Q2 2024 JBS SA Earnings Call
Thank you.
Speaker Change: Good morning and welcome to JBS Essay and JBS USA second quarter of 2024 results conference
Speaker Change: At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time.
Speaker Change: As a reminder, this conference is being recorded.
Speaker Change: Any statements eventually made during this conference call in connection with the company business outlook?
Speaker Change: Projections.
Speaker Change: Operating and financial targets and potential growth should be understood as merely forecasts based on the company's management expectation in relation to the future of JBS.
Speaker Change: Such expectations are highly dependent on market conditions, on Brazil's overall economic performance, and on industry and international market behavior, and therefore are subject to change.
Duobo: I present with us today Gilberto Tomazoni, Global CEO of JBS, Guilherme Cavalcanti, Global CFO of JBS.
Speaker Change: Wesley Batista Filho, CEO of JBS USA, and Cristiane Assis, Investor Relations Director.
Speaker Change: Now, I will turn the conference over to Gilberto Tomazoni, Global CEO of JBS. Mr. Tomazoni, you may begin your presentation.
Gilberto Tomazoni: Good morning, everyone.
Speaker Change: Thank you very much for participating in our Resolve teleconference.
Speaker Change: We have a strong second quarter, further showcasing the strength of our diversification strategy and indicating that the most promising outlook for 2024 is becoming a reality.
Speaker Change: We recorded net revenue of US$19.3 billion with a consolidated EBITDA margin of 9.8% for the period, adding 5% points compared to the second quarter of 2023.
Speaker Change: Adjusted EBITDA rose to US$1.9 billion with a positive free cash flow of US$1.1 billion and net income of US$329 million in dependence.
Speaker Change: following a strong cash flow generation and the outlook for further deliverance.
Speaker Change: The company announced yesterday, after market close, the distribution of dividends of 0.37 cents per share U.S. dollar.
Speaker Change: Our global multi-protein platform has enabled JVS to mitigate the natural cycles in our sector and maintain healthy cash generation.
Speaker Change: As a testament of this stretch, 75% of our EBITDA this quarter comes from our POTUS and PORC operations.
Speaker Change: Predominantly Pilgrims, Seattle, and JVS U.S. Farm.
Speaker Change: Additionally, both Australia and JDS Brazil also delivered a strong performance.
Speaker Change: Our poetry and part burdens have benefit from lower grain prices and a better balance between supply and demand thanks to active portfolio management and the operational improvement implemented. Our poetry and part burdens have benefit from lower grain prices and a better balance between supply and demand thanks to active portfolio management and the operational
Speaker Change: U.S. exports margin increased from 4.4% to 11.1% year over year.
Speaker Change: With strong results in the United States, Mexico, and Europe, pilgrims exceed market expectations, recording the best EBITDA results in its history for a quarter.
Speaker Change: 782.8 million in the second quarter of 2024, compared to 375.3 million in the second quarter of 2023.
Speaker Change: with a margin of 17.2%.
Speaker Change: A clear focus on operational excellence, discipline, execution, the key customer strategy, as well as its diversified portfolio, allowed Pilgrims to efficiently navigate the positive market momentum.
Speaker Change: At SEARA, the process of operational improvements continues to progress rapidly, now incorporating enhancements in commercial processes.
Speaker Change: including scientific measurement of pricing, product mix, channels, and more.
Speaker Change: With a EBGDA margin at 17.4%, SEARA confirms the optimistic expectations we have been indicating in the previous quarters.
Speaker Change: The investment we have made over the past few years included the recent opening of two new facilities for chickens, value-added products, and hot dogs in Rolando.
Speaker Change: In the end, Gilberto Tomazoni, Guilherme Cavalcanti, Guilherme Cavalcanti, Guilherme Cavalcanti, Guilherme
Speaker Change: Thank you. Thank you.
Speaker Change: Thank you. Thank you.
Capex penetrating the Walker was approximately $346 million, 63% of which was maintenance capex.
It's 12%.
<unk> lower than the second quarter to about 53 and in line with our estimates for the year of $1 $3 billion.
Moving onto the slide 16 net debt in the second quarter 2024 ended at $14 $8 million, a reduction of $1 $1 billion compared to the previous part reflecting the generation of free cash flow in the park.
Leveraging dollars came down in just one bachman from 366 to $2 77 for the second part.
In the third partners with both <unk> and 'twenty threes leverage was 487 times.
The rapid decline is due to the especially around that as well as a decrease of that given the generation of free cash flow, despite having executed an expansion capex.
$134 million in the next in the last nine months.
Speaker Change: For the third quarter, not considering guidance leverage we.
Speaker Change: Possibly could change.
Speaker Change: On an accelerated downward path phosphate, even falling below two and a half stocks and.
Speaker Change: Dissipating our initial deleveraging estimates by almost six months.
Speaker Change: Therefore, considering that the third quarter and fourth quarter are generally cash generators. It would be reasonable to think of our leverage ratio approximately.
Speaker Change: Close to two times by the end of the year.
Speaker Change: Already considering the payment of interim dividend in the amount of $808 million equip.
Speaker Change: Equivalent to <unk> 30 per share announced yesterday.
Speaker Change: The strong free cash flow generation, even though our largest business units in terms of net revenue Jbs beef North America is facing a challenging scenario demonstrates the strength of our unique platform.
Duobo: Therefore, we are optimistic that the geographic and multi protein diversification will continue to provide near term growth and returns for our shareholders.
Speaker Change: From 2019 to 1053, jbs generated more than $10 billion in free cash flow before expansion Capex is.
Speaker Change: Resources were apply it in a balanced way in growth and shareholder return being $4 billion in organic growth.
Speaker Change: $3 $2 billion in acquisitions $3 billion in dividends and $3 billion share buybacks net debt increased by around $3 billion of financial expenses remaining Boston due to the liability management work in which we took advantage of favorable moments to issued new debt with more attractive rates.
Speaker Change: These year.
Speaker Change: Have already generated $431 million in free cash flow.
Speaker Change: And it's worth noting that from the beginning of 202009 to date. The company has already provided an average total shareholder return of 27% per annum, reais and 19% per annum.
Speaker Change: In the same period return on equity and return on invested capital was 19% and 17%, respectively, even with a highest better with treasury.
Speaker Change: On our cost of debt.
Speaker Change: In 2000 and for example in 2019, our spread over treasuries was around 400 basis points currently our spread over treasuries around 160 basis points for a 10 year period.
Speaker Change: A large part of these improvements we generating significant returns for our bondholders with a preview of attaining an investment grade rating from credit rating agencies and when we registered the notes with the SEC.
Speaker Change: Finally, we would like to thank investors for voting for Jbs and distribution investor ranking.
Speaker Change: We were awarded first place in several categories and elected the most of our company in the food and beverage sector in Latin America.
Speaker Change: Okay.
Speaker Change: So I will briefly go through the business units, starting with Seattle on July 17, net revenue growth was six 7% year over year by a profitability driven by our seeking eastbound 13, three percentage points, reaching 74% EBITDA margin. These.
Result is a consequence of the various operational excellence implemented throughout the value chain.
Speaker Change: Which resulted in better operational indicators combined with a lower grain costs and expansion of value added portfolio.
Speaker Change: Seattle GE is really the strategy of increasing consumer preferences through product quality innovation execution and brand strategy achieving growth in indexes, such as penetration and repurchase.
Speaker Change: Moving now to slide 18, Jbs, Brazil reported net revenue of 5% higher than the second quarter 2023, driven by higher volumes sold. This result is due to the strong demand in both the domestic and international markets. In addition to the favorable capital cycle resulted in greater availability of animals horizontally.
Speaker Change: Thus the EBITDA margin reached seven 6% and increasing two eight percentage points.
Speaker Change: Moving to the July 19, and from now on speaking in dollars and U S. GAAP GBS North Americas net revenue grew 3% in the park.
Speaker Change: Result of the increase in the Barton sold however profitability with this negatively impacted by the challenging Caddo cycle, which saw 5% increase in price of live cattle, while wholesale price of beef remains stable.
Speaker Change: On July 22, we have jbs, Australia for the quarter revenue growth in relation to the previous year result, as a result of the higher volumes sold.
Speaker Change: Growth in profitability reflects the greater of air B, just capturing the market, even more favorable cattle cycle and efficiency gains in several business units in Australia.
Speaker Change: Turning now to Jbs USA pork.
Speaker Change: Net revenue for the quarter was 22% higher in the second quarter of 2015 due to the increase in average price and the students in the domestic market strong demand. While the result of the distribution effect of risk assumption for <unk> and the increase in consumption during the breeding season.
Speaker Change: Furthermore, our profitability was a consequence of the lower cost of rents expansion, our value added portfolio and consistency.
Speaker Change: In commercial and operational execution.
Speaker Change: Dividends as bright as highlighted on slide 22 reported an increasing net revenue up 6% in the second quarter compared to the second quarter last year during the quarter PPC remaining disciplined and execute that.
Speaker Change: Executing a new strategy and continue to grow relationships and maybe keep.
Speaker Change: Customers further improving service levels as market fundamentals became increasingly attractive therefore, even reported the highest quarterly EBITDA in <unk> history.
Speaker Change: At this time I would like to open up for question and answer session.
Speaker Change: Okay.
Speaker Change: Ladies and gentlemen.
We will now begin the question and answer session.
Speaker Change: I have a question. Please click on the raise your hand, if you would like to remove yourself from the queue. Please click on Lora.
Speaker Change: Yes.
Speaker Change: And our first question comes from Dan Terry with Barclays. Please go ahead.
Dan Terry: Yeah. Good morning, Tim Ozona <unk> congrats on those outstanding results in the second quarter.
Speaker Change: Just a few quick ones. So first of all Sarah obviously was a was a very strong quarter in the second quarter and I remember just about it.
Speaker Change: A little over a year ago.
Speaker Change: A couple of like internal issues, so clearly going within fixed quarters from a call. It a 1% to 17% margins is a strong improvement could you help us understand how much of that improvement was really off.
Speaker Change: The operating efficiencies did you did you think.
Versus what was just market tailwind is lower grain cost et cetera that would that would be my first question and it kind of relates into how this continues into the third quarter and if you're expecting any impacts from the Newcastle disease outbreak and the restriction.
Speaker Change: Okay.
Ben: Hi, Ben.
Speaker Change: Thank you for your question.
Speaker Change: Yeah.
Speaker Change: You know that.
We've made a lot of improvements inside we start in defiance.
Speaker Change: Do we do.
Speaker Change: <unk> our hour.
Speaker Change: I am co chairing the production variations.
Speaker Change: <unk> been in the UK.
Speaker Change: In the factories.
Speaker Change: <unk> for the TVT mix management Okay.
Speaker Change: And now we know.
Speaker Change: One month ago, we started to add our improvements in the commercially where it is.
Speaker Change: It seems difficult brazen management.
Speaker Change: <unk>.
Speaker Change: And <unk> mentioned this will be had more prudent DVD in the in our in our commercial area.
We are we are expecting if we.
Speaker Change: All of the.
Speaker Change: Variable constant.
Speaker Change: It will be equally continues improve the productivity in the results.
Speaker Change: If you ask me how will be the <unk>.
Speaker Change: Impact of this improvement.
This improvement was by <unk> improvements.
Speaker Change: Because of the price of the grain and in indeed.
Speaker Change: Indeed.
Speaker Change: But I think it would be both are significant.
Speaker Change: Important I will say you is half.
Speaker Change: Yes.
Speaker Change: This was improvements in the operational <unk>.
Speaker Change: Part was.
Speaker Change: While the cost of the.
Speaker Change: Great grains that impact our growth.
Speaker Change: Chicken.
Speaker Change: But that is a combined.
Speaker Change: Benefit because if you are improving the operation in defiance for example, physical vision.
Speaker Change: Yes.
Haynes: You're Haynes you our productivity in terms of getting that.
Speaker Change: This is not it's difficult to say exactly one to one but I will say to you it's a half of that.
Speaker Change: Okay, Perfect and then just on the on the FERC quarter outlook client applications still with some of the export restrictions because of new casualty. She is are you seeing any impact here within China.
Speaker Change: I think the impact will be in the in this in the third quarter of course was impact, but it's not significant impact because I think as the Brazilian.
Speaker Change: Government Act very quickly and.
Speaker Change: And.
To attack these situations and I think it would be.
Now the government has declared 80 discrete from the from the Newcastle and we remain somewhat countries China is China.
Speaker Change: In Saudi Arabia, and remember the other one is just if.
Speaker Change: If you go into the studio others closed yes, the focus than 10 kilometers that are the focus.
Speaker Change: Of course, there is impact, but it's not I would say.
Speaker Change: <unk> is not significant in our results.
Speaker Change: We are able to manage when the moment that they closed we manage because as we have many plants approval for example for Japan, We move our production from one plant as we were going to be sold to other plants and the impact of the Brazil.
Speaker Change: We I think we were able to finish very efficient situations.
Speaker Change: Okay, and then pork in the U S. Just help us understand what helped you drive to a 12, 5% margin, which is not only above like youre kind of like targeted range or look steady range of 8% to 10%. It also looks like significantly stronger on a sequential basis. Despite.
Speaker Change: Conditions in the market not looking as strong so maybe help us understand what drove that significant margin improvement sequentially and on a year over year basis in U S pork.
Speaker Change: Hey, Ben So a few things obviously there is the market conditions you have we have grain has been at a.
Speaker Change: Historical low here and to shorten the less few careers.
Speaker Change: Have a.
Speaker Change: Obviously these bean.
Speaker Change: Our high priced pork becomes a good auction and that supports.
Speaker Change: The demand for pork.
Speaker Change: But I'll say that all of those things, obviously really really help but I think there is a couple of things that are special about this quarter.
Speaker Change: Number one I think would just be performing very well in the fourth and our pork division.
Speaker Change: It's one of our multiple system divisions and always.
Speaker Change: Good results, we have very good assets that are have been very well invested.
Speaker Change: And I think they're very efficient and it is a competitive advantage we have in the market. The other thing too is we've been investing a lot in this business than with a more prepared foods business.
Speaker Change: The prepared food to advantage for our.
Speaker Change: Pork raw material, we've built couple of plants.
Brief points here in the U S with <unk>.
Speaker Change: And the plants that we currently have.
Speaker Change: The size of our of our preferred business has been growing a lot and it adds value on the on the overall on this overall business unit we.
Speaker Change: We had <unk> in the last quarters worrying in ramp up mode.
Speaker Change: And both are mostly one of them is.
Speaker Change: Fully mature and the other one as well as mass into maturity.
Speaker Change: And they are adding a lot of editorial our pork business.
Speaker Change: Going forward.
Speaker Change: We expect that.
Speaker Change: Double digit margins.
Speaker Change: As where we sit as pork business going forward.
Speaker Change: Okay. Thanks for that question.
Speaker Change: Okay.
Ben <unk>: Our next question comes from Ben <unk>.
Speaker Change: Oh. Please go ahead.
Ben <unk>: Okay.
Ben <unk>: Okay.
Ben <unk>: Ben.
Speaker Change: Please proceed.
Speaker Change: Sorry, guys I was on mute thanks for taking the question.
Ben <unk>: I was just wondering if you could talk to the strength of the domestic Brazil demand for protein and how jbs is meeting the moment and providing consumers with both premium and value products. Also do you expect strength in domestic demand to continue into 2025 and what are the major factors you're looking at thanks.
Ben <unk>: Hi, Ben Thank you for the question.
Ben <unk>: Yeah.
Speaker Change: We are very optimistic about it internal demand demand in Brazil.
Speaker Change: For example, I give you. An example, I think as equity is better than just the two <unk> to speak about.
Speaker Change: Joyce.
Speaker Change: With our.
Speaker Change: Operation in Brazil, we are professing 18th compare compare today.
Speaker Change: This the first <unk>.
Speaker Change: <unk>.
Speaker Change: 18% more in their resolve.
Speaker Change: Gallons.
Speaker Change: And the domestic and we sell more this grow in domestic and export.
Speaker Change: Dan why because when the reduce the cost of the <unk> reduce the cost of the need the elasticity of the consumption increased a lot we grow our business and because the per capita consumption increased a lot Brazil and the same was was not dip.
Speaker Change: With spring chicken and the value added products.
Speaker Change: We see that the Brazilian.
Speaker Change: Demand domestic demand is.
Speaker Change: Is it really.
Speaker Change: Good and we are seed fits continue we are investing on that is that we've just not to invest in the same product that for example, we talk about CRM.
Speaker Change: We innovate because relief as you know we have invested in new capacity for value added, but we entered in the market, but at the same brother that what we were before we went through with new products in order to create a new demand for our products and not just compete in terms of price and value.
Speaker Change: But compete in the preference of the consumers don't see my answer to you we are positive on that.
Speaker Change: Yeah.
Speaker Change: Great and if I could just ask one more question.
Can you just talk to the impact of lower grain costs and how they are benefiting jbs's margins across the portfolio I know you mentioned ciara so.
Speaker Change: We heard the answer there, but how much do you actually pass through versus not.
Speaker Change: Of your lower grain costs and what is your outlook for grain costs headed into 2025 could they even get.
Speaker Change: More favorable thank you.
Speaker Change: Ben you'll know that.
Ben <unk>: The most important.
Speaker Change: This equation is the balance between demand and offer.
Speaker Change: Yeah.
Today, we have balance demand and often in ticket and it's because we have restrictions in terms of availability of ticket.
Speaker Change: Cause of genetic and because <unk> S. I think is fabulous woman in the window.
Speaker Change: We released the results of humans and this is the one state.
Speaker Change: The other the other fact that is.
Speaker Change: We see good crops now in front of us.
Speaker Change: The other one.
Speaker Change: <unk> is in denial.
Speaker Change: Yes.
Speaker Change: Was perfect I think is we see now from drill now home I stability in terms of the price of the grains.
Speaker Change: And if we are balanced in the in the demand in the in the offer and demand.
Speaker Change: I believe that the weak jbs, we'll be keep doing in terms of business. The same kind of results. We have seen now of course, we need to we need to be.
Speaker Change: Constant debt.
Speaker Change: Second what is the best quarter for example for builders and secondly, <unk> is not the better is the second part of that is is this a reality, we will be will be our peers as well.
Speaker Change: Great. Thank you.
Speaker Change: Yes.
Speaker Change: Our next question comes from <unk>.
Speaker Change: This is Lenny Rick Barclays. Please go ahead.
Breo: Hi, Thank you for taking our question this is or I guess asking on behalf of Breo.
Speaker Change: Starting on the debt side, how are you thinking about the debt structure, given where leverage ended this quarter and do you see the need for further pay down or any liability management.
Breo: Okay.
Breo: Hi.
Speaker Change: Thanks for the question.
Speaker Change: So we know generally before election periods market since she'd be more volatile and.
Speaker Change: And you see more work.
Speaker Change: In treasury markets as well so given that we're not needing cash I think we ended the quarter with a healthy cash balance.
Speaker Change: We just announced it.
Speaker Change: Payments of $808 million of business.
Speaker Change: Which again, we have the cash.
Speaker Change: Proceeds for debt already so I don't need to raise it.
Speaker Change: Additional.
Speaker Change: Go to the market for the payment of this dividend.
Speaker Change: So we don't see any again.
Speaker Change: We have no need to go to the markets.
So and with depends on again, the evolution of the cash to the end of the year.
Speaker Change: We see we are.
If you may pay more dividends.
Speaker Change: Big more debt as he leads in the first semester, indeed page $5 million to $500 million.
Speaker Change: In bonds that GBS and more bit more bonds in PBC.
Speaker Change: But again, we will be monitoring the markets and depending on the again generally we generate free cash flow in the third and fourth quarter.
Speaker Change: So if you think.
Speaker Change: Yes, we have after lately our budgeting in the second semester.
Speaker Change: You should have more visibility of next year cash generation, we may think about paying down debt to get better.
Speaker Change: We do it and the opportunities in BC.
Speaker Change: <unk> be.
Vishal: Vishal sonesta.
Speaker Change: Thank you and then on the dividend side, given the interim dividend that you just announced how much total dividend should we expect to be paid out this year and do you think this dividend announcement might have an impact on the timing for the outlook change to stable from the rating agencies.
Speaker Change: No again, we just announced this dividend because we are also then that even with this dividend I think we'd be able to have it.
Speaker Change: Negative outlook, we draw from a ratings and why is that because for the third quarter.
Speaker Change: We are expecting to end.
Speaker Change: Below two and a half times.
Speaker Change: The dividend payments will be in October, but again last year.
Speaker Change: Third quarter last year, we had 1.1 billion.
Speaker Change: <unk> EBITDA in the fourth quarter last year, we have $1 billion.
Speaker Change: This quarter that we just we adjusted we have $1 $9 billion EBITDA. So we will have EBITDAX fashion until the end of the year.
Speaker Change: And we presented a good cash conversion this BARDA and third party and fourth quarter are generally cash generators for okta.
Speaker Change: Carter's so because of EBITDAX budget, and if free cash flow generation evenly dispersed.
Speaker Change: Dividend payments, we expect to finish the year close to two times net debt to EBITDA. So I think with this perspective.
Speaker Change: I think.
Rating agencies at some point of is baked out the negative outlook and managing to keep low leverage maybe the targets you have.
Speaker Change: Upgrades, maybe next year.
Speaker Change: And the level of dividends.
Speaker Change: Best again.
Speaker Change: Depends on our free cash flow perspective, we.
Speaker Change: We announced a dividend, but as I mentioned, we generated in only three months $1 1 billion and free cash flow.
Speaker Change: So given that we have no pressure in net payments and we see more free cash flow.
Speaker Change: Going forward in terms of messenger, we're very comfortable with this dividend the level of dividends again.
Speaker Change: We would like to have it more stable best possible, we don't have a figure out yet, but if you look at the last years. For example, 2021, we'd be 900 million policy dividend 2020 jewelry made 807.
Speaker Change: $73 million in dividend and 2023, we paid less dividends paid 448 million loss because of the challenging year. So this year now we are back on our average so what we need in this $808 million. So again it all depends on the OE perform going forward.
Speaker Change: Sure.
But I think this level of dividend is very important.
Speaker Change: Great. Thank you so much.
Okay.
Speaker Change: Our next question comes from Carlos Laboy with HSBC. Please go ahead.
Speaker Change #100: Next question Carlos your microphone is on mute.
Carlos Laboy: Sorry, good morning, everyone.
Carlos Laboy: Jeremy can you please give us an update on the NYSE listing process, where it stands.
Speaker Change #102: And is it going slower than you expected or is it tracking along fine.
Carlos Laboy: Yeah.
Jeremy: Hi, Carlos.
Jeremy: Again, I think it's a regular process.
Speaker Change #103: Remember we were now in a few of the vacation right summertime in U S. A.
Jeremy: A lot of people the expectations of our everything gets.
Speaker Change #103: To a lower base, but given their processes are we are usually see that.
Speaker Change #103: We are doing the filing and getting the comments on the memorandums.
Speaker Change #104: And answering them, leading fires I think the process is normal but again, it's out of our control so but again at some point.
Speaker Change #103: And then if you compare.
Speaker Change #103: We've been a game of course at some point.
Speaker Change #103: The business the questions will be decreasing.
Speaker Change #103: Other movements.
Speaker Change #105: You'll be people to have any more comments besides yes.
Speaker Change #103: Barclays figures.
Speaker Change #107: So yes. Unfortunately, xactly is not in our control, but the regular process and will be on this.
Speaker Change #108: Maybe fueled by Ross before we get that registration.
Speaker Change #111: Realized you gave it to us.
Speaker Change #107: So to call the General Assembly.
Speaker Change #107: Doug.
Doug: Thank you Kim.
Speaker Change #107: Our next question comes from Carla Casella with Jpmorgan. Please go ahead.
Carla Casella: Hi, most of my questions have been answered, but can you just give a sense for.
Speaker Change #112: How long do you think until we see the bottom of the beef cycle in the U S.
Speaker Change #112: Hey, Carla we are pretty optimistic about.
Speaker Change #112: At.
Speaker Change #114: Though the beginning of the reduction in the U S. We see.
Carla Casella: Cow slaughter coming down 15% year over year, we think that that's a huge sign of the retention starting the the moment that's very important for us.
Carla Casella: Watch out for is going to be this fall and we're going to we're going to see what happens, but I think the 20 to 25 will be a similar year to 2024, and we're probably going to see the if nothing changes weather wise and all of that will probably consume somewhere in 2026 things changing.
Speaker Change #115: Regarding our discipline careful book.
Speaker Change #119: Okay, and then on the pork side are you seeing any difference in Smithfield tactics.
Speaker Change #117: And from a competitive standpoint, given that they're talking about listing in the U S as well.
Carl: Carl I don't know I don't know I don't know, what you're comfortable about Smithfield and listing but I'm not I don't think I have anything relevant to talk about our.
Speaker Change #118: Our business two to three months of the same and we're focused on all the things that we.
Carl: On our business not so much about what our competitors are doing especially software related to mystic.
Speaker Change #118: Okay. Thank you.
Carl: Okay.
Speaker Change #121: Ladies and gentlemen, there being no further questions I would like to pass the floor to Mr. Sylvester Thomas Journey. Please go ahead.
Speaker Change #123: Thank you all again for your participation project grasses, but these are result of call and I'd like to extend my thank you for all our team members for their dedication and commitment to deliver these great results. Thank you all of you.
Speaker Change #123: This is the end of the conference call held by Jbs. Thank you very much for your participation and have a nice day.