Q1 2024 JBS SA Earnings Call
Of the border and expected.
Considering the seasonality of this time of the year.
Leveraging dollars reduce it from 442 times to 366 times and in Reais from $4 30 to $3 seven.
Speaker Change: In the quarterly comparison.
Speaker Change: On forming the deleveraging path that we have indicated in previous calls.
Speaker Change: For the second quarter, we expect another significant decrease in these indicators to around three times.
Speaker Change: Our simple leverage exercise without considering guidance.
Speaker Change: To achieve our leverage at the end of the year of two five times.
Speaker Change: Our consolidated margin for 2024 should be close to seven 5%.
Speaker Change: Considering that the first quarter.
Speaker Change: Seasonally weaker and the margin was already seven 2%. It is reasonable to think about this level of leverage for the end of the year, thus align it with our policy of maintaining leverage ratio between two and three times in the long term.
Speaker Change: It's worth mentioning that we reduce our gross debt is 666 million barrels in the first quarter, mainly due to the payment of short and long term bank debt.
Speaker Change: We will continue to reduce gross debt in the second book.
Speaker Change: So I will now briefly go through the business units.
Speaker Change: <unk> net revenue for the quarter remained stable in relation to the same period of the previous year.
Speaker Change: But.
Speaker Change: Billion.
Speaker Change: However, as we had indicated profitability has already returned should normalize at double digit levels.
Speaker Change: This improvement is the result of the intense focus on operational excellence on the management team on reducing costs specialty grains and on better balance of global supply and demand on commercial execution and on the.
Speaker Change: The maturation process of Crs new plants.
Speaker Change: Thus the EBITDA margin grew by more than 10 percentage points in the annual comparison, reaching 11, 6% in the first quarter.
Wesley Mendona Batista: Moving now to slide 19, Jbs, Brazil recorded net revenue of 22% higher than the first quarter last year driven by higher volumes sold.
Jbs: The favorable capital cycle had a positive impact on sales volume both in domestic and international markets due to the greater availability of animals for is larger.
Jbs: This cycle has also contributed to reduce the prices herbalife gatto as a consequence has boosted profitability in a positive way.
Jbs: Moving to the slide 20, and now we speaking in dollars and in U S. GAAP.
Jbs: Jbs beef North America net revenue grew 6% year over year in the quarter as a result of the increase in average prices and volumes. However, profitability was still under pressure and considering the more challenging cattle cycle given that the price of live cattle in Brazil more than wholesale price.
Jbs: In July 21, Jbs, Australia in the quarter the growth in revenue in D&O comparison is the result of higher volumes sold in both domestic and international markets the growth and profitability in Vienna compares are mainly reflected a greater availability of gathering the market even more.
Rob Gatto cycle and efficiency gains in several areas of our business in Australia.
Wesley Mendona Batista: Turning now to you Jbs USA pork net revenue for the quarter was 6% higher compared to the first quarter last year due to the increase in average prices in the period.
Wesley Mendona Batista: In addition to the improvement in commercial dynamics profitability in the quarter was positively impacted by lower average borrowing cost reduction in the average power price and continuous efforts aimed at expanding value added portfolio. In addition.
Wesley Mendona Batista: Two improving commercial operational and logistics execution.
Given surprises highlighted on this slide 23 recorded an increase in net revenues of 5% in the first quarter starts in Q4 compared to the last year.
Wesley Mendona Batista: First quarter brought the fruits of this strategy already implemented, allowing the company to grow ahead of the markets together with customers.
Wesley Mendona Batista: The portfolio of branded products continue to expand and contribute to the diversification. These efforts combined with an intense focus on operational excellence resulted in an increase in profitability in the period.
Wesley Mendona Batista: As you can see the results for the first quarter were very encouraging as we had indicated in the last earnings conference calls.
Wesley Mendona Batista: Therefore, we are optimistic about our deleveraging and free cash flow generation.
Wesley Mendona Batista: <unk> for the year.
Speaker Change: At this time I would like to open for our question and answer session.
Speaker Change: Ladies and gentlemen, we'll they will now begin the question and answer session.
Speaker Change: So I have a question please raise your hand.
Speaker Change: Is that any point. Your question is answered you can remove yourself from the queue banker, taking lower hand.
Speaker Change: And our first question comes from Pierre Catholic.
Speaker Change: <unk> with Barclays.
Speaker Change: <unk>.
Pierre Catholic: You May proceed.
Pierre Catholic: Great. Thank you so much for taking my questions.
Speaker Change: Congratulations on the deleveraging so far.
Speaker Change: Sounds like you expect to continue to pay down debt in the second quarter.
Speaker Change: Given where your cash balances.
Speaker Change: Typically second quarter, starting when you seasonally generate free cash flow or positive free cash flow how should we think about first.
Speaker Change: Out of that that you would look to breakdown and second quarter to get to that three times level that you had mentioned on the call.
Speaker Change: And then secondly.
Speaker Change: As you think about.
Speaker Change: Okay.
Speaker Change: What type of an approach.
Speaker Change:
Speaker Change: To maximize your deleveraging I think about the price of the bonds are going for a lower price or do you think about.
Brian: TB benefits that taking out bonds could Brian Thank you.
Maria: Thank you Maria.
Speaker Change: For your question.
Speaker Change: First the payment of the debt that we intend to do in the second quarter.
Speaker Change: It has not impacted on the pre times that I mentioned, because I mentioned three times net net debt.
Speaker Change: So debt less cash so.
Speaker Change: Again, the amount how much I will pay in the second quarter won't affect our base estimate for three times in the second quarter.
Speaker Change: In terms of paying down debt, you're right I finished the first quarter with $3 $5 billion in cash on hand, plus $3 $2 billion revolving facilities. This cash on enhanced I have excess I don't need all of that cash to operate.
Speaker Change: Even in a more volatile summer scenario.
Speaker Change: But of course.
Speaker Change: We are always more conservative we paid $660 million in depth in the first quarter.
Speaker Change: In the second quarter, we intend to pay at least $500 million.
Speaker Change: In gross debt. So currently I'm working with the payment of $500 million in.
Speaker Change: In gross debt.
Speaker Change: If you look at that breakdown.
Speaker Change: We have.
Speaker Change: 13% of all of its local debentures in Brazil.
Speaker Change: In fact, a 11% of our debt is local debentures in Brazil, which are just announced that a repurchase of one 8 billion reais and a niche lengths of one five to $1 8 billion Reais. So just I'm getting better rates and better standards are in.
In making these exchange in the local debentures.
Speaker Change: The $500 million.
Speaker Change:
Speaker Change: Then to pay in the second quarter.
Speaker Change: Sure.
Gary: Given that our commercial banks now, it's only 3% of all of that and this is rudow credits, which has a very low cost of that in fact, a positive Gary you're right that Ah I have to think about.
Speaker Change: Repurchasing bonds.
Speaker Change: And the strategy, we are still analyzing.
Speaker Change: What you will be NPV or.
Speaker Change: Gross debt or average cost of debt.
Speaker Change: I I would say that having a.
Speaker Change: Lower average cost of debt improves our free cash flow for the period.
Speaker Change: So I would say that that this would be.
Speaker Change: Yeah.
Speaker Change: Our parameter to decrease the average cost of that because then a decrease in my financial expenses and increase my free cash flow for the year is giving me even more flexibility.
Speaker Change: Going forward.
Speaker Change: But of course this will all depend on the studies and the level and the level of the bonds in the secondary market by the time that we decide to do this.
Speaker Change: Okay wonderful that's that's helpful and.
Speaker Change: I believe on the call earlier. This morning, you mentioned that the objective is to maintain that leverage.
Speaker Change: So in the half to three times area because anything wrong.
Speaker Change: The lower part of that two to three times corridor is not as Michelle.
Speaker Change: Can you just walk us through that piece and then as you think about sort of this faster pace of deleveraging. It sounds like you could start to think about things like M&A or dividends.
Speaker Change: Can you secondly, just walk us through how you would prioritize those and the timing of sort of that happening.
Speaker Change: Relative to what some of the deleveraging will come through in the back half. Thank you.
Speaker Change: Okay. So good question. So first on our long term prices not two and a half two please.
Speaker Change: Two to three times, so our law our long term.
Speaker Change: <unk> is to be between two and three times net debt to EBITDA.
Speaker Change: So on average to earn it two and a half.
Speaker Change: If we start to get too.
Speaker Change: <unk>.
Speaker Change: Low two times net debt to EBITDA below at what has happened in 2021. For example, we were more aggressive in returning capital to the shareholders.
Speaker Change: And also you Didnt M&A in the last five years, we generated more than $10 million in cash, which we apply the $4 billion in.
Speaker Change: Expansion Capex $3 $2 billion in acquisitions $3 billion in dividends and $3 billion in share repurchase because the leverage was going down and if you start to be.
Speaker Change: We lowered that you decreased your returns to the equity holders and he is not so efficient.
Speaker Change: So in case, our deleveraging is faster and going to the low rate range or even below two times.
Speaker Change: We will for sure open opportunities for M&A and dividend, but M&A, it's an opportunistic we will not do it made the allocation.
Speaker Change: First comes the target and the opportunity and if it makes sense if it creates value if it's accretive and then we think about the leverage.
Speaker Change: Not the other way around so if the M&A doesn't opportunity regardless of the leverage if it's two to create value for all stakeholders.
Jerry: Is the priority, but Jerry those M&A situations. They takes more time and if we deleverage more fast then we have a good opportunity of M&A.
Jerry: Dividends increase.
Jerry: Could be an alternative.
Jerry: So could we could we potentially see a dividend increase this year outside of possibly.
Speaker Change: That may be paid with regards to the lifespan and then just my last follow up is if you could give us any update on where you are with listing process. Thank you.
Speaker Change: We already are.
Speaker Change: Brahma is $450 million in basically one reality for sure.
Speaker Change: Gail the least use approve it.
Speaker Change: And and of course.
Speaker Change: We really didnt start the discussions of other levels of evidence.
Speaker Change: But again it will all depend on the deleveraging path, we don't need to make this decision now let's see how the year goes and how fast the revenue happens for then we think about.
Speaker Change: We increase or not.
Speaker Change: The level of dividend in terms of the listing.
Speaker Change: We saw that we make.
Speaker Change: Filings on March 27.
Speaker Change: And we're still in the process and waiting for <unk>.
Speaker Change: <unk> from from FCC.
Speaker Change: But is in the normal course of process.
Speaker Change: Thank you so much.
Okay.
Speaker Change: Our next question comes from Ben Terry with Barclays. Please go ahead.
Speaker Change: Yeah.
Speaker Change: Yes. Good morning, Thanks for taking my question.
Speaker Change: Maybe just following along.
Speaker Change: Lines from from what we've just talked about.
Speaker Change: And coming back to M&A, and what's opportunistic and when what's creating value for shareholders. So.
Speaker Change: Clearly, we've all seen shook news article.
Speaker Change: About Oscar Mayer and the U S potentially being up for that so.
Speaker Change: As it relates to that what is opportunistic for you and creates value given the potential for synergies here are integrating that with that something.
Speaker Change: Somewhere else would that be something that you would consider us.
Speaker Change: Good target as it would allow you to also forever.
Speaker Change: Integrate and create value just like if you have some general comments on that that would be much appreciated.
Speaker Change: Ben Thank you for the question.
Speaker Change: We have Uh huh.
Speaker Change: Along these years to say that our strategy in terms of growth will be in agriculture, you want to.
Speaker Change: Transform our.
Speaker Change: Our culture.
Speaker Change: The same we have done.
Speaker Change: Chicken and pork to be consumed.
Speaker Change: And accurate in this arena, we start and we started this small operation in Australia, but our focus on to grow in this segment.
Speaker Change: And then we have.
Speaker Change: Mention that.
Speaker Change: Value added and brand is one of our priorities and disease will be in Brazil will be in U S and B all of what we want that this part of value added and brand.
Speaker Change: Growth in our portfolio.
Speaker Change: And the other businesses like chicken and pork remain our.
Speaker Change: Our priority for growth.
Speaker Change: And I cannot mention specific.
Speaker Change: Target that you have mentioned.
Because it's part of the strategy of the company to evaluate all of the times the opportunity we have.
Speaker Change: But.
Speaker Change: What I can say to you that the value added and brand is part of our strategy, but should be teams that is aligned with the strategy, but makes sense intangibles off great value creation, though and this is the this is it.
Speaker Change: But.
Speaker Change: The nominal debt, we are looking for them to make online we just thought that it makes sense of economic.
Speaker Change: Okay perfect.
Speaker Change: That's that's very helpful. And then maybe another question.
Speaker Change: With Westlake on the call as well.
Speaker Change: Just wanted to.
Speaker Change: Dig a little bit into the dynamics right now in <unk>.
Speaker Change: USPS and what Youre seeing so two fold question. So one I think you mentioned on the call earlier this morning about being weaker than about a year ago and I think this is obviously U S specific but just if you could clarify that.
Speaker Change: And where it's ultimately coming from that softness, whereas a year ago and then second the most recent data we've been looking at it it hasnt been that complete but it doesn't feel like there is yet much of confirmation as to have a retention. So just wanted to get your comments on what youre seeing on the ground in terms of like whats type.
Speaker Change: Capital comes into the slaughter and if you're sensing a little bit of a switch and potential for heifer retention to be happening right now.
Speaker Change: Good morning.
Speaker Change: On USB.
Speaker Change: For sure.
Speaker Change: Compared to last year, and it's simple to see is just look at the spreads of them.
Speaker Change: What the USDA publishes and it's going to be.
Speaker Change: A more challenging year this year compared to previous year, and it's simple, it's a lower availability of cattle and on the demand side obviously.
Speaker Change: The consumer.
Speaker Change: Overall inflation every other or many other categories obviously.
Speaker Change: It makes it makes it more difficult for the consumer to have a higher demand for diesel.
Speaker Change: And on the export markets.
Speaker Change: It's not very dramatic, but we also obviously have.
Speaker Change: Our Australia business is doing very well in our Brazilian business doing very well with volumes in exporting obviously that creates competition for the U S. So for sure. It's a tougher challenge a tougher market for the last year for beef.
Speaker Change: Just to be very clear that beef when.
Speaker Change: When we talk about second quarter for pork, we expect second quarter for book to book to be if anything even though we see.
Speaker Change: Becker margin, we have our own life production, so should balance that out and if anything we think that Q2 has the potential to be better than Q1 for pork.
Speaker Change: And then I wanted to make that very clear in across the board, we're pretty optimistic about our other businesses. So the USB business being tougher. This year is we're not talking about second quarter being tougher as deep specific for sure even in the U S.
Speaker Change: We've.
Speaker Change: Chicken report were expected to be extra definitive better second quarter than the first quarter.
Speaker Change: <unk> rose four four or shrink the business and everything so this is beef specific.
Speaker Change: When it comes to ever retention.
Speaker Change: You are right that we haven't seen.
Speaker Change: There was very.
Speaker Change: Clear and definite data that indicates that heifer retention has significantly started.
Speaker Change: But we see signs initial signs that we.
Speaker Change: See we book, we look at it with optimism one of them is like I've been saying this.
Speaker Change: The earning calls for a while.
Speaker Change: Relatively speaking it's a.
Speaker Change: Better year from a from a from a precipitous.
Speaker Change: Precipitation from a water perspective compared to previous years not perfect everywhere, you have been ordered planes being a little bit more.
Speaker Change: Pretty dry, but overall, it's better than last year, so I see that with optimism.
Speaker Change: The thing is the reduction we're seeing in.
Speaker Change: Cattle processed year over year when you.
Speaker Change: Qualify the data a little bit we're.
Speaker Change: We're seeing a 13% drop in Tokyo.
Speaker Change: Culturally going so that's it's still not as low as it should be.
A clear understanding of you know of heifer retention, but it's a 13% decrease which it's not irrelevant and even within the fed.
Speaker Change: Third Seattle.
Speaker Change: Being processed.
Speaker Change: We're down three 3% quarter over quarter Q1 over Q1 period of years and it will open up in fear and a half is the 3% decline in sphere and a three 8% behalf again I'm not saying that those are definite signs that we are well underway in hefei heifer retention I don't I'm, not saying that.
Speaker Change: But we look at both sides with optimism.
Speaker Change: Okay. Thanks for that wrestling and then one last question on <unk>, clearly very strong first quarter double digit margin.
Speaker Change: As the second quarter coming together is that just a level. You think you can you can kind of run through the specifics in <unk>.
Speaker Change: <unk> not repeat into <unk> as it relates to the profitability.
Speaker Change: Dan.
Speaker Change: In reality.
Speaker Change: I had mentioned.
Speaker Change: Women.
Speaker Change: Speech in the beginning.
Speaker Change: It is.
Speaker Change: China was able to catch.
Speaker Change: Of the gaps that toward identified remain opportunistic to keep improving.
Speaker Change: Our personal excellence in capturing these gaps. This is one thing we are not we are not end of the process. We added we are in the process.
Speaker Change: It's a fact.
Speaker Change: Of course.
Speaker Change: Part of the great benefits practically all of the benefit is already in our results.
Speaker Change: But the potential upside because of the as I mentioned before the capital.
Speaker Change: Capture of the gaps.
Speaker Change: The CRA has not to steal the full potential capacity we expect.
Speaker Change: That's CRF keep growing is March.
Speaker Change: It's mark.
Speaker Change: Thanks, Tony.
Speaker Change: Yeah.
Speaker Change: Our next question comes from Carlos Laboy with HSBC. Please go ahead.
Speaker Change: Yes can you.
Jeremy: Good morning, Jeremy can you. Please give us an update on where you stand in terms of the SEC filings.
Speaker Change: The next steps.
Speaker Change: As you look forward toward the.
Speaker Change: Two New York stock exchange listing.
Speaker Change: Okay. So again.
Jeremy: I mentioned before we did the filings on the March 27.
Speaker Change: And we are waiting for the SEC response, so it depends on the level of questions.
Speaker Change: Questions that might come or are not from the pro from the process because the back and forth process.
Speaker Change: And at some point said, we will have no more questions.
Speaker Change: And then we can ask for a registration and then once we have.
Speaker Change: Go ahead of actually see a forward to registration then we can call a general Assembly and then 42 votes and so on.
Speaker Change #100: Thank you.
Speaker Change #101: Our next question comes from Carla Casella with JP Morgan. Please go ahead.
Carla Casella: Couple of questions and a follow up.
Speaker Change #103: Then when you won I think one of the prior caller had asked about Oscar Mayer with Sandy for sale from Kraft did you say, how something like that might fit into your portfolio or fab.
Speaker Change #104: Or anything that could be of interest to you or would you even look at it.
Speaker Change #105: Got it.
Speaker Change #104: Okay.
Speaker Change #104: Just mention before to bank debt.
Speaker Change #104: Yeah.
Speaker Change #106: Our strategy is to grow and the value added brand global in agriculture growing chicken and we are investing in Brazil is that action that.
Speaker Change #106: Growing value added and that we are evaluate all of the opportunities in this arena.
Speaker Change #107: I cannot comment on one specific.
Speaker Change #107: The target that you mentioned, but those seats as part of our dispatches grow in value add and brand.
Speaker Change #108: Of course.
Speaker Change #108: Is the one of the important the street without stretching the second should be makes sense in terms of value creation for the company.
Speaker Change #109: Okay, Great I'm, sorry, I missed that and then.
Speaker Change #110: Park was so strong I'm just wondering if you saw any outperformance in markets like California, Massachusetts, where.
Speaker Change #111: Some of your competitors may not have.
And I know for the prop 12 kind of hog supply if any is there any of that driving some of your strength there.
Karla: Karla Good morning, we opened the Gulf preparedness is very early on but I wouldn't say that a lot of our strong.
Speaker Change #113: A big part of our stronger.
Speaker Change #113: Performance comes from that specifically.
Speaker Change #114: It's obviously being prepared and being able to service our customers in those markets, especially California, which is a huge market is important for sure, especially with our strategy of key customers and being able.
Speaker Change #114: To continue the strategy is very bored at another blend up but I wouldn't say that the strong performance of portions.
Speaker Change #114: Fundamentally from something like that.
Speaker Change #114: <unk>.
Speaker Change #114: Performing well on those three points.
Speaker Change #115: Okay, Great and then a follow up on you mentioned when talking about the the debt structure that you refinanced some of the Reais did you say what rate I didn't see any change in the rates in your debt schedule I'm. Just wondering what went when you refinance that maybe how much you were able to improve the rate.
Speaker Change #115: Okay.
Speaker Change #116: Basically I announce it.
Speaker Change #117: Repurchase of one 8 billion reais of local debentures that has my.
Speaker Change #118: Indifferent my truth, but more or less on 2030.
Speaker Change #118: And I'm E screen other tranches in the same amount.
Speaker Change #118: Maturing and longer terms with 20 years.
15 years.
Speaker Change #118: So basically we will expand the maturities.
Speaker Change #118: But the D&O rates those local debentures the rates are inflation, so I see as the Brazilian inflation plus a spread.
Speaker Change #118: These described we will only know in the book building that to be done in May 24.
Speaker Change #118: Because we see how it works, we put a ceiling right.
Speaker Change #118: But then as the demand is higher we compressed array. So I came up to say now how much will.
Speaker Change #118: It will be the difference in rates from the ones that are repurchasing and the ones that I E shrink, but for sure I'm spending extended banners, but it also depends on the how much people to this from 10 15 or 20 years.
Speaker Change #119: Okay, Great. That's Super helpful. And then just one last one you did another bond exchange. This quarter are you now are all of your 100% of your bonds now all registered an exchange.
Speaker Change #118: No.
Speaker Change #120: Last one left with DB in September 2023.
Speaker Change #120: Defendant thirties.
Speaker Change #121: Bad debt.
Speaker Change #122: That is my trading 34 and 53.
Speaker Change #123: They are they are not registered yet as we were when you filed the.
Speaker Change #123: The listing in March 27, we filed together.
The B asks for Brexit for the <unk>.
Speaker Change #123: <unk> of those bonds.
Speaker Change #124: So far as to $1 44, a and then I said, probably the OS or everything together both.
Speaker Change #123: Sure.
Speaker Change #123: All the filings together.
Speaker Change #125: Okay, great. Thank you so much.
Speaker Change #123: Yeah.
Speaker Change #123: Yeah.
Ken <unk>: Our next question comes from Ken <unk>.
Speaker Change #127: With Santander. Please go ahead.
Speaker Change #128: Good morning, everyone, just a follow up from.
The conference call in Portuguese.
Speaker Change #129: Lastly, you mentioned that.
Speaker Change #130: The two percentage points of margins can be captured in the U S. Beef market. If you could just go into detail where are those gains are those from the industrial side or on the commercial side.
Speaker Change #130: If you could give you more details on that that will be appreciated.
Sorry, if I missed this.
Speaker Change #131: Initial specious, but if.
Speaker Change #131: If you could go through.
Speaker Change #132: Net equation that you usually Shane in terms of.
Speaker Change #133: The breakeven in terms of cash flow for the year that will be also appreciated. Thank you.
Speaker Change #134: Good morning.
Speaker Change #135: I would say out of the 2% one 5% as operations in the plants and hub group.
Speaker Change #136: Half a percentage point is in is in sales, but also mentioned to you that.
Speaker Change #137: You probably noticed the ready to when we first did this call.
Speaker Change #137: I spoke about this a year ago.
Speaker Change #137: We we were talking about 2% sort of thing and we've got that and we found some more opportunities. So if.
Speaker Change #138: If we were able to close those other 2% order to surprises have you found another one or 2% opportunities because I.
Speaker Change #138: I don't think that 2% extra 2% I'm talking about brings us the profession things just just brings where where we see our operations should be before them.
Speaker Change #138: And that's why we have met so far, but I'll say, one and a half two operations and half a percentage.
Speaker Change #138: On the commercial side.
Speaker Change #139: Hi, good I mean, so our our our breakeven EBITDA analysis continues to be the same.
Speaker Change #140: Our capex spending of $1 3 billion boss for the year and if you look on page six of the press release the Capex for the first quarter is in line with this forecast also interest expense. This.
Speaker Change #139: $1 $1 billion also first quarter was in line with that.
Speaker Change #139: Leasing of $500 million first quarter was also in line with.
Speaker Change #139: This amount and.
Biological assets.
Speaker Change #139: We put in these analysis $650 million of working capital Consumptions for biological assets in case, the grain prices.
Speaker Change #139: Net stays the same so if you look on the on the first quarter the bellagio asset consumption.
Speaker Change #139: It was much lower because of the falling.
Speaker Change #139: In the grain prices. So these again these are very.
Speaker Change #139: Biological assets' consumption depends a lot.
Speaker Change #139: On the grain prices. So that's one that is not fix it basically as the others.
Speaker Change #139: But again their analysis continues to be the same because grain prices because we don't know if you can fall more or go up so continues to be the $3 $5 billion EBITDA and.
Speaker Change #139: Remember that.
Speaker Change #139: EBITDA above that then we have to submit track 25%.
Speaker Change #139: Of our.
The effective tax rate.
Jade: Thanks, Jade everything to everybody just a follow up what you said 75% of the two.
Martin: Thank you Martin benefit.
Speaker Change #143: This shall side, if you could just mention.
Speaker Change #144: Where do you think the gap SAR in the industry right. So is that about <unk> is it a bulk automation.
Speaker Change #145: Where do you see the gaps and where do you envision.
Speaker Change #146: The operations being best practice going forward.
Speaker Change #147: Let me pull probation or anything that would require complex for us, which is performing well from an efficiency perspective efficiency here, meaning labor efficiency and mix at the plant level getting the right products in the right buckets, it's more things that are 100% of our control with all the extra capex.
Speaker Change #148: That makes perfect sense. Thank you.
Jbs: This is the end of the conference call held by Jbs. Thank you very much for your participation and have a nice day.