Camil Alimentos SA
BOVESPA:CAML3
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Camil Alimentos SA
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Good morning. Welcome to Camil's video conference to discuss the results for the third quarter of 2022. Present here today are Mr. Luciano Quartiero, Director and President; Flavio Vargas, CFO and IR Officer; and the company's Investor Relations team. We would like to inform you that this event is being recorded. [Operator Instructions]
We would like to also clarify that any forward-looking statements that might be made during this conference call related to Camil's business outlook, projections and financial and operating goals are based on beliefs and assumptions of the company's management as well as information currently available. These may involve risks, uncertainties and assumptions as they refer to future events and therefore, depend on circumstances that may or may not occur. Investors must understand that such general economic industry conditions and other operating factors may lead to results that differ substantially from those expressed in such forward-looking statements.
We will start the presentation with Mr. Quartiero, followed by Mr. Flavio and then we will open for Q&A in approximately 15 minutes. Thank you.
Hello, and welcome to the comments on the results for the third quarter of 2022. In this slide, we provide you with an update on Camil as one of the most complete platforms of products and leading brands in the LatAm food market. Both the new categories and the international acquisitions made, reflect our positioning as a multinational of Brazilian origin.
This quarter, we highlight Camil's entry into the cookies category in Brazil with the inclusion of Mabel to our portfolio on last November 1, followed by the licensing of the Toddy Brand for cookies. The acquisition reinforces the positioning we have been emphasizing to the market of adding recognized in higher added value brands to our portfolio. We have already proven that we are able to identify and integrate acquisitions into the company that add synergies in procurement, commercial and G&A.
Cookies in particular, comes in to increase Camil's exposure to the wheat chain, following on the trail of the excellent results we've been posting from the newly acquired pasta operation in Brazil. In November, we paid BRL 177 million for the transaction which also contemplates the reported amount of BRL 152 million during the announcement and the working capital adjustment in the period.
Now moving on to the financial highlights. With the acquisition of Mabel, from the accounting management perspective, we recorded an advantageous purchase gain. This effect, together with the operating results for the quarter, resulted in an EBITDA of BRL 310 million, up 54% when compared to the previous year with a margin of 11.9%. We also reported a gross revenue of BRL 3 billion in the quarter and BRL 8.8 billion year-to-date, both up 15% over the third quarter of 2021.
On the operating side, the third quarter of '22 was impacted by the results of a challenging economic scenario in Latin America, which put pressure on results in the food retail sector. As a food company with quality, relevant brands and serving different consumer segments in Brazil, we were able to offset part of these effects on the results. Even so, we are taking all the necessary measures to adjust sales, production and profitability to the still challenging external scenarios in the short term. Excluding nonrecurring effects in the period, our operating result came to BRL 168 million of EBITDA with a margin of 6.5% in the third quarter 2022 and BRL 621 million in the year-to-date with a margin of 8.1%.
Now turning to the operating results. We highlight 6% year-to-date growth in consolidated sales volume, driven by the entry into new categories and also internationally. In the quarter, the decline in Brazil reflects this more challenging scenario in food retail and the temporary volume reduction in Uruguay, which was already expected due to the sales dynamics in the country. We also emphasized the entry into the cookies category in Brazil as of November of 2022.
If we look at it by categories, starting with rice, volume was down vis-à-vis the previous year, impacted mainly by a slowdown in retail and increased rice price levels in the market despite the lower volumes. We should also note that sales of the leading brand, Camil remains stable when compared to the previous year. It is worth noting that the most recent increase in rice prices only occurred at the end of the quarter, reaching around BRL 90 according to CEPEA Esalq.
In beans, we continue to show good results. We posted volume growth compared to the previous year, and we continue to see a positive trend growing the leading brand and the lower pricing brands in the quarter. In sugar, the landscape was a bit more challenging, both in volumes and also profitability. Even against this backdrop, we continued to gradually recover the usual sales volume base for the category, which is reflected in the sequential volume growth of 4%.
In fish, we are resuming the volumes of the category. We are currently seeing historical profitability levels returning to double digits and volume slowly returning to normal levels, considering that last year and in the first quarter of '22, volume was impacted by the limited availability of sardines.
In the Pasta segment, Santa Amália continues to deliver excellent and profitable results, with pricing and procurement and sales execution that allows the category to keep operating at higher than historical margins. Still in the weak chain, we reported one month of cookies operation, which totaled 2,800 tons of sales in November. We are proceeding with our turnaround plan, focused on recovering sales, brands and profitability of the new business acquired by the company over the next 6 months of operation.
Besides the wheat chain, the quarter also shows the continuity of the ramp-up of coffee sales, which reached 4,200 tons in the period. We must bear in mind that we enter the category at the end of March 2022 with an operation that is in the process of expanding its capacity from 36,000 to 60,000 tons a year, ensuring product availability and sales execution. We are investing in advertising and publicity, and we are in the process of expanding our reach, mainly into new regions and into new SKUs.
In the international front, we -- there was a decrease due to the temporary mismatch of exports in Uruguay. This movement is typical of the country's business model, which concentrated exports in the second quarter of 2022. In Peru and Chile, packaged rice sales volume and profitability continue to be pressured by the political and economic landscape in these countries as well as by rising inflation at the LatAm level.
In Ecuador, volumes decreased, but profitability in the country has been delivering good results with a focus on efficiency actions and commercial structure. The gains of scale that we have been presenting to you and the agile integration of the acquisitions were part of the great achievements of the period. After the conclusion of the last transactions, we are now in the adjustment in sales ramp-up phases, entering into a new growth phase and capturing gains and synergies with categories with the potential to bring higher added value.
We continue to pursue operating and administrative efficiencies in order to consolidate the acquired robustness without losing the simplicity which is inherent to the company's history. We are confident with the direction the company has taken and that even in the most challenging scenarios, we are aware of the adjustments required to anticipate trends and strengthen our position in the industry.
Now to elaborate further on the financial performance of the quarter and year-to-date, I will give the floor to Flavio. You may proceed, Flavio, please.
Thank you, Luciano. Starting the analysis of the financial performance. Gross revenue in the quarter was BRL 3 billion with a net revenue of BRL 2.6 billion. Revenue grew more than 15%, boosted by the entry of new businesses in the company and market price increases in the period.
Cost of goods sold, COGS, also grew due to prices and entry into the new categories. As a result, our gross profit totaled BRL 521 million, being 10% higher than the previous year with a margin of 20% for the quarter. SG&A was BRL 433 million, up 42%. It is worth noting the impact of the BRL 41 million expense in G&A Brazil for the quarter related to provisions with lawsuit losses.
On a comparable basis, excluding M&As between the periods and nonrecurring effects, SG&A for the quarter was up 17%, mainly impacted by freight personnel and inflation in the period. Other operating revenues totaled BRL 184 million in the quarter due to nonrecurring items with BRL 199 million of revenue from the advantageous acquisition of Mabel as the price paid to acquire the business was lower than the fair value of the acquired company shareholders' equity. The result was also impacted by the BRL 16 million expense related to the provision for the transfer of the cookies industrial asset from PepsiCo's plant in Sorocaba to Mabel's plant which we'll realize in the coming months with the completion of the transaction.
Taking all of these factors into account, the EBITDA for the quarter came to BRL 310 million, up 54% year-on-year with a margin of 11.9%. Excluding nonrecurring effects of provisions and advantageous purchase totaling BRL 142 million, EBITDA totaled BRL 168 million, a 16% reduction with a margin of 6.5%. Net income amounted to BRL 147 million, growing 22% with a net margin of 5.7%. It is worth noting that year-to-date, in addition to the scale gain and revenue growth with the new acquisitions, our EBITDA totaled BRL 763 million, a growth of 33% with a margin close to 10%.
Excluding nonrecurring effects, EBITDA reached BRL 621 million, 8% growth with 8% margin, reflecting a more challenging external scenario for food retailing at the LatAm level, as already mentioned by Luciano. The company's total debt was BRL 3.6 billion with net debt over EBITDA for the last 12 months of 2.8x in the period.
CapEx was BRL 230 million with a payment of BRL 177 million for Mabel, maintenance investments and some expansion projects. It is also worth mentioning the postponement of part of the schedule of the company's expansion projects in view of the new interest rate levels.
Finally, in terms of ESG, our actions are reported in the sustainability report available to you at CVM and also on the IR website, consistent with the company's business planning for the coming years and also in line with our focus of carrying out actions that are effective in our surroundings. In the quarter, one of the highlights was the ESG culture work across the company with discussions involving Camil's ESG working groups in all LatAm countries for the planning of the next fiscal year. We are focused on the continuity of 0 accident projects in occupational safety, capacity, building social projects such as Doce Futuro União, renewable energy and circular economy, and of note in the quarter was the disclosure of our emissions inventory and Camil's participation in the Carbon Disclosure Project, or CDP.
In closing, as already highlighted by Luciano, we are focused on short-term actions to leverage the synergies of the new acquisitions and performed a turnaround and boost the cookie business which consolidates our market position with categories of higher added value for the company. We remain at your disposal during the Q&A in case you have any questions. Thank you very much.
[Operator Instructions] Our first question comes from Gustavo Troyano from Itau BBA.
There are 3 aspects I would like you to elaborate further. First, related to cookies. This was the first month that you are reporting the cookie business. I just want you to talk a little bit about the turnaround project. What is the timing that you have in mind? I remember that at the end of last year, you referred to a period of approximately 6 months. But did you have any update since then?
And the second point relates to the kappa effect and the inventory levels at a retail level. I think back in 2018, you said that there was a reduction in inventory, there was a reduction in margins, but recovery was really quick, back then. So I would just like to compare what we have today and whether we could expect a very quick recovery of margins and how much of that margin you expect to recover in the short term?
And the third point is about the consumption environment. This is a more generic question involving all the categories. And this is an ongoing discussion about the potential deceleration of sales in general, Beverage and Food segment decelerated at the end of last year. Did you notice the same thing? Or what is your view about the consumption environment in the domestic market?
Gustavo, thank you for your questions. Well, starting with your first question about Mabel. We took over the operation on November 1. Our third quarter ends in November. So as I said during my presentation, we've been operating for only a month. I think one important point that really shows how much the company prepared itself for that incorporation process is that, again, in only 60 days, we integrated the company into our system. So Mabel, as of January, is already operating within our ERP system. They are already part of our sales and logistics system. So once again, the company was very quick in incorporating Mabel into our own system.
We've had some very positive surprises along the way, especially during this first month of operation and even in December, our second month of operation. I mean, our clients are really pleased with the way we are conducting the business. And we managed to reposition prices accordingly. Therefore, today, we were saying in the past that it would take us about 6 to 8 months to conclude a turnaround, but we believe that this timing will be shorter.
I don't want to tell you exactly how short, but I may say that, certainly, we are pleasantly surprised with the way the business is performing. We still have a lot of work ahead of us. We have to optimize all of the packaging, package sizes. We've been reviewing all of the packaging in the past few months. Mabel was not evolving in this front. Therefore, we are able to reposition prices, even with packages that are very different from what we see in the market in general. So this is something that will be reflected in the next coming months with the new packaging. And this really shows that, that turnaround will be quicker than expected.
Now in terms of your second question, kappa and lower inventories on the part of retailers, that was a very tough process. It started in August and September, and it lingered for a few more months. And this had a severe impact on our margins. And so within that same period, we had lower inventory levels. We had the World Cup, the cup, and this is bad for our segment, but it favors other segments.
And so going a little bit into your third question about the consumption environment, we also felt the impact of the purchasing power and freight in the case of some specific plants. Some of our distribution routes were heavily affected because we didn't have enough vehicles. And because of that, the cost of freight was much higher. These are the most important factors that impacted our margin. Some of these factors were carried over to the next quarter. But the consumption environment continues to be slow.
Not only are a sell-in is slower, but what we feel and by talking to some of our clients, we feel that our clients' sellout, it's also slower. We felt the impact of lower purchasing power that it's carried over to the fourth quarter, not only the impact that we felt in December, but January and February that are usually lower months for us is also being affected by this additional impact, not as severely as in the third quarter because there are 2 other variables that are no longer in place like the World Cup and lower inventories, but the landscape is still not very favorable. But this tends to change once we get into the second quarter, third quarter, which would be our first quarter in the Camil's calendar. So these are all the answers.
Our next question comes from Pedro Fonseca from XP.
I would like to talk about 2 points. One is pasta. We saw a drop in volumes comparing the second to the third quarter, and it's even lower than the reference volume closer to that 5 ton, please correct me if I'm wrong. Could you please tell us what is still missing in terms of getting to the level that we all expect to see? And the second point is how you see this potential reduction in the rice crop season? Maybe if you think that this could be a positive thing for the margins?
Pedro, thank you for your questions. I think that the pasta subject is impacted by the effect you mentioned, and this had an impact on our volumes. Well, the company, not only in terms of pasta, but in general, we optimized our portfolio. And in the very specific case of pasta, we cut a larger number of SKUs of items and we reduced the price aggressiveness in the lower pricing brands that we have.
So most of your decline in sales comes from our lower pricing brands. And this is because we are now focusing on profitability, and we understand that in view of the current scenario being more aggressive with lower pricing brands, it was not making any sense. That's why we made this additional adjustment and reduction.
In terms of the rice crop season, there was an impact. There are some other variables, not only related to domestic production, but also if you look at other more [indiscernible] countries because there were some changes in import taxes in Central America. And because of that, the prices were higher. And this is something that started a few months back and rice prices are much higher. CEPEA Esalq is above BRL 90.
Now looking forward towards the next 9 months, we are seeing higher prices, especially when we look at the next coming year vis-à-vis the year that just ended. So higher prices are better for the company. Therefore, we do not expect any supply risk. Risk is usually our concern because whenever Brazil goes through lower crop seasons and -- like in the first quarter, Brazil exported a lot and then the second quarter, we had to import.
So in terms of supply, no risk in that front. So higher price that is effect, and this is good for the company. So this landscape for rice is similar when we look at beans. We had different seasons throughout the year for beans. And that's why prices for beans should also be higher next year. And I think with that, I answered your questions.
I know that was very clear. I just have a follow-up about the Pasta segment. If you look at what you said about focusing on more profitability going forward in 2023, what kind of volumes should we bear in mind in terms of the Pasta segment quarter-on-quarter for 2023?
Well, we don't give that kind of information to the market. Maybe we could have a one-on-one meeting just to give you some more additional information, but we do not give any guidance on volume about that.
Our next question comes from Guilherme Palhares from Bank of America. [Operator Instructions]
Having said that, our next question is from Leandro Fontanesi from Bradesco BBI.
As a follow-up on that last question about rice prices, you mentioned the demand -- the impact on demand and slower business. And we saw the same thing in other peer companies. I mean, rice prices are higher and this benefits the company, of course. So for the calendar year of 2023, you anticipate higher rice prices and this compensates for probably slower demand, and this is probably an effect that will impact the first quarter of your calendar year? Or do you think that this will only be seen in the second quarter?
And the second question is about that repurchase that you announced. Does that reflect the way you see the price of the share and capital allocation in view of the share itself or this buyback is just something like business as usual?
So Leandro, in terms of rice prices, I just reinstate that higher prices are good for the industry, not only for Camil, it's good for the companies in general in the industry. Now we have the issue of the season. We have experienced [indiscernible] for the past 2, 3 years, and this changes the rainfall regime and changing temperatures, that's why we are experiencing once again the same effect, maybe this will be the last year. But certainly, this impacts the crop seasons in Brazil, Uruguay and Argentina.
Moreover, in the international market, you have Central America, and they reduced their import taxes. And that tends to keep the levels of imports from South America, and this is good for our price levels. Brazil tends to export more and this helps prices. So higher prices, I mean, I don't have that perception at all. Certainly, I do not want to see lower sales volume because on the previous question, we talked about the consumption environment.
So that higher price comes to offset that lower sales, but the company anticipates higher volumes going forward. If there is a region that has a consumption impact, we still have some white spots to be exploited in the country. Therefore, we see other growth opportunities. And I hope that despite this adverse scenario, the company will continue to grow.
About the buyback, this is our eighth buyback program since the IPO. At the IPO, we had 410 million shares. We canceled altogether, in the past 5 years, 60 million shares including those that we will cancel. So we have 350 million shares. We canceled approximately 14% to 15% of the capital when compared to the IPO. This decision contemplates the company's value of perception vis-à-vis what has been traded in the stock exchange and also capital allocation, but in our view, would be the ideal one.
So in terms of capital allocation since the IPO, I don't remember all of the precise figures, but I think it's BRL 1 billion or BRL 1.2 billion in acquisitions, we had about BRL 600 million in dividends. And with this new buyback recently announced, we will have approximately BRL 550 million to BRL 600 million. This is part of our allocation -- capital allocation strategy. And I think that was it, Leandro. I don't know whether you want any additional information?
No, that's excellent. You answered my question.
Our next question comes from Mr. Guilherme Palhares from Bank of America.
Can you hear me now?
Yes. Yes, we can.
Great. Well, thank you. And first of all, Happy New Year. I wasn't able to participate in the Camil Day, but I'm sure it was very good. My questions are more related to your coffee business. We are seeing the company operating at a level that is slightly lower than what had been previously announced. Could you please tell us a little bit about the challenges you faced when company launched 2 products? And I would like to know how is your launch pipeline?
In some markets, we have products that are vacuum packaged. Some brands have their own coffee shops and they're even present in the corporate environment. So can you please tell us what is your focus in this market so that we could have an idea of how you will perform as you start expanding your capacity so we would have a better idea about the future of the business?
Okay, Guilherme. About coffee, as you said it yourself today, we have only 2 SKUs, our plant operated at capacity of 36 tons a year. So now we are increasing that to 60,000 and this expansion process will be concluded at the end of March and early -- at the end of February and early March. In that same period, we will be able to launch a 1,500 gram vacuum package. So as of the end of February and early March, our pipeline will contemplate filters, cappuccino, coffee pods. And so I think we will be able to launch all of these products throughout the first half of the year. So we hope to launch all of these new items by August. The company is working diligently in that regard.
Launching of the vacuum package. As I said in our last call, that kind of packaging is very important in the coffee industry. And I think this will accelerate our growth because we will be participating in a relevant chunk of the market. We've seen competitors being more aggressive and we are gaining momentum. We had a very successful campaign during the last Black Friday. We are gaining market share. We are in the lower 2 digits. We are building a very sound growth base. The company remains very optimistic, and we see great potential in this market.
I mean, coffee shop that you mentioned, is not in the radar of the company right now. It's still something we have to get a better understanding before we venture into that space. But we do have many other steps to give before we get into that. Some players are already there. So this is a little further away when compared to the other categories that I just mentioned to you. So in terms of coffee, this is what I have.
Just as a quick follow-up on the coffee business. Do you see any synergy opportunities between your businesses like having a package where you will offer cookies with coffee or any commercial synergies among the companies that you acquired? Can you tell me a little bit about the integration of these new categories? Or do you think that it's too early to tell -- it's too early to think about all of these opportunities?
Guilherme, that's a very good question. We see a lot of opportunities to capture synergies among the different categories. There are some which may be more obvious than others. But let's say, I have a salesperson serving all the categories. We have one promoter -- sales promoter serving all of the categories in the point of sale. So he spends more time in the store and less time commuting from one store to another. There is also logistics. We can optimize our distribution centers.
Our focus now is to look in-house in order to simplify the operations, while at the same time, we capture all the opportunities and synergies. Now in the industries, we haven't yet captured all of the efficiency gains. We still have optimizations to do in the Pasta segment with our new coffee plant, we will have enormous gains. With cookies, we want to add more volumes and this will also bring significant gains.
We still have some work to do in terms of capturing synergies in the different categories and areas and even in between categories. So this has been our major focus. But that doesn't mean -- and I will even elaborate further that doesn't mean that the company is not open to look at new opportunities if they come along. But our focus today is mainly to capture all of the synergies that we have in-house at the moment.
Our next question comes from Rodrigo Almeida from Santander.
I would just like to -- I would like you to elaborate a little bit further on Uruguay. And we saw a mismatch now, but also, we talked a little bit about the rice scenario. But when we look at North America and Central America, they are also going through a tighter moment and Uruguay in exports platform, it will be an interesting subject to exploit further. Looking into the next crop season, what kind of volumes do you expect? Also thinking about distribution and exports, what should we expect in terms of Uruguay, given the fact that this has been a more difficult quarter with lower volumes due to that mismatch? Like what should we anticipate going forward?
Well, thank you for your question. About Uruguay, Uruguay experienced lower volumes. But Uruguay operates for a season. So all of the rice that we receive in Uruguay throughout February and March, it is the product that we have available for the rest of the year. So as the second quarter in the Camil calendar was very strong, we anticipated our sales for the year, and that's what justifies that lower second quarter. And the fourth quarter is the residual products that have to be sold. So the transfer inventory will be lower in Uruguay because we expedited sales.
Now in terms of our operation in Uruguay, we see margin improvements and also improvements in terms of sales stability. During the first 2 years of the pandemic, we had problems with availability and significant price increases for freight and this made it difficult for certain markets to overcome that issue. And now what we feel looking into the second half of last year and the first of this year is that international freight prices are down, there is higher availability and higher demand coming from certain markets. And this is a very positive landscape for our Uruguay operation.
I mean, the amount of rice we will have available for next year is very much related to the harvest that it's about to take place 30 days from now. The planted area was very similar, but we have to see -- to check the yield numbers. I mean, in the last 30 days, even though we are still 30 to 40 days away from harvest, there might be still some climate effect. So it's difficult for us to tell you now what will happen. But having -- looking at the macro perspective, the outlook for Uruguay is much better.
And there is another aspect about Uruguay. We acquired Silcom, that's a company of natural products. We also deployed new systems and that's been concluded. And the company is very pleased because things are as expected. There are still some synergies that are yet to be captured. We are combining that operation while Silcom had a much larger client base when compared to ours. So the acquisition is moving as expected. Performance is good.
Our next question from Victor [Poli,] it was in writing. Could you tell us a little bit about the company's view in terms of leverage and future acquisitions? There is an important maturity of the debt. Do you intend to pay or roll out the debt so you would have enough cash to pursue new opportunities? Also in terms of synergies, could you please tell us how much you intend to obtain and how long it will take until you capture all the synergies?
Thank you for your question. In terms of our capital structure, the company goes through seasons. It has some seasonality. In this quarter, we have 2.8x net debt over EBITDA ratio. And seasonally, the next quarter in terms of working capital, we will release some cash. And usually, this level of leverage is lower. So our ceiling for net debt over EBITDA level is 3.5x. But the company understands that we still have an adequate leverage level and this allows the company to make some strategic moves.
In regards to our willingness, the company is always open to new opportunities, but nowadays, the focus is much more turned to our internal operations because we want to be able to operate all of the businesses that we acquired in the past 24 months because all of these acquisitions added more complexities in terms of management. Therefore, the management of the company is now working on all of the best ways to capture operating synergies, ways to best integrate all of the companies, how we go to market so that we can have a very good sales performance of this entire portfolio of products so much so as to have a profitable operation.
So to make a long story short, in terms of our capital structure, we still have a very good capacity but how -- to look at opportunities, but the current focus is just to improve our current performance to experience further growth and more profitability.
Now when we look at our maturity calendar, what the company has in terms of maturity payments, the company is focused on seeking for refinancing. We should start looking into that early this year, the company has commercial partners and commercial banks that are very strong. We already know the direction that we want to go. The idea is then to start with that refinancing in the next 3 months so that we would have enough capital to reposition our liquidity and to do everything we have in the pipeline for the next 12 months so that we want to have all of these maturity dates aligned with our current strategy. So that's what we will focus on in the next 3 months.
Now in regards to synergies, the company does not disclose what we expect to see in terms of synergies. But in regards to the quality of the acquisitions that we had since SLC, Santa Amália and now Mabel which were more relevant acquisitions that, in fact, the company is able to extract more synergies in the Brazil business. In quality terms, the company is satisfied because all of the main assumptions when we first made the investment and we approved the business plan, since then, the company has been able to capture all of the synergies in a very effective way.
Our next question comes from Mr. Matthew [indiscernible].
If you allow me, I would like to get a follow-up on Victor's question. What is the management's feeling about rice consolidation perspective?
Well, thank you for that question. The consolidation of the rice market is something that the company has always pursued and we've let that debate. And we understand that there is too many opportunities. When we look at the rice market and our stake in that market at the Brazil level, I think Camil holds about 13% to 14% of that rice market. It's a very fragmented market. And the company still understands that we have room for further consolidation. Some other categories like refined sugar, we have 40% of market share. In fish, we have approximately 45% market share. When we look at beans, which is a bit more fragmented when compared to rice, our share ranges around 7% to 8%.
So in these 2 markets, there's still room for further consolidation. And consolidation is something that we will still see in the next coming years. It continues to be a very good opportunity and the company is working diligently in these fronts.
[Operator Instructions] As there are no further questions, the Q&A session is now concluded. We would like to thank you all for joining us today, and we wish you an excellent day.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]