Q2 2025 Fresh Del Monte Produce Inc Earnings Call
Good day, everyone, and welcome to Fresh Del Monte Produce's second quarter 2025 earnings conference call. Today's conference call is being broadcast live over the internet and is also being recorded for playback purposes.
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For opening remarks and introductions, I would like to turn today's call over to the Vice President of Investor Relations with Fresh Del Monte Produce, Ms. Christine Cannella.
Please, go ahead Miss Cannella.
Thank you, Desiree, good day, everyone and thank you for joining our second quarter 2025 conference call joining me in today's discussion are Mr. Muhammad Abu gazali, chairman and chief executive officer and miss 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 via Business Wire. You may also visit the company's IR website at investorrelations.freshdelmonte.com to access today's earnings materials and to register for future distribution.
This conference call is being webcast live on our website and we'll be available for replay after this call.
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 you today, including the answers, we give in response to your questions may include forward-looking statements within the safe harbor, provisions of the federal Securities laws.
in today's press release and in our SEC filings, we detail risks that may cause our future results to differ materially from these forward-looking statements
Our statements are as of today, July 30th and we have no obligation to update any forward-looking statement. We may make
During the call, we will provide a business update along with an overview of our second quarter, 2025 Financial results followed by a question and answer session.
With that. I will turn to today's call over to Mr. Muhammad Abu gazali, please go ahead.
Thank you, Christine, and thank you for joining us for our second quarter, Q2 2025, earnings call.
It's second quarter of 2025 delivered. Another period of strong performance for freshman day.
Continuing the momentum. We have built through consistent execution and strategic discipline.
This quarter historically, our strongest of the year so growth across key financial metrics.
Let's say the increase by 4%.
Gross profit Rose 6%. Compared with the prior year period.
And gross margin expanded to 10.2% from 9.9% compared with the same period last year.
This quarter is positive results, reflect the power of consistency and continuous Improvement across our fresh cut business and ongoing demand for our pineapple portfolio.
Much of this growth reflects a long-term shift in the pineapple category.
1, we helped lead.
In the 1970s Americans consumed less than a pound of pineapple per day per person.
Today, that number is nearly 8 times higher according to the USDA.
This transformation began with our 1996, launch of DelMonte gold.
The first widely available sweet pineapple and continuous.
Through the strength of our proprietary offerings and value added formats.
We know that consumers are engaging more with pineapples.
According to canter World panel, a leading provider of real household. Purchase insights.
Consumer spend on tropical fruit has risen 58%.
Since 2017.
Outpacing overall, produce growth and signaling, the rising relevance of the category itself.
As a pioneer in this space, we are well positioned to lead.
Demand for our pineapple portfolio remains strong and continues to outpace supply, driven by trusted brands like Honey Glow and Pink Glow.
Which is the result of Decades of agronomic leadership and targeted Investments.
We're managing Global Supply carefully strengthening continuity and taking steps to ensure consistent availability for our customers.
We also launched ping blow in the United Arab Emirates during the quarter.
Marking our first sustained market entry for a variety in the Middle East.
While still early in scale, it reflects a strategic step in expanding our high-value portfolio into new international markets, where brand distinction and long-term potential align.
we also know that when it comes to pineapples, convenience matters,
Demand accelerates when the product is fresh, cut prepared and ready to enjoy.
As more consumers around the world prioritize health, we are focused on flavor and our ability to meet that demand with the right product mix and the operational agility to deliver it.
Is driving meaningful growth across our fresh cut business.
We also continue to advance our efforts in high margin value, added business ventures.
Residues and Specialty ingredients.
These projects are still in their early stages but we believe they represent real long-term opportunities.
Like many in the industry. We are managing disruptions and the port of kazera in Costa Rica.
Unusual, unusually strong ocean swells.
The worst that we have seen in the case has severely limited vessel access.
With minimal, structural protection, Deport has become a choke point, leading to wait times of 3 to 5 days.
And increase congestion.
The result is higher costs and a broader logistical impact across the industry.
While the situation remains difficult, our teams are responding with urgency adjusting schedules.
Reallocating shipments and doing everything possible to maintain continuity for our customers.
Before I go, I believe it's important to discuss an industry-wide situation regarding bananas.
1 that I have been predicting a warning about for years.
There is a global shortage in banana production.
The causes are clear.
Shifting climate patterns particularly warmer temperatures combined with humidity are accelerating the spread of disease in key growing regions primarily black catoga on top of that. The continued spread of aerial World known as tropical race for
Is adding further pressure.
These diseases are having a direct impact on supply.
Lexington is affecting crops across Central America.
While other countries are facing the compounded impact of both diseases.
As we have shared previously, our our teams have been working to address the global threat Pause by for serum wealth.
And we are pleased to report that field testing of TR for resistant, Gene edited, but other lines ex is expected to begin. In the coming months, the meaningful step toward long-term category resilience
Meanwhile, global demand for bananas remains strong as they continue to be one of the most affordable and accessible fruits in the grocery store.
We are already seeing a clear imbalance between supply and demand, and we anticipate. This will remain a key industry dynamic in the quarters ahead.
With that, I will turn it over to Monica to discuss.
Our second quarter, 2025 results in details. Monica thank you, Mr. Gazelli. And good morning, everyone and thank you for joining us on today's call.
I'll begin with our second-quarter financial results, followed by our outlook for the rest of the year.
As Christine mentioned, our press release and our call today include non-GAAP measures.
Reconciliations of these non-gaap Financial measures are set forth in the press release and earnings presentation, which is available on our website.
The second quarter is historically our strongest period. Having said that, this quarter reflects our continued efforts to expand our margins by focusing on improving our product mix.
Now, let's go through the financial results.
Net sales were 1,183 million compared with 1,140 million in the prior year.
An increase of 4%. The increase was driven by higher net sales in our fresh, and value added products, and banana segments due to higher per unit, selling prices, and favorable impact of fluctuations in exchange rates. Primarily related to Euro Japanese Yen, British pound.
The increase also reflects tariff related price adjustments in North America.
Gross profit for the second quarter was 12 million. 120 million compared with the 113 million in the prior year.
The increase was driven by higher net sales in our fresh and value added product segment, partially offset by higher per unit production and procurement costs as well as increased distribution costs, including tariff charges in North America.
Gross margin was 10.2% compared with 9.9% in the prior year.
This also includes a sequential increase from 8.4% in the first quarter.
Operating income for the second quarter was $68 million, roughly in line with the prior year.
Gross profit, partially offset by a lower gain on the disposal of property, plant, and equipment in the current year.
Adjusted operating income was 69 million compared with 65 Million last year.
Other income for the second quarter was a gain of 6 million compared with a gain of 2 million in the prior year.
The change was due to equity earnings from unconsolidated companies within the food and nutrition sector.
Net income attributable to Fresh Del Monte for the second quarter was $57 million, compared with $54 million in the prior year.
And adjusted FTP. Net income was 59 million compared with 51 Million last year.
Our diluted earnings per share for the second quarter was 1.118 compared with the 1112 in the prior year.
And adjusted diluted earnings per share with 1.23 compared with the Dollar 6th in the prior year.
Adjusted Ibiza for the second quarter was $95 million, up from $89 million in the prior year.
Both quarters reflected and 8% margin as the percentage of net sales.
Let's now take a closer look at the financial performance for the second quarter across our business segments.
Beginning with our fresh and value added product segment.
Net sales for the second quarter were 723 million compared with 694 Million last year, an increase of 4%.
The increase was primarily driven by higher per-unit selling prices in our pineapple product line, as well as higher sales volume and per-unit selling prices in our fresh-cut fruit product line.
Both supported by continued strong market demand.
Additional contributions came from the favorable impact of fluctuations in exchange rates, as well as tariff related price adjustments, in North America.
The gains were partially offset by lower net sales and our fresh cut vegetables and vegetable product lines reflecting strategic operational. Reductions implemented in the fourth quarter of 2024, which included the sale of certain assets of freshly farmed.
Gross profit with 85 million compared with 78 million in the prior year.
The increase was driven by higher net sales partially offset by higher per unit production and procurement costs as well as increased distribution costs including the impact. The impact of tariffs in North America
gross margin was 11.7% in the second quarter compared with 11.2% in the prior year.
This also includes a sequential improvement from 10.1% in the first quarter of this year.
We are continuing to build on this momentum as we work toward our goal of sustaining double-digit gross margins in the loan teams for this segment.
Supported by ongoing improvements in product, mix including growth in our premium pineapple varieties, such as honey glow and Jet fresh.
Moving on to Banana segments.
Net sales for the second quarter were $410 million compared with $394 million in the prior year.
An increase of 4%.
The increase was primarily driven by higher per unit selling prices across each of our regions, combined with the favorable impact of fluctuations in exchange rates.
Along with tariff related price adjustments in North America.
We also saw higher sales volume in the Middle East.
As last year was impacted by shipment disruptions related to the Red Sea consulate.
the increase was partially offset by lower sales volume in Asia, where an oversupply of local seasonal fruit we can demand and persistent crop disease reduced available Supply
In North, America, sales volume was also impacted by crop disease. Specifically the continued spread of Black Sea which has intensified by adverse weather conditions in our growing regions.
Gross profit was 30 million in line with the prior year.
The benefit of higher. Net sales was mostly offset by higher per unit production and procurement costs.
Resulting from the adverse weather conditions already mentioned along with higher distribution costs including the impact of tariff related charges in North America. And ongoing industry-wide Port congestion and logistical disruptions across our Central American ports.
Gross margin with 7.3% in the second quarter of 2025 compared with 7.6% in the prior year.
Our other products and service segments.
Net sales for the second quarter were 50 million compared with 51 million in the prior year.
The slight decrease was primarily due to lower per unit selling prices in our poultry and meats business.
Gross profit was 5 million compared with 6 million in the prior year as, as a result of the lower net sales.
Gross margin was 10.4% in the second quarter compared with 10.7% last year.
Now, moving to selected financial results.
Our income tax provision. For the second quarter was 14 million compared with 12 million 12 million in the prior year.
The increase was primarily due to increased earnings and certain higher tax jurisdictions.
Our effective tax rate for the second quarter was 20%.
Net cash provided by operating activities for the 6 months was 159 million compared with a 144 million in the prior year.
The increase was primarily due to higher net, income and working capital fluctuations, mainly driven by higher levels of accounts, payable and accured expenses.
Partially offset by higher levels of inventory when compared to the prior year.
We ended the second quarter with $201 million of long-term debts.
And 84% or a 29% reduction compared with the prior year.
And an 18% reduction compared with fiscal year in 2024.
Our adjusted leverage ratio remains at less than 1 times. Evita.
Our capex investment. For the first 6 months was 22 million compared with 21 million in the prior year.
As announced in our press release, we declared a quarterly cash dividend of $0.30 per share, payable on September 5, 2025, to shareholders of record on August 13, 2025.
On an annualized basis. This equates to a $1.20 per share, representing a dividend yield of 3.3% based on our current share price.
With that. Let's turn to our full year outlook and strategic priorities.
As we look ahead, we continue to expect full-year 2025 to be broadly in line with the outlook we shared during our Q1 call.
Our outlook reflects our expectation for stable demand across our core products, ongoing operational efficiencies, and disciplined execution of our strategic initiatives.
As part of the act of that execution. We're currently transitioning from Legacy brake box, shipping vessels to container vessels in the asia-pacific region, and we plan to sell 2 older vessels later this year.
This shift enhances operational, efficiency and better aligns with our evolving logistic needs.
As I mentioned earlier, historically, the second quarter has been 1 of our strongest.
And this year was no exception.
We are confident about our full-year trajectory, while we remain mindful of evolving external factors beyond our control.
We believe our underlying business fundamentals are strong, and we are confident in our ability to deliver on our full-year 2025 objectives.
We reiterate our expectation for the full year as follows.
we expect to see net sales growth, 2% year-over-year,
And, as far as gross margins by business segments in our fresh and value-added product segment, gross margin is expected to be in the range of 10% to 11%.
In our banana segment, gross margin is expected to be in the lower end of historical range of 5 to 7%.
For our other products and services segment, gross margin is expected to be in the range of 12 to 14%.
Our selling, general, and administrative expenses are expected to be in the range of $205 million to $210 million.
As it relates to CapEx, we now expect our full year spend to be in the range of $70 million to $80 million, down from $80 million to $90 million previously communicated.
This revision reflects updated project execution timelines.
We remain committed to funding initiatives that drive long-term value.
We expect non-cash provided by operating activities to be in the range of 180 to 190 million.
In closing the second quarter, delivered solid, net sales and net income consistent with our expectations and relatives and reflective of the seasonal strength. We typically see this time of year
Third quarter dynamics, including increased availability of seasonal fruit and softer demand during the summer months.
We remain focused on executing our strategy, delivering value, and positioning Fresh Del Monte for long-term success.
This concludes our financial review. We can now turn the call over to Q&A. Desiree.
We will now begin the question and answer session.
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And we have a question from the line of Mitchelle Pin, Hero with Third Event. Your line is open.
Good morning.
Morning.
Start.
So, pineapple supply has struggled a little bit here.
I guess whether you know, whether related, but I was wondering how much, if you could give us an update.
On.
Where you think and how, you know, we saw a lot of um you know, new pineapple growth and was wondering how you expect that to play out over the next 6 months. And then what's the supply looks like for your pineapples, you know, into 20?
Are we going to see?
An increase that faster. We're not there yet in the cycle.
Um we expect that uh continuing you know, to the end of this year and going into next year, there will be uh in my in our opinion that will be a shortage of supply.
Uh, more or less like this year, or a little bit even.
more.
Uh, then, then we expect, uh, very strong growth from our part on our side. I, I can't speak for the industry, but as Fresh Del Monte, we see a very strong pineapple market going forward. You know, especially with our...
Uh, premium varieties, that is, are unparalleled in the market, and, uh, our expertise and our, you know, seeds are definitely better than anything in the market. So I believe that, in our case, I don't see any change to what is going on right now. The dynamics in the market, uh, through 2026.
In addition to that, you know, in, in, in, I would say about a couple of years to 3 years.
Uh, we will be starting our production in Brazil, which I think we haven't, uh, you know, announced that. But, uh,
that will be another new area of
Uh, of production, uh, uh, sourcing. And that would be mainly for the Brazilian market in particular.
um,
so, um,
so, once you get through 2026,
You know, I guess like what type of growth rate would you expect to see in your own business's supply? Like are we talking, um, new plantings and things like that? Would, you know, mid-single digits? I mean, is it stronger?
I would, I would say and and and Costa Rica. We will have expansion as we speak. We are expanding and our production.
Uh, areas that has not been planted before already under, uh, Plantation. You know, Plantation and, uh, as I said, we are expanding also in other parts of the, uh, the world in, uh, in Africa and Brazil as well as in the Philippines. So, we are having an, I mean, not concentrated in 1 location but a really, really across the world. Uh, but we will be having over the next 2 to 3 years. Uh, I cannot give you figures, exactly. But I'm telling you that we are already expanding our production capacity. And uh, we expect there will be and I would say, uh,
it will not be like, uh,
You know.
Additionally, there will be a meaningful increase in our production in the next 2 to 3 years.
I mentioned on the Costa Rica.
A little bit higher than the mid-single digits, and you know, this is a long-term crop.
So definitely, um, 27, you know, from today compared to 27, a little bit higher than the mid-single digits, just Costa Rica.
Okay, thank you. And then, um, is regarding a pink glow? I'm seeing more distribution.
um,
Where, where do you guys stand in terms of? Like, you know, let's just talk about the US market, or North America. Your ACV does, um, where, where is it today house Supply? Constrained is it? And um, and and what do you see the future? As far as distribution growth for the pink glow in the next say, year 2 years?
Actually, we were constrained by limited supply. You know, going to the market because, uh, up until recently, the authorities in Costa Rica were not allowing us to plant more big pineapples because of the...
GMO issue. And then the contamination, you know, uh, uh risk, uh, we have been granted, you know uh recently to
A, uh, increase our acreage. And that's what we are going to be doing very soon.
Uh, so supplies. Hopefully, you know, it will take about 18 months for supplies to start coming in additional supplies. I mean, uh, so I will see, I would not say in, uh, uh, could be at the end of 26, early, 27. We will see more supplies coming into the market. Where the market is really, uh, they absorb absorption or the reception is there it's it's that we don't have enough supplies, uh, along with the other countries that uh, we are not supplying yet. I mean, outside North America, which is, as we said, we just been uh, sending some pink Pineapples by by are, you know, to uh, to the Emirates. Uh, just to give, I mean, it's being sold online as well, you know. I mean, it's not, uh, in the in the in the supermarkets and uh, just to give you a an idea of of, uh,
It's about, uh, I would say about 3033 dollars a piece that is being sold. Now online uh, in the average and everything that we said is pre-booked and pre-sold. So uh, we are now
Trying to get into Saudi Arabia as well and cover other countries in uh, in the region. Uh, but as, as I said, also Supply is is, is, is I mean, uh, considerate but
We will, uh, evaluate which Market pays more. So uh, you know, we allocate with the money is
Uh, yeah.
Quite an accomplishment to like, I mean, you're you're this this pink low. Um, just sells out everywhere I go and when I talked to the produce manager, um, it's, you know, they, they sell everyone they can get and would like more. So it's, uh, it's a good situation for you guys and, and, and they're selling it, you know, double digit prices per pineapple, which is, um, which is incredible. So, um, anyway, yeah, I mean, in addition to that, uh, you know, uh, Mitch, we, we, we used to have a lot of residues from the pink pineapple that we could not export as, as export quality and we did we and, and we didn't have the opportunity because we didn't have the authorization from the Costa Rican authorities.
To turn them into Jews or into uh, Frozen let's say iqf product. Uh, thanks God, recently for the, in the last 2 months, we have been granted, you know, to uh, uh, to freeze or to use this as, as Frozen, and we are processing this. And, and this is a great also addition to our, uh, skus, you know, I think also going into ice cream and, uh, uses and, you know,
through the
Food, Service Industrial.
I would say segment.
Changing the subject. Um,
Moving to to, to fresh cut, uh, fruit. Um, you're doing very well in fresh cut fruit. Obviously, um, where, um, specifically is the demand coming from, uh,
Equal across the board. Is there any one geography that's growing particularly strong for you guys? Can you talk a little bit about where that growth and demand is coming from and where you see it going?
We see the demand mainly on the retail side. The biggest, you know, uh, increase and expansion is on the retail side.
uh, and uh,
and the, uh, convenience, uh, stores.
Uh, that that's where we see the biggest advances as well. As, you know, I mean, we are not talking only in North America, but we are having the UK. We are having, you know, the middle east region as well. So expansion and growth is actually across uh, across the world.
And as we speak, you know, we're looking at different countries, new countries to uh to initiate. Also fresh cut operations, uh, based on, you know, feasibility and uh, return on Capital. But uh that's the the way going forward. It's not only North America but it's a global expansion, you know, with our expertise know how and the vertical integration, the supply chain, you know, where we have the fruit. Uh and the ability to supply each region closer to to to, to the markets, you know, the the, the, the fresh the Monte Advantage is that it is in.
It's not only in 1 continent. It's not only producing Costa Rica. Let's say pineapple which is the major skus in the fresh cut.
You know.
uh,
we we produce it in in, in 3, different 4, different continents,
So, we are much closer to the markets.
Logistically rather than just, you know, shipping it all, all the way from Costa Rica to let's say to Japan or, uh, of course, they can to Europe. I mean, you know, we have Africa, which is closer. So, it's we, we play with Logistics more than, than just, the sourcing.
Okay. Uh and then and you know, your your margins, you know, continue to to March forward there as you as you leverage your, Your Capacity Investments. Um, is that something?
I mean we, we should
where do you see the top end of like,
You know.
You mean on the fresh cut?
Yeah.
Or the fresh cut. I think the margin would stay more or less in the same region that we see right now, what would be our, uh, uh, Niche is that, we will be uh, introducing, you know, uh uh, more Innovation, I mean like, let's take guacamole, for instance, uh,
Fresh guacamole. I mean, we started this, uh, almost probably a year or less than a year ago, and we see, uh, more than double-digit growth, uh, month over month. I mean, uh, in that category, and then we are the only one in the market that can produce fresh guacamole, uh, to the retail sector. So that gives you an idea of where we are going, you know? I mean, uh,
That's the type of products that we and type of skus that we would like to introduce and not just depend on the traditional, you know, type of uh fruit offerings or vegetables.
Um, moving to, um, banana. Um, I was how, in your view, the Black Sigatoka. Um.
That.
How how much uh has that?
Affected the banana Supply.
In Costa Rica.
Is it?
Definitely showing up as a drag on supply.
Yeah, well, I mean the Costa Rica alone is down over 20%, in, in their, uh, export volume. Uh, this year as we speak. And that tells you. And, and that's mainly because of the, uh, Shikata disease as well as other, uh, you know, issues, you know, in the soil and the, the the
Live method there. So I don't see that this is going away. This is getting worse. As a matter of fact, as we speak, you know, I mean uh, uh,
0, any more efficacy. Uh, for treatment, uh,
and and and and unfortunately, you know, in in this uh in this uh, space there is only 1 supplier in the world that has this product
And it's becoming so costly that, you know, it's adding more cost to the banana box because you have to apply more cycles.
And to do more applications which cost you more money.
Uh,
and still, I don't think that there is, there is, uh, a cure, uh, in my opinion unless something, uh, you know, kind of
Extraordinary on our part, we are working on several fronts to find a solution to this category. I cannot disclose at this time, but, uh, we are doing
A lot of work now to find the solutions for that.
Affected negatively but I I guess should be good for for you know prices you should be able to get. I mean, bananas are obviously 1 of the lowest.
Priced, uh, items in the, in the grocery Channel. Um, there seems to be some Headroom, you know, for you to raise prices to, to offset, you know, the, the, the, the supply limitations, um, would you see it that way? Or it's? Uh, it's it's, it's, it's actually, it's not our, uh, uh, I mean it's it's an industry. It's a, it's a
It's a supplier's uh, issue. I mean, uh, it's not our issue that uh, still, you know, I mean, uh, we are very much. Uh, you know, we we even have lowered our volumes over the last 2 years, in order to maintain profitability and and uh, make sense of of this business. But the problem is not with the with with the I I believe the problem is with the
Uh, with the existing suppliers that they don't understand that going forward, they cannot survive with the such pricing, you know, in the market.
Okay. Um, just a couple other quick questions. Um, it was interesting. You're selling 2 of your older. Um uh vessels.
Um, as you switch over to sort of the Legacy to The Container. Um,
Um, ships, are you going to? Would you consider buying two, uh, two new ones like you have, adding to the fleet, or are you happy with your current setup and we'll sort of lease?
Um, vessels or however, you know for for your capacity.
No, but uh, what Monica mentioned actually is only for Asia. These 2 vessels were where, you know, where servicing, Japan and Korea markets. And that's what we are replacing. We are selling off these ships and and using container, uh, shipping line now, uh, okay, to to replace it. Uh, as far as North America,
Everything is also on the table, you know, I mean, we are, uh, we will do. Whatever is the best uh,
Interest of the of the company. Definitely. Okay. And and I mean, are you pleased? I mean, are you happy with the way you, you're purchasing the 6 vessels? Um,
Is that working out as expected? Um, it seems to be, but then you can see our cash generation. Uh, I think that speaks for itself. Uh, pitch, you look at our cash.
I think.
um,
And then a couple of other things. You had, um, $6 million in equity earnings from unconsolidated.
Um companies, which which companies are generating that type of profit for you?
Well, actually, that we have invested in and several, uh,
Funds that are friendly funds that we have been very close with.
And, and these are companies that are in the
um,
Food, industry, food industry, let's say and I think we have made the right choices and we made the right, uh, Investments. And I think that this is just uh uh a beginning. I think these are very successful extremely successful companies that are already uh growing, you know, double digit, uh, as we speak. So,
Invested.
Okay? And then the last question was just, um, um, what was the? Um, I didn't see the queue yet, but um, the foreign exchange impact on...
On revenue and gross profit. Was there any? Can you give us?
Those amounts you mention.
Yeah, the Euro obviously um has been getting stronger, which helped us. We do have part of our sales hedge um at a little bit lower rate but it definitely helped um the British pound also was Stronger.
And the Japanese Yen was stronger than last year, even though it's it's kind of weakened a little bit now. But definitely those 3 currencies helped our our net sales, but the local the local selling uh prices in these markets were also very strong.
So it would it it was both uh, both scenarios but but to add to, uh, what body can said the that you have to think that is, uh, Tailwind on 1 side. And we have headwinds on the other side. I mean, Costa Rica by itself.
It is a very, very difficult situation. You know, I mean, we used to have the colon exchange rate to the dollar, you know, three years ago for 6, 610, 620, and today we are barely at around 500, 500, 6005.
What you can say and increase. Of course, inflation. Over the last 2, 3 years, continuous inflation, continuous increasing cost.
And then the exchange rate.
Is getting stronger and that's huge hit with uh headwinds for us. I mean added a lot of cost on our production, be it on the pineapple melon or bananas or whatever we we do there. So uh really you know, when you look at the
The tailwind, which is the Euro, and then there, but you also have to look at the headwind. Uh, and then one offset, uh, again, each other. I wish the Cologne would have been, uh, you know, normal as it used to be; then it would have been an even uh, uh, much better picture than what we see today.
All right. Well, that's all I have. Um, thank you.
Thank you. My pleasure. Thank you.
and again, if you would like to ask a question, press star, then the number 1 on your telephone keypad,
There are no further questions at this time. I would like to turn the call back over to Mr. Muhammad Abu gazaille for closing remarks.
Thank you. This is and uh, I would like to thank everyone for joining us on this call today and hope to talk to you on our next quarter. Uh with uh equally good news. Thank you and have a good day.
ladies and gentlemen, that concludes today's call, thank you all for joining and you may now disconnect