Q1 2025 Balchem Corp Earnings Call
Yeah.
Speaker Change: Greetings and welcome to <unk> first quarter 2025 earnings conference call.
Speaker Change: At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
Speaker Change: If anyone should require operator assistance. Please press star zero on your telephone keypad.
Speaker Change: A reminder, this conference is being recorded.
Speaker Change: Now my pleasure to introduce your host Lauren Thanks, Dan CFO. Thank you you may begin.
Martin Bengtsson: Thank you Matt Good morning, everyone. Thank you for joining our conference call. This morning to discuss the results about <unk> Corporation for the quarter ending March 31, 2025. My name is Martin Bengtsson Chief Financial Officer hosting this call with me is Ted Harris, our chairman President and CEO.
Speaker Change: Following the advice of our counsel auditors and the FCC at this time I would like to read our forward looking statement statements made in today's call that are not historical facts are considered forward looking statements. We can give no assurance that the expectations reflected in forward looking statements will prove correct.
Speaker Change: Various factors could cause actual results to differ materially from our expectations, including risks and factors identified in <unk>. Most recent Form 10-K, 10-Q, and 8-K reports the company assumes no obligation to update these forward looking statements today's call and commentary also include non <unk>.
Speaker Change: GAAP financial measures. Please refer to the reconciliations in our earnings release for further details.
Speaker Change: I will now turn the call over to Ted Harris, our chairman President and CEO.
Ted Harris: Thanks, Martin Good morning, and welcome to our conference call. We were very pleased with the financial results for the first quarter of 2025, which continued the positive momentum from the strong 2020 for performance and kicked off the new year, when our very healthy footing.
Ted Harris: We delivered record first quarter consolidated sales adjusted EBITDA and adjusted net earnings with year over year sales and earnings growth in all three of our reporting segments. We are pleased that each of our segments performed well with encouraging ongoing recovery in our animal nutrition and health.
Ted Harris: Segment.
Ted Harris: Before we get into more detail on the quarter I would like to reflect for a few minutes on the global trade environment that is evolving around us.
Ted Harris: As I mentioned on the last call. We believe we are relatively well positioned to effectively manage through the changing global trade environment.
Ted Harris: We have several advantages of note, including an intra region manufacturing and sales model, where approximately 85% of the company's sales are manufactured in the same region, where they are sold.
Ted Harris: Our global supply chain with little reliance on China.
Ted Harris: A robust U S manufacturing footprint and at the same time, we have strong free cash flows and a solid balance sheet.
Ted Harris: We are however monitoring the situation very closely given the broad reach and impact U S. Trade policies have on various trade flows and macroeconomic conditions. While this situation is multifaceted. There are three primary areas of impact that we are watching closely the first is the impact.
Ted Harris: Act on our raw materials consumed in the U S that we procure from outside the U S to Dimensionalize. This area of impact we import approximately $100 million of raw materials annually into the U S with less than 15 million coming from China, and approximately $5 million.
Ted Harris: Coming from each of Canada, and Mexico, and the rest coming from a myriad of countries around the world with little concentration in any one country.
Ted Harris: Current tariff rates would suggest approximately $20 million of impact to us.
Ted Harris: After exemptions such as the U S is recognition of the United States, Mexico, Canada agreement or a U S. M. C. A we believe that we will offset approximately half of this impact by shifting to alternate raw material sources and or production facilities and the other half will be.
Ted Harris: All sat through pricing actions, we will rely on our strong market positions to raise prices where necessary to offset the unmitigated impact of tariffs just as we effectively did during the post COVID-19 inflationary period that is still in the not too distant rearview mirror.
Ted Harris: Additionally over the last few months, we have built extra inventory of many of these imported products in anticipation of this situation and to provide ample time for us to respond appropriately.
Ted Harris: The second area of impact focuses on other countries as responses to the U S tariffs and the impact those responses could have on our approximately $90 million of exports annually from the U S to countries around the world today, given current tariffs placed on us.
Ted Harris: Goods by those countries, including exemptions like U S. M C. A the impact is immaterial for Balco.
Ted Harris: A robust multi country internal manufacturing supply chain benefits us in this situation as we are able to make a number of products. Both in the you're in Europe, and the U S, which we can leverage to the benefit of our customers. The third area of impact is the potential impact.
Ted Harris: On overall demand in our various markets as a result of potential recessionary conditions that may result from prolonged or increased trade disputes. This is obviously a much more difficult picture to clarify given all of the uncertainties, but balcom has historically managed relatively well.
Ted Harris: Through these kinds of environments and our expectation is that we will do so once again.
Ted Harris: At the moment demand remains relatively healthy across our end markets has attested by our strong Q1 results, but this situation could change if the current global trade environment worsened significantly we believe the strength and resilience of our business model will undoubtedly serve as well.
Ted Harris: As we move maneuver through the changing global trade environment and uncertainties that are impacting markets today in.
Ted Harris: In summary, based on where things are today, the direct impact on our raw material imports, while impactful is manageable with our supply chain and pricing actions are exports continue at this point essentially unencumbered by the tariff related responses from other nations and we remain NIM.
Ted Harris: <unk> and flexible to adjust accordingly, as market conditions evolve over the coming weeks and months.
Ted Harris: Now regarding the first quarter of 'twenty 'twenty Fives financial performance. This morning, we reported record first quarter consolidated revenue of $251 million, which was 4.5% higher than the prior year quarter.
Ted Harris: GAAP earnings from operations for the first quarter were higher by 22.4% versus the prior year and we delivered record quarterly adjusted EBITDA of $66 million, an increase of 8.9% with an adjusted EBITDA margin of 26.5% up.
Ted Harris: 106 basis points from the prior year.
Ted Harris: Solidago net income closed the quarter at $37 million, an increase of 27.8% there.
Ted Harris: This quarterly net income translated to diluted net earnings per share of one dollar and 13 cents on a GAAP basis up 24 cents or 27% compared to the prior year.
Ted Harris: On an adjusted basis, a record first quarter adjusted net earnings were $40 million, an increase of 19.2% from the prior year, which translated to one dollar and 22 cents per diluted share up 19 cents or 18.4 per se.
Ted Harris: <unk> compared to the prior year.
Ted Harris: Overall, another very strong quarter for balcom, which as I said earlier kicked off the new year on a very healthy footing I'm now going to turn the call back over to Martin to go through the first quarter consolidated financial results for the company and the results for each of our business segments in more detail.
Martin Bengtsson: Thank you Ted.
Martin Bengtsson: As Ted mentioned overall, the first quarter was a great quarter for Biochem were record sales earnings from operations and adjusted EBITDA are.
Martin Bengtsson: Our first quarter net sales of $251 million were 4.5% higher than prior year driven by strong performance in all three segments human nutrition, <unk> health animal nutrition, <unk> health and specialty products.
Martin Bengtsson: Our first quarter gross margin dollars or 88 million up eight 2% compared to the prior year and our gross margin percent was 35.2% of sales up 120 basis points compared to the prior year.
Martin Bengtsson: The increase in gross margin percent was primarily due to a favorable portfolio mix.
Martin Bengtsson: Consolidated operating expenses for the first quarter were $37 million as compared to $40 million in the prior year. The decrease was primarily due to lower amortization expense and a decrease in compensation related costs, partially offset by higher professional services.
Martin Bengtsson: GAAP earnings from operations for the first quarter were a record of $51 million, an increase of 22.4% compared to the prior year.
Martin Bengtsson: On an adjusted basis as detailed in our earnings release. This morning, non-GAAP earnings from operations of $56 million were up 13.8% compared to the prior year.
Martin Bengtsson: Adjusted EBITDA was a record of $66 million, an increase of eight 9% compared to the prior year with an adjusted EBITDA margin rate of 26.5%.
Martin Bengtsson: Net interest expense for the first quarter was $3 million, a decrease of $2 million compared to the prior year, driven primarily by lower outstanding borrowings.
Martin Bengtsson: Sequentially, our net debt remained at $140 million with an overall leverage ratio on a net debt basis of 0.5.
Martin Bengtsson: The effective tax rates for the first quarter of 'twenty, 'twenty, five and 'twenty 'twenty, four were 22.7% and 21.3% respectively. The.
Martin Bengtsson: The increase in the effective tax rate from the prior year was primarily due to lower tax benefits from stock based compensation.
Martin Bengtsson: Consolidated net income close to quarter at $37 million up 27.8% from the prior year.
Martin Bengtsson: This quarterly net income translated into diluted net earnings per share of $1.13 and.
Martin Bengtsson: An increase of 24 cents compared to the prior year.
Martin Bengtsson: On an adjusted basis, our first quarter adjusted net earnings were a record of $40 million, an increase of 19.2% from the prior year, which translated to one dollar and 22 cents per diluted share.
Martin Bengtsson: Cash flows from operations were $36 million with free cash flow of $31 million and we closed out the quarter with $50 million of cash on the balance sheet.
Martin Bengtsson: As we look at the first quarter from a segment perspective, our human nutrition and health segment generated record sales of $158 million, an increase of three 7% from the very strong results in the prior year, primarily driven by higher sales within both the food ingredients and solutions.
Martin Bengtsson: <unk> businesses and the nutrients business.
Martin Bengtsson: Our human nutrition, and health segment delivered record quarterly earnings from operations of $38 million.
Martin Bengtsson: An increase of 14.2% compared to the prior year.
Martin Bengtsson: This was primarily driven by the aforementioned higher sales and a favorable mix.
Martin Bengtsson: First quarter adjusted earnings from operations for this segment were $41 million, an increase of six 2%.
Martin Bengtsson: We're very pleased with the overall performance of our human nutrition and health segment, where we continued to experience solid and consumer demand.
Martin Bengtsson: As anticipated we are seeing healthy growth once again across our food ingredients and solutions businesses as well as continued growth of our nutrients business.
Martin Bengtsson: There is still demand volatility and uncertainty in the market. We remain confident that our strong market position will enable us to continue to deliver growth in human nutrition and health.
Martin Bengtsson: Our animal nutrition, and health segment generated quarterly sales of $57 million, an increase of six 2% compared to the prior year the.
Martin Bengtsson: The increase was driven by higher sales in the ruminant species markets.
Martin Bengtsson: Partially offset by modestly lower sales in the mono gastric species markets.
Martin Bengtsson: Animal nutrition and health delivered earnings from operations of $5 million, an increase of 154.2% from the prior year.
Martin Bengtsson: The increase was primarily due to the aforementioned higher sales and favorable mix.
Martin Bengtsson: First quarter adjusted earnings from operations for this segment were $5 million an increase of 126.5%.
Martin Bengtsson: We were once again pleased to see our animal nutrition and health segment deliver both top and bottom line growth in the first quarter and a continuation of the steady recovery in the business that has occurred since Q3 of last year.
Martin Bengtsson: This improvement is primarily due to healthier and healthier dairy market conditions.
Martin Bengtsson: And continuing strength of our flagship rumen protected choline brand reassure.
Martin Bengtsson: Further supported by the commercial launch of our immuno short XL product, which has been well received by our customers.
Martin Bengtsson: We believe the animal nutrition and health business has good momentum and is well positioned to deliver solid growth in 2020 five.
Martin Bengtsson: Our specialty products segment delivered quarterly sales up $33 million, an increase of five 3% compared to the prior year driven by higher sales in both the performance gases and plant nutrition businesses.
Martin Bengtsson: Specialty products delivered quarterly earnings from operations of $10 million, an increase of 16.9% versus the prior year, primarily driven by lower operating expenses and the aforementioned higher sales.
Martin Bengtsson: First quarter adjusted earnings from operations for this segment were $11 million an increase of 12.7%.
Martin Bengtsson: We're very pleased with the performance of specialty products in the first quarter, both from a sales growth and margin perspective and.
Martin Bengtsson: And we expect healthy demand, particularly in our performance gases business to drive another year of growth for the specialty products segment. So overall, the first quarter was another solid quarter for Balco.
Ted Harris: I'm now going to turn the call back over to Ted for some closing remarks.
Ted Harris: Thanks, Martin once again, we are very pleased with our first quarter financial results reported earlier. This morning as a company. We continue to show an ability to deliver results in a variety of market conditions, given our strong market positions in our value added portfolio of products and we remain confident in the law.
Ted Harris: Long term growth outlook for the company.
Ted Harris: The evolving global trade environment provides yet another chance for us to show the resilience and strength of our business model as mentioned earlier, we believe we are well positioned but we will remain nimble and flexible so that we can adjust accordingly as these uncertain market conditions evolve.
Ted Harris: I will now hand, the call back over to Martin who will open up the call for questions. Martin. Thank you. Ted. This now concludes the formal portion of the conference at this point, we will open up the conference call for questions.
Ted Harris: Thank you will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Ted Harris: You May press star two to remove yourself from the queue.
Ted Harris: All participants using speaker equipment, it may be necessary to pick up your handset before persons donkey.
Ted Harris: One moment, please pull for questions.
Speaker Change: First question here is from Robert Lubbock from P. J S Securities. Please go ahead.
Speaker Change: Hi, This is will on for Bob I, Congrats on the strong quarter.
Ted Harris: Alright, Thank you out.
Speaker Change: I know, it's hard to clarify the second derivative impacts of tariffs and the trade war, but could you add some color to that you know what impacts you are anticipating and where your domestic spas.
Speaker Change: Yeah, I'd say, obviously, a very relevant question and why we spend a fair amount of time in the prepared remarks talking about of tariffs I mean overall as we said, we really feel like we're very well positioned and.
Speaker Change: And as is typical we feel very good about the things that we can control and and obviously, we do import raw materials from outside the country in order to manufacture products within.
Speaker Change: The U S and those raw materials are a subject to tariffs, but we feel very confident that we have the supply chain.
Speaker Change: Flexibility and levers to pull where we can as we said offset at least half of those cost impacts.
Speaker Change: Really based on everything.
Speaker Change: Everything that we see today plus could imagine could happen going forward and then we obviously have a strong market positions and ability to raise prices if necessary and we believe that that we certainly can do that as well and and.
Speaker Change: You know, we specifically mentioned.
Speaker Change: The post Covid inflationary period, where we were very very pleased with how we were able to raise prices you know dollar for dollar as costs went up and so.
Speaker Change: We view our ability to do that is very high so again I put this all in the in the area of being able to control.
Speaker Change: The the outcome of of the impacts on our raw materials and feel very very confident around that I think you know where we feel less confident is around the potential of the evolving trade environment impacting global growth global demand in specific.
Speaker Change: Impacts on various.
Speaker Change: Markets and we're certainly not seeing that today are our order book looks very health healthy and demand appears to be continuing as it as it did in Q1 than.
Speaker Change: Before that so we're seeing no signs of that but that is somewhat out of our control and.
Speaker Change: And so that's probably the area, where we have the most concerns but we also.
Speaker Change: Look at these kinds of environments as something we've been through before.
Speaker Change: This is a the 23rd consecutive quarter, where we've.
Speaker Change: Announced earnings with year over year growth in adjusted EBITDA, and if we think about.
Speaker Change: What the world's been through in the last 23 quarters with with Covid post Covid inflation and so forth then and we tend to operate quite well and those kinds of environments and even if you step back and look back at 2008 and those sorts of recessionary.
Speaker Change: At times, we've always performed quite well given our.
Speaker Change: Our product portfolio in the markets that we serve so.
Speaker Change: Again, the things that we can control, we feel quite confident around in and those that that we don't we have to watch carefully but of course, we've performed quite well in those environments as well on a relative basis, hopefully that gives you a little bit more color.
Speaker Change: That does thank you and then just one more.
Speaker Change: Oh do you have an update on the potential European Chinese dumping ruling and how does the world economic chaos in Baghdad.
Speaker Change: So we do not have an update we have we have filed an anti dumping anti subsidy case. It has been accepted by the EU and they are reviewing it.
Speaker Change: And we are expecting some sort of response from from the EU in the next let's say three to six months.
Speaker Change: We feel as though our cases is a quite solid but we really don't have any.
Speaker Change: Feedback from the EU at this time and what we're hearing from the market and this might be more speculation than than fact is that.
Speaker Change: The current global trade environment really shouldn't have an impact on the the he use.
Speaker Change: Settlement of these kinds of very specific product by product our allegation. So.
Well I think that's a very good question and a relevant question that we have had ourselves we've been somewhat assured by others.
Speaker Change: Others going through similar cases that that this should stand on its own and not necessarily be impacted by.
Speaker Change: The the current trade environment, but.
Speaker Change: Let's say, let's see how it goes hopefully on the next call we might have an update if it's not on the next call it.
Speaker Change: It should be certainly by our by the third quarter call.
Speaker Change: Thank you.
Speaker Change: Thanks, a lot.
Speaker Change: Our next question is from Ram <unk> from H C. Wainwright. Please go ahead.
Ram: Thank you very much for taking my questions and congratulations on the excellent operational performance I was wondering if you could comment on the following two aspects relating to the state of the business and what you anticipate to be the most significant tailwind for 2025, firstly with respect to our sub segments of H N H.
Speaker Change: But in particular.
Ram: Oh flow and K two delta fermented.
Speaker Change: Are you seeing you know emergent trends with regard to uptake.
Speaker Change: Inclusion for example for vital choline pro flow in multi vitamin preparation that lead you to believe that those two products might drive outperformance over the course of the remainder of 2025.
Speaker Change: Also with us.
Speaker Change: Tomorrow question for Martin you know given the.
Speaker Change: Recent currency fluctuations the extent to which you anticipate.
Speaker Change: Foreign currency appreciation against the U S. Dollar is likely to be a tailwind from an earnings reporting perspective for you.
Speaker Change: Okay. Ron that's a great you were cutting in and out just a little bit, but I think we got the essence to your two questions one around the the tailwind and some of those new product launches as well as the currency and I'll leave currency to tomorrow.
Speaker Change: Martin.
Martin Bengtsson: But certainly choline as a category for us and vitamin K two as a category for us.
Speaker Change: And as for <unk>.
Speaker Change: And we see through Nielsen data that that demand.
Speaker Change: Is in fact growing for vital.
Speaker Change: Choline and choline generally speaking are we like to take a bit of credit for that with our marketing efforts and awareness efforts are to the market as a whole and certainly our growth of that product line broadly not only by the choline product flow.
Speaker Change: You mentioned is growing at double digits grew at double digits and and.
Speaker Change: In Q1, and we're very optimistic around continued escalation of growth Avaya choline is something that really just starting to introduce to the marketplace and.
Speaker Change: So we don't have a whole lot of sales to date for that product, but the broad category and in the kind of the breadth of the awareness that we're driving is in fact showing up in Nielsen data and in our own results.
Speaker Change: Certainly a tailwind.
Speaker Change: And then K two is is similar Nielsen data would suggest that the specialty vitamin K two is growing at very strong double digits.
Speaker Change: Our sales in 'twenty 'twenty four we're up 30 plus percent in and vitamin K two and it continues to be a fast grower in our portfolio again K to delta fermented as a new add to our portfolio, but one where we're excited about and <unk>.
Speaker Change: Generally speaking our nutrients portfolio I mean, we had a you know a.
Speaker Change: Blow out a quarter first quarter of 'twenty 'twenty four and we were very pleased that we were able to deliver some growth.
Speaker Change: Over that a blowout performance last quarter, and we expect really healthy growth in that portfolio as well, but but the other tailwind as our food business and I think that you know we're winning and.
Speaker Change: Certain areas, our formulation expertise or product line.
Speaker Change: His really fitting our specific needs, whether it's beverages nutritional beverages cereal are the meat business and so forth are all performing well you know we have a product line that we don't talk a lot about that.
Speaker Change: That is an encapsulated.
Speaker Change: Julin.
Speaker Change: Why.
Speaker Change: Alan to stick.
Speaker Change: Argued if you look at Nielsen data.
Speaker Change: Okay.
Speaker Change: Greenlee that's growing.
Speaker Change: And then.
Speaker Change: In the food industry.
Speaker Change: And.
Speaker Change: Very good.
Speaker Change: Yeah, we feel like there is some tailwind in air heaters.
Speaker Change: Well.
Speaker Change: Really good about the overall performance of.
Speaker Change: H H and the launch there.
Speaker Change: Management will only help fuel that over time.
Speaker Change: Martin.
Martin Bengtsson: I think from an FX perspective, and the weakening dollar maybe the way to think about it is from from two perspective, one want us to translational impact I want that more transactional impact.
Speaker Change: From a translational perspective.
Speaker Change: Our process, primarily the euro and the profits that we generate and that has the biggest impact to us I think we entered the quarter a kind of a 105 type of rate and we went up to a 115 and I think today, we're sort of about a 114, but if you just to make the math easy say that whats the translational impact of opera.
Speaker Change: And 115 environment versus just a 105 environment. It's about a 10 to 15 million dollar impact on an annualized basis on revenue.
Speaker Change: So on a full year basis sort of going from 105 to $1 15, so that should provide some tailwind if if that's where the rate worked to remain.
Speaker Change: From a transactional perspective, when we look at the flows in and out.
Speaker Change: On a day to day basis, we think that impact will be more muted and I would almost call. It material that was sort of a net off we have some headwinds some tailwind from a transactional standpoint, and it's not really going to move the needle at the end of the day.
Speaker Change: Thanks Ricky.
Speaker Change: They're very very quickly.
Speaker Change: Two other things Firstly, you, obviously paid down a significant amount of that over the course of 'twenty 'twenty four and I was just wondering you know if you can give us any kind of directionality or context around how you anticipate approaching debt paid down debt repayment over the course of 2025, and then also Martin I think it would be.
Speaker Change: Paul If you could just give me a sense of what you expect for the remainder of the year in terms of the effective tax rate and to what extent if any we should be looking at the first quarter effective tax rate is predictor. Thank you.
Speaker Change: Yeah, absolutely so I think from a.
Speaker Change: Capital allocation, where we're paying down our debt has been part of that right. We're obviously prioritizing investing in our business and our organic growth first and then try to augment that with M&A, which has been as you know slower for the last two years from the market conditions perspective, and then we.
Speaker Change: Serve our debt and then we're sort of after that we think about share repurchases for anti dilutive purposes from the equity awards.
Speaker Change: And we've continued to pay down our debt and now the leverage is becoming a relatively low so.
Speaker Change: We see it as you know we continue to really focus on evaluating a variety of M&A opportunities and I would say, we're making fairly good progress there over the last sort of three to six months as things were warming up a bit I would say that now with the new.
Speaker Change: New trade environment that things have certainly cooled off a little bit again, just the things have gone on a little bit of pulse due to the uncertainty. So we'll see how long that remains.
Speaker Change: So I think that's a result of that we will look a little bit closer at the next steps in our capital deployment.
Speaker Change: And whether it is time to start offsetting some of the dilutive in and doing some share buybacks for anti dilutive purposes here going forward over the next quarter or two.
Speaker Change: Okay.
Speaker Change: Yeah, I'm sorry, yeah in on the taxes.
Speaker Change: What you saw there at I mean from a full year basis, we're thinking we'll be in that 'twenty two to 'twenty three range will probably be more in the 'twenty two to 'twenty, two and a half based on what we learned in the first quarter. So that's where I would put it from a modeling perspective.
Speaker Change: Thank you very much.
Rob: Thank you Rob.
Speaker Change: Our next question is from Daniel Herrmann from Sidoti <unk> Company. Please go ahead.
Speaker Change: Hey, Ted Martin Good morning, and congrats on the results and thank you for taking my question.
Speaker Change: I wanted to follow up a little bit on an earlier question and just talk about the Anh segment.
Speaker Change: 4% year over year growth is pretty astounding, considering where you were in the first quarter of 2024.
Speaker Change: So I'm, hoping that maybe you could just give us a little bit of a.
Ted: Contribution breakdown between nutrition and food ingredients and then Ted I know you talked about this a little bit but just how.
Ted: How we should think about that breakdown moving forward throughout the rest of the year.
Speaker Change: Sure Daniel Thanks for your comments and I. Appreciate your your question you know and as we said earlier and now a couple of times, we really were very pleased.
Ted: <unk> with H natures overall.
Ted: Performance and end the year over year growth given how strong the prior year was.
Ted: The the food business or the food ingredient business as you know, which is the kind of slightly larger.
Ted: Part of the portfolio actually grew a little bit faster group, you know closer to 555%.
Ted: In our in the quarter.
Ted: And so we were very pleased with that we think generally speaking, it's a market that's growing quite a bit less than that and so it's clear indication that the parts of the market that we're focused on are growing faster I mentioned meat sticks is.
Ted: As a small example, but overall if we look across our broad.
Ted: Food ingredients and solutions business is you know all of them are performing well and at a healthy level and so.
Ted: At this point in time, we're seeing that continue really really pleased the nutrients business did continue to grow as we said, albeit at a lower rate because Q1 of last year that nutrients business was a blowout.
Ted: Quarter, I think I might have used that that earlier I think the whole H and age grew.
Ted: At a 15% revenue and 37%.
Ted: Adjusted EBITDA, so to drive growth on top of that was was it was really great and most of that growth came from the nutrients business. So we remain bullish on our nutrients business, particularly those product lines that I highlighted earlier, but feel very good now that both.
Ted: Parts of H, and H are contributing to the growth and we see that that continuing.
Speaker Change: Great I really appreciate it and it's exciting to see you all continue to execute regardless of the environment. So best of luck the balance of the year.
Speaker Change: Thanks, Daniel appreciate it.
Speaker Change: This concludes the question and answer session I would like to turn the floor back to Ted Harris CEO for any closing comments.
Ted Harris: Alright, Thanks, Matt once again, thank you all very much for joining the call today, we really appreciate your support and your time today and we look forward to reporting out our Q2 2025 results in the latter part of July.
Ted Harris: In the meantime, we will be attending a few conferences that I wanted to tell you about the first is the Deutsche Bank access Global Consumer conference in Paris on June 4th.
Ted Harris: And then next will be the Wells Fargo Industrials and materials conference in Chicago on June 11th and will also be attending the C. J S Securities 24th annual New ideas Summer conference in White Plains, New York on July 10th which will happen shortly before the the earnings call. So we.
Ted Harris: Hope to see some of you at least one of these conferences and thank you again for your time today and joining the call.
Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.
Speaker Change: [music].