach the consumer a little bit.

And then they start to launch products that include our nutrients. It's it's you know it's also partly because they're doing.

The analysis around.

Consumer demand and what the consumers care about and so you know we are seeing an increase a number of launches that include our ingredients many of which we're super excited about you know kind of our co branded with with our bow Kim our brands and we see that as a way for us.

To kind of reach to the consumer a little bit, but the number of of consumer launches with our ingredients.

Theodore L. Harris: But the number of consumer launches with our ingredients is also an important measure, and we'll continue to look at that while we do our own surveys and try to get a feel for real consumer awareness. But we've got a big opportunity. We're not where we want to be from this perspective, but that also is, in part, why we're so excited about the addressable market, the potential market out there for us. Okay, great. Thanks so much.

Ingredients I think is also an important measure and we will continue to look at that while.

While we do our own surveys and try to get a feel for a real consumer awareness, but we've got a big opportunity, we're not where we want to be from this perspective, but that also.

It is in part why we're so excited about the addressable market the potential market out there for us.

Okay, great. Thanks, so much.

Thanks, Bob.

Theodore L. Harris: Thanks, Bob. Our next question comes from the line of Kyle May with Sidoti. Please proceed with your question. Hi, good morning everyone. Hey Kyle, where do you...

Our next question comes from the line of Kyle May with Sidoti. Please proceed with your question.

Hi, good morning, everyone.

Hey, Kyle I wanted to.

I wanted to start with the the Caremark comments that you gave us an update on I. Appreciate all the color there, but I was wondering if you could expand on the partnership.

Theodore L. Harris: I wanted to start with the CureMark comments that you gave us an update on. I appreciate all the color there, but I was wondering if you could expand on the partnership with CureMark and the autism drug and how that could potentially impact the top and bottom lines. So again, this is, you know, this has been a long time coming and a project that's been in development for, dare I say, decades, or at least a decade and a half. But it does take a long time to introduce a new drug and get drug approval, and we tend not to talk about this that much because not that much has materially changed.

With caremark, and the autism drug and how that could potentially impact the top and bottom line for you.

Okay.

So again. This is this you know this has been a long time.

Time coming in at a project that's been in development for a dare I say Ah decades, or at least a decade and a half.

But it does take a long time to introduce a new drug can get get drug approval and and we tend not to you know a talk about this that much because are not that much has materially changed but behind the scenes we've been working hard on getting.

Theodore L. Harris: But behind the scenes, we've been working hard on getting our manufacturing capabilities up, you know, producing the batches that need to be produced for kind of setting quality standards and ultimately getting approval. So a lot of work's been going on from our side, and Curemark's been doing a lot of work. We were excited to see that the data from their studies was published in JANA in December.

Our manufacturing capabilities up producing the the batches that need to be produced for four are kind of setting quality standards and ultimately getting approval. So a lot of work has been going on from our side and caremark has been doing a lot of work. We were excited to see that they are the <unk>.

Data from their studies was published in Indiana.

Theodore L. Harris: I think that was a really great step, and as we work with them, we know that they're working hard with their consultants to get their documents in order so that they can ultimately file for approval. You know, this could be, if ultimately it is approved, the first real drug treatment for autism that's specifically designed for autism. Unfortunately, the number of children that suffer from autism continues to increase and continues to expand, and, you know, our perspective is that, again, if it ultimately is approved, the use of this drug treatment in combination with behavioral therapy and so forth, you know, could really make a difference for parents and these children. And so, you know, when you start to put numbers down on paper, it could be a very successful, very reasonable drug treatment. It's very, very hard to estimate where this is not our product.

In December I think that was a really great staff and as we work with them, we know that they're working hard with their consultants to get their documents in order so that they can ultimately.

File.

For approval yes.

This is a this could be a if ultimately it is approved the first real drug treatment for autism that specifically designed for autism and unfortunately the.

The number of children that suffer from autism continues to increase and continues to expand then.

Our perspective is that that our again if it ultimately is approved the use of this drug treatment in combination with our behavioral therapy, and so forth that could really make a difference for our parents in these these children and so you know when you start to.

<unk> numbers down on paper it could be a very successful sizable drug treatment, it's very very hard to estimate yeah were.

Yeah. This is not our product. This is caremark's product, where you know we don't have access to their data around our market expectations in pricing and so forth. So we make estimates, but it could be very.

Theodore L. Harris: This is Curemark's product where, you know, we don't have access to their data around market expectations and pricing and so forth, so we make estimates, but it could be very significant if it's successful, and we ultimately get a royalty. And we've talked about this in the past. There are some nuances in the early stages of launch, but ultimately, we will get a 3% or so royalty on sales of the treatment. So it could, again, if approved and if successful in the marketplace, be a material impactor on our overall company. We manufacture the product, in essence. We certainly aren't manufacturing the enzyme blend and so forth, but we take that raw enzyme, and we encapsulate it with our unique encapsulation technology and then pass it on to the packager.

Significant if successful and we ultimately get a royalty.

And we've talked about this in the past week.

There are some nuances in the early stages of launch, but ultimately we will get a 3% or so royalty.

On on sales of the treatments. So it could again, if approved and if successful in the marketplace be a material impact or.

You know our overall company we are.

Manufacturing the product in essence, we certainly aren't manufacturing the enzyme.

Blend and so forth, but we take that that Raul.

Enzyme and we encapsulate it with their unique encapsulation technology.

And then pass it on to the Packager and so we play a very critical role in this.

Theodore L. Harris: So we play a very critical role in this process, an important role, and some of our patents are used as part of Curemark's patent portfolio. We're part of the drug master file and all of those things, so we feel good about our position in all of this and are certainly hopeful that, ultimately, this biologic license application is filed and approved by FDA because there's significant opportunity for I appreciate that color.

This process and important role and our some of our patents are used in part of Caremark's, a patent portfolio, where part of the drug Master file and all of those things. So we feel good about our position in all of this and certainly are hopeful that are ultimately.

This biologic license application is filed and approved by the FDA, because there's significant opportunity for us.

Got it I appreciate that color and.

Theodore L. Harris: And it sounds like it could be a very, very helpful drug. So we'll keep a close eye on that one. Maybe switching over to the animal nutrition and health business. A couple questions around this area.

It sounds like it could be very very helpful. Drug. So we'll keep a close eye on that one maybe switching over to the animal nutrition and health business. A couple of questions around around this area. I know you gave some context of.

Theodore L. Harris: I know you gave some context of milk and protein prices potentially improving later this year, but I was wondering if you could start by kind of giving us a sense of the latest percentage of business that's represented by the American dairy market and then how you're seeing some of those different products. I guess the sales of those going forward, because it sounded like Reassure is still growing and then some of the others are lagging, but maybe just any color around how you see that progressing this year. So I'll try to get into that, and Kyle and Martin can kind of chime in a little bit as well.

Milk protein prices potentially improving later this year, but I was wondering if you could start by kind.

Kind of giving us a sense of the latest.

The percentage of business that's represented by the American dairy market.

And then how you're seeing some of those different products.

I guess the sales of us going forward because it sounded like reassure is still growing and then some of the yard.

Okay.

Charl lagging, but maybe just any color around how you see that progressing this year.

And so I'll.

I'll try to get into that Kyle Martin can kind of chime in a little bit as well, but if you think about our animal nutrition and health business being about call. It 240 $250 million.

Theodore L. Harris: But if you think about our animal nutrition and health business being about, call it 240-250 million dollars, the US ruminant business is about $50 million of that, let's say. And so that's really, you know, what's tied to the dairy market. Not to get into too much detail, but these kinds of nutrients that ultimately address health needs for the cow ultimately have different impacts. And Reassure, for example, helps address fatty liver that cows often get in transition. And ultimately, if they have a fatty liver, you know, their metabolism goes down, and they produce less milk.

Dollars the kind.

The U S. Ruminant business is about $50 million of that let's say and so that's really you know.

What's tied to.

The dairy markets.

And.

You know not to get into too much.

Detail, but yeah. These kinds of nutrients that you know ultimately address health needs for the cow.

Ultimately have different impacts and reassure for example.

It helps.

Address fatty liver.

Cows, often get in transition and ultimately if they have fatty liver you know their metabolism goes down they produce less milk.

Theodore L. Harris: And if you prophylactically address.., this condition, the metabolism of the cow goes up, and they eat more, and they produce more milk. So Reassure really helps improve the efficiency of the cow, and that's something that really is valued almost no matter where the milk prices are, even though it's a high-cost ingredient. And I think that's partly why we continue to see nice growth in that product line. The other reason that we're seeing nice growth in that product line is some of these studies that we've talked about, that we're incredibly excited about, are showing that Reassure not only helps address fatty liver, yes it does that, but it also helps growth rates, it helps the overall health of the cow, ability to fight disease, colostrum increases in the mothers, and so there's much broader value proposition, if you will, for Reassure than maybe we originally marketed it at.

And if you prophylactic clay address this this condition.

You are you know the metabolism of the count goes up and they eat more and they are they produce more milk. So reassure really helps improve the efficiency of the cow and that's something that that really is is valued almost no matter, where the milk prices are even.

Though it is a high cost ingredient.

And I think that's partly why we continue to see nice growth in that product line. The other reason that we're seeing nice growth in that product line as some of the studies that we've talked about that we're incredibly excited about our showing that that reassure.

Not only helps address fatty liver, yes, it does that but it also helps growth rates. It helps the overall health of the cow ability to fight disease.

Classroom increases in the mothers.

And so theres much broader value proposition, if you will for reassure.

Then maybe we originally marketed at and for that reason, we're getting increased adoption and increased penetration and ultimately are you know we have dreamt for years about having products that could be expanded into the beef industry and we really feel like we now have some.

Theodore L. Harris: And for that reason, we're getting increased adoption and increased penetration, and ultimately, we have dreamt for years about having products that could be expanded into the beef industry, and we really feel like we now have some science there, and that's something for future discussion. But in any case, Reassure helps create efficiency in the cow. Some of the other products, some of the encapsulated amino acids impact the components within the milk, and so, for example, an encapsulated methionine helps boost the amount of protein that's in the milk, and protein prices today are particularly low, and that element of our product portfolio is the one that has really been impacted the most by the lower dairy prices, and as we said, we do expect the protein prices to start to pick up and milk prices overall to start to pick up, and I think that will allow those products that are very effective to return to growth.

Science, there and that's something for future discussion, but in any case, you know reassure helps.

Create efficiency and in the cap some of the other products some of the encapsulated amino acids.

Impact the components within within the.

The milk and so for example.

Encapsulate them assigning helps boost the amount of protein that's in the milk and protein prices today are particularly low and in that.

Element of our product portfolio is the one that has really been impacted the most by the lower dairy prices and as we said we do expect.

The protein prices to start to pick up in and milk prices overall to start to pick up and I think that will allow those those products that are very effective to.

Two returned to growth there are products in the marketplace that that helped boost the fat component.

Theodore L. Harris: There are products in the marketplace that help boost the fat component in milk. We do not have any of those products. Milk, I mean, fat is priced quite high these days. That's the part of the milk component that is probably the healthiest right now, but none of our products specifically address that, but hopefully, that gives you a little bit of a feel.

And in milk, we do not have any of those products milk I mean fat is.

Priced quite high these days, that's the part of the.

Kind of milk components that is probably the healthiest right now, but none of our products specifically.

Address that but.

Hopefully that gives you a little bit of a feel it's a little bit complicated and it depends on the fat price component the protein price component overall milk prices are.

Theodore L. Harris: It's a little bit complicated, and it depends on the fat price component, the protein price component, overall milk prices, but we really feel good about our products. They're differentiated products. There's a lot of science behind them, and ultimately, the U.S. dairy price, and really global dairy prices will start to turn.

But we really feel.

Good about our products their differentiated products, there's a lot of science behind them at and ultimately these.

The U S dairy price really global dairy prices will start to turn as animals are called supply comes down prices will go up.

Theodore L. Harris: As animals are culled, supply comes down, prices will go up, and we'll be able to return to growth for this business. We really feel as though we've got a good position. That's great. I appreciate all the additional color.

And.

We'll be able to return to growth for this business that are.

We really feel as though we've got a good positioning.

That's great I appreciate all the additional color I'll jump back in queue. Thanks.

Theodore L. Harris: I'll jump back in queue. Thanks so much, Kyle. Thank you. We have reached the end of the question and answer session. Mr. Harris, I would like to turn the floor back over to you for closing comments.

Okay. Thanks.

Thanks, so much Cai.

Thank you we have reached the end of the question and answer session. Mr. Harris I would like to turn the floor back over to you for closing comments.

Thanks, Christine and once again, thank you all very much for joining our call today, we really appreciate your support throughout the year as well as your time today and look forward to its hard to believe it's a it's already February but we look forward to reporting our Q1 'twenty 'twenty four results in early may and the mean.

Theodore L. Harris: And once again, thank you all very much for joining our call today. We really appreciate your support throughout the year, as well as your time today. And we look forward to, it's hard to believe, it's already February, but we look forward to reporting our Q1 2024 results in early May. In the meantime, we will be participating in the BNP Paribas Exsane 12th Consumer Ingredients Conference in London on March 14th. And we know we're going to see some of you there, and we hope to see others as well. So thanks again for joining us on the call today. Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day!

In time, we will be participating in the B N P parabolic exane 12.

12th consumer ingredients conference in London on March 14th and we know we're going to see some of you there and we hope to see others as well so thanks.

Thanks again for joining the call today.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.