Q3 2024 Fresh Del Monte Produce Inc Earnings Call
I'm going to the next one. I'm going to the next one.
I'm going to be here for you.
Good day everyone and welcome to Fresh Adele Montes Produce 3rd Quarter 2024 earnings conference call. Today's call is being broadcast live over the internet and is also being recorded for playback purposes.
All lines have been placed on you to prevent any background noise. And after this speaker's remarks, there will be a question in answer session.
If you would like to ask a question, please press star, follow the name number one on your telephone keypad.
and if you like to withdraw that question, again press star 1.
For opening remarks and introductions, I would like to introduce, I would like to turn today's call over to the Vice President in Vester Relations with Fresh Dell Monty Produce, Ms. Christine Cannella. Please go ahead, Ms. Cannella.
Thank you, Chris, thanks!
Good morning everyone and thank you for joining our third quarter 2020 for Conference Call. Join me in today's discussion on Mr. Muhammad Abu Saad Ali, Chairman and Chief Executive Officer and Mr. Monica Vicente, Senior Vice President and Chief Financial Officer.
I hope that you had a chance to review the press release that was issued earlier by a business buyer. You may also visit company dire website and invest in relations.first of all.
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This comment pause being West Half-Live on our website and we'll be available for replay after this pause.
Please note that our press release and our health today includes non-gap measures, reconciliations of these non-gap financial measures are set for in the press release and earnings presentation, which is available on our website.
I would like to remind you that much of the information we will be speaking to today and including the answers we give in response to your question, may include forward-looking statements within the safe harbor provision of the federal security vlog.
In today's pre-chalice and in our F-C-Fileings, we detail risks that may cause our future results to different materialies from these former living statements.
Our statements are as of today October 31st and we have no obligation to update any forwarding statements in the name.
During the call, we will provide a business update along the overview of our third quarter 2020-4 by an answer to the call.
Speaker Change: With that, I will turn today's call over to Mr. Mohammad Abu Ghazali. Please go in.
Thank you, Christine and thank you for joining us for our step-by-step 24-end event results
and we reflect on the set quarter of 2024.
I am pleased to report that we continue to see solid performance across key areas of our business
Despite certain challenges in the broader market, fresh them what they have remained resilient and focus on delivering value to its shareholders
I would like to address the important update we shared earlier this week regarding man packing
As we have finalized this strategic path forward for our Unvegetable TV.
After a comprehensive review of our prayerions.
which included exploring various potential evidence.
We decided on a three-point approach to streamline bad manpacking.
This includes consolidating facilities.
Defining the product of grapes.
and the investing excess essence.
Speaker Change: By becoming more efficient, we end to improve profitability, to develop our business offerings and deliver even greater value through innovation.
Reimposing our commitment to future growth, operation and accidents and staying ahead of a more customer and consumer demands.
Speaker Change: Having covered this important update, I would like to shift focussed or say what the performance.
Compend with the Player GAP, the gross profit was up by 26%, driven primarily by our fresh and value-added product segments.
Matt Inkam, a trip with the world to fresh the amount you produce was 42 million dollars for the quarter, compared with 8 million in the same period last year, reflecting more than 400% increase.
Starting with our fresh and value added product segments
First, I will not take continues to solidify its position as the global leader in pineapples.
Speaker Change: Our panic group by an app is a thing group by an app is a pride example of the kind of innovation that drives our business.
This fight has become consumer favorites.
Contributing to strong demand and reinforcing our leadership in this space worldwide.
In fact, demand for our fine happens continues to all this supply.
We are actively exploring opportunities to expand production to meet this growing demand.
Emily and this month we open.
The waitlist for our Ruby Global Apple in Europe for 20, 2025, delivery
Speaker Change: and the success for the knowledge and China.
and the U.S. earlier this year.
The early antlers of this high and luxury variety has been encouraging.
Fever demonstrating our ability to innovate and meet global consumer preferences.
Speaker Change: We are continuing to explore the exploring ways to add more financial innovations to our portfolio, ensuring we remain as the forefront of this category.
Pineapple volumes and margins were up for the quarters, dreaming by strong demand for our popular de-motic quality innovations.
Speaker Change: Next, let's turn to the fresh cup division of our fresh and value added products, which continues to be a strong performance worldwide. In the US, we have built a solid foundation over the years.
Speaker Change: We continue to see if ways to defend our reach with current and new customers and explore new product lines to meet a worthy market demand.
Perdemov, our proactive approach to the Fesma to 104 rule positions us as a leader of the military compliance.
We have assembled a dedicated team and established robust systems to meet the stranger's requirements for enhanced disability of higher schools.
Speaker Change: This strategic advancements.
Strencins our risk management framework and proves operational efficiency.
and Foster's Greater Consumer Trust in our products and our supply chain resilience.
Speaker Change: Ultimately, our commitment to Fessana to move to zero four compliance creates a significant competitive advantage.
and drives long-term value creation for our stakeholders.
Speaker Change: An Asia we officially completed consolidating our fresh capacity improving efficiency, reducing cost, and enhancing customer service.
Our Fresh Cup facility is excelling in the UK with increased profitability and further expansion plans.
Our Abu Kada program as a whole continues to be a key growth driver for us, particular is not a nature.
Speaker Change: Why is averaging our established sourcing network and ripening capabilities?
Speaker Change: We remain committed to growing demand, amantaining a solid competitive position in the markets.
Blackening our leadership has been a top priority as we drive growth and innovation across our key categories
and Quartars V will reprint to announce several key leadership files.
Speaker Change: Then he do must rejoin us as most Americans, senior vice president of sales marketing and product management, bringing over 35 years of industry experience, we're happy to have him back.
We also welcome Dr. Dizah Adel, a Dr. Emet Arfa, two globally recognized expert in their fields, leading our efforts in biomass optimization and developing higher margin value added products.
We think great potential in harvesting the full value of our biomass.
Speaker Change: To unlock transformative opportunities across our portfolio.
Speaker Change: However, it's important to remember.
The day you've planned to see it is not the day you're in the fruit
Just as our fresh cup through success, good time.
Speaker Change: This initiative is in its early stages as we will share more as it evolves
Yet, we believe our vision, strategic approach, and proven that our code position has to unlock nature's potential, maximizing every part of the fruit to drive sustainability while creating higher margin products.
The Wisegrot, which is our 2023 Sustainability Report.
which outlines significant progress across several key areas.
Speaker Change: Notably we achieved our initials in the fact that target seven years ahead of schedule
and a accomplishment that underscores our unwavering commitment to sustainability.
Speaker Change: Building of this momentum, we are actively pursued additional and inventive opportunities to further reduce our carbon emissions and drive meaningful environmental impact.
I encourage you to explore the full report that we're available on feshderwant.com to get further insight into our efforts and continue the dedication to responsible business practices.
Lastly, I'm proud to share the fresh-dermotive was recently recognized with two prestigious awards.
Newsweeks were most trustworthy companies at the UNkind 100
Speaker Change: These recognitions reflect the dedication, passion and integrity.
Speaker Change: of our 40,000-41,000 global team members.
I couldn't be proud of our team and these one-desave accolades.
With that, I would then over to many cases discussed our third work in 2024 results in the GF.
Speaker Change: Let's begin with an update on our map mapping operations. We recently finalized our decision, which includes the consolidation of three facilities into a single facility at our Gonzalez California location.
This move allows us to streamline operations and enhance overall efficiency
We anticipate these actions will allow us to improve our profit of the village by approximately 15 to 20 million annually beginning in 2025
Speaker Change: As part of this decision we will discontinue several product lines and have agreed to sell certain assets of freshly farms, a wholly owned subsidiary of our Mampak in business.
Speaker Change: The assets sold as part of the transaction include a manufacturing facility and equipment in Arizona, as well as the freshly farm's brand.
Speaker Change: and we will be exiting two least facilities in California.
Speaker Change: The sale, which is subject to costumeric closing conditions, is expected to close in November of 2024.
Not that we've covered the update on man packing operations. I'd like to shift the focus to two other important topics.
First, I'll address the ILA strike and then I'll move to discuss the effects of recent weather related events in the US
The ILA strike which affected the east and Gulf ports in the United States during the third quarter caused a three-day disruption. However, we experience no disruptions in the ports we utilize in these areas during the strike.
Just now to the recent weather related events.
In July 2024, Hurricane Barrel, a category 1 storm impacted the Houston and Dallas Texas area, causing adverse weather and power outages.
including our Houston facility. This disruption necessitated the rerouting of inventory and adjustments in our logistics and transportation plans.
Despite these challenges, the financial impact was minimal at approximately 1 million and we're working with our insurance provider
In September, Hurricane Helene, a category for storm affected several states.
Speaker Change: While our facilities in the areas hit by the storm were not impacted and we expressed minimal disruptions with our operations, we remained deeply aware of the broader impact of the storm to so many.
Most recently, in early October, Hurricane Milton made landfall in Western Florida as a category 3 storm. Resulting in damages to our poor manatee facility south of Tampa, Florida.
Service from the Port-Manity Facility Award, where disrupted for a short period of time.
Speaker Change: During this time, we rerouted and discharged one vessel in freeport Texas and distributed our products to other facilities not impacted by the hurricane.
The extent of the damage and disruption to our poor-manity operations, including incremental logistics charges as a result of shifting service to our other facilities is being assessed.
We do not believe that the damage or disruption caused by Hurricane Mildin will have a significant financial impact. We also have insurance coverage and we're currently working with our insurance providers to assess the overall impact from the storm.
However, there can be no assurance that insurance proceeds if any for her in-viral and her in-milton will cover any damage or incremental expenses identified.
Now let's move on to our financial results for the third quarter of 2024.
Next sales were a billion, 20 million compared with 1 billion, 3 million in the prior year period.
The increase in net sales was primarily driven by higher net sales in our fresh and value added product segments due to higher sales volume as well as increased per unit selling prices principally of pineapple and avocado as a result of strong market demand.
The increase was partially offset by a decrease in banana and it sales.
Rose Prophet for the third quarter of 2024 with 94 million compare with 74 million in the prior year.
Girls margin increased by 180 basis points to 9.2% compared with 7.4% in the prior year.
Speaker Change: The increasing growth profit was primarily driven by higher sales volume and higher per unit selling prices in the fresh and value-out of product segment.
Partially offset by the higher pre-unit production and procurement costs, lower sales volume in the banana segment and the negative impact of fluctuations in exchange rates primarily related to a stronger Costa Rica colon.
Speaker Change: adjusted gross profit for the third order of 2024 with 94 million compared with 83 million in the prior year.
The increase in adjusted gross profit excludes 0.6 million of other related product charges next.
Primarily as I result of 1 million of logistics and inventory right us.
As a result of Hurricane Burrell during July 24, partially after by 0.6 million of insurance recoveries related to shipment disruptions in the red seed during the second quarter of 2024.
Operating income for the third quarter of 2024 was 54 million compared with 25 million in a prior year.
The increase in operating income was primarily driven by higher gross profit combined with the higher gain on sale of property plan and equipment.
Speaker Change: adjusted operating income, more 47 million compared with 34 million in the prior year. The increase in adjusted operating income in exclude 0.6 million of other product related charges net that I shared earlier.
and point two million of acid impairment and other charges net due to heavy wind and rainstorms in Chile.
and an eight million dollar gain primarily from the sale of a warehouse in Chile.
Speaker Change: Other income expense net for the third quarter of 2024 was again of 0.1 million compared with a loss of 7 million in the prior year. The change was primarily due to again in an investment this quarter and lower foreign currency losses as compared with the same period last year.
Net income attributable to fresh Tomanti was 42 million for the third quarter of 2024, compared with 8 million in a priori year, and adjusted as the P net income was 37 million compared with 17 million in the priori year.
adjusted FDP net income for the third quarter 2024, it includes the previously mentioned adjustments and the associated 2.3 million tax effect.
Speaker Change: Our diluted earnings per share were 88 cents in the third quarter, compared with 17 cents in the prior year.
I just did diluted earnings per share with 77 cents compared with 35 cents last year.
adjusted EBITDA for the third quarter with 68 million or 7% of net sales.
Compare with 50 million or 5% of net sales in the same quarter last year. This represents a solid improvement over the prior year period.
I will now go into more detail on the second quarter on the third quarter performance of our segments, beginning with our fresh and value at a product segment.
Next sales for the third quarter of 2024, where 624 million compared with 574 million in the prior year.
The increase in net sales was primarily a result of higher sales volume as well as higher pre-units selling prices in our avocado, pineapple, prepared food and fresh-cut fruit product lines.
Speaker Change: These increases were partially offset by lower net sales of vegetables due to lower sales volume as a result of strategic volume rationalization.
We are pleased to report that gross profit with 63 million compared with 36 million in the prior year.
The increase in growth profit was primarily driven by higher net sales and lower per unit production costs of pineapple and fresh fruit, partially offset by the negative impact of fluctuations in exchange rates, primarily a stronger Costa Rica colon.
Gross margin was 10.1% compared with 6.3% in the prior year.
This marks our second consecutive quarter delivering a double digit gross margin in this segment.
Gross profit for the third quarter of 2024 includes 0.2 million of other product related charges previously mentioned.
In our banana segment, net sales for the third quarter of 2024 were 345 million compared with 385 million in a prior year.
The decrease in net sales was primarily due to lower sales volume in our North America region, due to competitive market pressures, which we have discussed in prior quarters.
Additionally, lower self-volume in our Asia region were caused by a decrease in supply from the Philippines due to weather-related events.
Speaker Change: The decrease was partially offset by higher per unit selling prices in Asia, with resulting from the lower industry supply.
Speaker Change: Gross profit was 21 million compared with 32 million in the prior year and Gross margin was 6.2% compared with 8.3% in the prior year.
The decreasing growth profit was principally driven by lower net sales, higher per unit production costs, and the negative impact of fluctuations in exchange rates due to a stronger Costa Rica colon partially offset by lower per unit ocean freight costs.
Gross profit for the third quarter of 2024 includes .4 million of other product related charges previously mentioned.
In our other products and services segment for the third quarter of 2024, net sales were 51 million compared with 44 million in the prior year.
The increase in net sales was primarily driven by higher per unit selling prices in our poultry and meat business as well as higher net sales in our third party ocean freight services due to higher rates
Gross profit was 9 million compared with 6 million in the prior year and Gross margin was 18.2% compared with 14.2 last year.
Speaker Change: The increasing growth profit was primarily a result of higher-per-unit selling prices and lower-per-unit production costs in our poultry and meat's business.
Speaker Change: Now moving to selected financial data.
Our income tax provision with 8 million for the third quarter, compared with 4 million in the prior year.
Speaker Change: The increase was primarily due to increased earnings in certain higher tax jurisdictions.
Partially offset by the prior year tax effects related to the sale of stock of a subsidiary and asset sales in the Middle East and North America.
We expect our effective tax rate for the full year to approximate 20%.
Now let's turn our attention to our financial position, focusing on our net cash and capital spend for the quarter.
Next cash provided by operating activities for the first month of 2024, for the first nine months of 2024, was a 187 million compare with a 180 million in a prior year.
The increase was primarily due to higher net income during the first nine months, and proceeds received this quarter as a result of the termination of our interest rates swap.
The increase was partially offset by the impact of working capital fluctuations, primarily related to inventory.
Long-term debt decreased by 33% to 270 million at the end of the third quarter of 2024. Compare with 285 million at the end of the second quarter this year and 401 million at the end of the same quarter last year.
We have achieved the lowest levels of long-term deaths since the end of 2017. Demonstrating our dedication and commitment to maintaining a prudent capital structure and enhancing long-term value for our shareholders.
Speaker Change: By reducing our debt, our leverage ratio is not 1.01 times adjusted EBITDA.
As it relates to our capitalist expenditures for the first nine months, we invested 34 million compared with 41 million in a prior year. We expect capital expenditures for the year to be in the range of 55 to 60 million.
As announced in our press release, we declared a quarterly cash dividend of 25 cents per share, payable on December 6, 2024.
To share holders of record on November 14, 2024 On an annual basis this amounts to $1 per share, which represents a dividend yield of approximately 3.4%.
Speaker Change: As look for the year, I would like to provide an update on our expectations for the remainder of the full year 2024 by Business segment.
In our fresh and value-added segment, we anticipate that net sales for the full year to be...
In the range of 3-4% higher compared with the prior year. Primarily driven by our avocado, pineapple and fresh cut product, fresh cut fruit product lines.
Currently, our gross margin, we also expected to be in the range of 9 to 10% for the full year 2024.
Over time, as we improve the mix in this segment, we are confident in our ability to deliver double digit gross margins in the low teens.
Speaker Change: This positive trend on their scores are strategic focus and highlights the promising future of our fresh and value-added segment.
Speaker Change: To further improve our growth margin, we're in the process of implementing several strategic initiatives.
Speaker Change: Firstly, we're continuing to optimize our operations by consolidating facilities to reduce operational costs and improve margins. For example, as I shared earlier, we're consolidating three facilities in our Mampacking operation into one, which aims to reduce costs and enhance efficiency.
Speaker Change: and in the second quarter of 2024 in Japan, we consolidated two facilities into one.
We also completed an expansion of our fresh-coff facility in the UK this year, which has optimized our efficiency and improved our gross margin for this market
We continue to innovate and introduce new product offerings, particularly in our pineapple and fresh-cut fruit product lines.
and we're actively managing our production and procurement costs.
Regarding our banana segments, for the full year we reiterate a 5% to 7% decrease in sales volume and a 4% to 5% reduction in per unit pricing compared to prior year. These projections are consistent with what we shared with you last quarter.
Historically, the gross margin for this segment has been in the range of 5 to 7% and we believe this will be the range for this year as well.
Despite the challenges we've incurred this past year, it is essential for us to remain in this segment to serve our customers and maintain a solid market position. We recognize the importance of an NSS-A-Kee entry point into retail supermarkets.
which supports the visibility and sales of the other products in our portfolio.
Our expectations for the remainder of 2024 for the other products and services segment remain consistent with the results reported in the first nine months of this year.
Speaker Change: This concludes our financial review. We can now turn the call over to Q&A. Krista?
Thank you. We will now begin the question and answer session.
Krista: If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue.
and if you like to withdraw that question again, press star 1.
Your first question comes from the line of Mitch Penhearle with Stubiond and Company. Please go ahead.
Hello there, good morning everybody.
Morning. So I have a bunch of questions. I guess first, just that I appreciate the update on man packing.
Speaker Change: by Question Was.
Did I hear this right Monica, that you expect to say 15 to 20 million dollars? Or is it an increase in growth profit next year as a result of all these actions?
Correct, that's our estimate for next year based on the consolidation and reducing some of our product lines.
Now, didn't she guys already consolidate some of the man facilities in a year ago or two years ago, or am I, am I misremembering?
We did some consolidation, but this further consolidates three facilities into one and then we're selling some of the excess assets for the freshly farm operation.
Speaker Change: and...
Speaker Change: So, and in...
So you're going to have one facility.
At the end of all this, you'll have just one facility.
and O-E.
and all of this, all the savings or increasing risk profit, it's all due to this fixed cost consolidation. There's no other, there's nothing else going on there or is there.
Petch: Petch, fetch, good morning.
which we are used to have four to five facilities before the consolidation. We used to have...
across the Traffellitis Transportation and Logistics Course. We used to have inefficiencies. We used to have a very difficult situation with the supply chain. Now, as Monica just mentioned, we consolidated everything under one roof.
All our product lines will be producing one under one roof It will all the shipments will go from one location And that's why Monica just mentioned that we could expect 15 to 20 million dollars
and say this is going forward, which means going to the bottom line. And there's still room for growth, so this is basically, like you say, on overhead savings.
and this is what we expect on just that and there's still room for growth in the facility.
and then just one last question on that.
So that's just 10 to 20 million was for all 20, 25
is it sort of back-and-loaded or should we expect to see like you know even level you know four or five million dollars a quarter throughout the year how should we look at that.
Petch: [inaudible]
Petch: Mitch, but all alone it would be on Android basis.
Okay, and then you had a great quarter in the fresh and value added segment.
Speaker Change: and I'm curious, I haven't seen the queue yet, I guess we'll get that later today or but can you it looks like it was mostly a lot of it was pricing driven in the avocado pineapple fresh cut, I was curious what the volumes were.
and Alvacado Pineapple and Freshcut.
Speaker Change: The increase was also, it was actually very significant in volume driven. Pineapple volume, fresh cut volume, so it was both volume and pricing but significantly volume driven.
Okay, I'll have to wait till the year.
to the queue comes out. So I mean, is it half and half? I mean...
I mean, I'll try Merrillie Volume, primarily Volume.
Speaker Change: Okay, good, okay, thank you.
Speaker Change: and then...
The gross profit still double digit, it didn't decline to clenchily, is that just normal sort of product mixed seasonality that causes that?
Speaker Change: Yes, it's a narrative. If you go back to other Q3s, Q3 usually has a lot of competition from other fruits from summer fruits.
You know that are out there that people switch to so usually Q3 has a lower margin so we're very proud of the fact that we were able to achieve this margin this quarter because it's not an easy quarter.
Speaker Change: Right.
So should double digit gross profit in your fresh cut.
Speaker Change: like sort of the new bottom into their range.
Speaker Change: I believe so
and nothing for a bitch.
Okay, okay, and then I'm not obviously, you know, the business at your end there's a lot of variability.
but sounds like 10% on the bottom over time and then...
Speaker Change: He said, low teen gross margins, I hear that right? And it is a great value at it. Yeah, we are, we're, you know, over time.
Speaker Change: We strive to have in the low teens for the fresh and value added product segment
which obviously has a mix of different products and we're improving the mix.
As you can see by the improved margins.
Speaker Change: Yeah, Project Session Thank you.
Okay, okay, but it is.
Speaker Change: Does overtime is that I mean like shit?
Is that a long time or are we going to see like maybe hitting the high end of the range in a couple years Like not too far out or is that just a long term goal?
No, as we said, we are just like I mentioned in my, what I, I, I, I deserve to be very proud of Mitch.
We are at an NGO chapter in our business. Let's say...
Speaker Change: Algo.
Speaker Change: We are going into many new products, utilizing and leveraging our biomass and other areas that we are venturing in.
Speaker Change: That's the...
It's very promising, it would take its time to mature and to develop, but we are already initiated the process, it's already in motion Just like we started the fresh cut, you know, one tip last year is the goal.
That was zero business when we started now it's almost over 500 million dollars.
Business and that's the kind of trajectory that we are aiming for for other, the new businesses or the new initiatives that we are taking right now. So it might take a...
To see starting serious arts hopefully by end of 25 we'll see something and then going forward There will be a progress and development and of course further improvements in the margins and the air
Speaker Change: and I would like to say, hopefully that will be a...
Speaker Change: putting on the market.
And if I add to that, remember the man business, the fresh coverage to go. Business is in the fresh and value added product segments, so bye.
with the steps we're taking that will take out costs for 15 to 20 million annually in that segment. So that in itself will improve margins next year.
Speaker Change: Right?
and then you've done a very nice job innovating, you know, certainly on the pineapple side you can see it. But it does take a while to grow out these new...
Speaker Change: Innovative varieties.
Cal... Cal... Cal...
Speaker Change: We know obviously not disclose the amount of these new products but you know pineapples is like what a 625 million dollar business for you. Like what can you give us some sort of sense for like
Speaker Change: the sales level of the new products or where you think they could be in a year. I mean obviously they're very high margin for you. But where do you think the sales level of these new innovation?
We cannot put on this course such information, but we are very confident of our progress and like we said, you know, in general of things, our margins will be quite tight and like Monica said, it will be in the lottings goal forward.
So that can be our position.
Speaker Change: Okay.
Speaker Change: and...
Speaker Change: What would it come to?
the banana business and what I may have missed the outlook.
Speaker Change: Monica, when you gave is for the full year 2024 stales to be down 5% to 7% is that what I heard with most of that. Actually volume, sorry, it's volume. What I said was
Monica: I was my volume 4 to 5% 5% volume lower than last year and then 4% lower pricing
So in total it's 9 to 12% which is consistent with what we said last quarter.
The banana business, you know, I mean, he's done a nice job de-emphasizing the banana business like 10 years ago. I think it was almost 50% of sales.
Speaker Change: and it's closer to 35% now. So you've done a nice job of that.
Speaker Change: and not sacrificing a lot of gross profit.
Where was it?
Can you provide a little outlook on the banana business as far as...
Speaker Change: Baby, why consumption?
Just for main sluggish, you know, down a little bit, is there? Is it just, you have more fruit competition, or is there just, are we tiring on bananas as a civilization like why?
Speaker Change: Why are volumes down?
and maybe are we getting better at less waste?
and so you know, we need less volume. Can you talk about that a little bit?
The Baranan actually construction, maybe in some type of the year there was a dip in the construction but overall
The nanners are still consumed in very big volume and still a very important item in the supermarkets chest.
However, what you have to notice is that banana course has been climbing up over the last three four years, nonstop. I can tell you, you know, Ecuador for instance, the official price that the government have established.
For this year has been raised every year since the last three years have been raised on annual basis.
So, banana course is increasing.
English is not being increasing. If you look at the worldwide, if you look at the big macro picture.
and different parts of the world, you know, the Philippine has been hit by the disease, you know, the panom disease which is producing their production and their volume year over year.
The same thing in Ecuador now, they are having some issues with an existing shortage, power shortage, you know, water as well as being...
Speaker Change: Kind of lettering for four-gelars, few months.
and this is also impacting production. If you look at countries like Costa Rica, we can't grow any more bananas today.
Speaker Change: It's ready, you know, they land there it's uh
and there is one more to grow, what the amount of more or less in the same situation. So if you look at the math, well, why?
I predicted few years back that banana prices are the costal, but then it will become
Speaker Change: almost $20 and I still believe and I'm still sticking to my prediction that banana wake up to a point where it becomes really an expensive product to produce.
Speaker Change: So, I'm not too, you know, we and the property, we are very kind of rational, we look at our bottom line and we conduct our business accordingly.
So whether we can increase our volume, our volume, our volume base, our outlook and how we would like to...
and Omar Shalais, the fruit. I mean, it's easy to increase volumes by 2,300,000 a week, you know, in Toronto, America. But that means you have to sacrifice and compete on that which is not ours.
Objective is to maintain our trees or wormages or bananas.
Speaker Change: and increase our other products and other offerings with much higher margins than
Then Benenez and Portugal, but that does mean that we will get auto Benenez or forget Benenez. We might come back and...
and we have other areas in the world where we are growing which cannot disclose at this stage, but that will make a big difference in a couple of years from now.
Speaker Change: and then just a quick update where we are with some of your newer ventures, whether it's you know, fertilizer and things like that. Where are we on that?
Speaker Change: This was one of the best.
Our Kenya operation, you know, we started about three months ago our operation in Kenya and the bio-frictilizers planned there. We started producing products and trial basis now. We are using some of these products on our own plantation.
Before going to the market, it's very promising.
Speaker Change: Our partners Spain are very big help to formulating the products and registering on the different countries.
So we are very optimistic on that front, it will take some time but we are on the right track. Other projects that are undergoing as well, you know, we can.
Hopefully it's sometime next year we can start disclosing and...
and I'm updating you on the new projects that is in the pipeline.
Okay, that's all I have. Thank you.
Speaker Change: Ladies and gentlemen, that does conclude our question and answer session, and now I'd like to turn the conference back over to Mr. Mohammad Abu, Kazali for closing comments.
Thank you very much for joining us today and look forward to talk to you again on our next call. And happy good day. Thank you. Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation and you may now disconnect.