Kepler Weber SA

BOVESPA:KEPL3

Earnings Call Analysis

Earnings Call Transcript 2024-Q2

[Operator]

[Interpreted] Good morning, ladies and gentlemen. Welcome to the Kepler Weber results video conference for the second quarter 2024. Present with us today are Bernardo Nogueira, the CEO; and Edirlei Lohrentz Controller. We would like to inform you that the presentation is being recorded and translated simultaneously. [Operator Instructions] Please bear in mind that any forward statements made during this conference call relating to Kepler Weber's business outlook, operational targets and financial goals. Our company management projections that may or may not materialize. Investors should understand that political, macroeconomic and other operational factors may influence the company's future and lead to results that differ materially from those expressed in such forward-looking statements. To begin the conference, I turn the floor over to Bernardo Nogueira.

[Bernardo Nogueira, executive]

[Interpreted] Good morning, everyone. It is a pleasure to be with you for the video conference on Kepler's results for the second quarter of 2024. I would like to start by expressing our solidarity on behalf of everyone at Keppel Weber to the state of Rio Grande do Sul. In recent months, we have been committed to supporting the region offering volunteering financial assistance and various donations. We are together at this challenging time. It is important to note that to date, we have not had significant changes to our business structure or economic problems due to climate events.

The trend for the second quarter was tough with growth vis-a-vis 2023. Our performance in the second quarter is in our history. We highlight the 16.6% growth in net revenue vis-a-vis the second quarter 23 and 17.2% in the first 6 months of 2024 compared to the same period in the previous year. This performance was underpinned by assertive strategies in the 5 operating strategies. In the following slides, we will detail the performance of this segment. EBITDA reached BRL 63.3 million with a 19.3% margin, an increase of 17.7% compared to the second quarter ‘23.

In the first half, we recorded BRL 153.7 million EBITDA with a 21.7% margin, results that demonstrate the company's operational excellence. Net profit totaled BRL 37 million with a margin of 11.3% and a growth of 10.9% vis-a-vis the second quarter ‘23. In this segment, we reached BRL 89.2 million and a margin of 5.4%. We're now going to speak about the business segments. On Slide 4, the farm segment reached BRL 103.6 million in the quarter and BRL 235.4 million for the semester, an increase of 25.3% and 23.9% compared to the same period in '23, respectively, although grain production in Brazil in '23, '24 cycle was 7% lower than in the previous cycle. We would like to highlight the significant increase in the company's net revenue driven by the need for storage and considering the expectation of the 2024, ‘25 harvest the company's successful strategy of expanding and strengthening the sales portfolio in the fourth quarter ‘23 and short a significant increase in revenues throughout the first half of 2024.

In Agribusiness, revenues reached BRL 98.2 million in the quarter and BRL 204.2 million in the semester, an increase of 15.3% and 4.6%, respectively, the result of premium customer service and expectations for the '24/'25 harvest as well as investment by cooperatives and industrial projects. International business generated BRL 31 million in the quarter and EUR 69.8 million in the semester, a growth of 24% and 46%, respectively, -- the period marked the company's leadership in Latin America with significant sales to countries in the region, including Argentina, once again, an important destination for our products after a period without major supplies. In ports and terminals, we saw a growth of 34% in the quarter and 41% in the semester with revenues of BRL 37.5 million in the quarter and BRL 84 million in the semester.

The -- this demonstrates the success of the company's strategy in the sector. In this quarter, we highlight the services provided at the Port of Santos in Sao Paulo and corn ethanol in Mato Grosso. Finally, in replacement and services, we reached BRL 57.6 million, a decrease of 4.7% compared to the same period in 2023. In the first half of 2024, net revenue was BRL 114.6 million, an increase of 2.9% compared to the same period last year. The segment's comparability with the same period last year was affected due to the largest replacement works ever carried out. Nevertheless, the number of customers increased a percent and Procer showed an increase of almost 30% in customers served in the second quarter 23.

On Slide 5, I share some important projects delivered in the second quarter 24. The Vera Cruz project in Rio Grande do Sul and Santa Filomena and Filomena and the Korea project in Bahia with 24,000 tonnes capacity. In Slide #6, we have the Itapua project in Paraguay. It is a project with a large storage capacity, reaching a total of 33,000 tonnes Finally, we mentioned the project of Portuguese and Venezuela with 6,000 tonnes. It is the first new project set up in the country with a more efficient train system and process management technology. On Slide #7, we demonstrate the renewal of orders in the portfolio. We recorded the entry of 20 different supplies contracted in the quarter. Together, they add up to BRL 185 million in new sales.

In the table, we highlight the entry of 7 new simultaneous projects in Agribusiness for BRL 58 million, followed by BRL 54.9 million in ports and terminals, BRL 53 million in 6 projects for the Farm segment; and finally, 18.3 million in exports billings started in August and run until February of 2025. I will now turn the floor over to our Controller, Edirlei, who will present the EBITDA and other financial indicators.

[Edirlei Lohrentz da Silva, executive]

[Interpreted] Good morning, everybody, and thank you, Bernardo. On Slide #8, we show you the evolution of EBITDA for the second quarter '24. We generated an increase of 9.5% vis-a-vis the second quarter 23 and 0.2 percentage points in the EBITDA margins. In the semester, we reached BRL 153.7 million, an increase of 7.2% vis-a-vis the same period 23%, reaching 21.7% of EBITDA margin. The positive variation in the indicator is explained by the increase in activity level in the period, which made it possible to optimize the use of installed capacity coupled with balanced prices and cost management. In Slide 9, we show you the evolution of CapEx investments in the first half of the year, investments amounted to BRL 16.2 million, 43% of which earmarked for increasing manufacturing capacity, 23% and developing new products and 10% for IT projects.

We highlight the implementation of an autonomous cargo handling system using AGV robot, which aims to increase productivity by automating the movement process within the plants. On Slide #10, I highlight the announcement on July 3 of the 24-25 Safra plan with a record amount of BRL 7.8 billion directed to the program of the construction and expansion of warehouses with CCA with very attractive interest rates for producers. We believe that this will allow producers seeking funding to carry out their storage projects with the aim of maximizing return in the coming harvest -- on Slide #11, I refer to the availability of cash, which remained at a robust level, ending June with a gross balance of BRL 513 million and net cash of BRL 225.1 million -- it is important to note that in June 2024 after a period of structuring, the company obtained financing from IFC amounting to BRL 150 million maturing in April 2031 with a grace period that will begin in April 2026.

The funds will be used to modernize and expand the plants in Panambi and Campo Grande. In Slide 12, we show you the ROIC for the second quarter 24, which was 43.5% in line with the ROIC for the first quarter 24, showing a balance between good profitability and long-term investments made by the company. Our business model stands out for its ability to maintain ROIC at high levels, guaranteeing excellent returns even in times of volatility. In Slide 13, we bring to you the payment of BRL 30 million in dividends paid on July 10, with an attractive payout of 60% on a cash basis. This concludes my part, and I return the floor to Bernardo.

[Bernardo Nogueira, executive]

[Interpreted] Thank you very much, Edirlei. Before we end the call, I am delighted to share with you the launch of the KW hub, an initiative that offers postharvest solutions to our customers within the KW hub, the customer finds everything they need for storage. They have access to our base of more than 10,000 customers and KW optimizes market access costs and increases the customer base. This quarter, we incorporated the Silo Bolsa, which has been available for purchase in our distribution center since June. Another novel PSKW hub is the slow scale in our portfolio, which is a bulk wane and loading system with greater precision and lower costs.

In this quarter, we also saw the launch of the BioHub which took place in April at Agrishow, -- this is a chip feeder that adapts wood burning stopes to operate next to the trial. Before we go on to the Q&A session, I would like to reinforce recent achievements and comments on our outlook for the remainder of 2024. First of all, I would like to thank the orange pleaded team for their consistent delivery of results. As a result, we achieved a remarkable 16.6% growth in net revenue, driving an EBITDA margin of 19.3%, a significant improvement vis-a-vis the same period last year despite the seasonality of the period, this semester was among the company's best second quarter ever with great expansion in both segments. We are constantly striving to improve the quality of our customer service as demonstrated by the results of our recent NPS survey with an impressive score of 72 points.

It is clear that our focus on excellence is boosting our results significantly. Finally, I'd like to highlight another quarter with a healthy return on investment, delivering 43.5% and maintaining consistency in this important indicator as an outlook for the remainder of 2024 I would like to highlight the following. We are working with positive demand in all of our segments that will keep the level of activity at the high level set forth in the second half of 2023 and allow a strong entry into 2025. We are focusing on the company's operational improvements to achieve good profitability throughout the year.

The sizes I highlight our alignment with the company's strategic plan to build businesses with profitability and continuous and sustainable growth. This concludes the presentation of the results for the second quarter of 2024. And I would like to invite you to Kepler Day 2024 that will be handled on November 26 of the B32 theater in Sao Paulo. This will be a special event with plenty of important information about our differentials and the company's future prospects. Don't miss it. Operator, we can proceed with the questions and answers.

[Operator]

[Interpreted] Thank you. We will now go on to the question-and-answer session. [Operator Instructions] Questions will be answered in group according to their topic. If you have a question after we have closed that group, the IR team will offer your response through e-mail. The first question comes from Andre Mazini from Citi.

[André Mazini, analyst]

[Interpreted] Good morning, Bernardo and Edirlei, first question, if you could please speak a bit about the competitor, private equity Industrial Partners. The sale was done for 8.3x EBITDA. And while Kepler negotiates is 5x below. In past conferences, I asked you if you were looking at that deal of GSI, you admitted that you had. So it doesn't make sense to pay more than what Kepler is negotiating. And what happens to the competitive scenario with that player in the hands of private equity perhaps TFI will become more aggressive in terms of price vis-a-vis to the past.

What changes for you, if anything, or if nothing will change at all? That's the first question. The second question, the PSA increased to BRL 2 billion. But what is it that we see at the extreme these numbers did not reach the end because of some bottlenecks. If you could refer to those bottlenecks, which is the percentage in terms of this 7.8% that will reach your extremes or ends. Thank you.

[Edirlei Lohrentz da Silva, executive]

[Interpreted] Thank you for the question. Now to speak about the Plano Safra 24/25. We had a growth of 17%. And the historical series of this Safra plan. We have a history of releasing 60% to 70% of the value announced, which, of course, does get to the extreme to the end and the great news this year what sets us aside is the credit line for cooperatives. The credit limit of projects formally was BRL 50 million. It will now become BRL 200 million. Because of this, our Agribusiness line can be expanded, and we can continue to capture the positive opportunities in the market. Thank you, Andre.

[André Mazini, analyst]

[Interpreted] Thank you, that was very clear.

[Operator]

[Interpreted] Our next question comes from Mrs. Fernanda Urbano from XP.

[Fernanda Urbano, analyst]

[Interpreted] Good morning, everybody. Congratulations for your results. My question refers to the approval of silo bags that you mentioned at the beginning of the call. Now how do you foresee the demand for this solution, if there is a change in the profile and adherence of clients and how this compares with your traditional metal silo. What is the rationale underlying the approval of this project?

[Bernardo Nogueira, executive]

[Interpreted] Excellent, Fernanda. Thank you for the question. The silo bag is a well-established technology in Brazil for more than 10 years. and it is a complementary temporary complement for storage approximately 80% of the people purchasing the silo bag have a metal structure, and they use a silo bag when they have very observe harvest. We don't understand that it competes with a metal structure. Any client who has the option will have a metal silo. It is an important solution but a temporary one nevertheless.

Now why have we included that in our portfolio to offer it to our clients. There are 2 main points here. First, we -- well, our business refers to post-harvest solutions. So we are aligned with those principles of business. And secondly, perhaps the most important point strategically is that any client that uses the silo bag will have to have a metal structure eventually when we have a transaction with the client, we open up a communication channel or sales channel with enormous potential and our sales funnel increases and enhances the qualification it has as well.

[Fernanda Urbano, analyst]

[Interpreted] That was very clear, thank you very much.

[Operator]

[Interpreted] Our next question comes from Mr. Bernard Roger from Trigum Capital. One... Mr. Werner, you may proceed with your question... [Audio Gap] Begin, we have activated your microphone. You may proceed with your question... if you could wait for a few seconds while we pull for more questions. Thank you. You may proceed with your question, sir.

[Unknown Analyst]

[Interpreted] Can you hear me?

[Bernardo Nogueira, executive]

[Interpreted] Yes. Yes, we can.

[Unknown Analyst]

[Interpreted] Well, regarding the PCA that we -- the question was partially answered. And I would like to know which is the demand for PCA, the interest rates, the terms and the volume, which is the demand vis-a-vis last year. If the market is more active, if it has a greater appetite for investments, especially in May, that seems to be quite depressed. And regarding cash of more than BRL 500 million. If there are any negotiations in terms of the Board and the directors regarding the use of that cash. You had equity of BRL 15 million, but which will be the destination of that amount? I know that the buyback option is still open.

[Bernardo Nogueira, executive]

[Interpreted] Thank you, Bernard, for the question. Now regarding the demand, what is it that we foresee. If we compare this to last year, we had an acceleration in demand for products already in the second half of 2023, and that is why we had an excellent result in the first half of '24, and the demand is still quite active. In the month of July, we had robust and sound demand. What happens in the second half of the year to anticipate this as we had a very strong demand in the second half of last year, perhaps the demand will decrease, but continue positive. 2023 was the second-best year in the company, and we're working very strongly to surpass that level and to ensure it is the best in the company. I will give the floor to Eira to speak about the destination of our cash.

[Edirlei Lohrentz da Silva, executive]

[Interpreted] Thank you, Bernardo. Thank you, Bernard, for the questions. Now to speak about our cash besides the great factor besides operating generation, the company generated more than BRL 100 million. Working capital also had a positive performance -- what is not in accordance with what we do traditionally was obtaining the IFC funding, representing BRL 150 million. This credit line has come in with certain roles. 30% of that amount we used to amortize short-term debt, and we look upon it as an excellent opportunity to enhance the company's capital structure.

Jointly with this, we will invest in the pre lining and expansion of our plants. We had a significant growth in the first half of 24%, 25% increase vis-a-vis the same period last year and streamlining and expansion of plants makes a great deal of sense for us. And we will bid on new avenues for growth, whether they are organic or inorganic through M&A. The company has a buyback project that is still open. We have strong cash and the intention is to intensify that program. That is it Berna.

[Operator]

[Interpreted] Thank you, Bernardo, and Edielei the answers. [Operator Instructions] These questions will be answered in groups according to the topic that will be announced. The first question comes from Mr. Honaldo Bueno.

[Unknown Analyst]

[Interpreted] If you could comment on the increase of CDP and the drop in margin in the company?

[Edirlei Lohrentz da Silva, executive]

[Interpreted] Thank you for the question, Honaldo. To speak about our COGS for the quarter, I'm sorry, we had an increase of 16%. And as you can see in our material, during this period, the company increased its volume by 25%. Along with this, we have a mixed diversification. We have a mix of relevant and large projects and also require more effort. But we were able to neutralize this and enhance our COGS margin vis-a-vis net revenue. It went from 69.5% to 69% of the holdings regarding net revenue margin in the first quarter -- we had a lower margin, reflecting the effects of the taxation on fiscal benefits. In the second quarter, we were able to deliver a higher margin vis-a-vis the second quarter of ‘23.

[Operator]

[Interpreted] Our next question comes from Capital in the Cimentos, -- you may proceed with your question.

[Unknown Analyst]

[Interpreted] Good morning, everybody. Can you hear me?

[Bernardo Nogueira, executive]

[Interpreted] Yes, perfectly.

[Unknown Analyst]

[Interpreted] Very well. A quick question referring to the GSI deal that you mentioned at the beginning of the call. The lack of interest of Kepler regarding GSI, was this motivated because of prices, considering that the multiple pricing was way above what Kepler negotiates presently in the market? Or was it due to the fact that the package that was for sale did not encompass only GSI, but other brands as well and some operations outside of Brazil, which was the motivation not to show interest in the company regarding this deal... Thank you...

[Bernardo Nogueira, executive]

[Interpreted] Thank you for the question. Well, you can imagine that a decision like this one will involve a myriad of aspects. Some are internal aspects, very generally, perhaps the main point was the difference in valuation. The expectation vis-a-vis our present-day status, which chose the potential we have for valuation. It didn't make sense at that point in time and also because we understand that we're in the best market worldwide for Agribusiness, we're at the right country at the right time with the right business. And with -- this is what enabled us to understand that would not be the best focus for us at that moment.

[Unknown Analyst]

[Interpreted] I understand, thank you very much.

[Operator]

[Interpreted] Now please hold while we pull for more questions. Thank you hold for a few moments. We're grouping some questions with the same topic, and we will remain in silence for a few moments more. Thank you – our next question... Comes from Mr. Andre Costa.

[Bernardo Nogueira, executive]

[Interpreted] Hello, Andre, and thank you for the question. Ports and terminals, of course, is part of our DNA with very positive growth this quarter and half of the year. And we do see an excellent outlook for the segment for 2 broad reasons. That is why we focus here first. Accordingly, with the growth of Brazilian growth, we impact the entire chain, but we also have to focus on the outflow of this production and have options. Brazil has been growing a great deal in terms of ports, not only in Santos and Paranagua which are the traditional ports, but we're also growing at great deal in the Northern Arch.

We see potential for this to continue forward. And besides being one more point in our resiliency and diversification. And as it is part of our change strategically, we look upon ports and terminals as the formula one of our segments. These are segments with the best performance. To give you an idea, a farm will have 2 turnovers a year. Now -- in Agribusiness, we will have 5 to 10 turnovers per year at a port. The expectation is to have more than 10 of these turnovers per month. So the performance and high intensity will help the company to develop day after day. So yes, our growth is to continue to grow within this segment as we showed you this semester.

[Operator]

[Interpreted] Our next question comes from Mr. Verner Roger. You may proceed, sir.

[Bernardo Nogueira, executive]

[Interpreted] Verner, thank you for the questions. To highly important points in our business, and they are quite connected. First, to speak about the exchange rate devaluation of the favors agribusiness. We are an exporting country. And every time there is that exchange devaluation, we see a pickup in pace in the business, an acceleration, and this is favorable to the environment as a whole and for our business. Now steel walk hand in hand with the exchange rate, but also has its very specific dynamic what we perceived with steel, and this is more of a macro outlook. But macro-wise, we see steel that has had a drop in 2023 as well as 2024.

There has been a reduction in the steel prices in the last 30 months, practically after a peak in 2021. And we tend to look upon stability for steel prices internationally in terms of exports. We still do not foresee an increase. We have several strategies for sourcing from Mexico and internationally, but this is now reflected into an increase in price for us. Now to speak about the steel and costs. We don't speculate with steel. We want to make this very clear. Our steel is always very hedged. We are producing the orders for the coming 3 months. We have purchased all the steel we need, which means we don't have a positive or negative exposure due to the steel price, thanks to this operational hedging.

[Unknown Analyst]

[Interpreted] Thank you. Thank you very much.

[Operator]

[Interpreted] If you could please hold for a few moments while we pull for more questions -- just a few moments while we pull for more questions with the same topic. We will remain in silence for a very short period. Thank you.... Our next question comes from Mr. Christian Olivera.

[Unknown Analyst]

[Interpreted] Congratulations for your results. I would like to know if there are any novelties in terms of your solution to the silo and which will be the remuneration of the company, considering you will have no CapEx invested as partners will fund this solution. If you could offer us more details on the internationalization of the company to other markets, including Argentina.

[Bernardo Nogueira, executive]

[Interpreted] Hello, Christian, and thank you for the question. Two very important point of what we are developing beginning with the lease of the units now yes, there is a demand for this in some of the segments of the market, they do use this solution, and we're building something. We have the regions mapped out. We have their profile and a well-advanced model. It's important to underscore that outside of a possible pilot, the intention is not to use the company cash to fund or to structure that business. Kepler will contribute with the knowledge of the region.

We have more than 10,000 clients in our customer base, and we're going to work on the projects and maintain them. This will be our role. And of course, we are going to value this with a fund or another entity that will work with that allocation. We continue to move forward with different discussions being held at present. And I hope to be able to offer you some novelties very soon about going international, Kepler has been exporting for 50 years. We have a sound reputation abroad. Last year, we exported to more than 17 countries, including Pakistan, Indonesia, Ukraine -- it's a challenge, Christian, to be very honest to work with the international business because of the abundance and the strength of the Brazilian market.

A great deal of our energy, of course, is concentrated in Brazil, which is the largest market in the world, but we tend to expand our presence abroad with intelligence. What we have done intentionally is to maintain communication even though it is virtual with that installed base that we have of almost 1,000 clients outside of Brazil. In the short term, therefore, there is no possibility of having a team in a specific country outside of Latin America. But yes, we are going to continue cultivating those relationships with a more interesting cost benefit for the company, and we will do it more efficiently.

[Operator]

[Interpreted] [Operator Instructions] Please hold while we pull for more questions. I request that you please hold for a few minutes. We're grouping together questions with the same topic, so we will remain in silence for a few moments more...our next question from Mr. Christian Oliveira from Levante Corp.

[Unknown Analyst]

[Interpreted] If you could give us more details on the mix and margin effect, which are the main projects that have contributed to a negative impact on margin.

[Edirlei Lohrentz da Silva, executive]

[Interpreted] Christian, thank you for the question. Let's speak about the details of the mix effect and contribution margins. As you observed in our material, the company grew in all fronts and had very strong growth in agribusiness, ports and terminals and in farms and in some more complex projects. Now because of this -- the harvest in Brazil has grown and now requires larger equipment because of this, the projects are more robust, more complex, and there is a pressure of the mix on the contribution margin. The question about which segment had a negative impact on our margin performance. We observed that although the farm segment has the best contribution margin. The other business units also contributed favorably, and they are part of the strategic plan of the company for growth.

[Operator]

[Interpreted] Please hold while we pull for more questions. [Operator Instructions] Please hold while we group our questions. [Break] Our next question... Comes from Henato.

[Unknown Analyst]

[Interpreted] Which will be the percentage of dividends for 2024, 2025, will investments increase during the period?

[Edirlei Lohrentz da Silva, executive]

[Interpreted] Thank you for the question. Your first question is about dividends. As announced yesterday, the company is paying out the equity that will be paid in August. And with the payment of this shareholders' equity in 12 months, our payout will be 78%. So there has been a healthy growth in the generation of results as well as in the distribution of dividends to shareholders. Regarding your question about investment -- the company has an interesting project and CapEx pipeline that we have put into practice in the last exercises with significant figures. And along with this, we're going to continue on in the line of streamlining and expanding plants, especially in the replacement and services area and ports and terminals. Bernardo, if you would like to add something.

[Bernardo Nogueira, executive]

[Interpreted] Henato there are 3 broad aspects that cause enthusiasm and that we want to invest in. We speak about the deficit in storage and production in the last 5 years, we have had an increase in demand, taking the company to another level, and we're going to continue like this. There's a second important element. The industrialization of Brazilian agribusiness is a very strong growth in the production of corn ethanol and other industrial aspects where you do require more storage.

The third aspect that also allows us to be enthusiastic or the movement of Brazil as a whole, something we observe in developed countries in Europe and that is happening in Brazil at present, the movement between OpEx to CapEx. What do I mean with this? If you have a unit that needs 10 people, if you invest in CapEx, you can run that same operation with 6 people. So you have optimization besides having greater safety and efficiency. You are able to optimize labor. And this, of course, will benefit companies like Kepler.

An excellent example of this at the agri show, we had a launch of the bio cab, which is the equipment that automates a feeding process for the burner that feeds the prior. This used to be a very manual process after present in the 18 units that we have through Brazil, more than 15,000 still carry out this process manually. Now the automation brings about enormous efficiency gains, and it is focused on CapEx and instead of OpEx. We have sold more than 40 units in 3 months and the expectation for the coming year is to increase that volume twofold. That's an excellent example along those lines.

[Operator]

[Interpreted] The question-and-answer session end here, we would like to return the floor to Bernardo Nogueira for the closing remarks.

[Bernardo Nogueira, executive]

[Interpreted] thank you very much. We have come to the end of our earnings release for the second quarter of 2024 first half of 2024. Beyond the positive results we have shared with you would generate enthusiasm is that we have left behind the first half of 2024. We're going towards the second half with a great deal of consistency for the first time in the company. We have 7 years of high growth development and positive results. And all of this confirms the aspects that we mentioned in 2021, 2022 and '23, we spoke about that new moment for Kepler, a consistent Kepler that cannot be knocked off very easily.

This is due to 2 things: a deficit in demand, the industrialization of agri business, the incredible growth of agribusiness that will not disappear and a business highly focused on efficiency, on lean production, costs, capturing the best opportunities. It's extremely satisfying to look upon 2024 with consistent results with state-of-the-art technology with a growth of 40%. The bio cab with silo bags. So Kepler is innovating to continue on with this consistency preparing for further consistency in 2025. This is a new Kepler that will maintain itself strong despite the difficulties that we see around us, a drop of soybean production, up 50% a year ago, but Kepler continues forward strongly.

It is a pleasure to share this with you. We have more than 180 people at the call. I thank you for your interest in the company. We are at your disposal to clarify any doubt. We'll see you again in October. At our earnings release, and we do hope to see you at Kepler Day to go more in depth in our conversation about Kepler Weber.

[Operator]

[Interpreted] The Kepler Weber results conference ends here. Should you have any doubt, please send your questions to the IR team through the e-mail [e-mail]. We thank all of you for your attendance, and we wish you a very good day.