Q4 2024 Dole PLC Earnings Call
Welcome to the WPLC fourth quarter and full year 2024 earnings conference call and webcast. Today's conference is being broadcast live over the internet and is also being recorded for playback purposes.
Speaker Change: Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. For opening remarks and introductions, I would like to turn the call over to the Head of Investor Relations with Dole PLC, James O'Regan.
Thank you, John.
Welcome everybody and thank you for taking the time to join our latest earnings call.
Speaker Change: Joining me today is our Chief Executive Officer Rory Byrne, our Chief Operating Officer Johan Linden and our Chief Financial Officer Jacinta Devine.
During this call we'll be referring to presentation slides and supplemental remarks and these along with our earnings release and other related materials are available on the investor relations section of the Dole PLC website.
Speaker Change: Please note our remarks today will include certain forward-looking statements within the provisions of the Federal Security's Safe Harbor Law. These reflect circumstances at the time they are made and the company expressly disclaims any obligation to update or revise any forward-looking statements.
Speaker Change: Actual results or outcomes may differ materially from those that may be expressed or implied due to a wide range of factors, including those set forth in our SEC filings.
Speaker Change: Information regarding the use of non-GAAP financial measures may be found in our press release, which also includes a reconciliation to the most comparable GAAP measures.
Rory: With that, I'm pleased to turn today's call over to Rory.
Rory: Thank you James. Welcome everybody and thank you for joining us today as we discuss our results for the fourth quarter and full year 2024.
Rory: So, turning firstly to slide four, and a recap of key developments in 2024. Well, 2024 was another year of great progress and development for Dole PLC, with the business growing its position as the leading provider of fresh produce in the world.
From a financial perspective, we delivered a strong financial performance, exceeding our most recent adjusted EBITDA guidance by some $12 million, and continuing our solid growth trend over the last number of years.
Speaker Change: We've grown organically this year with good revenue and adjustability, but increasing on a like-for-like basis, driven by growth across our core business areas and categories.
Speaker Change: Throughout the year, we continue to place a high priority on capital allocation and managing our invested capital. We do take a disciplined, but also strategic and flexible approach to our investments. In the first quarter, we took the decision to capitalise on an opportunity to realise
Speaker Change: an excellent return on investment with the disposal of our 65% equity share in progressive produce for net cash proceeds of $100 billion, which we used entirely to repay debt.
Speaker Change: Then in the third quarter we agreed to deal to expand our shipping fleet with the addition of two vessels to service our east coast operation and provide a pathway for additional growth.
Speaker Change: This approach, combined with our strong operating performance, allows us to deliver significant cash generation in 24, driving a reduction in our net debt of over $180 million.
Speaker Change: Now, looking more closely at the full year figures for 2024 on slide 5, on a like-for-like basis, group revenue increased for the full year by 6.7% to $8.5 billion on adjusted EBITDA, increased 6.7% to $392 million.
Speaker Change: This was driven by a very strong performance in diversified fresh produce Americas, as well as growth in our fresh fruit segment, offsetting a very small decline in diversified fresh produce in May, which had been our strongest performing segment in 2023.
Speaker Change: On an adjusted basis, net income was $120.9 million dollars. On adjusted, diluted EPS was $1.27 per share and an increase of 2.4%.
Speaker Change: Finally, following another year of robust cash generation, we end 2024 with net debt of $637 million and net leverage of 1.6 times, putting us in a very strong financial position for 2025 and beyond.
Speaker Change: Turning now to slide 7 for our operational highlights and starting with the fresh fruit segment.
Fresh fruits.
Speaker Change: A strong close to the year, delivering $31.9 million of adjusted EBITDA in the fourth quarter to finish with a full year of $214.8 million.
Speaker Change: This was an increase of $5.9 million compared to $23 million, a result that was ahead of our own expectations.
Speaker Change: In North America, our business delivered good volume growth in bananas and plantains, in particular in the fourth quarter, continuing a very positive year-long trend and obviously supported by the increase in our shipping capacity from our recent investments.
Speaker Change: Additionally, in the European market, we continued our positive momentum and concluded an excellent year driven by the high volumes of bananas as well as by lower shipping costs.
Speaker Change: While we performed well in the marketplace in 2024, we were also faced with higher shipping costs into the U.S. due to the planned dry dockings of two of our vessels, as well as logistical issues of ports both in Latin America and the U.S., and some continuing price pressure in the commercial cargo space.
Speaker Change: On the supply side, while Peruth remained in a relatively good supply-demand balance throughout 2054, the relative tightness of Peruth has continued to put upper pressure on sourcing costs.
Speaker Change: This was accentuated for us at the end of the year by the impact of tropical storm Sarah, which affected an important acreage within our Honduran operations, and which we do anticipate having a notable short-term financial impact on our operations in the first part of 2025.
Speaker Change: As we look out into 2025, while the underlying fundamentals of the division continue to be in excellent shape, we will face some headwinds in the year to come, very active competition as well as sourcing issues, supply chain and foreign exchange movements.
Speaker Change: As always, our very experienced and knowledgeable management team are keenly focused on dealing with all of these challenges while also working to capitalise on further growth opportunities as they arise.
Speaker Change: So, moving on to the Diversified EMEA segment. This segment had a stable final quarter, ultimately delivering just an EBITDA of $131.5 million for the full year, a robust performance which was in line with our expectations and consolidating the excellent growth achieved in 2023.
Speaker Change: Diversify the May and delivered good like-for-like revenue growth at 24 and 4.4 percent. However, over the course of the year, the segment did also face some headwinds due to supply challenges, weather events and some entity-specific issues that mitigated growth at the margin level. More positively, as we look forward into 2025, we anticipate continued revenue growth.
Speaker Change: and coupled with targeted investments and the benefits of ongoing integration within this segment.
Speaker Change: We really are well positioned to increase profitability again on a like-for-like basis going into 2025. Trends for a diversified America segment. This segment delivered a stable find of water, consolidating a very strong year of growth on a like-for-like basis.
Speaker Change: excluding the impact of the progressive Rogers Disposal in the first quarter of 2024.
Speaker Change: This segment delivered a $22.3 million increase in adjusted EBITDA for the full year.
A fantastic performance.
Speaker Change: Early in 2024, the segment had seasonal climbing benefits within the Southern Hemisphere summer export season, and particularly in the important Chilean cherry business. However, as the year progressed, this segment consistently outperformed
Speaker Change: as our export business in particular continue to perform very well across a wide range of product and as our North American businesses continue to deliver strong growth especially in some of the important growth categories such as avocados.
Speaker Change: Looking ahead, as ever, the turn of the year in the Diverse Latin America segment coincides with the high point in activity in the Southern Hemisphere, summer export season. And so far, while the very strong profitability seen in the Chilean cherries in recent seasons may not persist at the same levels this season,
Speaker Change: It's also clear that the business remains in a good position to deliver on our expectations. As we look further out into the year, both for our export and North American businesses, we believe we can further consolidate the strong revenue growth we had in 2024 and build our base for further growth in the years to come.
Speaker Change: So turning to the fresh vegetables business, as we have noted on our most recent earnings calls, we are continuing to work on delivering the best strategic alternative for our vegetables business and that process remains ongoing.
Speaker Change: On the operational side, the improved results we've consistently seen in 24 continued in the fourth quarter.
Speaker Change: While we recorded an accounting adjustment to the carrying value of discontinued operations at year-end, on an underlying basis our vegetable business concluded an encouraging turnaround year in 2024, delivering positive cash flow on a full year basis.
Speaker Change: Overall, as we head into 2025, we are pleased that our corporate and divisional management teams have been successful in re-establishing an improved foundation for this business, and in doing so allow us to continue with a patient approach to ultimately deliver the best long-term outcome for all our stakeholders. With that, I hand you over to Jacinta to give the financial review for the fourth quarter and full year.
Jacinta: Thank you Rory and good day everyone. Firstly turning to the group results on slide nine.
Jacinta: Fourth quarter group revenue increased 4.6% with this growth driven by strong operational performance across all of our segments on a like-for-like basis excluding the impact of FX and the sale of progressive produce the increase was 10.8%.
Jacinta: For the full year, reported revenue increased 2.8% and on a like-for-like basis, revenue increased 6.7%.
Jacinta: Adjusted EBITDA decreased 2.9% in the quarter, however, on a like-for-like basis increased 3.7% or 2.8 million.
Jacinta: Fresh Fruits was the driver of growth in the fourth quarter.
Jacinta: For the full year, we are very pleased to deliver £392.2 million of adjusted EBITDA, an increase of 1.8% on 2023 and an increase of 6.7% on a like-for-like basis.
Jacinta: This result was ahead of our initial and revised guidance issued during 2024.
Jacinta: Looking at net income, the decrease in the fourth quarter was due to a loss of £61.2 million in discontinued operations, with significantly improved operating results offset by a non-cash write-down of the carrying value of the fresh vegetables division of £78.2 million net of tax.
Jacinta: As the Fresh Vegetables Division is accounted for under the Help for Sale Accounting Guidance, we are required to cease depreciation and amortisation from March 31st 2023.
Jacinta: up to December 31st 2024, the impact of this cessation of depreciation and amortization was 78.1 million and was the primary reason for the non-cash write-down.
Jacinta: On a full year basis, net income of £143.4 million was £12.3 million lower than prior year. The decrease was primarily due to the non-cash write-down of the carrying value of the fresh vegetables division as well as higher tax expense.
Jacinta: These decreases will partially offset by higher operating income due to strong underlying performance across the group, higher other income and lower interest expense.
Jacinta: On an adjusted basis, Adjusted Net Income increased 3% to $15.3 million in the fourth quarter and Adjusted Diluted EPS was $0.16 per share.
Jacinta: The increase was predominantly due to lower interest and appreciation expense, partly offset by lower adjusted EBITDA and higher tax expense.
Jacinta: For the full year, we are pleased to report a 2.4% increase in adjusted net income to £120.9 million, primarily due to the increase in adjusted EBITDA as well as lower interest and depreciation expense, partially offset by higher tax expense.
Jacinta: Adjusted diluted EPS for 2024 was $1.27 compared to $1.24 in 2023.
Jacinta: Turning now to the Divisional Updates for the fourth quarter of our continuing operations, starting with Fresh Fruits on slide 11.
Jacinta: The Fresh Fruit Division delivered another strong result in the fourth quarter to round out a good year with revenue increasing 9.4% and adjusted EBITDA increasing 10.8%.
Jacinta: The increase in revenue was due to higher worldwide volumes of banana sows, higher worldwide pricing of pineapples, and higher pricing and volume for plantains in North America.
Jacinta: These increases were partially offset by lower worldwide volumes of pineapples sold, lower worldwide pricing for bananas, and lower pricing and volume for plantains in Europe.
Jacinta: The adjusted EBITDA increase was primarily driven by higher revenue in bananas as well as lower fruit sourcing and shipping costs in Europe, partially offset by higher shipping costs in North America due to dry docking.
Jacinta: For the full year, revenue increased 5% and adjusted EBITDA increased 2.8%.
Now turning to Amiya on slide 12.
Jacinta: This segment delivered 5.5% revenue growth in the fourth quarter, driven by a strong performance in the UK, Spain and the Nordics.
Jacinta: partially offset by a net negative impact from M&A activity of 7.4 million. On a lag-for-lag basis, revenue increased 6.5%.
Jacinta: Adjusted EBITDA decreased 0.5% primarily due to decreases in the Czech Republic, South Africa and Ireland as well as an unfavourable impact from foreign currency translation of 0.2 million.
Jacinta: partially upset by a stronger performance in Spain and the UK. On a like-for-like basis, Ijustice Diva DA increased 0.3%.
Jacinta: Overall, a solid performance in 2024 from the EMEA segment, with lag-for-lag revenue increasing 4.4% and adjusted EBITDA increasing 1.9% on a lag-for-lag basis.
Jacinta: Now finally turning to diversified fresh produce Americas and rest of world.
Jacinta: As in previous quarters, this year, reported revenue decreased primarily due to the disposal of progressive produce in Q1.
Jacinta: Again, most of the decrease in adjusted EBITDA can be explained by the Progressive Projects Divestiture.
Jacinta: On a like-for-like basis, adjusted EBITDA decreased 2.2% or 0.3 million primarily due to a lower profitability in the Chilean cherry business, partially offset by continued good performance in North America, particularly in kiwi, grapes and avocados.
Jacinta: The segment delivered a very strong full year result on a like-for-like basis, with the revenue increasing 13% or £233.3 million, and adjusted EBITDA increasing 52.3% or £22.3 million.
Jacinta: Now turning to slide 14 to discuss our capital allocation and leverage. We remain ever focused on capital allocation and managing our leverage and are pleased that our leverage reduced further in the quarter to finish the year at 1.62 times.
Jacinta: The reduction was driven by a $95 million decrease in net debt compared to Q3.
Jacinta: Interest expense has continued to decrease compared to the prior year due to lower debt levels as well as lower base rates and was £18.1 million in the fourth quarter and £73.8 million for the full year.
Jacinta: Under an assumption that base rates will remain broadly stable in 2025 and not assuming any exceptional cash proceeds, we expect full year interest for 2025 to be approximately £70 million.
Jacinta: Net cash provided by operation activities from continuing operations was $262.7 million in 2024.
Jacinta: As anticipated, we continue to see a positive inflow in working capital in the fourth quarter and this was accentuated by some seasonal timing benefits at the year end.
Jacinta: Cash capital expenditure from continuing operations was $25.6 million for the quarter and we added a further $4.6 million of assets by way of finance lease.
Jacinta: For the full year, total capital additions were £135.7 million, which was in line with our latest guidance.
Jacinta: This was made up of cash capital expenditure of 82.4 million and we added a further 53.3 million of assets by way of finance lease including the two shipping vessels mentioned on our last earnings call and which we purchased outright in early 2025.
Jacinta: Free cash flow from continuing operations was $180.3 million for the full year.
Jacinta: Free cash flow benefits from strongly adjusted EBITDA performance and good working capital management across the group over the course of the year
Jacinta: Continuing with our commitment to return cash to shareholders, we are pleased to declare a dividend of 8 cents to the fourth quarter, which will be paid on April 3rd 2025 to shareholders on record on March 20th 2025.
Jacinta: Now I'll hand you back to Rory, who will give an update on our full year outlook.
Rory: Thanks Jacinta. So we're very pleased with the group's exceptional performance in 2024 delivering 392 million dollars of adjusted EBITDA for continuing operations, a result that exceeded our own expectations and a result that we believe gives us a strong platform to continue our momentum in the 2025 financial year.
Jacinta: As we take a more focused look at 2025, while we continue to see excellent opportunities for our business, we will also face some challenges and uncertainties this year.
Jacinta: For most multinational businesses, the quickly evolving geopolitical environment is adding increased uncertainty in areas including regulation, foreign exchange rates and of course the potential impact of any tariffs or other changes to international trade structures on sourcing costs and supply chains.
Jacinta: In this regard, our management teams are keenly focused on preparing for as many eventualities as possible, while also continuing to promote the critical benefits of the fresh produce industry in supporting shared global goals towards enhancing health and wellness.
Jacinta: For our own operations, we will face a known short-term headwind in 2025 following the impact of Tropical Storm Sarah on our Honduran operations in November.
Rory: With that in mind, given our excellent finish to the 2024 financial year, which did exceed our expectations, at this early stage of the 2025 financial year, our goal is to deliver a full-year adjusted EBITDA in the range of $370-$380 million.
Rory: Turning to the investment side, we are pleased that we were able to make some important strategic investments in 2024.
For 2025, we expect...
Thank you.
as a baseline type of maintenance.
Rory: level of CapEx from continuing operations, broadly in line with our depreciation expense of approximately $100 million.
Rory: In addition, we continue to explore a range of development opportunities which, if executed, will strengthen our business and continue to drive further growth in the years to come.
Rory: In conclusion, we're very pleased to continue to enhance our track record with another year of strong financial results.
Rory: We have an excellent group of people right across the group and a huge thank you to everyone for their ongoing commitment and dedication to drive Doe PLC forward, as well as to our important suppliers and customers for all their ongoing support. With that, I'll hand you back to the operator and we can open the line for questions.
Rory: Thank you. We will now begin the question and answer session. If you are dialed in and would like to ask a question, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking the question.
Speaker Change: Your first question comes from the line of Christopher Barnes with Deutsche Bank. Please go ahead.
Christopher Barnes: Good morning, good afternoon. Thanks for the questions. First, could you just unpack the EBITDA guidance? You're calling for a 4% decline at the midpoint, but I'm just wondering how much of that decline is attributed to known headwinds like the impact from Sarah and difficult comparisons versus 24 versus...
Rory: just added conservatism in the context of the macro geopolitical climate. And just any color you can share by segment and cadence first half or second half would be particularly helpful. Thanks.
Rory: Yeah, thanks Chris. Obviously it's a couple of big things. First of all, it's very early in the year to be giving full year guidance. I think secondly, we're in a world that's increasingly difficult to predict. While we haven't built in anything specific around the potential major macro geopolitical or economic issues that can arise, I think they do create a little bit of uncertainty and negativity around the world generally.
Rory: I think you look back over the last few years, we've had a really, really strong track record in, you know, right post IPO or continuing operations of 22, 23 and now 24.
Rory: I'll show, you know, the ability to weather whatever storms are thrown at us and, you know, we come out at the end of the year with a pretty good result.
Rory: In 2024, as you know, Chris, we took the number down to 360 on the basis that we simply subtracted off the piece of the business that we sold in progressive budgets to come in with a 392 results for 2024. It was a really, really strong record year for us and a really very positive year.
Rory: I know from an analyst's perspective sometimes that's a benchmark that people would like to grow from, but you know the way we look at it is we've had a good year, we take the opportunities that are there and it was a little bit better than we might have expected.
Rory: We do have the specific headwinds that we have referred to, Honduras in particular, you know, it's just, it creates complexity around.
Rory: We source alternative food from the shortfall in Honduras, it causes some dislocation in our shipping schedules and dislocations of containers, so it's a little bit, a little bit, um...
Rory: more complex than just losing short-term the fruit. We had a ship break down on the west coast as well, it was a little bit unhelpful. We've got some fruit on the the mask ship that broke down on its way to China as well, with 65 containers of cherries on that, although we believe that's between insurance proceeds that it will be covered too.
Rory: Certainly, there are some short-term headwinds, not any different or greater than we've faced over the past, and we work our way through them. I don't think they're structural, they're not fundamental to our business, but we have to work our way through them.
Rory: Foreign exchange as well has also been complicated. The dollar, as you know, strengthened quite radically post the election.
Rory: And the timing of when that happened wasn't perfect for us in terms of some contract negotiations and taking a guess at what the price might be based on specific exchange rates and the dollar strength even further from some of those negotiations.
Rory: The rest of the world and the American divisions have highlighted, you know, to dispose of
Rory: the progressive business of 24 million dollars and come in with a four-year result ahead of the 23-year number is really an exceptionally good performance. So it's just in that division everything went particularly right for us and we're very pleased with that.
Rory: Although we do expect that 2025 will be a more normal year with the normal ups and downs. A good year, but it'll be a more normal outcome on particularly products like cherries and grapes.
Rory: will certainly impact the early quarters, in particular quarter one. So I think you'll see over the course of the year a slower start to the year and a more balanced phase over the complete full year of 2025.
Rory: So, I think that's all of your guidance, Christopher, unless you've got any follow-up questions.
Christopher Barnes: No, no, that's helpful. My follow-up is just around tariffs. I know it's a shifting target, but maybe you could just help us think about
Speaker Change: some of the, like, the mitigation strategies and contingencies you guys are evaluating, putting into place, like, is there any, do you guys have any ability to?
Rory: like go back, I know you mentioned the contract renegotiation post-election with the dollar movement were not necessarily favorable, but like if tariffs get in place, like do you have ability like to go back to those contracts, like
Rory: or take additional pricing, do you have alternative sourcing? You could look at productivity. I'm just trying to think through the levers that you guys have at your disposal.
Rory: Yeah, I think, you know, in micro terms, you know, what we supply into the North American market and it's healthy food, food and veg. Generally speaking, the products that the U.S.
Rory: can't produce themselves or can't produce at that particular time. So you look at bananas and pineapples for example, they're in a tropical climate which the U.S. doesn't have so you know we believe that bananas and pineapples will continue to be consumed in appropriate quantities by Americans and you know I think everybody will want that to be the outcome.
Rory: export sources are complementary to U.S. sources. So again, we think that people will want to have grapes all year round.
Rory: products like fresh fruit and veg and that they can and somehow that the exceptions to products that don't have any particular impact on the American economy.
Rory: Ultimately, we think it can go as low as it has to. It can have any kind of material impact, a tariff, when people want to continue to consume the products, it has to be to price.
Rory: But there are so many variables and it's so difficult to predict, you know, we can control some things. We lived through a previous Donald Trump regime and we managed our way through that perfectly well. So, let's see.
Very good. Thank you very much.
Thank you Christopher.
Speaker Change: Your next question comes from the line of Gary Martin with Davey. Please go ahead.
Gary Martin: Hi all, congrats on a strong set of results. Just a few from me, kind of related.
Speaker Change: Just maybe starting on capital allocation and your viewpoint there, I mean you made some really solid progress with regards to the leveraging.
Speaker Change: during the year. Is the idea to continue to focus on the leveraging or is there some degree of flexibility for we'll say, you know, kind of targeted M&A and a go-forward basis?
Speaker Change: Yeah, yeah, thanks Gary and I mean obviously the whole question of capital allocation is
Speaker Change: very high up on our agenda when we examine all the potential returns around us.
Speaker Change: with a couple of big strategic questions that we'd like to answer get answered first before we make any major different or unusual steps in relation to capital allocation and obviously the you know the potential uh disposal of the veg division is at the top of the list in terms of you know what the outcome of that can change our focus our perception our ability to to reallocate capital in a different direction so we'd like to get that off the table quickly.
Speaker Change: Acquisitions, you know, we have our own internal corporate finance department. We continue to look at the opportunities that are out there. There is no doubt, though, that there continues to be a differential between the private market's expectation in terms of value. We are seeing in some cases, you know, the cycles of
Speaker Change: no PEs trying to exit. There will continue to be a lot of inter-fund trading taking place and less so between ponds and trade buyers so you know keep our eyes on that and there are some interesting opportunities in that space but it very much depends on.
Speaker Change: achieving prices that will add to our business and add value to our shareholders.
Speaker Change: The Dividend is something that's constantly under review and we'll have a look at that again in the 2025 context. And then, interestingly and from a very positive perspective, we do actually have a lot of internal development projects on the agenda. We're always looking at projects, whether it's...
Speaker Change: We're expanding some of our plantain and banana production to some of our important JVs in Guatemala and in Ecuador. Our Chilean JV, El Parque, is looking at some interesting expansion in certain products and we're looking at supporting that as well.
our core business we've been slowly developing.
Speaker Change: a significant logistics capability up in Scandinavia and there may be some further interesting opportunities that might involve a reasonably significant investment and we've been open-minded looking at those.
Speaker Change: with some smaller investments in our existing business, expanding our Irish footprint, expanding our Spanish footprint, looking at building our export business and strengthen our position in Peru and other grapes or avocados or berries, our fresh fruit businesses, you know, slowly building up its footprints directly in plantains and mangoes and limes.
Speaker Change: And I think that's something that if we go back to our previous life and Toggle projects, we did periodically undertake buy-back programs, and we keep an open mind, we keep it on review, and in the context of those issues, we will take the appropriate decisions.
Speaker Change: Excellent, a very very thorough answer and I think you beat me to it. I was going to ask about some of the internal projects as a follow-on but maybe just as a second question just to focus on diversified media for a second.
Speaker Change: I mean, you call out some degree of profit weakness just across.
Speaker Change: the Netherlands, just across some of Mainland Europe effectively. And I believe, Jacinta, as part of your remarks, I mean it was kind of deemed that you kind of company-specific issues, but I mean it'd be good to get a little bit further colour on whether you expect this to persist.
Speaker Change: I think you look at our AMEA division and it covers from Spain to Italy, Germany, Netherlands, Czech Republic, Scandinavia, Ireland, the UK. There's different wholesale businesses, food service businesses, retail businesses, writing businesses. So we've a range of activities and you do get some ups and downs within those businesses. It's an interesting opportunity
Speaker Change: develop a bit more in the countries like France for example. We're doing the integration process between the Legacy Dole and Legacy Total projects are working very well, the partnership teams are combining very well to build on the combined strengths.
Speaker Change: So, you know, there's a few ups and downs there, and we call them out, but I don't think, you know, strategically there's nothing that we've got anything there that have any great concern to us, and probably more opportunity than challenge.
Speaker Change: That's really helpful. And then maybe just one final question just on diversified Americas and rest of world.
Speaker Change: You call that strong performance, particularly across kiwis, grapes and avocados.
Speaker Change: and maybe just listening to the peers, it seems as though avocado pricing has actually gone up quite a fair bit. And maybe with tariffs in mind as well, is there any degree of elasticity risk if there's further pricing across some of those higher value product categories? Thanks.
Speaker Change: Yeah, I mean, you can be negative and say yes, you know, we've got some carbs going in, but obviously Mexico is a huge supplier of avocados into the North American market.
Speaker Change: But I don't think that the U.S. is really going to focus on products that have no impact on American production.
Speaker Change: You know, if you don't have meaningful avocado production in the U.S., again, it needs a minimum of subtropical farmers, which the U.S. is very limited in subtropical production capabilities. So, I think that I find it's an acceptable balance over time as well.
Excellent. That's really, really good, Colin. I'll pass it on.
Speaker Change: As there are no further questions at this time, I would like to turn the call back over to Rory Byrne for closing remarks.
Rory Byrne: We look back at 2034 as a really strong record year for us, and it adds to a very, very strong record now post-IPO in the middle of 2021, so we've three full financial years in 2022, 2023, 2024, where we've consistently grown and strengthened the business.
Rory Byrne: I'm sure there's lots of challenges and complications out there in the world, but we've got a very experienced management team who've lived through ups and downs and many challenges over the years and in many cases see plenty of opportunities for us for the future.
Rory Byrne: with a good focus on all aspects of the business, operationally, financially, strategically, and we think we're well positioned to move forward in a good way. So thank you very much, everyone, for joining us today.
Rory Byrne: This concludes today's conference call. Thank you for participating. You may now disconnect.
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