Core Insights - The export of fruits and vegetables from the Horgos port reached 307,000 tons in the first half of 2025, marking a 37.1% increase and setting a historical record [1] Group 1: Industry Overview - Horgos port benefits from unique climatic conditions and fertile soil, leading to the production of various fruits such as apples, pears, grapes, peaches, and apricots [1] - The increase in exports not only enriches the domestic market but also expands the reach of these products to international markets [1] Group 2: Supply Chain Process - The journey of the fruit from the farm to the international market involves several stages, including strict quality checks for appearance, sweetness, pesticide residues, and pest control [6] - After harvesting, fruits are stored in cold storage to prolong freshness, followed by another quality inspection before being labeled for export [10] - The fruits are transported in temperature-controlled vehicles, maintaining a consistent temperature of 4°C to ensure quality during transit [10] Group 3: Market Impact - The successful export of fruits from Horgos port illustrates the effective use of the "green channel" for rapid customs clearance of agricultural products between China and Kazakhstan [14] - Each exported fruit serves as a "sweet ambassador," telling the story of its origin and the journey it undertakes to reach foreign markets [14]

Financial Data and Key Metrics Changes - For the full year 2024, group revenue increased by 6.7% to $8.5 billion, and adjusted EBITDA increased by 6.7% to $392 million, exceeding adjusted EBITDA guidance by $12 million [11][7] - Adjusted net income for the full year was $120.9 million, with adjusted diluted EPS increasing by 2.4% to $1.27 per share [11][27] - Net debt at the end of 2024 was $637 million, with net leverage at 1.6 times, indicating a strong financial position [12][10] Business Line Data and Key Metrics Changes - Fresh Fruit segment delivered adjusted EBITDA of $214.8 million for the full year, an increase of $5.9 million compared to 2023, driven by volume growth in bananas and plantains [12][13] - Diversified EMEA segment achieved adjusted EBITDA of $131.5 million for the full year, with like-for-like revenue growth of 4.4% [16][17] - Diversified Fresh Produce Americas segment reported a like-for-like revenue increase of 16.1%, with adjusted EBITDA increasing by 52.3% for the full year [32][33] Market Data and Key Metrics Changes - In North America, the Fresh Fruit segment saw good volume growth in bananas and plantains, while European markets benefited from high volumes and lower shipping costs [13][14] - The EMEA segment faced headwinds due to supply challenges and weather events, but anticipates continued revenue growth in 2025 [17][18] - The Diversified Americas segment performed well, particularly in the export business, with strong growth in cherries and grapes [19][33] Company Strategy and Development Direction - The company is focused on capital allocation and managing invested capital, with strategic investments in expanding shipping capacity and improving operational performance [8][10] - There is an ongoing process to determine the best strategic alternative for the Fresh Vegetables business, which is expected to enhance long-term outcomes for stakeholders [20][21] - The company plans to maintain a baseline level of capital expenditure in 2025, while exploring development opportunities to drive further growth [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025, including the impact of Tropical Storm Sara and geopolitical uncertainties affecting sourcing costs and supply chains [40][41] - The company aims for adjusted EBITDA in the range of $370 million to $380 million for 2025, reflecting a more normalized year compared to 2024 [41][38] - Management remains optimistic about the underlying fundamentals of the business and is focused on addressing challenges while capitalizing on growth opportunities [15][38] Other Important Information - The company declared a dividend of $0.08 for the fourth quarter, to be paid on April 3, 2025 [37] - Free cash flow from continuing operations was $180.3 million for the full year, benefiting from strong adjusted EBITDA performance and good working capital management [36] Q&A Session Summary Question: Could you unpack the EBITDA guidance and the factors affecting it? - Management indicated that the guidance reflects known headwinds, including the impact from Tropical Storm Sara and macroeconomic uncertainties, with expectations for a slower start to 2025 [45][49][54] Question: What mitigation strategies are in place regarding potential tariffs? - Management believes that the demand for fresh produce will remain strong, and they are prepared to adjust pricing and sourcing strategies if tariffs are implemented [56][58][60] Question: What is the company's approach to capital allocation moving forward? - Management emphasized a focus on leveraging while also considering targeted M&A opportunities, with ongoing internal development projects to enhance growth [65][67][71] Question: Can you provide insights on the profit weakness in the EMEA segment? - Management noted that while there are ups and downs across different markets, they see more opportunities than challenges in the EMEA segment [75][77] Question: Is there a risk of elasticity in pricing for high-value products like avocados? - Management expressed confidence that demand for avocados and other products will remain stable, despite potential tariff impacts [78][80]

Financial Performance - FY'24 revenue reached $8475 million, a 28% increase compared to $8245 million in FY'23, with a 67% increase on a Like-For-Like (LFL) basis[10] - Adjusted EBITDA for FY'24 was $3922 million, up 18% from $3851 million in FY'23, also showing a 67% increase on a LFL basis[10] - Adjusted Diluted EPS for FY'24 stood at $127, a 24% increase from $124 in the previous year[10] - Net debt decreased by $1811 million to $6371 million at the end of the year due to proceeds from the sale of Progressive Produce and strong free cash flow generation[11] - Net Leverage was reduced to 16x at year end[8, 10] Segment Performance - Fresh Fruit revenue increased by 94% to $819 million in Q4'24 from $749 million in Q4'23[27], with Adjusted EBITDA increasing by 108% to $319 million[29] - Diversified Fresh Produce – EMEA saw a 55% increase in revenue to $911 million in Q4'24, up from $863 million in Q4'23[33], with a slight decrease in Adjusted EBITDA of 05% to $325 million[34] - Diversified Fresh Produce – Americas & ROW experienced a 54% decrease in revenue to $463 million in Q4'24 compared to $490 million in Q4'23[38], but on a LFL basis, revenue increased 161%[38] Capital Allocation and Future Outlook - Capital expenditure for continuing operations in FY'24 was $824 million, with free cash flow from continuing operations at $1803 million[42] - The company anticipates Adjusted EBITDA for FY'25 to be approximately $370-$380 million, with maintenance capital expenditure around $100 million and interest expense around $70 million[47]