Q1 2024 Sadot Group Inc Earnings Call

May 16, 2024

Let's let me introduce the guess Caroline <unk> think.

<unk> Group, Inc, and exclude the portion related to the.

The noncontrolling interests on this call we will refer to as the Doc Group, Inc. As the Doc group or the company.

She is the Investor relations director, but before I pass it on to her please let's watch a short video.

Speaker Change: With me on the call today are Sadat Group, Inc. 's, Chief Executive Officer, Michael Roper, and Chief Financial Officer, Jennifer Black, Michael and Jennifer will be presenting prepared remarks related to stock group's financials filed on May 15th 2024, and those documents may be found on the company's website.

Okay.

[music].

Speaker Change: Newswire fees and on the Sec's website linked from the Doc Group, Inc. 's website at <unk> Dot Group, Inc. Dot com under the Investor tab.

Speaker Change: At this point I would like to turn it over to Sadat groups, Michael Roper Michael.

Michael Roper: Thanks, operator, good morning, everyone and thank you for joining us today as we present the results of our first quarter ending March 31 2024.

Michael Roper: For the quarter ending March 31, 2024, our net loss improved by approximately 801000 as compared to Q1 2023. The company had Q1 2024 revenues of $108 million, resulting in a net loss of approximately 265000, a considerable improvement compared to a net loss.

Speaker Change: Approximately $1 1 billion for Q1 2023.

Speaker Change: In addition, the Companys Q1, 2024, EBITDA improved showing a gain of 458000, marking a positive shift from a 433000 EBITDA loss in the first quarter of 2023.

Yes.

Speaker Change: Thank you Brian.

Speaker Change: [music].

Speaker Change: Jennifer Black our CFO will discuss the financials in further detail here shortly.

Speaker Change: Overall market conditions in the aggregate model sector presented challenges in Q1, one of the largest challenges was China's unexpected absence in the wheat market.

Jennifer Black: As the world's largest buyer of wheat, China's pause on wheat had a material impact on the market. In addition to the China situation. We also saw softness in overall Agra commodity prices combined with expected seasonality factors.

Jennifer Black: Are these challenges we did see a reduction in total revenue for that group in Q1.

Speaker Change: Despite the revenue drop to other areas of our business, we were able to improve our net income improve our EBITDA increase our total assets and improve our working capital surplus.

Speaker Change: Hi, good morning, everyone.

Speaker Change: Good morning, everyone.

Speaker Change: Importantly, we believe the market is showing indications of the headwinds on revenue may begin to subside in Q2 and Q3.

Speaker Change: Let me welcome you to the Alliance Global Inc. Session in today to the PSC started then.

Speaker Change: As a matter of fact I am pleased to announce that revenue for the month of April 2024 has already shown improvements with $56 million in revenue coming in for the Agri Foods Division.

Speaker Change: Okay I'll, let me begin by showing you the slides on Adi's performance highlights.

Speaker Change: I am pleased to report that while we worked to manage trading operations through the Q1 headwinds we made significant progress on five of our strategic initiatives.

Speaker Change: For the first quarter this year, a J I posted steady consolidated revenue of 56 billion, we'd bring minority income up $6 6 billion lower by 7% year on year at.

Speaker Change: First we initiated the process to sell those to that food services segments.

Speaker Change: Recently in Q2, we signed a nonbinding LOI for the sale of Okimoto and Super fit foods, both are in the respective due diligence phases.

Speaker Change: Attributable profit stood at $4 2 billion, that's down by 10% year on year, turning their period Mega gross revenue rose by 16% year on year to $18 9 billion, while net income went up by 8% to $4 4 billion.

Speaker Change: The sale of these assets are subject to customary closing conditions and remains subject to the satisfactory completion of due diligence by any buyer negotiation and resolution of business and legal issues negotiation and completion of a mutually satisfactory definitive agreements and corporate approvals by the parties. There is no guarantee that these transactions will result in the <unk>.

Speaker Change: Amphora bar as this third revenue of $13 1 billion lower by 16% year over year, bringing its net profit to $1 7 billion down by 25%.

Speaker Change: Mining of a definitive agreement or a final sale.

Speaker Change: Second we plan to expand the role of Firestone Plaza consultant and manager and so that in the top.

123.

Speaker Change: Travelers reported gross revenues of $92 2 billion declining by 13% year on year, while net income.

In addition, the company.

Six 4%.

Improved joined.

Speaker Change: To play a significant role in the overall company's global trading and farm operations.

Boston market.

Speaker Change: Stood at 10 million.

Speaker Change: <unk> brings over two decades of experience in aggregate model trading and management prior.

Wow.

1.3.

Speaker Change: Voted <unk> sustained its strong performance as net income grew by 19% to half a billion passes.

Jennifer Black vehicle.

Speaker Change: Prior to Saddam beheld operational and managerial positions with the global trading powerhouse bhangi.

Net loss for the detail here shortly.

On sales revenue of $11 3 billion, an increase of 14% year on year.

<unk>.

Speaker Change: Third we opened a new trading office in Brazil, with a team of eight experienced aggregate model traders with revenue expected to come online in late Q2.

Sector.

In Q1.

Yeah.

Part of it.

Worlds largest by.

She has passed by the material impact on market. In addition to the China equation.

Mega will continue to lead the group in terms of being the biggest contributor to revenue and profit in the first part there.

Speaker Change: In the short time since establishment. The team has made significant headway in sourcing products from the upcoming harvest and financing from multinational Brazilian banks.

For commodity prices.

Speaker Change: Mega World account for 37% of group revenue followed by Emperor Derby, 26% will then are just with 22% on travelers with 14% and in terms of contribution to the profit.

Thanks.

Speaker Change: Led by Flavio Campos and Paolo they saw both seasoned executives and international sourcing and trade, we expect that Brazilian subsidiary to substantiate itself in the region and expand Siddhartha operations globally.

We did see reductions total revenue.

Despite the Brexit drops to other areas of our business.

We work.

Speaker Change: <unk> accounted for the lion's share of 64% followed by Emperor door, with 31% and broaden our test with 5%.

Our net income.

EBIT.

Speaker Change: Fourth we began actively harvesting and have shipped 1700 metric tons to date of corn under our agreement with the food Reserve agency, which was established by the Republic of Zambia.

Increased our total assets.

We believe the market.

Showing indications of headwinds.

Site in Q2.

Speaker Change: And now to present to you more details on <unk> financial performance in the quarter.

As a matter of fact.

This agreement aims to support the Zambian government efforts to safeguard national food security, we expect the majority of the revenue from this agreement to be realized in Q2 and potentially into Q3.

Without.

Speaker Change: I sure Betsy consolidated revenues grew by 1% year on year to 56 billion, while attributable profit amounted to $4 2 billion down 10% year on year at its various business segments showed mixed results.

Net revenue for the month of April 2024 has already shown.

The visit.

I am pleased to report that while we worked to manage operations to human health.

Speaker Change: Lastly, and importantly, we finalized terms with various institutions, providing us with approximately $27 million in trade financing for Saddam Agri foods operations moving forward.

We made significant risks.

Britain on our strategic initiatives.

Speaker Change: Mega World share of revenues in the quarter went up by 16% to $18 8 billion driven largely by increased residential project completion continued strong hotel in mall revenues and the steady growth in office rentals. However, its share of group profit grew by slow buyer.

First initiated the process.

Speaker Change: As we discussed in the past the immediate growth of that group hinges on access to trade financing capital first so that Agri foods operations.

Recently in Q2.

Speaker Change: Bye bye.

Speaker Change: Consumer groups both.

Speaker Change: The growth of our top line revenues and bottom line margins is directly linked to increasing our access to trade financing I cannot emphasize enough how important these trade financing facilities are to our growth.

Speaker Change: This due diligence phases.

The sale of these assets.

Speaker Change: Subject to customary closing conditions.

Speaker Change: Lower 11% year on year.

Speaker Change: Adjusted diluted by any buyer negotiation.

Speaker Change: Two 2.2 billion capped by a weaker peso, which resulted in some unrealized FX losses during the quarter.

Speaker Change: Access to such financing will provide us with the flexibility to pursue more aggregate mildly trading opportunities, thereby increasing our topline revenue with the goal of potentially enhancing the companys margins and net income.

Speaker Change: The business.

Speaker Change: Negotiations.

Speaker Change: Gentlemen, we shall be satisfactory.

Speaker Change: And part of doors. So it's first part their share of revenue declined by 16%.

Speaker Change: And corporate approvals by the party there is no guarantee.

Speaker Change: We are actively working on obtaining more trade finance lines to further support our growth initiatives.

Speaker Change: Thanks.

Speaker Change: The signing of a definitive agreement or classes.

Speaker Change: So the $13 1 billion I mean lower.

Speaker Change: Lower Brandon Whiskey sales to total global and domestic macro challenges.

So plaza.

Speaker Change: Now I'd like to turn the call over to our CFO, Jennifer Black to review more specifics on the financial performance of the company for the first quarter of 2020 for Jennifer Thank.

Speaker Change: Consolidated.

Your inventory cost and selling expenses as well as increased interest charges brought each profit contribution lower by 20% year on year to $1 5 billion.

Speaker Change: To play a significant role.

Speaker Change: Straining farm operations.

Jennifer Black: Thank you Mike before I begin I'd like to note that our financial results for the quarter ending March 31, 2024, and Form 10-Q filed with the SEC yesterday may five 2024, along with our press release on the same day.

Speaker Change: Over two decades spirit aggregate commodity trading management.

Speaker Change: Travelers Shadow revenue fell by 9% year on year to $7 1 billion, we mainly by the lower VIP win rate, which offset the strong growth in land VIP gaming.

Speaker Change: Prior to that.

Speaker Change: Operational managerial positions the global trading powerhouse.

Speaker Change: <unk>.

Sure.

Jennifer Black: With that I'd like to give an overview of the financials for the first quarter of 2024.

Speaker Change: Commodity traders.

Speaker Change: It's expected to come online.

Speaker Change: Bottom line contribution was minimal due to higher marketing expenses and the interest charges.

Speaker Change: Q2.

Jennifer Black: As Mike mentioned in his opening comments, we reported an improvement in the company's net loss by approximately 801000 year over year.

Speaker Change: Hi.

Speaker Change: The team has made significant headway in products.

Speaker Change: Lastly, Gordon artist so its quarterly revenue contribution higher by 13% to $11 4 billion benefiting from the discretionary spending and expanded store network.

Chris: Chris It's <unk>.

Jennifer Black: We reported a net loss of approximately $265000 an improvement compared to a net loss of approximately $1 1 million.

Speaker Change: For multinational Brazilian bank.

Speaker Change: Led by Flavio Campos and policy based on international trade.

Speaker Change: Trade, we expect Brazilian subsidiary Substantiates, the expanse of that outreach pool.

Jennifer Black: Q1 of 2023 on revenue of $108 million.

Speaker Change: Share of profit grew by 19% year on year, so about $270 million.

Speaker Change: This revenue is generated by our two business segments, the dot aggregates and Sadat food services operation.

Speaker Change: Okay.

Speaker Change: We began actively participating in new ships 1700.

Speaker Change: Additionally, our Q1 2024 EBITDA showed a gain of 458000 marketing a positive shift from the 433000 EBITDA loss in the first quarter of 2023.

Speaker Change: Ati's level of consolidated debt as of March as of March amounted to 241 billion, reflecting an increase of 19 billion or 9% from each and 2023 level.

Speaker Change: Patrick.

Speaker Change: A Z, which was established by the <unk>.

Speaker Change: Mr. Amster supports of the Malian government.

Speaker Change: Safeguards cash global food security.

Speaker Change: Our first business segment expedite aggregates aggregates contributed $106 5 million of revenue in the first quarter and completed 24 transactions in Q1 from our Sadat LLC and fit outlet Tom trading line.

Speaker Change: Shortly with revenue per treatment to be realized.

Speaker Change: We had some net increases in borrowings noted in macworld travelers and a pretzel or why.

Speaker Change: And essentially get achieved.

Speaker Change: Right.

Speaker Change: Lastly, and importantly, we finalized.

Speaker Change: Debt levels of Golden arches, and parent were little changed.

Speaker Change: With approximately $27 million of three.

Speaker Change: And these broad hei's consolidated gross debt to equity down to 60% from peak.

Speaker Change: 6%.

Speaker Change: 24 transactions were completed across 14 different countries.

Speaker Change: Forward.

Speaker Change: As we discussed.

Speaker Change: Immediate protocols.

Speaker Change: So that aggregates also contains farming operations.

Speaker Change: Okay.

Speaker Change: Now.

Speaker Change: On access of trade finance to get worse, so that both of our top line revenue bottom line margins are directly linked to increasing our access to financing.

Speaker Change: 260% from 56% in 2023, while its net debt to equity went up to 37% from 36% about 40% of group borrowings are in foreign currencies and a 80% are on fixed rate.

Speaker Change: Foreigners and harvest season with the majority of the revenue from the current harvest expected to be realized in Q2 and potentially into Q3, depending on weather conditions.

Speaker Change: And I emphasize enough how important these trade cases.

Speaker Change: We have harvested to date over 1700 metric tons of corn and 500 metric tons of soy that have been delivered to customers and our and our contract farmer pilot program is just now starting its first deliveries.

Speaker Change: Excellent.

Speaker Change: The financing provides us with the flexibility.

Speaker Change: Flexibility to do more.

Speaker Change: Top line revenue growth.

Speaker Change: As for the net gearing of its major subsidiaries.

Speaker Change: Substantially enhancing the company's margins.

Our second business segment as Sadat based services operation as.

Speaker Change: And March megawatts net debt to equity was steady at 30%.

Speaker Change: Tom.

Speaker Change: We are.

Speaker Change: And obtain more trading price points, the first support our growth initiatives.

Speaker Change: As Mike mentioned before during the first quarter of 2024. The company began actively marketing the sale of the various food service concepts and identified Siddhartha <unk> services as a disposal group that meets the requirements of ASC $360 10.

Speaker Change: Emperor doors net debt to equity fell fell to 14% from 16% in 2023.

Speaker Change: <unk>.

Now I'll turn the call over to our CFO.

Speaker Change: Back to you for specifics.

Speaker Change: One for John.

Speaker Change: You bet. The company added some 2 billion peso speech depths to augment funding 46 bunch of broadcast.

Thank you.

Speaker Change: I'd like to think of an attack.

Speaker Change: Accordingly, it was classified as held for sale and the company's financials.

Speaker Change: Okay.

Meanwhile, travelers so it's in that debt to equity rise to 106% from 95% in 2023 seats added by building empty its depth to support its feedbacks program.

Chris: Thanks, Chris.

In Q1. This division's revenue was $1 4 million for the three months ending March 31, 2024, compared to $2 6 million for the three months ended March 31, 2023 50.

Chris: Okay.

Chris: Yes.

Chris: Okay.

Chris: Eric.

Chris: Yeah.

Speaker Change: Parent's net debt, our net debt to equity rose two 5%.

Chris: Alright.

Chris: Right.

Chris: At night.

Speaker Change: This decrease was mainly due to the conversion of certain corporate O&M pokey metal locations to franchise locations to prepare for this divestiture.

Chris: Great.

Speaker Change: From 4%, while digging D C. Our golden artists in a way in a net cash position.

Chris: Pardon me.

Chris: Okay.

Chris: Thank you.

Yeah.

Chris: We reported a net loss.

Speaker Change: Now, let me turn to the overall financial picture of Saddam Chris.

Chris: Yes.

Saddam Chris: As of March 31st 2024, the company had a cash balance of $1 2 million and working capital surplus of $13 2 million respectively.

Speaker Change: Got it.

Speaker Change: For this year, a J is allocating 75 billion and paid back which will be distributed as follows 55 billion per Meg work for its residential development and investment property projects.

Speaker Change: Okay.

Speaker Change: Q1.

Speaker Change: Great.

Speaker Change: Thank you.

Speaker Change: Okay.

Saddam Chris: This compares to a cash balance of $1 4 million and a working capital surplus of $8 3 million as of December 31, 2023.

Speaker Change: Thanks, Gary.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: 6 billion the part <unk> to continue with its capacity expansions mainly for wideband Mackay.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Excuse me.

Saddam Chris: Our current cash balance is in line with our commitment to deploying capital strategically to enhance our financial position and drive sustainable growth.

Speaker Change: 10 billion for travel sports projects, mainly in Newport World discharge and the $4 billion for Golden arches as it continues visits store expansion program.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: 73000.

Speaker Change: That's correct.

Saddam Chris: Our total assets in the first quarter grew to $150 5 million from $62 6 million in the same time in 2023.

Thanks Terry.

Speaker Change: Okay.

Speaker Change: In the first quarter about 14 billion of the budget was spent representing 19% of this year's total.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Please go ahead.

Speaker Change: Thanks.

Saddam Chris: This is due to significant increases in property and equipment. Other current assets in our receivable accounts payable our total assets decreased $27 6 million from December 31, 2023. This is due to the timing of payments on accounts receivable and a corresponding accounts payable related to trade.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Hello.

Speaker Change: Great.

Speaker Change: For transact.

Speaker Change: Now just update you on the group's share buyback programs under Agi and Mega World. Our Hai 9 billion share buyback program, which will run up to April 2025 is about.

And across the board.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: All right.

Speaker Change: Thank you.

Speaker Change: Got it.

Saddam Chris: Stock based expenses for the three months ended March 31, 2024 totaled 800000 compared to $3 4 million for the three months ended March 31 2023.

Speaker Change: Secondly.

Speaker Change: <unk>, 90% utilized to beat while Mega Rose 5 billion buyback program, which will by February 2025 was about 55% utilized.

Speaker Change: Thank you.

Speaker Change: And the tax rate.

Speaker Change: Okay.

Speaker Change: <unk> also recently announced its 24 hours and doubled our per share cash dividend.

Ikea: $2 $6 million decrease in stock based expenses is primarily the result of consulting fees due to Ikea for Sadat aggregates segment.

Speaker Change: Perfect.

Speaker Change: Please go ahead Sir.

Speaker Change: Graham.

Speaker Change: During the quarter and this indicated a payout of about 39% of prior year's income reverting to the levels before the pandemic.

Speaker Change: Right.

Speaker Change: Alright.

Ikea: Based on the renegotiated servicing agreement with Ikea the consulting fees are calculated at approximately 40% of the net income generated by <unk>, which is a decrease from the 80% in 'twenty three.

Okay.

Speaker Change: Alright.

Speaker Change: Thank you.

Speaker Change: The company began.

Speaker Change: Marketing.

Now, let's move onto Macworld.

Speaker Change: Hey, Barry.

Yeah.

Speaker Change: And after the successful.

Speaker Change: So for the first three months of the year Mega World. So it's consolidated revenue grew by 16% year on year to $18 9 billion with this residential segment.

Ikea: This expense is paid and investing in restricted stock that was issued to add yet in 2023.

Ken: Thanks, Ken.

Speaker Change: Okay.

Speaker Change: Accordingly.

Speaker Change: Hi.

Ikea: As part of the business plan for Sadat Agri Foods. We also entered into forward purchase and sales agreement. We currently have several forward purchases and sales agreements one for the carbon credit offsets and in Q4, we entered into Q4 sales agreements for soybeans to be delivered in the future.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: <unk> and hotel operations, providing a strong boost in topline growth.

Speaker Change: Right.

Pretty much.

Speaker Change: Mark.

Speaker Change: Real estate sales rose by 29% year on year to 12 billion amidst increased construction activity during the quarter, which led to higher completion rates, particularly from projects within its west ITD an article via townships.

Speaker Change: Thanks Mark.

Speaker Change: March 31.

Speaker Change: Yes.

Speaker Change: Great.

Speaker Change: We can enter into forward sales agreement and internally hedge these transactions with the soy grown on the farm.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Mark to market gain on these derivative transaction resulted in income of approximately $3 $3 million in Q1 of 2024.

Speaker Change: Sure.

Speaker Change: Now, let me turn to no problem.

Speaker Change: As well as incremental contribution from the projects and its new balance sheets like nor to mean globose CP in will upon and Piragua post down in Palau It.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: It is important to note that we have strong revenue streams have increased our working capital surplus and we are building our balance sheet, all while making significant strategic changes and achievements of the company.

Speaker Change: And Brittany.

Speaker Change: Sure.

Speaker Change: Perfect.

Speaker Change: Revenue from its lifestyle, most went up by 20% year on year to $1 5 billion already achieving pre pandemic levels.

Speaker Change: Sure.

Speaker Change: Why.

Speaker Change: And Barclays capital.

Speaker Change: $3 million.

Speaker Change: These developments are fortifying our balance sheet, reflecting the strategic investment we made to bolster our operations.

Speaker Change: And that's helped by tired talent sales as discretionary spending in malls remain the Chilean.

Speaker Change: Alright.

Speaker Change: Cash.

Speaker Change: Good morning.

Speaker Change: Deploying capital with.

Speaker Change: Coupled with steady occupancy rate up to 93%.

Speaker Change: With that I'd like to turn the call back over to Michael over.

Speaker Change: With respect.

Speaker Change: Yes.

Michael Roper: Thank you for that financial overview, Jennifer while we faced some challenges and factors beyond our control. This quarter. We stayed the course and adhere to our strategic plan for the company with every challenge that we overcome we believe we solidify our presence in the global markets and continue building a strong foundation required for our vision a strong insignificant participant in the global agriculture.

Speaker Change: Correct.

Speaker Change: Higher hotel revenue there were also higher hotel revenues and that rose by 39% year on year to $1 1 billion as occupancy improved to 70% from 67% in the fourth quarter buoyed by increased domestic tourism and mice activities.

Speaker Change: Okay.

Speaker Change: Our support.

Speaker Change: Chad.

Speaker Change: 5 billion.

Two points.

Speaker Change: Thanks, Gary.

Speaker Change: Great.

This is Adam.

Speaker Change: Correct.

Speaker Change: Okay.

Our total assets.

Speaker Change: On the supply chain.

Speaker Change: Christy.

Speaker Change: Office rentals grew at the Staples piece of 1% year on year.

Speaker Change: Slide 16.

Jennifer Black: We remain dedicated to executing our strategic vision and seizing the opportunities offered by the global food supply chain. Additionally, we are actively exploring options to divest our legacy restaurant brands.

Speaker Change: Right.

Speaker Change: Underpinning by tired in the world rates up seven 2%.

Speaker Change: Okay.

Speaker Change: That's really helpful and of course accounts payables stock based expense.

Speaker Change: Built in rental Escalations, while occupancy stood at 87%.

Jennifer Black: In closing I want to express my gratitude to all our investors and stakeholders for joining us today and for your continued support.

Speaker Change: At March 31st 2020.

Speaker Change: However, the partner so a surge in overall cost and expenses and FX losses of $176 million versus gains of 661 million the prior the prior quarter.

Speaker Change: Hello, Andrew.

Speaker Change: Okay.

Speaker Change: Fair enough.

Jennifer Black: Thank you once again for your trust and for that Group, Inc. We look forward to the exciting journey ahead in delivering continued success for our investors stakeholders and the communities we serve.

Speaker Change: Alright, great.

Speaker Change: Great. Thank.

Speaker Change: Thank you.

Great.

Speaker Change: Thank you.

Speaker Change: This is primarily the result.

Jennifer Black: With that please give us a few moments when we open up the lines for questions.

Speaker Change: Year ago level and that limited the growth in net income to 8% you're in either the $4 4 billion.

Speaker Change: Ladies and gentlemen.

Speaker Change: Okay great.

Speaker Change: Okay.

Yes.

Speaker Change: If we net out the.

Okay.

Speaker Change: At that time.

Speaker Change: The FX impact.

Speaker Change: Great.

Speaker Change: The world's net income should there be sent by 34% year on year to <unk> 6 billion pesos and that we think is the core performance.

Speaker Change: Before we get to questions from our selected analysts the team would like to address some questions, which we receive from our stakeholders Jennifer.

Speaker Change: Liquidity.

Okay.

Speaker Change: This pain.

Speaker Change: Thank you Scott.

Speaker Change: Thanks, Operator, we would now like to run through a few questions.

Speaker Change: Okay.

Speaker Change: Great.

Pardon.

Speaker Change: That will be slide you will see the revenue and EBITDA contribution of each of megawatts core businesses and I'm, referring to residential development of these malls rentals and hotels and what we see that Meg roads poor.

Jennifer Black: The first question is why did revenue decreased by roughly 50% in Q1 2024 versus Q1 of 2023.

Speaker Change: For Scott.

Speaker Change: We also Eric.

Speaker Change: Perfect.

Speaker Change: Okay.

Speaker Change: One critical carbon credit offset in Q4, we entered Q4.

Speaker Change: While the decrease in this quarter's revenue can be attributed to.

Speaker Change: Strategic transitional effort in our business model, we're limiting ourselves on extending credit to buyers towards a more secure payment structure. This shift resulted in a temporary reduction in sales volume as we adjusted our operations and renegotiated terms with our clients. While this has impacted our short term revenue it has strengthened our financial.

Speaker Change: So I think we can be delivered in the future.

Speaker Change: Our revenues.

Speaker Change: In the interest.

Speaker Change: In the first quarter increased by 23% year on year, while EBITDA grew by 20% year on year, indicating generally stable margins.

Speaker Change: Charlie Patsy transaction this way right.

Speaker Change: The mark to market.

Speaker Change: Transact.

Speaker Change: No.

Speaker Change: <unk> profit performance for the past five quarters, we note the volatility due mainly to peso movement versus the U S dollars.

Speaker Change: In Q.

Speaker Change: Sure.

Speaker Change: It's important to note.

Speaker Change: Foundation by reducing credit risk and positioning us for a more stable and predictable growth in the future.

Speaker Change: Strong revenue.

Speaker Change: Thompson Creek reported.

Speaker Change: Capital.

Speaker Change: As mentioned earlier.

Speaker Change: And your ability.

Speaker Change: Glue the impact of FX movement megawatts net income in the first quarter would have increased by 34% year on year instead of the reported growth of 8%.

Speaker Change: All of them.

Speaker Change: In addition to that there were several underlying market factors that had a considerable impact on the quarter's revenue the.

Speaker Change: Yes sure.

Speaker Change: You bet on the company.

Speaker Change: On a reported.

Speaker Change: The most important factor was a considerable decrease in demand from China and a decrease in overall commodity prices. This resulted in less sales and sales at lower prices.

Speaker Change: Please.

Speaker Change: Strategic in that.

Speaker Change: I'd like to turn it back over.

<unk> operating margins have also been generally stable over the over the last five quarters, we have residential GP margin improving at a 50% from 49% of the year before and that falls within the range of Fortinet.

Speaker Change: Thank you.

Hi, Joseph.

Speaker Change: Both basins challenges and factors.

Speaker Change: China is the world's largest great importer as reported by the U S Department of Agriculture in March 2020 for 504000 tonnes of wheat sales to China had been canceled to put this in perspective. This figure is equivalent to about half of the total U S wheat shipments to China, and all of 2022 and marks the largest cans.

Speaker Change: Post quarter.

Speaker Change: Of course, it is geared towards the strategic plan.

Speaker Change: Yeah.

Speaker Change: Their presence.

Speaker Change: Perfect.

Speaker Change: You'll see a strong policies are required.

Speaker Change: The 50%.

Speaker Change: Over the last five partners.

Speaker Change: A strong submission.

Speaker Change: And for participants in a global effort.

Speaker Change: Rental EBITDA margin was steady at 88% are or within the range of 80% to 89% in the last quarters five quarters yeah.

Speaker Change: Supply chain, we didn't mean to.

Speaker Change: Dedicated to executing our strategic businesses do you see opportunities.

Lisa on record dating back to 1999.

Speaker Change: Our analysis supported by reporting from Nikkei Asia indicates that this significant swing appears to be related to the flooding China experienced last summer, which decreased their domestic production.

Speaker Change: Okay.

Speaker Change: Hotel EBITDA margins up 14.

Speaker Change: Occupancy.

Speaker Change: Our legacy restaurants, correct, yes.

Speaker Change: <unk> percent in the first quarter.

Speaker Change: Close enough.

Speaker Change: That's at the lower end of the 30% to 20%, bringing we have seen in the last five quarters.

Speaker Change: That's it.

Speaker Change: Joining us today.

Speaker Change: In response, China secured large scale contracts for high quality grain from other countries. However, it now appears that buyers are trying to avoid fulfilling costly contracts from the previous periods due to domestic supply issues and are instead repurchasing at lower prices, causing a temporary disruption to the normal Agra commodity trading markets.

Speaker Change: Continued support thank you once again.

Speaker Change: Now for this year <unk> plans to launch two to four new townships from its current portfolio of 31000 chips spanning 5175 hectares throughout the country. The plant additions should serve us new sources of growth for the company in the future.

Speaker Change: We look forward to the <unk>.

Speaker Change: The continued success story for investors.

Speaker Change: With that can you just give us a few bullets.

Speaker Change: For questions.

Speaker Change: We view this as a mcdonalds temporary reset of the market and we anticipate a return to its historical trading patterns will return.

Speaker Change: Also for D C. Our Mega World is allocating a total of 55 billion in Capex with planned project launches worth 40 billion of which only one project the $4 2 billion or could be hotel was launched.

Speaker Change: Before we get to questions from our selected analysts the team would like to address some questions, which we have received from our stakeholders Jennifer.

Speaker Change: This actually reinforces our strategic vision to expand into additional trading markets and types of commodities as we've done recently with the formation of our additional global trading entities of Siddhartha, Tom last year and more recently with the establishment of <unk>, Brazil to our existing operation centers of Singapore and Dubai.

Speaker Change: Thanks, Operator, we would now like to run through a few questions there.

Speaker Change: First question is why revenue decreased by roughly 50% in Q1 2024 versus Q1 of 2023.

Speaker Change: And then the companies also targeting to Heath reservation sales up 145 billion. This year now in the first quarter pre sales stood at $36 5 billion already achieving about a part of the full year target.

Speaker Change: While the decrease in this quarter's revenue can be attributed to <unk>.

Speaker Change: Moreover, we remain open and are actively exploring additional expansion opportunities in the future.

Speaker Change: <unk> strategic transitional effort in our business model, we're limiting ourselves on extending credit to buyers towards a more secure payment structure. This shift resulted in a temporary reduction in sales volume as we adjusted our operations and renegotiated terms with our clients. While this has impacted our short term revenue it has strengthened our financial.

Speaker Change: But I realised emphasize one more time is as indicated Q2, we're already starting to see some increasing revenues as we reported April revenue to be roughly 56 billion. So we're already starting to see a rebound.

Speaker Change: Up to the year 2026 Mega World is looking at expanding its office gel eight by 148000 square meters and its mall GLA by 151000 square meters.

Alright. The second question. We have is why were margins lower than expected and lower than previous quarters, and what should we expect margins to be moving forward.

Speaker Change: Our foundation by reducing credit risk and positioning us for a more stable and predictable growth in the future.

Speaker Change: It is also looking to add 4185 hotel room keys up to the year 2029.

Speaker Change: In addition to that there were several underlying market factors that had a considerable impact on the quarter's revenue. The most important factor was a considerable decrease in demand from China and a decrease in overall commodity prices. This resulted in less sales and sales at lower prices.

Speaker Change: While we normally don't provide guidance on future margins due to the volatility in the market. However, trade margins narrowed due to the same market factors previously stated earlier on the call.

Speaker Change: Should reinforce <unk> position as the country's biggest hotel developer and operator among its planned hotels operating is the Grand Besides hotel along debate with a total of 1530 room keys and he set to hit the market sometime this year.

Speaker Change: As commodity prices drop along with the demand from China. It resulted in a margin squeeze we believe our global expansion and commodity diversification strategy has the potential to create a positive increase on margins going forward.

Speaker Change: China is the world's largest great importer as reported by the U S Department of Agriculture in March 2020 for 504000 tons of meat sales to China had been canceled to put this in perspective. This figure is equivalent to about half of the total U S wheat shipments to China, and all of 2022 and marks the largest.

Speaker Change: Now capitalizing on Mega roads reputation as the biggest hotel developer and operator in the country Mega Worlds hotels and resorts is expanding its international network and forging strategic partnerships as part of its key initiatives. This year to aggressively grow the group's hospitality business.

Speaker Change: Okay. Let me see here next question.

Speaker Change: With the NASDAQ extension, what is the company's plan and how they are going to raise the share price above $1.

Speaker Change: Insulation on record dating back to 1999.

Speaker Change: And so look we're implementing a multifaceted strategy first we're enhancing our operational efficiencies and financial health through the aforementioned strategic shifts.

Speaker Change: Our analysis supported by reporting from Nikkei Asia in the case of this significant swing appears to be related to the flooding China experienced last summer, which decreased their domestic production.

Speaker Change: On the international front Mega World hotels on discharge is joining virus tourism trade fairs and carrier events abroad, like the international Tourism Bureau, or ITV in Berlin, and in Asia, as well as the AVN travel markets.

Speaker Change: Second we plan to increase our market visibility investor relation efforts to better communicate our value proposition and future potential.

Speaker Change: <unk>, we're exploring strategic partnerships or potential acquisitions that align with our core business, which can drive growth and investor confidence. The company believes in our business strategy and executing against this strategy is critical in driving results and demonstrating growth.

Speaker Change: The group recently signed a memorandum of understanding with the department of tourism to be their strategic partner and first top and implementing its programs to promote Philippine tourism, including the development of Muslim friendly accommodations that could cater to Muslims and Filipino Muslim travelers and shooting there.

Speaker Change: We view this as a mcdonalds temporary reset of the market and we anticipate a return to its historical trading patterns will return.

Speaker Change: We also believe that the divestiture of the restaurant services Division will be an important driving factor overall, bringing in fresh capital while also reducing corporate overhead. This will allow the company to focus solely on the agribusiness model and help aid and accurately valuing the company.

Speaker Change: Comfortable and enjoyable Sp.

Speaker Change: Yeah.

Speaker Change: Now moving onto travelers.

Speaker Change: You see here gross revenues declined by 13% year on year to $9 2 billion of said total.

Speaker Change: So next question is how will the restaurant's sale impact the company.

Speaker Change: Ross gaming revenues, our G. D R amounted to $7 5 billion down 16% year on year as the continued recovery in the non VIP and mass segment was offset by the decline in VIP GTR.

Speaker Change: So the restaurant sales can embark another significant operational transition towards our focus on the global Agri commodity supply chain and we're going to be focusing on the supply chain.

Speaker Change: Moreover, we remain open and are actively exploring additional expansion opportunities in the future.

Speaker Change: <unk> sold we will expand our existing teams where necessary bring in additional key members from the team for various verticals and as we mentioned earlier use other tools and methods to reach out to the market to better communicate our value proposition and future potential.

Speaker Change: <unk> in the first part there went up by 27% year on year to $4 3 billion, while <unk> fell by 42% to $3 2 billion as our rolling chip volumes declined together with the VIP hold rate.

Alright. The second question. We have is why were margins lower than expected and lower than previous quarters, and what should we expect margins to be moving forward well.

Speaker Change: The next question is what are the I'm trying to put them altogether that makes sense here. The next one is what are the terms of the sale of Pokey, Moto and Super pit foods.

Speaker Change: Nah and gaming revenue, mainly from warehouse was steady at one 8 billion on hotel occupancy rates up 82% from seven 2% the year before.

Speaker Change: While we can't discuss the terms of the nonbinding LOI right, which are under due diligence process and.

Speaker Change: We've promotional expenses down by 23% net revenues declined by 10% to seven 1 billion EBITDA fell by 33% to $1 4 billion down further by higher marketing expenses and a <unk> 30 salt travelers.

Speaker Change: As commodity prices dropped along with the demand from China. It resulted in a margin squeeze we believe our global expansion and commodity diversification strategy has the potential to create a positive increase on margins going forward.

Speaker Change: There's a lot of phases. This will go with that we believe that the terms received under non binding O I's are in line with our expectations.

Speaker Change: So let me jump into the next question.

Speaker Change: It's regarding farming.

Okay. Let me see here next question.

Speaker Change: Broke even in the first quarter with a modest net income of $10 million from a net income of 334 million the year before.

Speaker Change: Why is the company doing far me and what is the strategic advantage and whether it be expansion.

Speaker Change: With the NASDAQ extension, what is the company's plan and how they are going to raise the share price above $1.

Speaker Change: So our involvement in farming as part of a broader strategy to diversify our revenue streams and leveraged synergies within the business operations.

Now this slide shows the gross revenues fell to $9 2 billion in the quarter after who are winning at the 10 to 11 billion range over the past four quarters in 2023, this coupled with higher marketing expenses brought down first quarter EBITDA to $1 4 billion or.

Speaker Change: So look we're implementing a multifaceted strategy first we're enhancing our operational efficiencies and financial health through the aforementioned strategic shifts.

Speaker Change: Farming offers us a strategic advantage by providing a stable supply of raw materials, reducing dependency on external suppliers and mitigating supply chain risks.

Speaker Change: Second we plan to increase our market visibility investor relation efforts to better communicate our value proposition and future potential.

Speaker Change: Furthermore, it aligns with our basket trading approach by enabling us to manage both current and future agricultural contracts more effectively.

Speaker Change: Down by 33% from the year before.

Speaker Change: Additionally, we are exploring strategic partnerships and potential acquisitions that align with our core business, which can drive growth and investor confidence. The company believes in our business strategy and executing against this strategy is critical in driving results and demonstrating growth.

Speaker Change: But as you will see in this slide.

Speaker Change: As for expansion, we see significant potential in scaling our farming operations, especially as we integrate these activities into the mix.

Speaker Change: You will note the sequential improvement in traveler's non VIP of Gard mask business over the past five quarters in the first quarter and non VIP accounted for close to 60% of total GDP are indicating that it's aggressive promotions and marketing activities through its epic rewards program has been gaining track.

Speaker Change: This will enhance our overall market presence and create additional growth opportunities.

Speaker Change: In addition, as mentioned earlier in the call we have the ability to enter into forward sales agreement using our farm commodities in Q1, we were able to recognize roughly $3 3 million in income on these forward sales agreements. This allows the company to trade year round with the underlying commodity as a collateral.

Speaker Change: Chung with gaming clients.

Speaker Change: Meanwhile, the VIP segment has been affected by lower rolling chip volume and win rates.

Speaker Change: So next question is how will the restaurant's sale impact the company.

Speaker Change: In case, the market turns negative to help insulate us from future market fluctuations.

Speaker Change: In the first quarter.

Speaker Change: So the restaurant sales can embark another significant operational transition towards our focus on the global aggregate model the supply chain and we're going to be focusing on the supply chain.

Speaker Change: The new part World Resorts complex managed to sustain the peak level in average daily footfall that we saw in the fourth quarter of last year with nearly 42000 average daily visitors other complex as it has attracted more mice activities.

Speaker Change: We anticipate adding more farms beyond Zambia to the company over time as we build in vertical segments.

Speaker Change: Once sold we will expand our existing teams where necessary bring in additional key members from the team for various verticals and as we mentioned earlier use other tools and methods to reach out to the market to better communicate our value proposition and future potential.

Speaker Change: I believe that's all the questions, we have prepared and op.

Speaker Change: Operator, we'd like to open it up for analysts on the call.

Speaker Change: Yes, Thanks team I would like to open the call to Aaron Grey with AGP first for questions.

Speaker Change: Oh, the travelers can claim to have the biggest number of hotels the room keys in one location in its Newport Wordless Arts complex, which is located right across terminal three of them. They eat up the net Yeah Airport you will find five world are now on hotel brands that's the.

Speaker Change: The next question is what are the I'm trying to get them altogether that makes sense here. The next one is what are the terms of the sale of Pokey, Moto and Super fit foods.

Aaron Grey: Hi, Thanks for the questions. So first one for me.

Aaron Grey: So the rebounded in April $56 million.

Speaker Change: Can you also speak a little bit just from May <unk>.

Speaker Change: While we can't discuss the terms of the nonbinding LOI right, which are under due diligence process.

Marriott Hotel Manila Holiday Inn Express Hilton Hotel, Manila, Sheraton Hotel and hotel Aqua Manila opening a total of over 2700 room keys. The complex also boasts the Marriott brand volume the country's biggest venue for mice activities.

Speaker Change: To date, we're about halfway through now and the makeup of that $56 million was there any rebound.

And there's a lot of phases. This will go with that we believe that the terms received under non binding otherwise are in line with our expectations.

Speaker Change: From China within that or is that what you are able to sell you know not including any rebound from from China trying to get a better picture of how we should think of the run rate.

Speaker Change: So let me jump into the next question.

Speaker Change: Whether or not China doesn't come back in terms of their purchasing habits. Thanks.

Speaker Change: It's regarding farming.

Speaker Change: Erin I'll start and Jennifer can chime in here.

Speaker Change: And with that I was just like to let you know the travelers grants vacation experience is back for a start then explicit price we can enjoy five overnight stays with breakfast for two at our by International Hotel brand. So please take advantage of this limited offered to treat yourself and your loved one.

Speaker Change: Why is the company doing farming and what is the strategic advantage and whether it be expansion.

Speaker Change: Let me talk about the China side of the equation right.

Speaker Change: We really for the month of April right did not have but.

Speaker Change: So our involvement in farming as part of a broader strategy to diversify our revenue streams and leveraged synergies within the business operations.

Speaker Change: Notwithstanding I don't think we had any trades to China in the month of April so everything you're seeing is us moving around to different parts of the world, which is why we expanded into all the time and we're expanding into Brazil, and all that allows us to shift around and do things like you can't just do that instantaneously like overnight. So that's why you see it starting to take effect in April as we start moving.

Speaker Change: Farming offers us a strategic advantage by providing a stable supply of raw materials, reducing dependency on external suppliers and mitigating supply chain risks.

Once over a luxurious brands, it's staycation experience.

Speaker Change: Okay.

Speaker Change: Furthermore, it aligns with our basket trading approach by enabling us to manage both current and future agricultural contracts more effectively.

Speaker Change: Now moving on to <unk>.

In the first quarter and brothers consolidated revenue declined by 16% year on year to $13 1 billion weighted down by global and domestic macro headwinds Brandy revenues went down by 19% year on year to $7 9 billion as domestic consumers continue to shop.

Speaker Change: <unk>.

Speaker Change: Those other markets, we think China will start coming back online here through the rest of Q2 and into Q3.

Speaker Change: As for expansion, we see significant potential in scaling our farming operations, especially as we integrate these activities into the mix. This will enhance our overall market presence and create additional growth opportunities.

Speaker Change: And what was the second part of that question I apologize.

Speaker Change: Oh just towards the <unk>.

Speaker Change: It may month to date to say that kind of momentum continue things around now we're halfway through two new hit right. Yeah. When it comes to the trades that would kind of take time and usually those don't finalizing closeout in the accounting process of that till the second half of the mine.

Speaker Change: The value brands are means the prevailing high inflation, which impacted on spending.

Speaker Change: We see revenue also fell by 10% year on year to $5 2 billion to two changes in the sales mix.

Speaker Change: So I can't give you an accurate depiction of where we are right now because of the way the tiny Baldwin accounting for those happen.

Speaker Change: Given overall soft demand for spirits in the global market and this was noted in most key markets like North America are mainly in the U S and Asia, mainly China, we've only travel retail showing very good growth.

Speaker Change: As the market turns negative to help insulate us from future market fluctuations.

Speaker Change: Okay. That's helpful. Yeah, sorry.

Speaker Change: We anticipate adding more farms beyond Zambia to the company over time as we build in vertical segments.

Speaker Change: Sorry, Aaron I do want to.

Speaker Change: Emphasize as well what we see the April numbers as I said, it really doesn't involve anything from China at this stage or to China. At this stage right. So that'll be coming out as we keep moving through to Q2 and Q3. However, we also have Brazil coming online, where we think our first trade from Brazil happen end of May beginning of June somewhere in there so definitely within Q2.

Speaker Change: I believe that's all the questions we have prepared.

Speaker Change: It's gross profit went down by 17% year on year to $4 2 billion, but overall GP margin was broadly steady at 33%.

Speaker Change: Operator, we'd like to open it up for analysts on the call.

Speaker Change: Yes, Thanks team I would like to open the call to Aaron Grey with a G P <unk> for questions.

Speaker Change: The whiskey segment continues to enjoy much higher GP margins, although the level fell to 44% from 46% the year before affected by changes in the sales mix.

Aaron Thomas Grey: Hi, Thanks for the questions. So first one for me just.

Speaker Change: And you'll start seeing that come online and then b.

Speaker Change: The harvest from the farm in general is going to most of it is going to be in Q2, some of that could spill into Q3, depending on whether you know kind of how the rules around but can.

Speaker Change: So on the rebounded in April $56 million.

Speaker Change: Can you also speak a little bit just from May months.

And you have brand new segment with GP margin.

Speaker Change: Month to date, we're about halfway through now and the makeup of that $56 million was there any rebound.

Speaker Change: 94% from 25% the year before due to increases in inventory costs.

Speaker Change: Can't control that but.

Speaker Change: We do have some some good momentum coming into the rest of the quarter.

Speaker Change: From China within that or is that what youre able to sell not including any rebound from from China trying to get a better picture of how we should think of the run rate you know.

Speaker Change: Higher selling and A&P expenses due to increased marketing activities across the business for Adobe down on our brothers net profit, which declined by 25% year on year to $1 7 billion, but note that all margin metrics up Emperor door showed an improvement in Q on Q on Q basis.

Speaker Change: Okay. That's helpful and then.

Speaker Change: On the margin side.

Speaker Change: Some of the things that you talked about in terms of what's driving the margin pressure.

Speaker Change: Whether or not China doesn't come back in terms of their purchasing habits. Thanks, Yes, Erinn I'll start and Jennifer can chime in here, let me talk about the China side of the equation right.

Speaker Change: It sounds like it might be a little bit more prolonged and less transitory than just one quarter just considering the overall environment.

Speaker Change: We really for the month of April right did not have if I'm not mistaken I don't think we had any trades to China in the month of April so everything you're seeing is us moving around to different parts of the world, which is why we expanded into all the time and we're expanding into Brazil, and all of that allows us to shift around and do things like you can.

Speaker Change: We include the Agrifood, including your own farming it looks like it was.

Speaker Change: As you can see in this slide and brothers first quarter revenue fell by 30.

Speaker Change: $213 1 billion at both branded whiskey sales decline brandy by 19% to $5 2 billion and whiskey by 10% to seven 9 billion and this brought net income to $1 7 billion down by 25% year on year.

Speaker Change: The negative gross margin for the quarter I noticed trade alone probably slight positive, but how do we get to a point and how far away are we from getting to more and greater gross margins I know it had been in about the 2% range that first half of last year. So.

Speaker Change: Do that instantaneously like overnight. So that's why you see it starting to take effect in April as we start moving into those other markets. We think China will start coming back online here through the rest of Q2 and into Q3.

Speaker Change: This slide will show you the quarterly performance of Emperor there Brandon Whiskey sales.

Speaker Change: How far away from a returning to that or are we going to be in this lower margin levels for the near term at least.

Speaker Change: Risky segments in the past by partners. The Whiskey segment saw a 10% year on year decline in first quarter sales for the first time since 2019 with GP margin at 44% sapling at the midpoint of the range of 42% to 46% over the past five quarters.

Speaker Change: Well I think part of the key to it is as we should so there is there is two types of trades, we've talked about in the past right, you've got and they're not very scientifically.

Speaker Change: And what will what was the second part of my question I apologize.

I was just towards a.

Speaker Change: May month to date to say that kind of momentum to continue his around now we're halfway through <unk> right. Yeah. When it comes to the trades that would kind of take time and usually those don't finalize and close out and the accounting process of that till the second half of the mine.

Speaker Change: Large trades in small trades.

Speaker Change: So your large trades of molecular entire cargo ships are smaller trades are the containers right for lack of better definition a lot of the orders.

Speaker Change: Brandy revenues have seen a volatile performance.

Speaker Change: And fell by 19% to a year on year in the first quarter GP margins stood at 25% 24%.

Speaker Change: We're going into China, or the larger trades, right, which tend to have smaller margins than the container type of trades. So as we shift more into the container trades.

Speaker Change: So I can't give you an accurate depiction of where we are right now because of the way the timing Baldwin County that has happened.

Speaker Change: Also at the mid point of the 18% to 31% stage over the past five quarters.

Speaker Change: Okay. So thats helpful. Josef sorry, Aaron I do want to.

Speaker Change: And but otherwise allocating over 6 billion in Capex to fund its ongoing capacity expansions at the Dell more and in Burger done. There's still there is a widespread and Mackay and four it's done more distillate expansion project the company intends to double its production capacity to address future demand given the consistent.

Speaker Change: Emphasize as well, where we see the April numbers as I said, it really doesn't involve anything from China at this stage or to China. At this stage right. So that'll be coming out as we keep moving through to Q2 and Q3. However, we also have Brazil coming online, where we think our first trade from Brazil happen end of May beginning of June somewhere in there so definitely within Q2.

Speaker Change: And the smaller types of trades that were generating through with Tom in Brazil, and those type of things you should start seeing some margin increase of those then you start compounding it with.

Speaker Change: Potentially changing the other commodities that might be more beneficial we can't do that overnight, okay, but if we wanted to get into.

Speaker Change: Our improvement in the Dunmore sales our construction is on track for completion by mid this year and for it. It's in Bird Garden distillery. The company is undertaking the expansion of its maturation complex doubling its footprint to 92 hectares, and then building additional warehouses for whiskey 18.

Speaker Change: Some different type of commodities that that have better margins, we can start to do that and again thats as you start expanding in these different parts of the world those things start coming into play it's a matter of fact in.

Speaker Change: And you'll start seeing that come online and then b.

Speaker Change: Q part of Q1 and now into Q2, we're starting to see some other commodities come into play like sunflower seeds and those type of things right.

Speaker Change: Can't control that but you do have some some good momentum coming into the rest of the quarter.

Speaker Change: That are there so you combine that with getting the farm operations up and running and some of the other initiatives. We have going on we think we'll see some margin increase but it's hard for us to predict it exactly.

Speaker Change: Okay. That's helpful and then.

Speaker Change: Now to move onto Golden arches, so in the first quarter Mcdonald's Philippine sustained its strong growth in sales.

Speaker Change: On the margin side.

Speaker Change: Some of the things that you talked about in terms of what's driving the margin pressure.

Speaker Change: It sounds like it might be.

Speaker Change: Benefic that from its product promotions ongoing store expansion and resilient discretionary spending systemwide sales went up by 13% to $19 5 billion with increasing contribution from its front counter channels.

Speaker Change: Obviously with the different volatile markets that are out there.

Speaker Change: More prolonged and less transitory than just one quarter just considering the overall environment.

Speaker Change: Okay. That's helpful. And then last question for me just in terms of some of the credit cards. They made reference to.

Speaker Change: We include the AGA food and including your own farming it looks like it was.

And it.

Speaker Change: Yeah, potentially causing you to rationalize some of your customer base. I mean, there is is there any type of issue that you guys have any it doesn't look like there was any like doubtful accounts on the balance sheet and <unk> kind of came down. So can you just expand on that commentary that you made yes, absolutely no. We have we don't have any Rx is right now at this time, but what you don't want to do and you don't want to over extend <unk>.

Speaker Change: Negative gross margin for the quarter I noticed trade alone probably slight positive, but how do we get to a point and how far away are we from getting to more and greater gross margins I know it had been in about the 2% range that first half of last year. So.

Speaker Change: Sales revenues grew by 14% year on year to $11 3 billion coming under backup a 14% increase in sales of company owned restaurants to three.

Speaker Change: 3 billion, while rent and royalty went up by 10% to 1 billion gross profit managed increased by 13% to $2 7 billion. Despite pressures coming from direct costs like inventory rentals and personnel now these brought its GP margin slightly lowered to 23% from 24% the year before.

Your <unk> and your credit checks over and your customers and you don't want to make sure. I mean, you don't have too much outstanding to one customer at one time adjusting for the liability to the company and so we have made sure to look at those closely and only EU and limit the amount that we have outstanding to one customer at a time just to minimize.

Speaker Change: How far away from a returning to that or are we going to be in this lower margin levels for the near term at least.

Speaker Change: Well I think part of the key to it is you know as we should so there's there's two types of trades, we've talked about in the past right you've got in there.

Speaker Change: Net income stood at nearly half a billion pass us that's up 19% year on year helped by lower interest charges and effective tax rate.

Speaker Change: Not very scientifically.

Speaker Change: Large trades in small trades.

Speaker Change: Our risk and to make sure where is that in a good position.

Speaker Change: So your large trades in molecular entire cargo ships are smaller trades are the containers right for lack of better definition a lot of the orders.

Speaker Change: Okay, great. Thanks for the answers and I'll jump back in the queue.

Now this slide shows sustained growth in Mcdonald's sales revenues, driven by aggressive marketing stoppages and ongoing store expansions Mcdonald's Philippines. So sales evidence of 11 3 billion in the quarter, that's up 14% year on year and you have attributable profit quite volatile.

Speaker Change: Yeah.

Thanks, Aaron now I'd like to open the call to Tom Kerr with Saks for questions.

That we're going into China, where the larger trades right, which tend to have smaller margins than the container type of trades. So as we shift more into the container trades into smaller types of trades that were generating through the time in Brazil, and those type of things you should start seeing some margin increase.

Good afternoon guys.

Tom Kerr: One more clarification on the China business are you, implying that the China business in the wheat business as our large disproportional part of your overall business or are you more referring to sort of the derivative effects of that.

But mainly due to higher input costs and expenses and operating expenses.

Speaker Change: But it still showed a net profit of Papa billion peso, that's up 19% year on year during the quarter.

Speaker Change: Those kind of actions.

Speaker Change: Then you start compounding it with.

Tom Kerr: Yes.

Speaker Change: Potentially changing the other commodities that might be more beneficial they can't do that overnight, okay, but if we wanted to get into.

Speaker Change: Maybe a little of both.

Speaker Change: And despite challenges in reining indirect costs Mcdonalds, Philippines, GP margin hulbard within the 20% to 26% range as shown in this slide first quarter levels.

Speaker Change: So our main commodities that we trade today.

Speaker Change: Some different type of commodities that that have better margins, we can start to do that and again thats as you start expanding in these different parts of the world dosing start coming into play it's a matter of fact in.

Speaker Change: Corn, soy and wheat right. So just by that.

Speaker Change: The loan it can be a big portion of what we trade.

Speaker Change: The lower end of the range of 23%.

<unk> is not the only place that we trade with the rates we have other parts of the world right. Now there's really comes out of Brazil, as we becomes whatever different parts of the world on things. So it didn't want to totally up.

Speaker Change: S. S. G. In the first quarter stood at single digit level of six 3% from 28% the year before.

Speaker Change: She part of Q1 and now into Q2, we're starting to see some other commodities come into play like sunflower seeds and those type of things right.

Speaker Change: As you can see in terms of the Stark Mcdonald's ended the quarter with 744 stores. It opened seven stores during the quarter, but close downs three stores about 51% of them to the stores or company owned was seven while 49% our franchises.

That are there so you combine that with getting the farm operations up and running and some of the other initiatives. We have going on we think we will see some margin increase but it's hard for us to predict it exactly.

Speaker Change: Right, Yeah, and Mike when you look into Q1 of this year and you look at our trades that we did over 35% of our trades where are we.

Speaker Change: Different countries throughout the world.

Speaker Change: Obviously with the different volatile markets that are out there.

Okay and then on that note do you have the flexibility to go into other commodities relatively quickly because not all commodities declined in the first quarter you know Coco beans was strong copper was strong right.

Speaker Change: Okay. That's helpful. And then last question for me just in terms of some of the credit turns they made reference to it.

Speaker Change: As for its initiatives the company is targeting for large at least 50 stores this year.

Speaker Change: It potentially causing you to rationalize some of your customer base. I mean, there's is there any type of issue that you guys haven't it doesn't look like there was any like doubtful accounts on the balance sheet in a or kind of came down. So can you just expand on that commentary that you made yes, absolutely and that we have we don't have any of our excuse right now at this time and that way you don't want to do it you don't want to over extend.

Speaker Change: And backed by its Capex budget of about 4 billion pesos.

Speaker Change: So just to leave you with a few key takeaways before I end the presentation. So it was quite a difficult performance for <unk> in the first quarter as shown by the mixed bag of results I presented to you earlier, but this proved the importance of having a diversified operations.

Speaker Change: <unk> do you have to just explore other commodities are.

Speaker Change: Yes, there is the ability is there and as I said, we started to get into some other commodities like sunflower and there was a couple of other security remember off top my head.

Speaker Change: And what those commodities, where we started to move into them, it's not as straightforward, though is us just.

Speaker Change: <unk> senior credit checks over and your customers and you don't want to make sure. I mean, you would have to make outstanding to one customer at one time adjusting for the liabilities of the company and so we have made sure to look at those closely and only EU and limit the amount that we have outstanding to one customer at a time gesture.

Speaker Change: Determining suddenly going hey, we want to get into X commodity right, we're going to start doing it tomorrow.

Speaker Change: It's Oh, what you saw in the first part is that we continue.

Speaker Change: Experienced a surge in Rd real estate sales and and so healthy contribution from our consumer retail and tourism related businesses, which all been episodes from resilient discretionary spending despite the high inflation environment.

Speaker Change: Your traders are experts in these different areas right. So you got to strategically plan on this as to what do you really want to trade into theirs.

There's going to be fluctuations up and down on stuff, but you start to expand your personnel or whatever that are there and their expertise right and so that's why you bring on these different trading arms, it's not his expertise in different countries and trade routes was also expertise in those individual commodities. So yeah. We do have the ability to shift into those things, but I don't want I don't want people to think of.

Speaker Change: <unk> are asking to make sure where is that in a good position.

Speaker Change: And while we had a rocky start we maintain our optimistic outlook for the rest of the year confident of our sound business strategies and backed by our superior product and service offerings. We look forward to surmounting the challenges and move on to pursue the growth, but we endeavor to achieve that as my presentation I'm now over four.

Okay, great. Thanks for the answers and I'll jump back in the queue.

Speaker Change: Yeah.

Speaker Change: Thanks, Aaron now I'd like to open the call to Tom Kerr with Saks for questions.

Thomas Kerr: Good afternoon guys.

Speaker Change: Can shift into whatever X commodity next week, you got to bring a tmall and then you've got to get them integrated into the company or whatever but that's exactly what we're in the process of doing.

Thomas Kerr: One more clarification on the China business are you, implying that the China business in the wheat business.

Speaker Change: Doctor Handy segment.

Thomas Kerr: A large disproportional part of your overall business or are you more referring to sort of the derivative effects of that.

Speaker Change: With Brazil, and then we did a little time and we're constantly looking at other areas mentally from geography purpose, but also commodities as well because we do want to have.

Speaker Change: China actions.

Yeah, I guess, maybe a little of both.

Speaker Change: More extensive.

Speaker Change: Basket, if you want to say right things to trade around <unk>.

Speaker Change: So our main commodities that we trade today is.

And do but obviously, we started with the the main ones to read the corn and the soy if those are the big ones that are out there got it got it that makes sense and on the <unk>.

Speaker Change: As corn soy and wheat right. So just by that alone. It can be a big portion of it will be trade China is not the only place that we trade wheat with the rights. We have other parts of the world right. There's really comes out of Brazil, as we become whatever different parts of the world on things so it didn't.

Speaker Change: Hi Airlines, Thank you very much Bert.

Speaker Change: Trade financing of $26 million.

Speaker Change: Being with us here.

Speaker Change: How does that how do we figure out how that translates into revenue. So its not a one to one as it were 46 million trade financing to $26 million of revenues or is there like a derivative from that.

Speaker Change: There are a lot of our audience.

Speaker Change: Questions for us.

Speaker Change: So unchanged.

Speaker Change: I'll just go on.

Speaker Change: Can you give an update on the planned acquisition of champion Stakes in shoppers.

Speaker Change: <unk> totally up.

Speaker Change: Expand so hope that makes sense.

Right, Yeah, and like when you look into Q1 of this year and you look at our trades that we did over 35% of our trade where are we.

Speaker Change: So that so the tree.

Speaker Change: Lines and stuff like that all work differently, they're not all like indirect tiers $26 million. Just go buy mostly these are set up based off of the purchasers and give them extended terms to get these transactions done.

Speaker Change: Sorry, sorry.

Speaker Change: I'm sorry.

Different countries throughout the world.

Speaker Change: Can you give an update on the planned acquisition on the <unk> stake and travelers.

Speaker Change: Okay and then on that note do you have the flexibility to go into other commodities relatively quickly because not all commodities declined in the first quarter you know Coco beans was strong copper withdrawn right. So the ability to have to just explore other commodities are.

Speaker Change: Oh, I'm, sorry, I cannot comment on that because it's so.

Speaker Change: There isn't a one for one like you were saying however, it does significantly increase the amount of trains that we can do with those fine which should generate additional revenue and margins in there.

Speaker Change: So it is a decision of.

Speaker Change: Between the.

Speaker Change: It's remember that Theyre getting stake was underserved Mitsubishi and so it was.

Speaker Change: Yes.

Speaker Change: There is the ability is there and as I said, we started to get into some other commodities like sunflower and there was a couple of others I cant remember off top my head.

Our private our private mother, and so we cannot comment on this sorry, but diets, it's up it's pushing through that.

Speaker Change: Got it.

Speaker Change: One more for me and I'll get back in the queue on the restaurant business I know you can't talk about the terms of the.

Speaker Change: And what those commodities, where we started to move into them is not as straightforward those us just.

Speaker Change: Polka moat on Super pit, there being down but can you at least say you expect cash proceeds that can be invested in the agribusiness.

Speaker Change: It's already ongoing.

Speaker Change: Determining suddenly going hey, we want to get into X commodity right, we're going to start doing it tomorrow.

Thank you Carla.

Speaker Change: Your traders are experts in these different areas right. So you got to strategically plan on this as to what do you really want to trade into theirs.

Carla: Could you give an update on the monorail project.

Speaker Change: Good morning.

Speaker Change: <unk>.

Carla: So.

Speaker Change: Oh, Hey, Colby distributed I believe that Lisa.

Speaker Change: Sorry on the what.

Speaker Change: There's going to be fluctuations up and down on stuff, but you start to expand your personnel or whatever that are there and their expertise right and so that's why you bring on these different trading arms, it's not just expertise in different countries and trade routes was also expertise in those individual commodities. So yeah. We do have the ability to shift into those things, but I don't want I don't want people to think of.

Speaker Change: If those go.

Carla: On the monorail project Oman rail Oh that is still being held in advance with government of it's something that I think it's something that we filed prior to the pandemic and then our debt has not been acted upon even us at this point, but it's something that we continue to talk.

Speaker Change: No no I was just trying to figure out what your question was.

Speaker Change: <unk>.

Speaker Change: So the sale of the of the.

Speaker Change: The lower the terms of the nonbinding LOI rages just in general are where we thought you know were happy with it right. We thought as it's coming in where we thought it would come in right and the idea. There is it brings in fresh capital into the business, which is going to allow us to invest in the adverse side of the business right and so whether that's bringing in more personnel with.

Carla: Our school we.

Carla: We hope to pursue.

Speaker Change: Thank you.

Speaker Change: On a G I.

Speaker Change: Expected unsold levels from that goodwill when do we expect that to normalize.

Speaker Change: With Brazil, and then we did lose some time and we're constantly looking at other areas mentally from geography purpose, but also commodities as well because we do want to have.

Speaker Change: It's expanding whether it's an acquisition or whatever it is right it's going to allow us to.

Speaker Change: It really started focusing on the agribusiness model, which has been our strategy. Since we did the pivot right into this whole and all scenarios to be able to focus on that right.

Speaker Change: Andy.

Speaker Change: A more extensive.

Speaker Change: Basket, if you Wanna say right things to trade around and do but.

Speaker Change: Honestly, we started with the main ones to read the corn and soy at those are the big ones that are out there got it got it that makes sense and on the <unk>.

Speaker Change: And Andy.

Speaker Change: Okay. Yeah, I was just trying to get out.

Speaker Change: I was trying to get you to give me how much cash is going to be coming in.

Speaker Change: Sure.

Tom Kerr: Tom you do this every single day with us.

Speaker Change: Trade financing of $26 million.

Speaker Change: Last one on that the muscle maker Grill wasn't mentioned is that fill up for sale or is there plans for that or is that a separate issue. Yes, no. So when we look at the restaurant operations. There's three main divisions in there right Pokey Moto muscle maker Grill and Super pit Foods Pokey Moto is the largest one we just started focusing on that first Super foods came along at the.

Speaker Change: So can you repeat the question our inventory levels.

Speaker Change: How does that how do we figure out how that translates into revenue. So its not a one to one as it were 46 million trade financing into 26 million of revenues or is there like a derivative from that debt.

Speaker Change: Sorry, I was I was wondering.

Thank you for the question. So first I, just like to say that the Mega.

Speaker Change: Megawatts unsold inventories actually very healthy as of the moment.

Speaker Change: Expand so hope that makes sense.

Speaker Change: So that so the tree.

Speaker Change: It's about just a year's worth of inventory and I think that is one of the lowest in the real estate industry.

Speaker Change: Lines and stuff like that all work differently, they're not all like interact tier $26 million just go by Mercedes or set up based off of the purchase errors and given six extended terms to get these transactions done and there isn't a one for one like you were saying however day significantly.

Speaker Change: Same time.

Speaker Change: Just kind of happened you know if you want to say right.

Speaker Change: Among competitors and peers.

Speaker Change: We haven't necessarily actively pushed muscle laker grille, yet, although we do have an interested party that we're talking to are not at the LOI stage with it yet but we.

Speaker Change: But I think the main question. This is stemming from its why were launching much lower this year.

Speaker Change: We are just trying to date, where we are just digesting and selling out most of the.

Speaker Change: We do have some interest that's out there so as soon as we complete these.

Speaker Change: Increase the amount of trains that we can do with those fine, which should generate additional revenue and margins in there.

Speaker Change: The launches that we launched towards the end of last year, which was quite sizable. So we should have that in the first quarter and that should be you should be able to launch more towards second half as we digest. This first half so by second half we will start to launch more projects again.

Other transactions that we will start focusing on the muscle maker grille side as well.

Speaker Change: Sounds good I'll get back in the queue.

Speaker Change: Got it okay, one more for me and I'll get back in the queue at a restaurant business I know you can't talk about the terms of our bookings.

Tom Kerr: Thanks, Tom that concludes our Q&A portion of the call Mr. Roper any final comments.

Mr. Roper: Yeah other than just letting everybody know you know look we did have.

Speaker Change: Locomote on Super pit, there being down but can you at least say you expect cash proceeds that can be invested in the agribusiness.

Mr. Roper: A challenge in Q1, I think where we worked their way around it.

As well as next year.

Mr. Roper: As best we could we had some other positive.

Speaker Change: Yep.

Speaker Change: Thank you Andrew.

Mr. Roper: <unk> for the quarter that came in there from EBITDA and.

Speaker Change: Would you agree.

Oh, Hey, Colby distributed I believe that Lisa yeah, Okay, Yeah, if those returns.

Speaker Change: This is more on the holding companies.

Mr. Roper: Net income in all those different things that we talked about and so it's pretty encouraging from that perspective, we know are executing against our plan, we know where we want to go we have confidence in it.

This question, Oh, Oh, the last global be considering more share buybacks.

Speaker Change: No no no I was just trying to figure out what your question was.

Speaker Change: <unk>.

Speaker Change: Mm Hmm okay.

Speaker Change: Well, we still have an ongoing buyback program.

Speaker Change: So the sale of the of the.

Mr. Roper: We consider ourselves a growing company.

Speaker Change: And that's about 90% utilized for as long as we view the stock price of ATI as undervalued and and for as long as we still have ample public float it's something that we will consider at all we will we would intend to continue.

Mr. Roper: And I was pretty excited about everything that's happening out there and I do appreciate all the.

Speaker Change: You will or the terms of the nonbinding LOI writers to just in general are where we thought you know were happy with it right. We thought as it's coming in where we thought it would come in right and the idea. There is it brings in fresh capital into the business, which is going to allow us to invest in the adverse side of the business right as to whether thats, bringing in more personnel.

Speaker Change: In investment community shareholders stakeholders, all that that are out there.

Speaker Change: Thanks for.

Brink's: Investing in us and having confidence in us and I look forward to what the next quarter and if in the near future Brink's.

Speaker Change: Thank you.

Speaker Change: Thank you everyone that concludes our call.

Speaker Change: On on let's talk about casinos for a second so can you tell us what is.

Speaker Change: It's expanding whether it's an acquisition or whatever it is right it's going to allow us to.

Speaker Change: It really started focusing on the agribusiness no model, which has been our strategy. Since we did the pivot right into this whole scenarios to be able to focus on that right.

Speaker Change: Large global stake in the West I've, just announced with us.

Speaker Change: Integrated resorts to the Bay area.

Our stake is true travelers.

Speaker Change: Okay. I was just trying to get out I was trying to get you to give me how much cash is going to be coming in.

Speaker Change: And travelers right now we have a we have 60%.

Speaker Change: Tom you do this every single day with us.

Speaker Change: Of of travelers, but just to explain to you that the Westside casino.

Speaker Change: Thus far on that muscle makers grill wasn't mentioned is that fill up for sale or as our plans for that or you had a separate issue yes, no. So when we look at the restaurant operations. There's three main divisions in there right Pokey Moto muscle maker Grill and Super pit Foods Pokey Moto is the largest one we just started focusing on that first super foods kind of came along at the <unk>.

Speaker Change: You were referring to the casino hotel of sand seeking.

Speaker Change: We have we are not a party to that bought because all the expenses will be borne by Suntrust. All but all we will benefit through a revenue share of where we have 1% or up.

Speaker Change: Same time.

Speaker Change: Just kind of happened if you want to say right.

Speaker Change: The IPG art a percent of Matthew Jr, plus they would pay.

Speaker Change: We haven't necessarily actively pushed muscle laker grille, yet, although we do have an interested party that we're talking to are not at the LOI stage with it yet but.

Speaker Change: And what he says and that will go straight to bottom line of travelers.

Speaker Change: Thank you guys.

Speaker Change: We do have some interest that's out there so as soon as we complete.

Speaker Change: And this one is regarding <unk> can you give some color a ballpark figure of the total percentage contribution of <unk> overseas revenues for 2023.

Speaker Change: These other transactions that we will start focusing on the muscle maker grille side as well.

Speaker Change: Sounds good I'll get back in the queue.

Speaker Change: Yeah.

Thomas Kerr: Thanks, Tom that concludes our Q&A portion of the call Mr. Roper any final comments.

Speaker Change: There was.

Speaker Change: On the choppy can you repeat the question.

Michael J. Roper: Yeah other than just let everybody know that we did have a.

Speaker Change: Sure sure can you give.

Michael J. Roper: The challenge in Q1, I think where we worked our way around it.

Speaker Change: A ballpark figure for the total percentage contribution of tempers our overseas revenue.

Michael J. Roper: As best we could we had some other positive results for the quarter that came in there from EBITDA.

Michael J. Roper: And net income and all of those different things that we talked about and so it's pretty encouraging from that perspective, we know we're executing against our plan, we know where we want to go we have confidence in it.

Speaker Change: Well the very eastern that's a.

Speaker Change: 35% for Whiskey alone that's why the Mackay.

Speaker Change: But if you add the.

Speaker Change: The foreign brands part.

Michael J. Roper: Consider ourselves a growing company and I was pretty excited about everything that's happening out there and I do appreciate all of the.

Speaker Change:

Speaker Change: Probably.

Speaker Change: Over a four east mainly between 40% to 45%.

Michael J. Roper: And the investment community shareholders stakeholders all of that that are out there.

Michael J. Roper: Thanks for.

Speaker Change: That's correct yes.

Investing in us and having confidence in us and I look forward to what the next quarter and in the near future rents.

Speaker Change: Ballpark a ballpark.

Speaker Change: Okay. Thank you.

Speaker Change: So we're still waiting for questions, but in the meantime, I hope.

Speaker Change: A few questions with layoffs. So can we we can shift to Omega with Paris.

Speaker Change: Thank you everyone that concludes our call.

Speaker Change: So given Mega worlds large dollar denominated debt is about a third of the Companys total debt and the recent weakness in the peso.

Speaker Change: Are you looking to hedge this hedge these dollar payables.

Speaker Change: Not would you have a certain threshold of USD BHP condition, when you'd want to consider that the edge exposure.

Thank you Felix for your question.

Speaker Change: We are actively monitoring the dollar exchange rate and its impact on Mega World. Currently our strategy is to pay down dollar debt when the dollar rate or did as exchange rate is favorable to us similar to our action last year, when we paid down $50 million to decrease our.

Speaker Change: Dollar exposure from 600 million down to $550 million.

Speaker Change: On the specific threshold be do not have a specific threshold for the dollar rate.

Speaker Change: That would trigger immediate hedging or paying down of our dollar payables. Instead, we actually consider a lot of factors, so including our own capex need as well of course, the economic factors and market conditions.

Speaker Change: So our priority long term is to really ensure flexibility.

Speaker Change: And minimized foreign exchange risks.

Speaker Change: As well as the impact of realizing these forex.

Speaker Change: Realized losses right. So in summary, we continually assess the situation we remain prepared to take appropriate measures to manage our dollar denominated liabilities effectively.

Speaker Change: Once the factors RFP will be aligned.

Speaker Change: Thank you Andy Okay. We can you can consider that we can continue with Mega watt so.

Speaker Change: How do you guys manage to maintain its development margins with these rising costs.

Speaker Change: There is labor and overhead.

Felix: Oh, Thank you Felix so actually our gross profit margin.

Felix: This quarter improved compared to last year and our.

Felix: Approach to this has always been two pronged to ensure stability and growth growth right. So first we work closely with our contractors. So right for the start of a project to properly manage and even forecast costs through the development period to this already allows us to lock in a significant portion.

Felix: And of the development costs early on.

Felix: And that allows us to preserve our margins.

Felix: To an extent and second we strategically adjust the selling prices of our development projects always either its annually or semi annually.

Felix: And that pricing strategy is actually very crucial.

<unk> us to sustain and even in this case as I said, even improve our margins.

Speaker Change: Thanks, Andy.

Speaker Change: Let's talk about the Capex pressure so.

Speaker Change: Do you expect Mega words, capex to ramp up for the next few quarters to reach 55 billion and I noticed in the presentation.

Speaker Change: That's a <unk> 55 billion for the first quarter only 11 spent so it seems.

Speaker Change: But it seems to imply.

Speaker Change: The ramp up for subsea.

Speaker Change: Subsequent quarters.

Speaker Change: You are correct, we do expect we.

Speaker Change: Have we do expect Capex ramp up right because we have barely launched any projects this quarter with only one project, which is $4 2 billion pesos. So that's just also about 10% of our target launch for this year.

Speaker Change: So towards second half of the year, we will likely increase our capex business. We also ramp up our construction development. Typically these are back ended.

Speaker Change: Well, because we catch up with a lot of work construction developments by end of the year.

Speaker Change: This year. So megawatt is also looking to launch up to four townships.

Speaker Change: And that should also help at least increase our capex spend.

Speaker Change: To reach our targeted budget of 55 billion capex for the year.

Speaker Change: Thank you Andy.

Speaker Change: Can shift towards umbrella dark.

Speaker Change: No.

Speaker Change: Wanted to ask if the market impact.

Speaker Change: What is the market actually for aggressive expansion of the branded business.

Speaker Change: Yeah.

Speaker Change: You're I guess, you're referring to Alfonso.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Such imported the Spanish Randy so volume wise.

Speaker Change: Sure.

Speaker Change: Their shares to total Bryan B is.

Not that big yet of course valuations insights are more extensive.

Speaker Change: Brandy.

Speaker Change: Compared to a local brand new brand value.

Speaker Change: Could be.

Speaker Change: Higher than before.

Speaker Change: But at any rate of course needless to say.

Speaker Change: It's a it's not keep the competition in the they've got the unattractive pricing.

Speaker Change: But having said that we are implementing.

Speaker Change: Marketing.

Speaker Change: Strategy, so moving forward to to compete head on and to recover.

Speaker Change: Blaster volumes, nor lost market share.

Speaker Change: Okay. Thank you Sir.

Speaker Change: We can still stick with Embraer done can you give outlook after disappoints inbound deposits with a pleasure talking to their fleets.

Speaker Change: Well, it's a global thing.

Speaker Change: Under ship maps here and there, but ultimately we remain hopeful.

Speaker Change:

Speaker Change: Some kind of recovery is.

Speaker Change: You know kind of hoped for in the second half I think the beauty about them bread before ultimately is.

Speaker Change: Just like a giant shelf and put a door, it's a brandy whiskey conglomerate thumb.

Speaker Change: We have a.

Speaker Change: Product portfolio, that's comprised of affordable.

Speaker Change: Premium luxury.

Speaker Change: Product.

Speaker Change: We're not a single product company.

Speaker Change: You are a single product company now and may be you're experiencing a lot of growth.

Speaker Change: But in a long term one.

Speaker Change: So the economy recovers once the economy becomes stronger and our people upgrade people.

Speaker Change: Premium Asia.

Speaker Change: I think in corridor is the most prepared.

Speaker Change: To capitalize on premium amortization.

Speaker Change: Trends are long term.

Speaker Change: We used to be a single product company.

Speaker Change:

Speaker Change: Over 10 years ago, but I think ultimately we have to appreciate that know that.

Speaker Change: Within within Randy we have in <unk>, we have on the door.

Speaker Change: Different price points, obviously and within whiskey.

Speaker Change: They're single malts and burst blended Scotch so clearly very diversified and within single malt we afford.

Speaker Change: If you recall or you are familiar with our single March saw more of a jewelry tangible than that okay.

Speaker Change: And our blended Scott Shaw is also diversified we have a couple of brands that John Barclay more.

Speaker Change: And more.

Speaker Change: So.

Speaker Change: As a company as a business.

Speaker Change: But a door a long term I think is your best bet in terms of our.

Speaker Change: Diversification not so the risks, yes, there are risks but.

Speaker Change: Clearly you know.

Speaker Change: Because of this diversification.

Speaker Change: Sort of feature if you will.

We're confident and we're optimistic long term loan.

Speaker Change: Okay I appreciate the.

Speaker Change: Very comprehensive answer.

Speaker Change: We can shift to travelers.

Speaker Change: What kind of trends have you been observing in their casinos.

Speaker Change: I wish I was Newport toilets are such capitalizing on those jobs.

Speaker Change: Thank you for that question now.

Speaker Change: Given that foreign tourism arrival, it is not yet on par with pre pandemic levels of what we have seen in the gaming sector. He said discernible trend to capture as much as the domestic market.

And this is something that we've.

Speaker Change: We've seen the IRS opened outside of Metro Manila or within the fringes of Metro Manila.

Speaker Change: So it is something that we are also doing we have improved our properties depending to the Newport World resorts complex made them more attractive and beef up our offerings to our the widespread Graham we call it epic rewards.

Speaker Change: In order to gain more traction with our target market, so, especially now mainly domestic and so far we have seen a significant results at what we have reported all in in terms of the improvement in our mass D. G are all we have also expanded our membership base.

Speaker Change: And all we've been increasing customer traffic.

Speaker Change: Within our properties again, that's being reflected in the numbers. So that's how we capitalize on the trends.

Speaker Change: Thank you Caroline we can still ship a week.

Speaker Change: Can still talk about childhood, so our soliris launch north of one of your competitors. This opening.

Speaker Change: This year, so how will how the opening up of said this art.

Speaker Change: <unk>.

Speaker Change: Affect the Newport will resort travelers.

Speaker Change: Or do we hope to happen is that so layer, nor will be able to capture as much of the of the market coming from the north we are not we.

Speaker Change: We don't have much of that in our property so.

For some of it can grow the the the sector that the domestic gaming sector.

Speaker Change: That is something that still is going to be with them. It will spill over to the rest of the IRS.

Speaker Change #100: Thank you.

Speaker Change #100: Hum.

Speaker Change #100: Alliance global itself.

Speaker Change #101: If you look at Mega wheelchair ships.

Speaker Change #101: Reached its still a pandemic thus alliance global.

Lifestyle, we're looking to buy back.

Speaker Change #101: This trend levels.

Speaker Change #101: We are doing that already although not in a very big way, but it's something that is always part.

Speaker Change #101: Part of the mindset of the group.

Speaker Change #102: Okay. Thank you.

Speaker Change #102: We can talk about Mcdonald's for Asia.

Speaker Change #103: Can you give us outlook, given the higher inflation environment.

Speaker Change #104: Have you seen any shifts in consumer patterns.

Speaker Change #105: Regards to their preferences.

Speaker Change #103:

Speaker Change #106: As for Mcdonald's, Philippines, we think that they're a high inflation environment, that's not the third the company from delivering very strong results and you've seen that in the first quarter and this we attribute to its aggressive paid big market being strategies and promotions. We are very competitive in terms of pricing the <unk>.

Speaker Change #107: I'd superior service and facilities.

Speaker Change #108: And we also continued to expand our footprint.

Speaker Change #108: In the past, where we used to see.

Speaker Change #108: Golden artists, who used to be Metro Manila century, now about two thirds of its number of starts is outside of Metro Manila and that's part of the consumer pattern that we've been seeing and we're aligning ourselves to the VAT change in the consumer behavior now in terms of pricing or in terms of because you know in terms of pricing the the Arctic consumer.

Speaker Change #108: Behavior per se.

Speaker Change #108: We continue to invest in platforms like mix and match a rehab of Mcdonald's App that also provides customers with special discounts in that.

Speaker Change #109: That that is how we beat the pricing strategy as well in the market.

Speaker Change #109: Thank you Darla I think we only have room for two more questions.

Speaker Change #110: Just one more question.

Speaker Change #110: Baptist.

Speaker Change #111: But there's a.

Speaker Change #112: Love to travelers.

The guidance that was given splashed is expecting some weakness in <unk>.

Speaker Change #113: Screaming everything for the year.

Would you expect new parts weather resorts to be.

Speaker Change #114: The effective just like that just similarly too.

Speaker Change #114: So learn by site.

Speaker Change #115: Is this because of the opening of clear north as I've mentioned it in our view is we don't capture that much of that market in the north. It bought me what we expect is that saw EBIT.

Speaker Change #115: If it can blow the.

Speaker Change #116: If it can go to domestic gaming then that will be the best situation.

Speaker Change #116: For Us we will continue with our with our strategy to attract our customer the clients the gaming clients and that's because we already have the offerings there.

Speaker Change #116: The attractive offerings.

Speaker Change #116: And that they are there they are already available.

Speaker Change #116: Like our properties and endowed with whites programs that RMB.

Speaker Change #117: Thank you Carolina and with that I think.

Speaker Change #118: We've run out of time for Alaska parallel and team. Thank you very much.

Speaker Change #119: And today all of our questions for Patrick Thank you.

Lily: Thank you so much Lily.

Lily: Thank you everyone.

Lily: Thank you.

Speaker Change #121: Thank you Caroline and thank you Elliot and global group for that fruitful discussion and this concludes our session with Alliance Global group.

Speaker Change #121: And before we proceed with Frito next feature listed company will have a five minute break for you and this is your chance really to take a look at our corporate website of our featured listed companies or refresh yourself grab a coffee and enjoy a break and we shall see you in five minutes.

Q1 2024 Sadot Group Inc Earnings Call

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