Q3 2024 Adecoagro SA Earnings Call
Good morning, ladies and gentlemen, and thank you for waiting.
At this time, we would like to welcome everyone to other collaborative third quarter 'twenty 'twenty four results conference call.
Today with US we have Mr. Mariano Bosch CEO missed it and media in Yack co CFO, Mr. Han I presume Cade up at Ada sugar ethanol and energy EVP and Mrs. Victoria, <unk> Investor Relations Officer, we would like to inform you that this event is being recorded.
And all participants will be in a listen only mode during the company's presentation.
After the company's remarks are completed there will be a question and answer section at that time further instructions will be given before proceeding let me mention that forward looking statements are based on the beliefs and assumptions of the Congress management and on information currently available to the company they involve risks.
Uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future investors should understand that general economic conditions industry conditions and other operating factors could also affect the future results of at that Colorado and could cause.
Speaker Change: <unk> to differ materially from those expressed in such forward looking statements now I'll turn the conference over to Mr. Mariano Bosch CEO. Mr. Bosch you may begin your conference.
Good morning, and thank you for joining us.
Speaker Change: 'twenty 'twenty four.
Speaker Change: Restarts golfers.
Speaker Change: We have already committed $96 million to shareholder distribution.
This includes $35 million in cash dividends.
Speaker Change: On top of the $61 million that we have already invested in she has reported yet.
Speaker Change: Year to date.
As we distribute cash to shareholders. We also continue investing in attractive growth projects.
Speaker Change: Such us growing the size of our sugarcane plantation in Brazil.
Speaker Change: And strengthening our rightful durations.
Speaker Change: Moreover, during the quarter will reboot chi $84 million of our global notes.
Reinforcing our balance sheet structure.
Speaker Change: Moving onto the results.
Speaker Change: Consolidated adjusted EBITDA during the quarter reached $111 million.
Speaker Change: Whereas year to date amount.
Speaker Change: Amounted to.
Speaker Change: $341 million stuff.
Speaker Change: Starting with our rice operations.
Speaker Change: All the investments done through the years, such as the acquisition of the assets and utilized seed genetics machinery.
Speaker Change: All of these have materialized into record results.
Speaker Change: We have become a relevant player within the sector, we think.
Speaker Change: Of reaction to respond to market opportunities.
Speaker Change: In daily.
Speaker Change: Our continuous focus on enhancing efficiencies across the whole value chain.
Speaker Change: Whether with the development of higher value added product out of the main drivers the west the growth in results.
Now we are in the middle of the planting activities for our 'twenty to 'twenty four 'twenty five campaign.
Speaker Change: Which are being conducted.
Speaker Change: Good soil moisture conditions, and that's a good base for both crops and rice businesses.
Speaker Change: We have our teams fully focused.
Speaker Change: And we are in an excellent situation to maximize use.
Speaker Change: All our productions for the next harvest season.
Now.
Speaker Change: Let's move into our food ethanol and energy business.
Speaker Change: Despite the challenging weather conditions.
Speaker Change: Our crushing volume remains a hit versus the previous year.
Speaker Change: And more relevant we accomplished at 55% sugar mix during the quarter, thanks to our industrial efficiency.
Speaker Change: We continue to expect a slight year over year increase in crushing and consequently, a new record <unk> production.
Furthermore.
Speaker Change: We were able to secure new area.
Speaker Change: Relative terms aren't even plant gain during the optimal window.
Speaker Change: Thus enhancing its productivity potential for net how does it see such.
Speaker Change: Before passing the work to Emilio.
Emilio: A quick update on the ESG.
Emilio: In love with our energy transition strategy.
Secure and attractive financing from VIP to construct to violate that.
Emilio: That will enable us to increase our bio methane production five times by 2027.
This in turn will enable us to cut down carbon emissions, while reducing costs.
Emilio: To conclude I would like to thank our teams. Despite these challenging events, we continued generating good returns and value for our shareholders. Thanks to their hard work and dedication.
Now I will let Emilio walk you through the numbers out there for them.
Emilio: Thank you Mariano good morning, everyone.
Emilio: Let's start on page four with a summary of our consolidated financial results.
Gross sales increased to $457 million during the third quarter, while on an accumulated basis, we're up to over $1 1 billion.
Emilio: This was mostly explained by higher volume sold most of our products, which in turn fully offset the lower prices for some of the commodities that we can.
Emilio: Cookies.
Emilio: However, adjusted EBITDA reached $111 million during the quarter, making at 29% decline versus the prior year, mostly due to an uneven year over year comparison.
Emilio: During the third quarter of 2023, we completed a pharmacy, which booked $30 million in adjusted EBITDA, whereas no pharmacies will conducted during the current period.
Emilio: Excluding this.
Emilio: Clearly performance was down by 12% versus the same period of last year.
Emilio: Blaine by lower results now with sugar ethanol and energy business.
Emilio: On a year to date basis, adjusted EBITDA stood at $341 million.
Emilio: Spike and outperformance of our rice and dairy businesses lower results were driven by the aforementioned decline in our sugar ethanol and energy operations.
Emilio: Now please turn to slide five.
Emilio: Regarding our production figures in the bottom right chart, we can see that the crushing volumes you know with sugar ethanol and energy business were up 6% versus the same period of last year.
Emilio: How are your question translates into higher volume and better dilution of fixed costs.
Emilio: You know what finally division the increase in the production of rains was explained by a significant recovery in yields up to having experience better weather conditions throughout our latest harvest season.
Emilio: Yeah.
Emilio: Let's move to slide seven with the operational performance of our sugar ethanol and energy business.
Emilio: Brazil volumes during the quarter amounted to 4 million tons, making a 10% year over year decline.
Emilio: This is fully explained by the dry weather experienced during the first nine months of the year.
It's translated into a reduction in yields and thus into lower crushing.
Emilio: Nevertheless, this was partially offset by an increase in sourcing.
Saudi King thanks to opportunities that arose from nearby areas.
Emilio: On an accumulated basis total crushing volume reached $10 2 million tons, 6% higher compared to the same period of last year due to greater sugarcane availability, given our expansion planting activities and third party claim.
Emilio: In terms of mix, we continue to maximize sugar production, given its attractive premium or ethanol.
Emilio: Within our ethanol production, we are maximizing the production of hydrous ethanol as demand for this type of ethanol has been significantly increasing and gaining market share offering the better margin.
Quiet, we can always dehydrated or ethanol at anytime.
Emilio: Let's please turn to slide eight.
Emilio: Well, we described sales conducted throughout the periods.
Emilio: Net sales amounted to $227 million in the quarter, while year to date.
Emilio: It reached $502 million.
Emilio: As you can see on the top left chart the increase in volumes sold of sugar fully offset the declining prices.
Emilio: As explained in prior releases lower sugar prices have come down versus the levels seen during 2023 due to a stronger base of milling in Brazil, which resulted in higher sugar supply.
Emilio: The same trend can be seen for ethanol sales conducted during the respective periods.
Emilio: So digitally solar production to profit from spikes in price, even though selling prices in U S. Dollar terms continue to be below the previous year and greater production.
Consequently, we continue holding on to our ethanol inventories to profit from better prices in the upcoming quarters.
Emilio: Our stock's represents 49% of our year to date F L production.
Emilio: Moving on to energy with focus on complying with our long term energy contracts, however, lower prices and a weaker Brazilian real drove the decline in sales.
Emilio: Regarding carbon credits, we have already sold over 400000, so bias at an average price of $15 per value, making a total of $6 million and net savings.
Please go to page nine where we would like 2% the financial performance of the sugar ethanol and energy business.
Emilio: Adjusted EBITDA amounted to $100 million during the third quarter and $259 million on a year to date basis.
Emilio: Despite percent and an increase in net sales to.
Emilio: So our year over year gains in the mark to market of our commodity hedge position.
Felts were offset by year over year losses, Mark to market of all biological assets on lower expected yields coupled with lower sugar and ethanol prices.
Emilio: Yeah.
Emilio: Finally to conclude with the sugar ethanol and energy business. Please turn to slide 10, where we would like to briefly talk about the current outlook.
Speaker Change: Assuming normal weather for the rest of the year, we forecast a slight increase in our iron ore crushing figure versus 2023.
Speaker Change: Precipitations received throughout the month of October enhanced recovery of the cane that will be harvested in the next quarters.
Speaker Change: From a commercial point of view.
Sugar prices peak by the end of the third quarter due to a decline in Brazil's cane, Peru TBD on the back of the aforementioned dry weather.
Speaker Change: The more binary events reported by the end of August in key producing states.
Speaker Change: Added pressure to the country's sugar production expectations.
Speaker Change: Sequentially, we foresee a tighter global supply and demand scenario for the coming months.
Speaker Change: And why we still have a portion of our expected 2020 towards sugar production stealing heads and.
Speaker Change: Our 2025 production remains open.
Speaker Change: In the case of ethanol.
Speaker Change: <unk> continuous strong given its attractive price versus gasoline absorbing new supply and supporting the recovery in prices.
We expect to sell our inventories over the following quarters as we believe ethanol prices have room to improve due to the current low priority at the pump coupled with the beginning of the industry's inter harvest season.
Speaker Change: To finalize with the sugar ethanol and energy business.
Speaker Change: We are using our stove by gas to produce NSE to sell in the spot market as prices recover due to low levels of water reservoirs.
Speaker Change: Now we would like to move on to the farming business. Please go to slide 12.
Speaker Change: By the end of October we concluded harvesting activities related to our 2023 24 harvest season and produce over one 1 million tons of agricultural produce.
Speaker Change: As of today.
Speaker Change: We are undergoing planting activities for 2024 25 campaign with a week to moderate let email with a focus until the year end.
Speaker Change: It is important to highlight that for our correct crop development rainfalls muscle from January onwards.
Speaker Change: That is the moment when most of our crops to find their yields.
Speaker Change: So the more.
Speaker Change: We were able to expand our winter crops area to over 45000, Texas in this new season due to better soil moisture conditions.
Speaker Change: In the case of Rice, we were able to develop a new area in the northeast region of Argentina.
Speaker Change: Daily.
Speaker Change: We continue enhancing efficiencies lease stores, which are already at full capacity.
Speaker Change: At the industry level, we were working on product development for the domestic and export markets, while expanding our presence across different price tiers without consumer product brands.
Speaker Change: On the following page 13, we present, the financial performance of our pharma business.
Speaker Change: Adjusted EBITDA for the farming business totaled $17 million during the quarter.
Speaker Change: Whereas year to date amounted to $99 million.
Speaker Change: Starting with our crops segment, adjusted EBITDA amounted to $2 million in the third quarter compared to $29 million.
Speaker Change: The prior year as the ladder fully reflects the sale of our firm conducted in September 2023.
Speaker Change: On a year to date basis, adjusted EBITDA totaled $22 million, which includes the sale of overlapping <unk> conducted in April 2024.
Speaker Change: Focusing solely.
Speaker Change: Crop's results the segment performed better than in 2023, as we saw significant year over year recovery in production.
Speaker Change: However results were negatively impacted by lower international prices for our main products as.
Speaker Change: As well as by higher costs in the U S dollar terms.
Speaker Change: Lower than expected corn yields due to the impact of CLO platform.
Speaker Change: Moving onto rice, despite increasing sales on better prices.
Lower adjusted EBITDA during the quarter was mainly explained by higher costs in U S dollar terms.
Speaker Change: On an accumulated basis adjusted EBITDA reached $51 million.
Speaker Change: Marking a new record for this segment.
Speaker Change: <unk> were driven by year over year gains reported in the mark to market of our biological assets on higher prices and higher planted area.
Speaker Change: Lastly, adjusted EBITDA with dairy segment.
Speaker Change: $8 million during the period, whereas year to date reached $26 million.
Speaker Change: Results were positively impacted by higher sales on higher prices as we improve the mix of higher value added products and maximize the production of good milk for the domestic market.
Speaker Change: Let's now turn to page 16, where we would like 2% our capital allocation strategy.
Speaker Change: According to our distribution policy, we must distribute a minimum of 40% of the cash generated during the previous year.
Speaker Change: A combination of cash dividends and share repurchase.
Speaker Change: To date, we have already committed $96 million to shareholders distribution $26 million more than the minimum.
Speaker Change: The distribution policy.
In terms of dividends on November 27, we will make our second guest Stephen abatement of $17 5 million, which.
Speaker Change: Since approximately $17.04 per share.
Speaker Change: The first installment was paid on May 29 in an equal cash amount, resulting in an annual cash dividend of $35 million.
Speaker Change: In addition.
Speaker Change: We have already repurchased over $61 million in shares under our buyback program, which represents approximately five 7% of the company's equity going forward, we expect to continue with our share repurchase.
Speaker Change: Please turn to slide 16.
Speaker Change: The other view of our debt position.
Speaker Change: Net debt amounted to $646 million, making a 9% decrease compared to the same period of last year.
Speaker Change: Throughout the year, we have been diligently reducing our gross debt and cash position in the most efficient manner, while looking for opportunities to enhance our operations at the lowest cost.
As shown in our financial figures. This was achieved without this attending our distribution policy and growth projects.
Speaker Change: As of September 32024, our liquidity ratio reached two six times showing the company's full capacity to repay short term debt with its cash balances, whereas our net leverage ratio was one five times in line with the same period of last year.
Speaker Change: On the following slide we describe our Capex program.
Speaker Change: Expansion Capex represented $26 million in the quarter and $72 million on an accumulated basis.
Speaker Change: In Brazil, we continue increasing our sugarcane plantation and investing biogas unit any of any email.
Speaker Change: Where our Biomethane production takes place.
Speaker Change: In our pharma business investments include the acquisition of agricultural machinery, such as Caesars and <unk> as well as the development of probable area for rice production and the construction of a new warehouse for dairy products and our tool called the reprocessing facility.
Speaker Change: Thank you very much for your time, we are now open to questions.
Speaker Change: Thank you.
Speaker Change: <unk> is now open for questions. If you have a question. Please write it down into Q&A section or click on the raise hand for audio questions. Please.
Please remember that your company's name should be visible for your question to be taken we do ask that when you pose your question that you pick up your headset to provide optimum sound quality. Please.
Please hold while we poll for questions.
Our first question comes from Grunenthal mosaic.
Speaker Change: It'll be a.
Speaker Change: Yeah.
Speaker Change: Good morning, everyone and thank you for the presentation I would like to discuss with you guys. It starts you off ethanol to gasoline prices.
Speaker Change: Most of the industry know folks to all the buildup puffy patrons to better capitalize on higher prices through the intercrop period, but at the same time, we also see higher than expected supply of ethanol related to sugar and ethanol operate sourcing they should take our sulfur center south region, not being able to achieve a.
Speaker Change: Sugar Max production rate. So our question. These how to think about two different dynamics impacting the darts to gasoline.
Speaker Change: And what's the backlog it was most updated view on the timing for this not only for Q4, but also for or do you sort of 25.
And also if I may a second one on the sugar prices, we understand that the impact on the sugar.
Speaker Change: Brazilian sugar production with mostly limited to those regions in fact by fires, which is obviously not in your case.
Speaker Change: Could benefit from higher sugar prices, if we see further impact on the industry struggling to produce sugar in the next harvest as well right. So we would like to understand what other quadrant is expecting in terms of potential impacts from these fires for sugar production.
Speaker Change: It also will help whats you guys think that accelerated pricing.
Speaker Change: At current sugar prices that's it thank you.
Bruno: Thank you Bruno for Europe question.
Bruno: Renato will take the answer.
Renato: Not at all.
Speaker Change: Thanks for your question Bruno So we started with the ethanol.
Speaker Change: We think that the demand of ethanol is still very high.
Either demand. This is close to 2 billion liters of ethanol per month, if you add that beyond the hydro's demands, we will reach 3 billion liters.
Speaker Change: Per month, yes.
Speaker Change: The part of the bar into rates at the purpose is still very low at 65% favoring.
Speaker Change: Aw consumption.
Speaker Change: So if you take the stocks of ethanol and compared to the same period of last year. The stocks are very similar which are much higher demand.
Speaker Change: Today, so they stopped to use relation is much tighter anal and also we will have to consider that the intercrop period of this year is going to be longer due to the weather problems at the center south of Brazil.
Speaker Change: Having.
Speaker Change: So we expect that the price of ethanol.
Speaker Change: Reinsurer react actually is already reacting and we think that it should reach to seven 2% or surpass the 7th% Barrett at some point during.
Speaker Change: During the last part of this year and first quarter of next year, we are holding our inventories to sell ethanol greatest spirits, capturing higher prices and.
Speaker Change: And regarding the second question of sugar and the impact of the fire.
We think that the fire is going to have an impact for for next year as well.
Speaker Change: The fire awkward and even now with some September most all with some September so.
Speaker Change: Yogurt, Kim that was already harvests.
Speaker Change: At that point lost all that growth. So the sugarcane is which will be very delayed.
Speaker Change: For next year.
We think that the first half.
Speaker Change: After a year the Brazil.
Amusing in general, especially to the regions.
Speaker Change: The fire or <unk> theyre going to vary a theyre going to have a very low.
Speaker Change: Yields are at much lower yields.
Speaker Change: The unusual so we think that the market will be is still dependent on Brazil in the first half of the year and the market is going to be still is virtual continual very tight.
It's why we think that the future curve should be more flat and we will take the opportunity to to hedge the remaining part of our our production.
Speaker Change: Thank you very clear guys. Thank you.
Speaker Change: Next question from Isabella <unk> with Bank of America.
Speaker Change: Thank you and good afternoon, everyone. So my question is is about yields.
Speaker Change: First of all <unk> in Argentina, right now.
Speaker Change: You guys mentioned that the planting. They started then the expectation of courses for them are relatively normal weather.
Speaker Change: Next season, so I wanted to understand if we can start thinking right that the yields will improve.
Speaker Change: Year over year and also if you can.
Speaker Change: Elaborate a little bit on the mix of various it's clear that you guys reduced the exposure to.
Speaker Change: Two corn right, there and I would say this is related to that plagued you guys faced this year, but.
Just to give a little bit more content context on the mix off crops would be helpful. Thank you.
Speaker Change: Thank you.
Speaker Change: I'm going to take your question.
Speaker Change: Regarding <unk>.
Speaker Change: In general.
Last year was a challenging year and we are starting the see some with excellent condition. So in general we are starting at a much better conditions than what we started the previous season.
Speaker Change: So assuming.
Speaker Change: Where they go ignored amount for them not award.
Speaker Change: We can clearly expect better yields than what we have last year in January of last cycle than later getting into the retail soft our distribution within the crops.
Speaker Change: This year, we are increasing probably.
Speaker Change: We can compare.
Bearing with the corn, but even more relevant than that.
Speaker Change: Im thinking on how prices, we expect they will be moving.
For the for the future.
Peanuts is.
Speaker Change: One we are growing more and we are starting an even better lease the land. So we expect better units for next year.
Speaker Change: I've been at sea to becoming a very relevant crop.
Speaker Change: In the Peanuts side, a few <unk> main bought yet.
Speaker Change: As for Argentina, we expect that lower decrease in terms of prices because the quality that the Argentinian peanuts a half Willy.
Speaker Change: The sold all do the same market that is not that reducing their price.
Speaker Change: Then we also have an increasing some flowers flowers, playing a different role than the other commodity.
Speaker Change: That's why because of the oil sand, they're increasing their price they'll fight.
Tom Lowery: Tom Lowery.
At a better price than the previous year. That's why we are also increasing that one.
Tom Lowery: Then the most of the day live on club that we are having today, yes, you can see in our reported said that rice and in terms of rise, although we expect that the odd retail the rising data worldwide east slowing down.
Tom Lowery: We do produce special about this because of our heat kinetics. So our model of being fully integrated into itself right youre, giving us a competitive advantage of reaching special clients, where we can defend our pricing and much of it that way.
Tom Lowery: Also we've been developing and we've been doing a lot of capex as you've seen in like developing life production and developing that.
Tom Lowery: Assessing machine that is sort of the processing. The means to process holds that Reits are not all that different segregated variety that god knows how help us to maintain those higher prices and that's why we are seeing record levels in terms of having Dod we got projects that the future too.
Tom Lowery:
Finally in terms of all this.
Tom Lowery: The location of the deferred crops within the farming system. It is also important to understand that daily is also growing and the whole assessing of <unk> going on here the domestic market of our daily product are paying off and we are becoming.
Player within that sector that is helping us again to maintain or increase our prices in terms of what we are selling so that's basically a quick summary on how we are planning D said, Neil how do I see sort of that and what are the main movement within it.
Tom Lowery: They could also farming oxygen.
Speaker Change: That's very clear thank you.
Speaker Change: Once again, if you have a question. Please write it down into Q&A section or click on raise hand for audio questions.
Speaker Change: Our next question comes from motto and felt with UBS.
Speaker Change: Okay.
Speaker Change: Hi morning.
Speaker Change: And that too.
Speaker Change: Very happy to be here and congrats on the results. My first question is on Capex.
Speaker Change: The cargo has been running a slightly higher rate for this year.
Speaker Change: Particularly and expansion Capex in sugar and that's all I wanted to get a sense from you on how does Adventist your time I assume that 2024 between 25% between 2006, they are likely to be years of higher capex. When we compare to the past couple of years, but my question is how are you.
Speaker Change: This advance in general.
What's the appropriate level that that that the company can perform.
There was a.
Speaker Change: To climb closer to $300 million in order to celebrate a few of the girlfriend Griffith opportunities.
Speaker Change: So that's that's my first question and then my second question I think a follow up to the previous one.
Speaker Change: Which is.
Speaker Change: I think the message on prices and productivity is clear, but how you are seeing cost develop.
Speaker Change: Well thank you.
Speaker Change: Okay.
Speaker Change: Thank you Matthew.
Speaker Change: Your question number one on the memorial week onset intense hefei cost development I think D. C said very important.
Question, because we've been always developing.
Speaker Change: We'd be always developing the sustainable production model in the floor business flat and small business segment that we have thinking on being the lowest cost producer so for us the coffee very relevant here and this capital being the lowest cost producer is always helping in the scenarios.
Brian sort of commodity prices are going down. So this is an important approach.
Speaker Change: <unk> gotten or maybe you don't see it yet in the SEC reports, because we are comparing 'twenty to 'twenty two 'twenty had their campaign, but when we are planning our next campaign on when we are planting today.
Speaker Change: We are reducing costs and if we assume yields being in line with the Heathrow reached out and what we are projecting according to what we are planning a delay we do expect that reduction in costs in cost of production in general going forward. That's something that we can expect that we are working to be there.
Speaker Change: In the in the near future.
Speaker Change: No.
Speaker Change: Making the quick clarification in terms of course now I'm going to read your question on Capex and in order to answer the Capex question I would like to.
Speaker Change: The refreshed what the media has said about the capital allocation when we're thinking Capex, we are always thinking within the overall concept of capital allocation. So as you can see the first thing that we are going to maintain and we are being very.
Speaker Change: <unk> Creek diesel compliant and our policy of distributing at least 40% of their net cash flow from operation of the previous year. So as.
As you can see in 2020 photo we are distributing more than that and we are returning almost 10% of the total equity of the company.
Speaker Change: So, making the clarification on having clear that D C and our priority that we continue to we have a very vanilla priority. We are very happy that we are seeing now some growth opportunities in all these different segments that we have as you can see I'm getting it.
Speaker Change: The details of the Capex that we are.
Speaker Change: Increasing not a lot about increasing from 23 to 24, you can see in the sugar and ethanol that has been there.
Speaker Change: The segment, where we'd be more stable than where we've been more clear in the communication on this growth.
Speaker Change: Around $50 million per year that we are still investing.
Speaker Change: Yes, 'twenty four and 'twenty five.
Speaker Change: And to.
Speaker Change: Two main.
Speaker Change: Capex. They are that we are looking at now but why did he say by your math on that we've been talking before while we.
Speaker Change: Our financing DC.
The production of <unk> through the avian yes that we have already explained in various calls before and this is helping us to replace that he said and reduce our cost of production I'll say quote at this out of the terms that are between 15 to 8% to 20% in terms of Unlevered return.
Speaker Change: As they are financed by <unk>.
Speaker Change: Very very cheap rates.
The Levered returns are very very high.
Speaker Change: Then the other important growth in sugar and ethanol is the planting of sugarcane planting shortly we had in that region, where we have these having opportunity to have a good <unk>. Good avs, where we can continue to expand the sugarcane and this is the base to all what we are.
Speaker Change: Or are you seeing once we have these increases we also have some.
Speaker Change: Bottlenecks that we can take out of the whole chain of meeting and we had increasing meeting at that relatively.
Speaker Change: Low cost of products sold so that is how we are growing on the capex. We are doing on the sugarcane business.
Speaker Change: Then.
Speaker Change: Moving into the right <unk> crops.
As I mentioned before right.
<unk> very well in this investment team kinetics in in.
Speaker Change: In seed genetics in machinery.
Speaker Change: And in more production is also paying off because we are reaching to the right markets. We are also investing in our own board too.
Speaker Change: The export.
Speaker Change: We have all over the world. So those investments in rice are being very profitable today and also the second.
Speaker Change: In trade levels on the amount of the measurement ESR date Adv since Sunday at ADB says, we are not increasing a lot. They themselves production, we are increasing more the processing site and we are increasing the investments like a warehouse what we are doing now to reach the market consumer so reaching.
Speaker Change: These market consumer is leaving us and additional price and that's why it's being the most profitable thing and that's something you are seeing every quarter that we are increasing that resets on the radio segment asset book.
Speaker Change: So those are the investments that that it happening in deal where all company all of them out of within that segment that we have and they are all with the IRS.
Speaker Change: Between 18% to 25% on all the waiting game on.
Speaker Change: About that yet.
That's clear Super thing.
Speaker Change: Just a heads up that we received a question from <unk> <unk> from J P. Morgan, but it was already a draft doing nothing went out to ask question.
Speaker Change: Okay.
Speaker Change: Once again, if you have a question. Please write it down in the Q&A section click on raise hand for audio questions.
Speaker Change: This concludes the question and answer section at this time I would like to turn the floor back to Mr. Bosch for any closing remarks.
Speaker Change: <unk>.
Speaker Change: We would like to thank you all for joining the call and for their support would be in the hearing and hope to see you in our upcoming event.
Speaker Change: Okay.
Speaker Change: Thank you. This concludes today's presentation you may disconnect at this time and have a nice day.
Speaker Change: Yeah.
Speaker Change: Goodbye.