Financial Data and Key Metrics Changes - In Q4 2024, Embecta's adjusted revenues totaled $290.2 million, representing a 4.1% increase compared to the prior year period, or 3.3% excluding contract manufacturing revenue [40] - For the full year 2024, adjusted revenues were approximately $1,127 million, reflecting a 1.1% increase on an adjusted constant currency basis [45] - Adjusted EBITDA for Q4 2024 was approximately $73 million, with a margin of 25.2%, compared to $79.6 million and 28.2% in the prior year [59] - GAAP net income for Q4 2024 was $14.6 million, or $0.25 per diluted share, compared to $6 million and $0.10 in the prior year [57] Business Line Data and Key Metrics Changes - Pen needle revenue grew approximately 2.8%, syringe revenue grew approximately 4.8%, safety products grew approximately 5.8%, and contract manufacturing grew approximately 96% in Q4 2024 [41] - For the full year, pen needle and safety product lines grew approximately 2.6% and 2.5%, respectively, while syringe product lines declined approximately 9% [46] Market Data and Key Metrics Changes - International revenue in Q4 totaled $122.8 million, a 3.1% decline on an adjusted constant currency basis, primarily due to timing of orders in China and the impact of the Italian payback measure [43] - U.S. revenues for the full year totaled $607.2 million, an increase of 1% on an adjusted constant currency basis, driven by favorable pricing dynamics [47] Company Strategy and Development Direction - The company announced a restructuring plan aimed at streamlining operations and reducing costs, including the discontinuation of the insulin patch pump program [16] - Future strategic priorities include strengthening the core business, expanding the product portfolio, and increasing financial flexibility [24] - The company plans to focus on GLP-1 therapies and has launched a new small pack pen needle product in Germany [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced, including historic inflation and supply chain issues, which impacted margins by approximately 500 basis points [14] - The company anticipates that pricing will become a headwind in 2025 due to the renewal of agreements [49] - Management expressed confidence in the company's ability to navigate the evolving market landscape and capitalize on growth opportunities [96] Other Important Information - The company incurred approximately $63 million in expenses related to the patch pump program during fiscal year 2024 [73] - A debt paydown plan was initiated to enhance financial flexibility moving forward [15] Q&A Session Summary Question: Inquiry about capital allocation priorities post patch pump decision - Management emphasized that the primary focus is on debt paydown to create financial flexibility for potential M&A opportunities [87][88] Question: Clarification on potential impacts from tariffs and macroeconomic factors - Management noted that a small portion of U.S. revenue comes from products manufactured in China and will monitor tariff developments closely [96] Question: Discussion on residual value of the patch pump and future opportunities - Management stated that while no viable options surfaced for monetizing the patch pump, they remain open to future discussions if interest arises [114] Question: Inquiry about cost savings from restructuring - Management confirmed that the restructuring is primarily tied to the discontinuation of the patch pump, aligning with the anticipated savings [116]

| --- | --- | |------------------------------|-------| | | | | | | | | | | Earnings Conference Call | | | | | | Fiscal Q4 and Full Year 2024 | | | | | | November 26, 2024 | | Forward-Looking Statements Safe Harbor Statement Regarding Forward-Looking Statements This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations reg ...

On Tuesday, Embecta Corp EMBC posted the fourth-quarter adjusted EPS of 45 cents, beating the consensus of 36 cents and down from 59 cents reported a year ago.The company reported quarterly sales of $286.1 million, up 1.5% year over year, beating the consensus of $277 million.“We are pleased to report a strong fourth quarter and end to our fiscal year, as we once again delivered results that exceeded our expectations across key financial metrics…Additionally, the recent launch of our small-pack GLP-1 needle ...

Executive Summary & Strategic Update [Strategic Decisions and Restructuring](index=1&type=section&id=Strategic%20Decisions%20and%20Restructuring) The company is discontinuing its insulin patch pump program and restructuring to focus on its core business and debt repayment - The company is discontinuing its insulin patch pump program and initiating an organizational restructuring plan to streamline operations and reduce costs[3](index=3&type=chunk) - Strategic priorities are shifting to concentrate resources on the core business and prioritize using free cash flow for debt repayment to gain financial flexibility[3](index=3&type=chunk) - The company has successfully transitioned approximately **98% of its revenue** to its own ERP system and distribution infrastructure, with only India remaining as a deferred market[3](index=3&type=chunk) Projected Restructuring Impact in FY2025 | Metric | Estimated Amount | | :--- | :--- | | **Total Pre-Tax Charges** | $35 million - $45 million | | - Cash Charges (Workforce/Program Discontinuation) | $25 million - $30 million | | - Non-Cash Charges (Asset Impairments) | $10 million - $15 million | | **Annualized Pre-Tax Cost Savings** | $60 million - $65 million | Financial Performance [Fourth Quarter Fiscal Year 2024 Financial Highlights](index=2&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202024%20Financial%20Highlights) Q4 FY2024 saw revenue growth driven by the U.S, but profitability metrics like adjusted operating and EBITDA margins declined Q4 FY2024 Financial Performance vs. Q4 FY2023 | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Reported Revenues | $286.1M | $281.9M | +1.5% | | Adjusted Revenues (Constant Currency) | $290.2M | $281.9M | +4.1% | | Gross Margin | 60.7% | 64.5% | -3.8 p.p. | | Adjusted Gross Margin | 61.4% | 64.8% | -3.4 p.p. | | Net Income | $14.6M | $6.0M | +143.3% | | Adjusted Net Income | $25.9M | $34.1M | -24.0% | | Diluted EPS | $0.25 | $0.10 | +150.0% | | Adjusted Diluted EPS | $0.45 | $0.59 | -23.7% | | Adjusted EBITDA | $73.0M | $79.6M | -8.3% | | Adjusted EBITDA Margin | 25.2% | 28.2% | -3.0 p.p. | Q4 2024 Revenue by Geography (Adjusted Constant Currency Growth) | Region | Revenue (Reported) | Adjusted Constant Currency Growth | | :--- | :--- | :--- | | United States | $167.4M | +10.3% | | International | $118.7M | -3.1% | | **Total** | **$286.1M** | **+4.1%** | - The quarterly revenue increase was driven by **$13.7 million in favorable pricing** and a $2.3 million increase in contract manufacturing, partially offset by unfavorable adjustments and currency impacts[10](index=10&type=chunk) [Twelve Months Ended September 30 Fiscal Year 2024 Financial Highlights](index=2&type=section&id=Twelve%20Months%20Ended%20September%2030%20Fiscal%20Year%202024%20Financial%20Highlights) Full-year FY2024 revenues were flat while net income rose, though adjusted profitability metrics saw a decrease Full Year FY2024 Financial Performance vs. FY2023 | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Reported Revenues | $1,123.1M | $1,120.8M | +0.2% | | Adjusted Revenues (Constant Currency) | $1,127.2M | $1,120.8M | +1.1% | | Gross Margin | 65.5% | 66.9% | -1.4 p.p. | | Adjusted Gross Margin | 65.7% | 67.0% | -1.3 p.p. | | Net Income | $78.3M | $70.4M | +11.2% | | Adjusted Net Income | $143.1M | $172.6M | -17.1% | | Diluted EPS | $1.34 | $1.22 | +9.8% | | Adjusted Diluted EPS | $2.45 | $2.99 | -18.1% | | Adjusted EBITDA | $353.4M | $378.7M | -6.7% | | Adjusted EBITDA Margin | 31.4% | 33.8% | -2.4 p.p. | Full Year 2024 Revenue by Geography (Adjusted Constant Currency Growth) | Region | Revenue (Reported) | Adjusted Constant Currency Growth | | :--- | :--- | :--- | | United States | $607.2M | +1.0% | | International | $515.9M | +1.3% | | **Total** | **$1,123.1M** | **+1.1%** | - The full-year revenue increase was primarily driven by **$27.7 million in favorable pricing**, which was largely offset by unfavorable volume changes and negative foreign currency translation[12](index=12&type=chunk) [Fiscal Year 2025 Financial Guidance](index=6&type=section&id=Fiscal%20Year%202025%20Financial%20Guidance) The company projects a slight revenue decline for FY2025 but anticipates improved profitability with higher adjusted EBITDA and EPS FY2025 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | Reported Revenues | $1,093M - $1,110M | | Reported Revenue Growth | (2.7)% - (1.2)% | | Adjusted Constant Currency Revenue Growth | (2.5)% - (1.0)% | | Adjusted Gross Margin | 63.25% - 64.25% | | Adjusted Operating Margin | 29.00% - 30.00% | | Adjusted EBITDA Margin | 35.50% - 36.50% | | Adjusted Earnings per Diluted Share | $2.70 - $2.90 | - The company is unable to provide a quantitative reconciliation for forward-looking non-GAAP measures like adjusted EPS and adjusted EBITDA without unreasonable effort[14](index=14&type=chunk) [Balance Sheet, Liquidity and Other Updates](index=6&type=section&id=Balance%20sheet%2C%20Liquidity%20and%20Other%20Updates) The company maintained a solid cash position, actively paid down debt, and continued its quarterly dividend program - In Q4, the company paid down an aggregate principal amount of approximately **$27.4 million** on its term loan B facility[15](index=15&type=chunk) - As of September 30, 2024, the company had **$274.2 million in cash**, $1.601 billion of debt, and its $500 million Revolving Credit Facility remained undrawn[16](index=16&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.15 per share**, payable on December 18, 2024[16](index=16&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) FY2024 net income and EPS increased year-over-year, driven by a significant income tax benefit despite lower operating income Consolidated Statements of Income (Full Year) | (In millions, except per share data) | Twelve Months Ended Sep 30, 2024 | Twelve Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Revenues | $1,123.1 | $1,120.8 | | Gross Profit | $735.2 | $749.9 | | Operating Income | $166.8 | $221.5 | | Net Income | $78.3 | $70.4 | | Diluted EPS | $1.34 | $1.22 | Consolidated Statements of Income (Fourth Quarter) | (In millions, except per share data) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Revenues | $286.1 | $281.9 | | Gross Profit | $173.8 | $181.8 | | Operating Income | $26.2 | $25.8 | | Net Income | $14.6 | $6.0 | | Diluted EPS | $0.25 | $0.10 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities increased, while total equity improved but remained negative as of September 30, 2024 Balance Sheet Summary (as of September 30) | (In millions) | 2024 | 2023 | | :--- | :--- | :--- | | **Total Current Assets** | **$761.0** | **$749.1** | | Cash and equivalents | $267.5 | $326.3 | | Total Inventories | $171.5 | $152.1 | | **Total Assets** | **$1,285.3** | **$1,214.4** | | **Total Current Liabilities** | **$374.0** | **$353.5** | | Long-Term Debt | $1,565.3 | $1,593.9 | | **Total Equity** | **$(738.3)** | **$(821.7)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations declined sharply in FY2024, leading to an overall net decrease in cash for the year Statement of Cash Flows Summary (Twelve Months Ended September 30) | (In millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $35.7 | $67.7 | | Net Cash Used for Investing Activities | $(15.8) | $(26.5) | | Net Cash Used for Financing Activities | $(73.4) | $(48.7) | | **Net Change in Cash** | **$(52.3)** | **$(4.4)** | | **Closing Cash and equivalents** | **$274.2** | **$326.5** | Non-GAAP Financial Measures & Reconciliations [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) FY2024 Adjusted EBITDA was $353.4 million, reconciled from GAAP Net Income with major adjustments for interest and one-time costs Reconciliation of GAAP Net Income to Adjusted EBITDA (Full Year) | (In millions) | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **GAAP Net Income** | **$78.3** | **$70.4** | | Interest expense, net | $112.3 | $107.0 | | Income taxes | $(34.1) | $35.3 | | Depreciation and amortization | $36.2 | $32.6 | | **EBITDA** | **$192.7** | **$245.3** | | One-time stand up costs | $111.2 | $93.7 | | Stock-based compensation expense | $26.6 | $21.9 | | Other Adjustments | $22.9 | $17.8 | | **Adjusted EBITDA** | **$353.4** | **$378.7** | - One-time stand-up costs, primarily related to the global ERP implementation and other separation activities, were a major adjustment, totaling **$111.2 million** for the full year[28](index=28&type=chunk)[30](index=30&type=chunk) [Reconciliation of GAAP to Adjusted Operating & Net Income](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20Operating%20%26%20Net%20Income) FY2024 GAAP operating and net income were adjusted upwards to $296.9 million and $143.1 million respectively after non-GAAP items Reconciliation of GAAP to Adjusted Operating Income (Full Year) | (In millions) | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **GAAP Operating Income** | **$166.8** | **$221.5** | | One-time stand up costs | $112.5 | $93.7 | | Business optimization & severance | $7.4 | $5.6 | | Italian payback measure | $4.1 | — | | Other Adjustments | $6.1 | $10.7 | | **Adjusted Operating Income** | **$296.9** | **$331.5** | Reconciliation of GAAP to Adjusted Net Income & EPS (Full Year) | (In millions, except per share) | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **GAAP Net Income** | **$78.3** | **$70.4** | | Total Pre-tax Adjustments | $130.4 | $117.7 | | Non-GAAP Income tax provision | $(35.8) | $(51.5) | | GAAP Income tax provision (benefit) | $(34.1) | $35.3 | | **Adjusted Net Income** | **$143.1** | **$172.6** | | **GAAP Diluted EPS** | **$1.34** | **$1.22** | | **Adjusted Diluted EPS** | **$2.45** | **$2.99** |

Core Viewpoint - Embecta Corp reported strong financial results for the fourth quarter and fiscal year 2024, exceeding expectations across key metrics, while also announcing a restructuring plan to streamline operations and focus on core business areas [2][3]. Financial Performance Fourth Quarter Fiscal Year 2024 Highlights - Reported revenues of $286.1 million, an increase of 1.5% compared to $281.9 million in the prior year [5]. - Adjusted revenues of $290.2 million, up 4.1% on an adjusted constant currency basis [5]. - U.S. revenues increased by 10.3% on both reported and adjusted constant currency basis [5]. - International revenues decreased by 8.8% on a reported basis and 3.1% on an adjusted constant currency basis [5]. - Gross profit of $173.8 million with a margin of 60.7%, down from $181.8 million and 64.5% in the prior year [5]. - Net income of $14.6 million, or $0.25 per diluted share, compared to $6.0 million and $0.10 per diluted share in the prior year [5]. Twelve Months Ended September 30 Fiscal Year 2024 Highlights - Reported revenues of $1,123.1 million, up 0.2% from $1,120.8 million in the prior year [6]. - Adjusted revenues of $1,127.2 million, an increase of 1.1% on an adjusted constant currency basis [6]. - U.S. revenues increased by 1.0% on both reported and adjusted constant currency basis [6]. - International revenues decreased by 0.7% on a reported basis but increased by 1.3% on an adjusted constant currency basis [6]. - Net income of $78.3 million, or $1.34 per diluted share, compared to $70.4 million and $1.22 per diluted share in the prior year [6]. Strategic Initiatives - The company successfully transitioned approximately 98% of its revenue to its own ERP system and distribution infrastructure, with India as the only deferred market [2]. - The launch of small-pack GLP-1 needles in Germany has been successful, with plans for expansion into other markets [2]. - The decision to discontinue the insulin patch pump program and initiate an organizational restructuring plan aims to streamline operations and enhance profitability [3][4]. Cost Management and Future Guidance - The restructuring plan is expected to incur pre-tax charges of $35 million to $45 million in fiscal year 2025, with anticipated annualized pre-tax cost savings of $60 million to $65 million [3][4]. - Preliminary fiscal year 2025 guidance includes reported revenues of $1,093 million to $1,110 million, with a reported revenue growth of -2.7% to -1.2% [14]. Balance Sheet and Liquidity - As of September 30, 2024, the company had $274.2 million in cash and equivalents, with total debt principal outstanding at $1.601 billion [18]. - The Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on December 18, 2024 [18].

Core Viewpoint - Embecta Corp. will host a conference call to discuss its fiscal fourth quarter and full year 2024 financial results, along with preliminary financial guidance for fiscal year 2025 on November 26, 2024 [1]. Group 1: Company Overview - Embecta is a global diabetes care company with a 100-year legacy in insulin delivery, focused on empowering people with diabetes through innovative solutions and partnerships [3]. - The company employs over 2,000 individuals worldwide, emphasizing its commitment to improving the lives of those with diabetes [3]. Group 2: Conference Call Details - The conference call is scheduled for 8:00 a.m. Eastern Time (ET) on November 26, 2024, and will be accessible via a live webcast and teleconference [1][2]. - A replay of the call will be available starting at 11:00 a.m. ET on the same day and will be archived for one year on the company's investor relations website [2].

Group 1 - Embecta Corp. will host a conference call on November 26, 2024, at 8:00 a.m. ET to discuss its fiscal fourth quarter and full year 2024 financial results, along with preliminary fiscal year 2025 financial guidance [1] - Participants can access the live webcast through the company's website or via a teleconference link, with a replay available starting November 21, 2024 [2] - Embecta is a global diabetes care company with a 100-year legacy in insulin delivery, focusing on empowering people with diabetes through innovative solutions and partnerships [3]

Core Insights - Embecta Corp. has received FDA 510(k) clearance for its disposable patch pump designed for insulin delivery, marking a significant advancement in diabetes care for Type 2 diabetes (T2D) patients [1][2] - The new insulin delivery system is expected to enhance Embecta's market position by addressing the unmet needs of T2D patients, a segment historically underserved by existing insulin pump technologies [2][10] Company Developments - The newly approved system features a 300-unit insulin reservoir, which is sufficient for 64% of T2D patients over three days, compared to only 38% for a 200-unit reservoir [6] - The system includes a user-friendly interface with Bluetooth technology and a color touchscreen, facilitating the transition from multiple daily injections to pump therapy for T2D patients [7] - Embecta is also developing a closed-loop version of the insulin delivery system, which will incorporate an advanced insulin-dosing algorithm for improved convenience and precision [9] Market Performance - Embecta's shares have increased by 22.2% over the past six months, significantly outperforming the industry growth of 2.9% and the S&P 500 Index's gain of 11.7% during the same period [4] - Following the FDA clearance announcement, EMBC stock gained 0.7% on September 3, indicating positive investor sentiment [2] Strategic Positioning - The FDA clearance reflects Embecta's commitment to innovation and its strategic goals, leveraging its 100-year legacy in diabetes care to establish itself as a leader in the field [8][10] - The company aims to expand its product offerings and improve the quality of life for individuals with diabetes, particularly focusing on the underserved T2D population [10]

Core Insights - Embecta Corp has received FDA 510(k) clearance for its disposable insulin delivery system, aimed at adults with diabetes, including both T1D and T2D [1][2] - The system features a tubeless patch pump with a 300-unit insulin reservoir, designed specifically for T2D patients transitioning from multiple daily injections to pump therapy [1][2] - The patch pump can deliver adjustable basal and bolus insulin for up to three days, addressing the higher daily insulin needs of T2D patients [2][4] Product Features - The disposable insulin delivery system includes a wearable patch pump that can accommodate higher insulin requirements, with 64% of T2D adults able to use the 300-unit reservoir for three days, compared to only 38% with a 200-unit reservoir [2] - The system is equipped with a locked-down controller featuring Bluetooth technology and a color touchscreen for a simplified user experience [3] Strategic Importance - Achieving FDA clearance is a strategic priority for Embecta, reflecting its commitment to improving the lives of people with diabetes [2] - The company plans to develop a closed-loop version of the patch pump, which will include an insulin-dosing algorithm for future FDA submission [4] Company Background - Embecta is a global diabetes care company with a 100-year legacy in insulin delivery, focusing on innovative solutions to empower individuals with diabetes [6]

Revenue and Profitability - Revenue decreased by $13.6 million, or 4.8%, to $272.5 million for the three months ended June 30, 2024, compared to $286.1 million for the same period in 2023[63] - Revenue decreased by $1.9 million, or 0.2%, to $837.0 million for the nine months ended June 30, 2024, compared to $838.9 million for the same period in 2023[64] - Gross profit increased by $0.6 million to $190.1 million, with a gross profit margin of 69.8%, up from 66.2% in the prior year[63] - Gross profit decreased by $6.7 million to $561.4 million, with a gross profit margin of 67.1%, down from 67.7% in the prior year[64] - Operating income increased by $4.6 million to $55.9 million for the three months ended June 30, 2024[63] - Operating income decreased by $55.1 million to $140.6 million for the nine months ended June 30, 2024[64] - Net income decreased by $0.5 million to $14.7 million for the three months ended June 30, 2024[63] - Net income for the nine months ended June 30, 2024, was $63.7 million[84] Expenses and Cost Management - Cost of products sold decreased by $14.2 million, or 14.7%, to $82.4 million for the three months ended June 30, 2024, compared to $96.6 million for the same period in 2023[67] - Selling and administrative expenses decreased by $1.9 million, or 2.2%, to $85.7 million for the three months ended June 30, 2024, compared to $87.6 million for the same period in 2023[69] - Research and development expenses decreased by $2.2 million, or 9.7%, to $20.4 million for the three months ended June 30, 2024, compared to $22.6 million for the same period in 2023[71] - Selling and administrative expenses increased by $22.7 million, or 9.2%, to $268.3 million for the nine months ended June 30, 2024, compared to $245.6 million for the same period in 2023[70] - Cost of products sold as a percentage of revenues was 30.2% for the three months ended June 30, 2024, compared to 33.8% for the same period in 2023[67] Cash Flow and Debt - Cash and equivalents and restricted cash were $281.8 million as of June 30, 2024, down from $326.5 million as of September 30, 2023[83] - Net cash provided by operating activities was $9.1 million[84] - Net cash used for investing activities included capital expenditures of $15.8 million[84] - Net cash used for financing activities totaled $36.8 million, primarily due to dividend payments of $25.8 million[85] - Total debt outstanding as of June 30, 2024, was $1,600.3 million, with a weighted average cost of total debt at 7.2%[79] - Interest expense, net increased by $0.8 million to $27.8 million for the three months ended June 30, 2024, compared to $27.0 million for the same period in 2023[74] - A 100 basis points change in interest rates would have impacted interest expense on the Term Loan by $9.3 million annually[95] Operational Challenges - The decrease in revenue for the three months was driven by $24.4 million of unfavorable changes in volume and $2.5 million from negative foreign currency translation[65] - The company continues to face pricing pressures and increased competition in the medical device industry, impacting operating margins[59] - Other income (expense), net was $(1.1) million for the three months ended June 30, 2024, compared to $(4.2) million for the same period in 2023[75] Inventory and Receivables - The change in trade receivables was $(156.2) million, attributed to the implementation of new Business Continuity Processes[84] - The change in inventories was $(32.8) million, driven by increased raw material purchases in anticipation of the ERP system[84] - The company expects inventory levels to decrease during the remainder of fiscal 2024[84] - The company is now responsible for the collection of outstanding trade receivables globally following the termination of the Factoring Agreement with BD[84] Regulatory and Compliance - The company submitted its first 510(k) premarket filing to the FDA for a proprietary disposable insulin delivery system in December 2023[61] - There have been no material changes to the company's contractual obligations outside the ordinary course of business as of June 30, 2024[86] Taxation - The effective tax rate was 45.6% for the three months ended June 30, 2024, compared to 24.4% for the same period in 2023[76]