Q2 2025 ICL Group Ltd Earnings Call
Good morning, ladies and gentlemen, and welcome to the ICL second quarter 2025 earnings conference call at this time. All lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call, you require me to assistance, please press star zero for the operator.
This call is being recorded on Wednesday, August 6th 2025. I would now like to in the conference over to Peggy Riley. Tharp vice president of investor relations. Please go ahead.
Thank you. Hello everyone. I'm Peggy Riley, Tharp vice president of global investor relations for ICL group. I like to welcome you and thank you for joining us today for our earnings conference call.
this event is being webcast, live on our website at icl-ip
Earlier today we filed our reports, and our presentation, with the security authorities. And the stock exchanges is both Israel and the United States.
Those reports, as well as the press release on our presentation are also available on our website.
Please be sure to review the disclaimer on slide 2 of the presentation.
Our comments today will contain more looking statements within the meaning of the private Securities. Litigation Reform, Act of 1995,
These statements are based on Management's, current expectations, and are not guaranteed future performance.
The company undertakes no obligation to update any information discussed on this call.
At any time.
We will begin with the presentation by our CEO, Mr. Anat. Arnson followed by Mr. Aha. Our CFO after the presentation, we open the line for a Q&A session.
We would now like to turn the call over to a lot.
Thank you Peggy and welcome everyone to our second quarter 2025 earnings call the past few months, have been unsettled both globally and here at home in Israel.
while there has been a great deal of noise in the global markets, we deliver the second quarter in line with our expectations
If you will, please turn to slide 3 for a brief overview of the quarter.
This amount was approximately 5% year-over-year and 4% on quarterly basis.
Specialty is driven sales of 1.
When compared to the first quarter, this says were up to 6% Consolidated, adjusted eida was 351 million dollars while Specialties driven eida was 259 million.
Both amounts were down slightly on a sequential basis.
In the second quarter, adjusted diluted earnings per share were 9 cents.
This was in line with our first quarter results.
Operating cash flow of 269 million was up more than 100 million dollars over the first quarter.
In General market pricing Trends, continue to gradually improve in the second quarter. Also, the majority of the end markets we serve maintained consistent Trends in agriculture fundamentals. Remained relatively stable however, sentiment varied by regions.
Let's start with the review of our divisions and begin with our Industrial Products business on slide 4.
For the second quarter, sales of 319 million were up slightly year-over-year.
In at 69 million as higher prices for most products were not able to offset lower volume and a shift in product mix.
However, this performance was in line with Market expectations.
In general bromine market prices continue to Trend upwards in the second quarter.
Although there has been price fluctuations from time to time.
Overall, flame retardant sales were down slightly in the second quarter. Sales of phosphorus-based products improved, driven by both higher volumes and prices.
This follows the implementation of recent anti-dumping. Measures in the United States.
Bromine based flame retardant sales were down as higher. Prices were not able to offset the lower volumes in addition construction and Market remained soft.
However, other end markets, demonstrated, good strengths are clear. Brine fluid cells to the oil and gas industry improved on higher volumes in North America.
However, I would remind everyone that the drilling operations are somewhat seasonal in nature and generally more weighted toward the first half of the year.
For Specialty Minerals we remain focused on research and development. These efforts have helped us to create variety of new products across a wide array of end markets and these include textiles and water treatment among others.
To work up Industrial Products. This was a stable quarter and we would expect similar trends for the rest of the year.
now, if you will turn to slide 5 and our potage division results for the second quarter,
Sales were 383 million with ibida of 115 million.
Our average Portage price. For the second quarter was 333 CIF per ton.
This amount was up 11% when compared to both the second quarter of last year and the first quarter of this year.
Stone in the second quarter versus the previous year. Sales were down more than 180,000 metric tons.
During the quarter, we faced both 1 time and ongoing items.
In addition to the planned maintenance shutdown at the Dead Sea in April, we also face challenges related to The 12 Days war with Iran in June.
These were in addition to other ongoing War related issues.
As you know, we have had reservoirs call up for duty at various times over the past 22 months.
This is put pressure on our operations in Israel, especially in terms of maintenance.
Nonetheless, we have remained resilient and have Faithfully continued to deliver products to our customers.
We have creatively and successfully managed each and every roadblock we have encountered, and we will continue to do so.
We have also continued to maximize the profitability of our potach resources whenever possible. We prioritize supply to the best Global Market which was Europe in the second quarter.
This strategy remained in place, even as we continue to supply, approximately 100,000 metric, tons to China. And India, those stones were at 2024, contract rates, which were 73, and 70 lower than the new 2025 rates of 346 and 349 respectively.
We expect to deliver a final 40,000 tons to China and India at the lower 2024 rate in the third quarter.
Turning to slide 6 and our phosphate Solutions division were strong second quarter sales of 637 million dollars were up 11%.
Eida was 134 million in the quarter and down versus prior year. While volumes were generally, higher prices were mixed for commodity and Specialty for 3.
Commodity phosphate prices benefited from favorable weather conditions across most key markets and as China continued to restrict exports.
Specialty phosphates prices remained under pressure due to excess Supply in the market.
In addition, raw material costs, especially sulfur increased in the second quarter. However, both of these events were expected.
For food. Phosphate overall sales were flat with lower market prices.
However, we experienced good growth in two of our target markets: dairy protein and plant protein.
Industrial phosphates and butter materials both delivered cells growth in the second quarter. While our industrial phosphates are produced globally. At Regional facilities. We currently produce, phosphate materials for batteries that are white pH joint venture in China.
In the second quarter yph benefited from both higher prices and volumes. The team also delivered record production of map.
As a reminder, our white pH operations, serve both, phosphate Commodities and Specialties and also our growing Solutions business.
The production. There is interchangeable and the team does an excellent job of optimizing. Its resources based on market prices and demands.
This bring us to our growing Solutions business division on slide 7.
Strong second, quarter sales of 540 million dollars were up 9% year-over-year.
Now, 56 million improved 24%.
For both metrics, we delivered annual and sequential Improvement as our strategy has taken root.
In North, America sales were up year over year. We saw higher volumes and profitability across the US, Canada and Mexico, despite the challenging agricultural economy.
Sales in Europe, improved as higher prices offset, lower volumes.
In Asia, gross, profit improved even as sales were in line with the prior year.
For both Europe and Asia and increasing specialty, agriculture products, drove improved product mix.
Overall specialty, agricultural sales increased with higher volumes in most major regions.
In Brazil sales increased on higher prices in the second quarter. But gross profit decreased with exchange rate fluctuations and as folar fertilizer sales were lower across the entire Market.
However, for the third quarter, we are already seeing a better mix of folio demand and believe we are ahead of the market.
A recent acquisitions are contributing to the overall success of growing Solutions. This includes lvi bio which have fully integrated into the business.
We have also continued to advance Innovative new products.
And we have launched fresh marketing, and Outreach programs, these campaigns Embrace digital and our uniquely targeted to their respective regions.
And with that, I would now like to turn the call over to aam for a brief Financial overview. Before I share an update on our guidance.
Thank you a lot.
And to all of you for joining us today.
Let us get started on slide 9 with a quick. Look at some key Market metrics inflation. Generate decreased excluding Brazil which saw another 30 basis points. Increase Brazil also saw an increase in its interest rate up approximately 75 basis points. While most major countries are stable to decreasing weight
Global industrial production growth was 3% in the quarter but it is forecasted to ease going into the back half of the Year US housing starts in the second quarter, decreased approximately 2 and a half percent, but we're roughly in line with the second quarter of 2024.
Turning to slide 10 and some key fertilizer Market metrics as a reminder. These are not only relevant for our Potter business but also for growing Solutions and phosphate commodities.
In the second quarter. The grain price index was down slightly on a sequential basis about 3% this corn, right? And wheat also low to mid single digit decreases. While soybeans were up, roughly 3%, the year of a year. Decrease was more significant than approximately 17% with rice soybeans and wheat all down double digits while calling improved approximately 2%.
On a monthly basis. Farmer sentiment has been choppy, reaching a full year high of 158 in May before ending the second quarter at 146 in June
The shift in sentiment was primarily attributable to a change in future expectations. As fewer producers expressed optimism about future agricultural exports.
Despite the June decreased the index remained. Well, above the second quarter of last year. However, I must remind you that this metric represented just the United States. And as we know, farmer sentiment can vary dramatically around the world as it did in the second quarter.
Potassium, phosphate prices, both increase sequentially, and versus the prior second quarter.
On an annual basis, potassium will have approximately 7% year-over-year while phosphate would up more than 20%.
In the second quarter ocean Freight rates increased slightly on a sequential basis but were down nearly 30% of the second quarter of last year.
As you will see in a few slides. ICL continued to see lower Transportation costs in general in the second quarter.
Turning to slide 11 and some Market indicator, more relevant to our Industrial Products and frosted solution businesses. Let us start with Chinese bromine prices which have fluctuated since the end of the first quarter, but trended upward in July,
As you know, our bromine solutions are used in many everyday consumer durables, including appliances, electronics, automobiles, and furnishings.
Even though the consumption of durable goods for May trended down about 2% from the end of the first quarter. It improved approximately 4% versus the second quarter of last year.
Why we discussed phosphate prices on the previous slide. I would like to show you the same data in relation to social prices since this is a key raw material for our for State Specialty Products,
As you can see, while these 2 Commodities track each other. The increase in surprises over the past quarter and year is significantly higher than the increase in phosphate prices on a sequential basis. Price of prices are up more than 50% and up nearly 200% on an annual basis.
And markets to track.
If you will now turn to slide 12 for a. Look at our year-over-year, sales bridges for the second quarter sales came in at 1,800 million up approximately 5% versus last year.
on the left side, you can see the change for each of our business divisions with all exclusive potach demonstrating growth,
Thanks to the right side of the slide, you can see a $94 million benefit from higher prices this quarter, which was partially offset by lower volumes.
On site 13 we can see our second quarter evida of 351 million which was down versus the prior year, similar to sales is no higher prices and lower volumes.
However, we also saw significant increase in raw material cost, but as I already mentioned, our transportation costs improved in the quarter.
Others which had a $75 million impact are comprised of several factors, including maintenance and production quantities. Please note that, in addition to the maintenance of the Dead Sea, we also completed significant maintenance at our facility in Rotan, Israel, and in China.
Turning to slide 14 and an updated. Look at some of our leading positions in terms of cost quality and price. For 2024, we remained 1 of the most cost-efficient authors producers. As you can see on the top left hand of the slide. We also have a strong recorded in terms of average realized potential price as you can see on the bottom left.
On the right side of the slide, you can see icl's leadership position in the global bromine Market. As I just mentioned roaming prices appear to be showing a gradually improving Trend and the debt sheet Remains the most cost-competitive and efficient source of bromine and accounts for approximately 2/3 of Global Supply capacity.
If you turn to slide 15, you can see how our Global business looks on both a divisional and Regional basis. For the second quarter Europe represented, approximately 31% of sales with Asia at 22%. While South America also came in at 22%, North America represented, 20% of total sales,
Before I turn the call back over to alert, I would like to share a few highlights on slide 16, our balance sheet remains strong, and we ended the quarter with available resources of approximately 1 and a half billion dollars. Our net debt to adjust the debit rate.
At quarter end, was 1 and a half times and we delivered operating cash flow of 269 million, a sequential Improvement of more than a hundred million dollars.
We extended our debt past 2030 with a successful offering of approximately, 235 million and smt. We affirmed. Our Triple B minus credit rating with a stable Outlook. In terms of currencies, the shells continue to strengthen versus the US dollar. And as we do business in dollar, this has resulted in higher expenses.
Once again we are Distributing 50% of adjusted net income to our shareholders which translates to a total dividend of 55 million. This quarter resulting in a trailing 12 month, dividend yield of 2.6%
in the quarter, we maintained our consistent and disciplined approach to Capital allocation and also remained focused on cost savings and efficiency efforts.
And with that, I would like to turn the call back over to elad for a review of our guidance.
Thank you, aviram. If you will turn to slide 18, I would like to update our 2025 guidance.
For a specialty is driven businesses which include Industrial Products growing Solutions and phosphate Solutions. We continue to extract iida to be between 950 million and 1.15 billion dollars in 2025.
For pot sales, volumes.
We now expect this to be between 4.3 million and 4.5 million metric tons. This amount reflects the production impact at the Dead Sea, primarily due to ongoing War related issues,
it also includes some impact from the brief war with Iran in June which is concluded and being resolved.
China and India in the third quarter. Additionally, we have not made any guidance concessions for potential tariffs. However, we continue to pursue mitigation efforts.
All in all third quarter, Trends should improve versus the first half of the year.
For slide, 19. I want to briefly remind you of a few areas. We are focused on this year.
There has not be a shift in icl's overall strategy, we will continue to drive growth in our specialty businesses.
We will also continue to maximize our pot sales volumes by prioritizing the best markets whenever possible.
We will drive cost savings efficiencies and also look for operational enhancements.
However, I must point out that we expect to see continued higher operational costs, due to the ongoing War related issues.
Innovation and new products will remain key to icl's Future growth. However, we will also pursue complimentary m&a activities.
And as I just mentioned, we will continue to monitor the global tariff situation.
While there were some challenges this quarter especially in Israel, my colleagues remained steadfast.
I would like to thank all ICL employees around the world for another good quarter.
Also, I would like to note that ICL was once again, rated as 1 of the top places to work in Israel, Brazil, and St. Louis
I'm pleased that our employees have recognized ICL with these owners.
And with that, I would like to turn the call back over to the operator for Q&A.
Thank you.
Have a question please press star followed by the 1 on your touchtone phone.
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If you are using a speaker-phone, please lift the handset, before pressing any Keys? Your first question comes from Ben with sparkles. Your line is now open.
Yeah, you're good. Uh, good afternoon, uh, allow everyone. Thank thank you very much for taking my question. So, the first 1's really, um, just about the, the pesh business. Um, um, the, the implications, and what, what you saw in the quarter, I mean, obviously on, on a year to date basis. You you're running at about 2.1 million tons if I received the sum right from 1 q and 2q. Um, so the first question really is that decrease that you saw in the second quarter. That is essentially everything that kind of like lowered the guidance for the year.
There's nothing on top, but you've currently been expecting, um, versus your previous expectations, because it feels like it's just that. But I want to make sure that there's nothing else that you kind of like accounting for in the second half. That would be my first question.
No, no. So, Ben, thank you very much. It’s lovely to talk to you again. Uh, look, as you know from past experience with us, we basically are very, very careful with what we got. And this is full bottom up, and it basically reflects the fact that during the quarter, the second quarter, which just ended, it became clear to us.
That even though we believe that on the marginal based ongoing basis, we will be able to do our plans, uh, it will not be possible anymore to catch up and, uh, and we will not going to, to be able to continue to live within the 4.
Framework.
And hence, we actually, uh, took the the guidance down the midpoint is down by about 200,000. Uh, now when we look when we reflect that, what what happened? Uh, in the, in the second quarter, obviously, this was a culmination, it's a very acute situation, but it was not a, um, it was an acute situation but situation before
The year and especially not in Q2. And therefore, I think that that this, this guidance that we gave reflects our best thoughts and it is all encompassing and relates to exactly what I just described. There's nothing further than that.
Okay, perfect well thanks for that way and I need to say 1 1 more thing. Then 1 more thing I apologize I should have said about ebook gosh even though of course it's about 20% of the total uh uh production of quarter in the company and here. Uh we also had some challenges of course, these are local challenges in Spain. Again we're working through them. Second half should be to an extent better, but overall, for the year we're coming a little shy of what we expected in the walking into the year. Uh, not these are not very big numbers, but yes, I needed to say this to complete the picture. Of course, the guidance is combined for both DSW and labor protection. Thank you very much.
Got it. Thank you very much for that and then growing Solutions just want to follow up on that. I mean, we, we've seen it already kind of like a starting uh, Trend in 1 q and growth. Um, posted posting hotline growth but even better uh, profit growth and kind of like felt like it. It further accelerated into 2 Q, so just want to understand. So first, what's been driving the? The positive jaw here that uh, if it does growing at a significantly higher?
Ate, uh, then sales and as we look into um, the back half and to into well, half but particularly, maybe a free queue for now you probably have a little bit more, uh, visibility, how should we think about that relationship between Topline versus, uh, iPad roof? Uh, going forward, just given that the comps are getting a little tougher in the second half than what they were in the first half. Thank you.
So so yes, uh, we saw another good quarter for growing Solutions and I would say becomes the trend. I hope it will continue like this. I I believe it will continue like that. Um I think the the overall the the price environment in in the first years of business is relatively good. So that's that helps, of course
But also what you see is the changing mix and within the growing Solutions the white portfolio. We see higher sales of the more sophisticated, more specialty fertilizers, and a bit less of the less special the fertilizer. Uh, so I think the combination of the different mix and a bit higher prices, bring us better better better profitability. But just bear in mind that it was growing Solutions and the agricultural sector. It's about this analogy. So now it's the end of the season in, in the Northern Hemisphere and we are starting the
The season in the main in Brazil for us.
Uh, which usually come with even better prices than profit. So I would expect T3 should be for sure, not lower than you.
I think I just say to relate to Brazil.
Brazil, I guess Ben and everybody as you know uh is the most important single country in the world of Agriculture. And yes of course, the third and the fourth quarter or the main quarters for Brazil. Now, Brazil at this time is is got huge potential but also some issues that we need to be uh very careful about and we are I must I can assure you that we are 1 is the reason a significantly liquidity uh issue in the Brazilian Market. Uh it's it's a non phenomena. It's been going on on and off for years at this stage. Uh, it is definitely there. The second thing which has a relationship to it is the very, very high interest rate, which the bank of Brazil is holding its about 15%. They upped it in Q2 the inflation is about 5%, which means that the real interest rate, uh, is about 10%. Now, this is the Central Bank of
Trump for his reasons. Uh, currently there's still no Arrangement and we're talking about 50% Duty. So this is another action item that potentially can do some extent interfere with all the good things that are going on in Brazil, you know, this is not particularly fcl, this is universal for doing business in Brazil, and I'm sure it will affect and afflict all the companies that are in our space, and that's just to round off and complete the picture.
There. Yep. Perfect. Very clear. Thank you very much. A lot have your own?
Your next question comes from Lawrence Alexander. With Jeffrey's your line is now open.
Hi, this is Kevin at stock on for Lawrence. Thank you for taking my questions. Um, are you still my first 1? So, you know, I've been hearing from peers that there's just sometimes globally that, and I think maybe it's more particularly in Brazil. But lesser extent elsewhere that basically High. Fertilizer prices were possibly starting to bite demanding corn, causing from the duration and demand. Um, just because, you know, farmer economics has been a little bit weaker than expected and I guess I was just wondering if you were seeing that on your end,
Any signs? Well, you mean the demand destruction. I'm sorry. I'm not sure. You know the line was it. So so, so the demand destruction, yeah. Okay. Thank you. Yes. Look look, demand. Look, there is when, when there is, uh,
Imbalance in in in markets there's always the threat or actually The Happening of demand destruction. Now, when you look at and I'm sure you I guess you mean the agricultural Market at this stage and you're seeing the agricultural Commodities are not at their best. I mean the fluctuation, but generally speaking rise we perform. So, uh, are not at their best and you see the fertilizers prices uh some important, especially in phosphate acting in another Direction. And then this is a sign that things need to be watched.
Uh, this is a general statement. We saw this phenomena in 2022 and we know how the party ended there, but I will say that. Now if I focus in on ICL, uh, because ICL in the phosphate world is focused on both Commodities and Specialties, it's actually specialty driven business. We basically see for affect a situation where what we are able to produce, we are able to sell and at good prices and I believe this will continue and just as we step into the room, we read uh you know use on what's going to happen with. Phosphate the continuation of the year and it seems that this is the story on that been. Yes. There is some demand and destruction, but this does not translate into a lack of demand from from our company from ICL.
uh, when we look at the potach world, uh, I think there is a reason to believe that there is some, uh, equilibrium in the market between supply and demand as we now see it, uh, again, for us,
uh,
fact of the matter is, is that we are only confined by the pace of production that we have, we do not have basically inventory at all. It's frictional, inventory, we sell from dogs and we definitely see a situation where whatever we can produce in both Israel and Spain and we will be able to sell at the prevailing prices. There is a case that I think I I'll end by saying that. Yes, I saw quite a few analysis that suggests
that the situation in the market is such that the prices are not going to increase that much. I'm talking about the pot for us and we're going to see a a much better price effective price because of the fact that we still had to honor all the obligations and looking forward, this will be less of a case but generally speaking if I can wrap up my my answer is I'm sure there's bound to be some demand their destruction but as it relates to ICL, I don't see this inflicting us.
Understood and then just to the second question. I mean so you know, construction and markets are obviously pretty weak and I guess I was wondering what you think. Basically we could take to to turn those end markets and I and I guess I was wondering if you're seeing any green shoots in any of the regional markets anywhere.
Okay. Okay, I think this is, of course, very good question. And I I would say generally speaking before zero in the construction Market. I think that if we take a step back and we reflect to what what's going on in the Global Production, manufacturing sales world, I think that the new term that we have to come to terms with is volatility because if we just reflect on the Q2, we just passed,
Famous liberation day coming in, in this first week of April, and we saw the amount of thermoid that that it sent through the global markets, to some extent. Uh, there there's been postponements Etc, but we ended the quarter yet some countries, resolving the issues, and some not resolving, as a result of that. First of all, There's A disruption in the end markets, which ultimately translate all the way back in the supply chain. This is 1 Thing. The second thing is the consumer confidence and we are seeing when. We look at the consumer confidence uh across the world, there is some issues with that. Third thing would be potential inflation. Uh and and I can go on and on when you look at all the macro things and you put them together, uh I would say there's bound to be and this is generally on many industries that go around the globe.
Specifically if I zero in on the constructing market, then the 2, the 3 main markets, let's take about the US Europe and China. Uh, I think they're different. What you're seeing in the US is that and, of course, you know, that much better than I do. But prices are, are of of households of houses are high, but the, but the new construction is, is low, which means that the demand side for that is to some extent affected and I do not believe there's anything coming, anytime soon, that will significantly change that, that is not its lackluster, it's not
Great. It's not bad but it's it's not really moving Europe is, is saying, Europe, is many countries? That's different fortunes. Uh, but generally speaking, it's not going in any particular direction. When you look at China, I think China is, is far away from sorting out. It's, it's issues with construction. There's been a lot of over construction. A lot of inflated pricing, a lot of of bad. I would say, toxic loans, uh, lying around. And I think that it would China contractions, what I read will take, uh, longer, maybe significantly longer time to sort out. So these are the end markets and obviously, uh, when you work to take it backwards and you look at us, uh, then then of course we are living through a world where the demand I would say, is not terrible, but it's soft. Now, we serve this in in, in bromine, we serve this in in phospho.
There is other things that are helping us. So generally when you look at the results that we are delivering in the part of business that comes from the industry products. We're generally doing, okay as you see in our numbers and we believe we'll continue to be okay, but it's not not a situation where the demand is such. The pool is such that the results will be outstanding. That's not going to happen anytime soon. Definitely not the same.
All right. Thank you.
Ladies and gentlemen, as a reminder, should you have a question, please press star 1.
Your next question comes from Joel Jackson. With BMO Capital markets. Your line is now open.
Hi, good morning.
Um, just on the short term.
Hi, um, if you look at growing Solutions and IP can you talk about in each business individually. So growing Solutions and IP, you know, Q3 how should that look versus Q2? Maybe the puts and takes for each business. Please thanks.
so,
Um, so we're again for Growing Solutions. Uh, I think the main difference between Q2 and Q3 is which continent or which geographical area is more dominant. In Growing Solutions, Q3 will be dominated by the Brazilian market, as I referred to this earlier. Usually, it means higher profits, but again, we need to see what will happen in the Brazilian market.
But all in all Q3 should be a relatively strong quarter for for growing Solutions.
S for aim is for a IP. And so what we see is that the bromine prices are going slightly up
Be tracking, plus minus along the numbers that we've seen in Q2 that is our forecasts, of course, with all the caveats and all the things that we said before the main difference between Q3 uh Visa vq2 should come from the port site.
Yeah, in in the port, once again, you ask about the growing Solutions and IP but I know you do well probably polish is the area of interest for you.
Uh, so uh, so important I believe uh will see higher price per tonne.
First because we move to the 2025 contract, in China and, and India, but also the sport transactions are in better prices and I believe quantities will be up. So, all in all important, we expect the quart. I remember Joy about a month back. You asked me about Q2 and the effective prices and we spoke about the old contracts that we have, uh, still had to honor. Well, most of them are gone and which means that effectively our price in Q3, uh, will be better than that, and the quantity should be better as well. So they will have a, a jump in hopefully, in the results that we are delivering on the topic segment for business.
Okay, so let's talk a bit more on pod. Ash, do you think the price increase in Q3 versus Q2 will be similar to the price increase?
You saw in Q2 versus q1.
Um,
It's hard to say but but if I have to guess, uh I believe the will see additional 10 to 15% in average. Again, it's just an estimate. Uh, but the
Q2 as we as we said, Q2 was 333% in average, I believe Q, Q3 will be a bit better than the 10 to 15 Dollar. Give or take. What for us for us. I'm talking about ICL, I think I'm not sure George. What do you ask about effective price for ICL or stick? No no no I no no, no no no no, no ICL Q3 versus Q2 pricing features are you staying out? That should be 10 to 15 over Q2. Is that right?
Yes. Something like this? Yeah.
okay, um, just a part of that, then
I, I mean, I understand all the challenges um,
Inventories used to be low even lower. How low are you willing to take inventories? Because to get to 4 Points, let's say I take your midpoint 4.4 million, tons of sales. Um are you willing to take inventories 50,000 tons? You know at the end of quarter like what are how low are you willing to go?
No, no, I I don't think we'll go lower than what we have right now because that's the, you know, the operational inventory. You cannot find the business, uh, much lower than this. So, uh, so you should not expect any lower inventory, for sure, not the dramatic lower.
Is that does that mean you're more likely?
Does that mean you're more likely to come in in the lower part half of your
4.2 to 4.5 pot, ash sales range. Like is that you give it a midpoint of 44, but are you more likely to come in the lower half of it?
We don't know yet to join, that's the truth. That we open a range. When we open a range, we do this, uh, you know, with with, with this spread. It's because we do not know a lot of. It depends on how fast we're going to ramp up and how quiet, or not quiet. Our particular part of the world is going to be. There's a lot of unknowns we can be at. I can argue the case for both of both sides of the of the ocean, if you want at this stage. So we really do not know and we cannot
Respond to that distance.
Okay. My my final question is a lot, it's a little more personal for you. Uh, you've been in this seat now for a handful of months, not a lot. But, you know, you've been there for a little while now in this seat. And you talked about, I think earlier, in the call about prepared remarks about, you know, maintaining uh, the goals around the different things, you know?
As you now, sit in the seat.
What might ICL do differently under your leadership than say reviews, other things that you have, maybe you could share, you know, your initial thoughts here but things you may do a bit differently than review. You've already talked about doing a lot what he did but uh, what do you what? From the team has done, but I think you get my question.
Doing the the strategy and the the road map.
So please if you can wait a bit and I promise I'll come back to the market with with a clear.
Plan. Clear program for the future.
Okay, 12 mode. Thank you very much.
Thank you. Thank you, Joel.
ladies and gentlemen, as
Our star 1.
Star no further questions at this time. I will now turn the call over to Lad for closing remarks.
Okay, so, uh, thank you everyone for joining us. Uh, today all in all from from our perspective, Q Q2 Mr. Expectations. And it was a good quarter and we anticipate Q3 to be even better. Uh, so we'll meet you in the next quote and thank you very much. Thank you.
Ladies and gentlemen, this concludes your conference call for today. We thank you for participating. In NASA you, please disconnect your lines.