Fresh Del Monte Produce Inc (FDP) 2023 Q2 法說會逐字稿

Good day, everyone, and welcome to Fresh Del Monte Produce's Second Quarter 2023 Earnings Conference Call. Today's conference call is being broadcast live over the Internet and is also being recorded for playback purposes. (Operator Instructions) For opening remarks and introductions, I would like to turn today's call over to Vice President, Corporate Communications with Fresh Del Monte Produce, Claudia Pou. Please go ahead, Ms. Pou.

大家好，歡迎參加 Fresh Del Monte Produce 2023 年第二季度收益電話會議。今天的電話會議正在通過互聯網進行現場直播，並進行錄音以供回放。 （操作員指示） 對於開場白和介紹，我想將今天的電話轉給 Fresh Del Monte Produce 企業傳播副總裁 Claudia Pou。鮑女士，請繼續。

Thank you, Rob. Good morning, everyone, and thank you for joining our second quarter 2023 conference call. As Rob mentioned, I'm Claudia Pou, Vice President, Corporate Communications with Fresh Del Monte Produce. Joining me in today's discussion are Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer; and Monica Vicente, Senior Vice President and Chief Financial Officer.

謝謝你，羅布。大家早上好，感謝您參加我們的 2023 年第二季度電話會議。正如 Rob 提到的，我是 Fresh Del Monte Produce 企業傳播副總裁 Claudia Pou。與我一起參加今天討論的還有董事長兼首席執行官穆罕默德·阿布·格扎拉 (Mohammad Abu-Ghazaleh)；和莫妮卡·文森特，高級副總裁兼首席財務官。

I hope that you've had a chance to review the press release that was issued earlier this morning via Business Wire. You may also visit the company's IR website at investorrelations.freshdelmonte.com to access today's earnings materials and to register for future [distribution]. This conference call is being webcast live on our website and will be available for replay after this call.

我希望您有機會閱讀今天上午早些時候通過美國商業資訊發布的新聞稿。您還可以訪問該公司的投資者關係網站 Investorrelations.freshdelmonte.com，獲取今天的收益材料並註冊未來的[分發]。本次電話會議正在我們的網站上進行網絡直播，並將在電話會議結束後重播。

Please note that our press release and our call today include non-GAAP measures. Reconciliations of these non-GAAP financial measures are set forth in the press release and earnings presentation, which is available on our website. I would like to remind you that much of the information we will be speaking to today, including the answers we give in response to your questions, may include forward-looking statements within the provisions of the federal securities laws safe harbor.

請注意，我們今天的新聞稿和電話會議包括非公認會計原則措施。這些非公認會計原則財務指標的調節表在我們網站上的新聞稿和收益演示中列出。我想提醒您，我們今天要討論的大部分信息，包括我們針對您的問題給出的答案，可能包含聯邦證券法安全港條款中的前瞻性陳述。

In today's press release and in our SEC filings, we detail material risks that may cause our future results to differ from these forward-looking statements. Our statements are as of today, August 2, and we have no obligation to update any forward-looking statements we may make.

在今天的新聞稿和向美國證券交易委員會提交的文件中，我們詳細介紹了可能導致我們未來結果與這些前瞻性陳述不同的重大風險。我們的聲明截至今天（8 月 2 日），我們沒有義務更新我們可能做出的任何前瞻性聲明。

During the call, we will provide a business update, along with an overview of our second quarter 2023 financial results, followed by a question-and-answer session.

在電話會議期間，我們將提供業務更新以及 2023 年第二季度財務業績概述，然後進行問答環節。

With that, I am pleased to turn today's call over to Mr. Abu-Ghazaleh.

因此，我很高興將今天的電話轉給阿布·格扎拉先生。

Thank you, Claudia, and good morning, everyone. We are truly pleased with our performance for the second quarter of '23. Net income more than doubled compared with the prior-year period. Gross profit and gross margin increased substantially when compared with the same period last year, and we further reduced our debt. In the second quarter, we sold our plastic business in Chile as well as [idle] lands in South and Central America as part of our commitment to optimize our asset base.

謝謝克勞迪婭，大家早上好。我們對 23 年第二季度的表現感到非常滿意。淨利潤較上年同期增長了一倍多。毛利潤、毛利率較去年同期大幅增長，債務進一步減少。第二季度，我們出售了在智利的塑料業務以及南美洲和中美洲的[閒置]土地，作為我們優化資產基礎承諾的一部分。

We are continuously looking for areas of opportunity within our portfolio to maximize our return on investment. Our core products, banana and pineapple, performed very well in the second quarter, and we continue to see strong demand for our Honeyglow and Pinkglow pineapple varieties, which contributed to the margin improvement in the fresh and value-added product segment.

我們不斷在我們的投資組合中尋找機會領域，以最大限度地提高我們的投資回報。我們的核心產品香蕉和菠蘿在第二季度表現非常出色，我們繼續看到對 Honeyglow 和 Pinkglow 菠蘿品種的強勁需求，這有助於新鮮和增值產品領域的利潤率改善。

Our avocado program is also growing. We have expanded our customer base and increased sales volume, and we have also diversified our sourcing origins to include Colombia and Dominican Republic and Peru. We continue to refine our pricing and sourcing technology for avocados. We believe this technology is the missing link that will help further elevate our avocado business. As you know, avocado pricing has been historically hard to predict because of the ever-changing market and weather conditions in Mexico.

我們的鱷梨計劃也在不斷發展。我們擴大了客戶群並增加了銷量，我們還實現了採購來源多元化，包括哥倫比亞、多米尼加共和國和秘魯。我們繼續完善牛油果的定價和採購技術。我們相信這項技術是缺失的一環，將有助於進一步提升我們的鱷梨業務。如您所知，由於墨西哥不斷變化的市場和天氣條件，牛油果的定價歷來難以預測。

In recent months, we have all witnessed record heat and changing weather patterns. These climate issues are not going to end, and we are seeing these typical weather patterns at the farm level as well. We have embarked on an all-out effort to find solutions for some of these challenges as part of our continuous focus on our Del Monte brand commitment of quality, freshness and reliability.

近幾個月來，我們都目睹了創紀錄的高溫和不斷變化的天氣模式。這些氣候問題不會結束，我們也在農場層面看到了這些典型的天氣模式。我們已開始全力以赴尋找應對其中一些挑戰的解決方案，作為我們持續關注德爾蒙特品牌對質量、新鮮度和可靠性承諾的一部分。

We have several climate-related projects in the works that get to the root of these new challenges. Our scientists and researchers are working diligently to improve and uncover farming methods to help optimize our yields while preserving and protecting our growing lands. We are focused on ways in which we can leverage technology like drones and smart farming to continue to move towards a circular economy on our [farms].

我們正在開展幾個與氣候相關的項目，以解決這些新挑戰的根源。我們的科學家和研究人員正在努力改進和探索耕作方法，以幫助優化我們的產量，同時保護我們的種植土地。我們專注於如何利用無人機和智能農業等技術繼續在我們的[農場]邁向循環經濟。

As a global agricultural company, we understand the importance of focusing on the basics, water, air, trees and soil, and protecting the environment wherever we can. It is essential for human survival. It is essential to our survival. And as an industry leader, we believe it is our duty to set an example. We believe we are making progress for our vision for brighter tomorrow.

作為一家全球農業公司，我們深知關注基礎設施、水、空氣、樹木和土壤以及盡我們所能保護環境的重要性。它對於人類的生存至關重要。這對我們的生存至關重要。作為行業領導者，我們相信我們有責任樹立榜樣。我們相信，我們正在為實現更美好明天的願景而取得進展。

Recently, Fresh Del Monte was recognized for its work in sustainability by two different leading sustainability organizations. We were awarded a 2023 SEAL Business Sustainability Award for our reduction of greenhouse gas emissions across the agricultural value chain. And we have been shortlisted for World Sustainability Award in the new launch category for the Del Monte Zero pineapple, which is our certified carbon-neutral pineapple that offsets emissions from farm to market.

最近，Fresh Del Monte 因其在可持續發展方面的工作獲得了兩個不同的領先可持續發展組織的認可。我們因減少整個農業價值鏈的溫室氣體排放而榮獲 2023 年 SEAL 商業可持續發展獎。我們的德爾蒙特零菠蘿入圍了新推出類別的世界可持續發展獎，這是我們經過認證的碳中和菠蘿，可以抵消從農場到市場的排放。

The Del Monte Zero pineapple is just one of several examples of how innovation within our pineapple segment is creating value for our consumers and our business while operating sustainably. Demand for our Pinkglow pineapple has been outpacing supply, with sales more than doubling versus the same period last year. After years of research and development, we were able to create a big pineapple that only we can produce.

德爾蒙零菠蘿只是我們菠蘿領域的創新如何在可持續運營的同時為我們的消費者和業務創造價值的幾個例子之一。我們的 Pinkglow 菠蘿供不應求，銷量比去年同期增長了一倍多。經過多年的研究和開發，我們能夠生產出只有我們才能生產的大菠蘿。

Similarly, the Honeyglow pineapple, our premium product that has a unique golden color and extra sweet taste, continues to increase in demand sales. In North America alone, sales were up more than 50% in the second quarter.

同樣，我們的優質產品 Honeyglow 菠蘿具有獨特的金黃色和額外的甜味，需求銷量持續增長。僅在北美地區，第二季度銷售額就增長了 50% 以上。

Both Pinkglow and Honeyglow are Fresh Del Monte's innovations, and their market acceptance and interest show how crucial innovation is in the pineapple category. As everybody knows, we are leaders in this space, and our successful innovations are paying off.

Pinkglow 和 Honeyglow 都是 Fresh Del Monte 的創新產品，它們的市場接受度和興趣表明創新在菠蘿類別中的重要性。眾所周知，我們是這個領域的領導者，我們成功的創新正在取得回報。

Sustainability and innovation go hand-in-hand with our clearly defined 5-year roadmap. Our vision is to become a technology-driven sustainable company by leveraging our strength in agriculture and supply chain. We plan on doing this through innovation, exceptional customer service, asset optimization, strategic partnerships and research and development, coupled with our extensive industry knowledge and deep data library.

可持續發展和創新與我們明確定義的五年路線圖齊頭並進。我們的願景是利用我們在農業和供應鏈方面的優勢，成為一家技術驅動的可持續發展公司。我們計劃通過創新、卓越的客戶服務、資產優化、戰略合作夥伴關係和研發，以及我們廣泛的行業知識和深厚的數據庫來實現這一目標。

We understand that achieving this transformational vision will take time. We, out of all companies, know very well that the day you plant the seed is not the day you eat the fruit. We are making the groundwork for our transformational vision as we speak.

我們知道，實現這一變革願景需要時間。在所有公司中，我們非常清楚，播種之日並非收穫果實之日。正如我們所說，我們正在為我們的轉型願景奠定基礎。

Lastly, before I pass the call over to Monica, this week, we announced a new partnership with Lunchables and Kraft Heinz launching Lunchables with fresh fruit, which will feature the multi-fruit prominently in select Lunchables meal kits. We are currently in the early testing stages of Lunchables with fresh fruit, selling to retailers in the south, central regions of the U.S., with the goal of further expansion into the U.S. market.

最後，在我把電話轉給莫妮卡之前，本週，我們宣布與Lunchables 和卡夫亨氏建立新的合作夥伴關係，推出含有新鮮水果的Lunchables，其中多種水果將在精選的Lunchables 餐包中佔據顯著位置。目前，我們正處於新鮮水果午餐的早期測試階段，向美國南部、中部地區的零售商銷售，目標是進一步拓展美國市場。

We believe there is a significant potential in partnering with a brand like Kraft Heinz. With more than 30 years in the market, Kraft Heinz is a leader in the kids meals combos category.

我們相信與卡夫亨氏這樣的品牌合作具有巨大的潛力。卡夫亨氏在市場上擁有 30 多年的歷史，是兒童餐組合類別的領導者。

On the consumer front, we see this as a great opportunity to change children's perspective around fruits and vegetables, ideally helping to make fruit and vegetable consumption second nature to younger generations by showing up front and center in a product they already know and enjoy. This partnership aligns closely with our mission to inspire healthy lifestyle and provide wholesome and convenient products to everyone.

在消費者方面，我們認為這是一個改變兒童對水果和蔬菜的看法的絕佳機會，通過在他們已經了解和喜歡的產品中出現在最前面和中心，幫助年輕一代使水果和蔬菜消費成為第二天性。這種合作夥伴關係與我們激發健康生活方式並為每個人提供健康和方便的產品的使命密切相關。

At this point, I will turn the call to Monica to talk about the second quarter financial results. Monica?

此時，我將打電話給莫妮卡，討論第二季度的財務業績。莫妮卡？

Thank you, Mohammad, and thank you for joining us on today's call. Let's turn to our second quarter of 2023 financial results. Net sales for the second quarter of 2023 were $1.18 billion compared with $1.21 billion in the prior year. The net sales variance was primarily driven by the fresh and value-added products segment, specifically lower per unit pricing of avocados due to market conditions, as Mohammad mentioned, and lower sales volume of nontropical fruit. This was partially offset by increased net sales of bananas, driven by higher pricing and volume.

謝謝穆罕默德，也感謝您參加今天的電話會議。讓我們來看看 2023 年第二季度的財務業績。 2023 年第二季度的淨銷售額為 11.8 億美元，而上年同期為 12.1 億美元。淨銷售差異主要是由新鮮和增值產品領域推動的，特別是正如穆罕默德提到的，由於市場狀況導致鱷梨的單位定價較低，以及非熱帶水果銷量下降。這被價格和銷量上漲推動的香蕉淨銷量增加部分抵消。

Gross profit for the second quarter of 2023 was higher by $36 million, an increase of 45% compared with the prior-year period. Gross profit benefited from lower product and distribution costs in the fresh and value-added product segment, combined with higher banana profitability.

2023年第二季度毛利潤增加了3600萬美元，同比增長45%。毛利潤得益於生鮮和增值產品領域較低的產品和分銷成本，以及較高的香蕉盈利能力。

Operating income was $72 million compared with $34 million in the prior year, and adjusted operating income was $68 million compared with $33 million. The increase in adjusted operating income was primarily due to the higher gross profit. FDP net income for the second quarter of 2023 was $48 million compared with $21 million in the prior year, and adjusted FDP net income was $46 million compared with $21 million.

營業收入為 7,200 萬美元，上年為 3,400 萬美元；調整後營業收入為 6,800 萬美元，上年為 3,300 萬美元。調整後營業收入的增加主要是由於毛利潤增加。 2023 年第二季度 FDP 淨收入為 4800 萬美元，去年同期為 2100 萬美元，調整後的 FDP 淨收入為 4600 萬美元，去年同期為 2100 萬美元。

Our diluted earnings per share was $0.99 compared with $0.44 in the prior year. Adjusted diluted earnings per share was $0.96 compared with $0.43. The difference of $0.03 per share between GAAP and adjusted diluted EPS during the second quarter of 2023 was related to the gain on sale of underutilized assets.

我們的稀釋後每股收益為 0.99 美元，而上一年為 0.44 美元。調整後稀釋每股收益為 0.96 美元，去年同期為 0.43 美元。 2023 年第二季度 GAAP 與調整後稀釋每股收益之間的每股 0.03 美元差異與出售未充分利用資產的收益有關。

Adjusted EBITDA for the second quarter of 2023 was $85 million compared with $56 million in the prior year, and corresponding adjusted EBITDA margin was 7.2% compared with 4.6% in the prior year.

2023 年第二季度調整後 EBITDA 為 8500 萬美元，上年同期為 5600 萬美元，相應調整後 EBITDA 利潤率為 7.2%，上年同期為 4.6%。

Let's now turn to the segment results, beginning with our fresh and value-added product segment. As we said, net sales for the second quarter were $678 million compared with $732 million in the prior year, primarily a result of our lower per unit prices of avocados due to market conditions, combined with lower volumes of nontropical fruit, Partially offsetting the decrease were higher net sales of pineapple, fresh-cut fruit, vegetables and melons due to higher per unit selling prices as well as higher avocado sales volume.

現在讓我們來看看細分市場的結果，首先是我們的新鮮和增值產品細分市場。正如我們所說，第二季度的淨銷售額為6.78 億美元，而上年同期為7.32 億美元，這主要是由於市場狀況導致我們的牛油果單價較低，加上非熱帶水果銷量減少，部分抵消了下降的影響由於單位售價上漲以及鱷梨銷量增加，菠蘿、鮮切水果、蔬菜和瓜類的淨銷售額增加。

Gross profit for the second quarter of 2023 was $62 million compared with $49 million in the prior year, an increase of 26%. The increase in gross profit was positively impacted by higher per unit selling prices for most products in this segment and lower distribution and ocean freight costs. We also saw higher gross profit of avocados due to lower per unit product costs and higher volume. As Mohammad mentioned, strong demand for our Honeyglow and Pinkglow pineapple varieties also contributed to the higher gross profit.

2023年第二季度毛利潤為6200萬美元，較上年同期的4900萬美元增長26%。毛利潤的增長受到該細分市場大多數產品單位售價上漲以及分銷和海運成本下降的積極影響。由於單位產品成本較低和產量較高，我們還看到鱷梨的毛利潤較高。正如穆罕默德提到的，對我們的 Honeyglow 和 Pinkglow 菠蘿品種的強勁需求也促成了更高的毛利潤。

Partially offsetting these cost reductions were higher production and procurement costs of most products, which continue to be impacted by lingering inflationary pressures as well as the impact of a stronger Costa Rica Colon. As a result of these factors, gross margin increased to 9.2% compared with 6.7% in the prior year.

大多數產品的生產和採購成本上升，部分抵消了這些成本下降，而這些成本繼續受到揮之不去的通脹壓力以及哥斯達黎加科朗走強的影響。由於這些因素，毛利率從上一年的 6.7% 增至 9.2%。

Moving to our banana segment, net sales for the second quarter of 2023 increased by $27 million or 6% compared with our prior year, primarily as a result of higher per unit selling prices in Europe and North America and higher sales volume in Asia, Europe and North America.

轉向我們的香蕉細分市場，2023 年第二季度的淨銷售額與上一年相比增加了2700 萬美元，即6%，這主要是由於歐洲和北美的單位售價較高以及亞洲和歐洲的銷量增加和北美。

Banana gross profit in the second quarter of 2023 was $51 million compared with $22 million in the prior year, an increase of 120%. The increase in gross profit was driven by higher net sales and lower distribution and ocean freight costs, partially offset by higher production and procurement costs due to the continuing impact of the inflation, combined with the impact of a stronger Costa Rica Colon. As a result of these factors, gross margin increased to 11.3% compared with 5.3% in the prior year.

Banana 2023年第二季度毛利潤為5100萬美元，較上年同期的2200萬美元增長120%。毛利潤的增長是由較高的淨銷售額以及較低的分銷和海運成本推動的，但部分被通脹持續影響導致的生產和採購成本上升以及哥斯達黎加科朗走強的影響所抵消。由於這些因素，毛利率由上年的 5.3% 增至 11.3%。

Lastly, net sales of our other products and services segment for the second quarter were $54 million compared with $58 million in the prior year as a result of lower net sales of third-party freight services due to softened global demand. Gross profit for this segment was $4 million compared with $9 million in the prior year as a result of the lower net sales. Gross margin was 7.8% compared with 15.6% in the prior year.

最後，由於全球需求疲軟，第三方貨運服務的淨銷售額下降，第二季度我們其他產品和服務部門的淨銷售額為 5400 萬美元，而上年同期為 5800 萬美元。由於淨銷售額下降，該部門的毛利潤為 400 萬美元，而上一年為 900 萬美元。毛利率為 7.8%，上年為 15.6%。

Now moving to selected financial data. Selling, general and administrative expenses for the second quarter of 2023 remained relatively in line at $47 million compared with the prior year. Net interest expense slightly increased compared to the prior year, driven by higher interest rates, partially offset by lower debt balance.

現在轉向選定的財務數據。 2023 年第二季度的銷售、一般和管理費用與去年同期相比保持在 4700 萬美元，相對穩定。在利率上升的推動下，淨利息支出與上年相比略有增加，但部分被債務餘額下降所抵消。

Other expense net for the second quarter of 2023 was $6 million compared with $3 million in the prior year. The increase relates to higher foreign currency-related losses, primarily due to unrealized losses on balance sheet remeasurement.

2023 年第二季度的其他費用淨額為 600 萬美元，而上年同期為 300 萬美元。這一增加與外幣相關損失增加有關，主要是由於資產負債表重新計量的未實現損失所致。

Income tax provision was $11 million compared with $5 million in the prior year. The increase in the income tax provision was due to increased earnings in certain higher tax jurisdictions, combined with the tax effect related to the sale of our plastic business subsidiary.

所得稅撥備為 1,100 萬美元，而上一年為 500 萬美元。所得稅撥備的增加是由於某些高稅收管轄區的收入增加，以及與出售我們的塑料業務子公司相關的稅收影響。

Now moving to our cash flows. Net cash provided by operating activities for the 6 months of 2023 was $133 million compared with $95 million in the prior year. The increase was primarily attributed to lower levels of raw materials and packaging supplies inventory, combined with higher net income.

現在轉向我們的現金流。 2023 年 6 個月經營活動提供的淨現金為 1.33 億美元，而上一年為 9500 萬美元。這一增長主要歸因於原材料和包裝用品庫存水平較低，以及淨利潤較高。

Long-term debt decreased to $400 million at the end of the second quarter of 2023 compared with $473 million at the end of the fourth quarter of this year. By lowering our debt, our adjusted leverage ratio has also decreased to 1.34x compared to 1.84x last quarter. As it relates to capital spending, we invested $19 million in capital expenditures in the first 6 months of 2023 compared with $23 million in the prior year.

2023 年第二季度末長期債務降至 4 億美元，而今年第四季度末為 4.73 億美元。通過降低債務，我們調整後的槓桿率也從上季度的 1.84 倍降至 1.34 倍。就資本支出而言，我們在 2023 年前 6 個月的資本支出投資了 1,900 萬美元，而上一年為 2,300 萬美元。

As announced this morning in our financial results press release, we declared a quarterly cash dividend of $0.20 per share, payable on September 8, 2023 to shareholders of record on August 16, 2023. This concludes our financial review. We can now turn the call over for Q&A. Rob?

正如今天上午在我們的財務業績新聞稿中宣布的那樣，我們宣布派發每股0.20 美元的季度現金股息，將於2023 年9 月8 日支付給2023 年8 月16 日登記在冊的股東。我們的財務審查到此結束。我們現在可以將電話轉過去進行問答。搶？

(Operator Instructions) And your first question comes from the line of Mitch Pinheiro from Sturdivant & Co.

（操作員說明）您的第一個問題來自 Sturdivant & Co. 的 Mitch Pinheiro。

So first, I want to talk about the fresh and value-added. Sales were down. I'm just trying to -- I don't see the queue yet. So I wanted to get some of the detail, but -- so pineapple sales were up, correct?

所以首先我想談談新鮮和附加值。銷量下降。我只是想——我還沒有看到隊列。所以我想了解一些細節，但是——所以菠蘿的銷量上升了，對嗎？

Yes. Overall, the segment was down because of avocados, because of the selling price and the volume of nontropicals. But all the other products had higher selling prices, and that's what caused the fresh and value-added segment to be lower, but it was still a strong performance.

是的。總體而言，由於鱷梨、銷售價格和非熱帶水果的數量，該細分市場出現了下滑。但所有其他產品的售價均較高，這就是導致新鮮和增值部分較低的原因，但仍然表現強勁。

Okay. I guess $55 million down year-over-year, avocados couldn't have been -- so avocados were down, what, maybe 50% in the quarter. Is that a...

好的。我猜牛油果同比下降了 5500 萬美元，這是不可能的——所以牛油果在本季度下降了，大概是 50%。那是不是一個...

So what happened with avocados, I don't know if -- if you recall last year, the pricing on avocados was extraordinarily high. This year, avocados [sell] prices are approximately half of what they were last year. So the impact of avocado selling prices is significant. It doesn't really impact our profitability on the avocado because the cost goes down as well. But the pricing definitely had a huge impact.

那麼鱷梨發生了什麼，我不知道——如果你還記得去年的話，鱷梨的價格非常高。今年，鱷梨[銷售]價格約為去年的一半。因此，牛油果銷售價格的影響是顯著的。它並沒有真正影響我們鱷梨的盈利能力，因為成本也下降了。但定價確實產生了巨大的影響。

On revenue.

論收入。

Okay. And in terms of fresh fruit and the fresh-cut veggie business, that was -- they were up in the quarter?

好的。就新鮮水果和鮮切蔬菜業務而言，它們在本季度有所增長？

The fresh cut -- yes, I'm not sure we're giving all those details at -- we're talking the fresh and value-added segment, includes all those products, yes.

鮮切——是的，我不確定我們是否提供了所有這些細節——我們正在談論新鮮和增值部分，包括所有這些產品，是的。

Yes. So was fresh-cut fruit and fresh-cut vegetables up year-over-year?

是的。那麼鮮切水果和鮮切蔬菜同比增長了嗎？

Fresh-cut fruit and fresh-cut vegetable were basically flat.

鮮切水果、鮮切蔬菜基本持平。

Okay. And are you seeing any -- I mean is it flat because on the retail side or flat due to food service?

好的。你是否看到任何 - 我的意思是它是因為零售方面而持平還是因為餐飲服務而持平？

In the case of fruit, we have capacity issues in terms of processing more fruit, which we are addressing as we speak. In case of vegetables, there has been a decline in terms of vegetal volumes and revenue.

就水果而言，我們在加工更多水果方面存在能力問題，我們正在解決這個問題。就蔬菜而言，蔬菜產量和收入均有所下降。

Is that -- I mean, is that -- is it a food service issue? Or is it a channel issue? Or is it across all channels is really...

這是——我的意思是，這是——食品服務問題嗎？還是渠道問題？還是所有渠道都真的...

Across all channels, Mitch.

通過所有渠道，米奇。

Okay. And when you look at Honeyglow and the Pinkglow, how big is that within your pineapple business? I mean I know it's small, but it's growing. And I'm just curious where we are now.

好的。當您看到 Honeyglow 和 Pinkglow 時，您的菠蘿業務有多大？我的意思是我知道它很小，但它正在增長。我只是好奇我們現在在哪裡。

Listen, you need to have into consideration that we are not only a North America with Honeyglow. Honeyglow is global. We produce in Costa Rica, we produce in Kenya, and we produce in the Philippines. So we have Honeyglow on these 3 sourcing areas. And it's about ranging between 25% to 30% of our total volume. So we have a very strong position in this.

聽著，你需要考慮到我們不僅僅是一個擁有 Honeyglow 的北美。 Honeyglow 是全球性的。我們在哥斯達黎加生產，在肯尼亞生產，在菲律賓生產。所以我們在這 3 個採購領域都有 Honeyglow。它大約占我們總體積的 25% 到 30%。所以我們在這方面擁有非常強大的地位。

I know that competition has tried to imitate and copy what we have been doing for the Honeyglow. But I believe that, Fresh Del Monte has the technology and knowledge because we have started this several years back. And we have, I believe, kind of fine-tuned and have the technologies to produce this in a much more efficient way as well as a higher percentage.

我知道競爭對手試圖模仿和抄襲我們為 Honeyglow 所做的事情。但我相信，Fresh Del Monte 擁有技術和知識，因為我們幾年前就開始這樣做了。我相信，我們已經進行了微調，並擁有以更有效的方式和更高的百分比生產這種產品的技術。

So we have a very strong position in the global market and not only in North America. North America actually was the last one to follow after [Guinea] and the Philippines. So we haven't seen the potential yet of optimization in North American market. We're just starting actually a few quarters ago. So I believe going forward, that will become a more impactful.

因此，我們在全球市場上擁有非常強大的地位，而不僅僅是在北美。北美實際上是繼幾內亞和菲律賓之後最後一個效仿的國家。所以我們還沒有看到北美市場優化的潛力。實際上，我們在幾個季度前才剛剛開始。所以我相信，展望未來，這將變得更具影響力。

Okay. And then on the banana side, I guess this is one of the strongest margin quarters I've seen in quite a while. I think I went back to 2017 with the last time your banana business had this margin in the second quarter. What -- I mean, what drove that? And is any of this sort of sustainable into the third quarter?

好的。然後在香蕉方面，我想這是我很長一段時間以來見過的利潤率最高的季度之一。我想我回到了 2017 年，上次你們的香蕉業務有這樣的利潤是在第二季度。什麼——我的意思是，是什麼推動了這一點？這種情況能否持續到第三季度？

Well, third quarter, as you know, historically, that the third quarter and fourth quarter and the second half of the year is usually much softer on the bananas than the first half because of the summer fruits and competing other items and the heat and occasions, as you say, out of school.

好吧，第三季度，正如您所知，從歷史上看，由於夏季水果和其他競爭產品以及炎熱和場合，第三季度、第四季度和下半年的香蕉通常比上半年軟得多正如你所說，離開學校。

But -- what really drove this, in my opinion, is that we have kind of rationalized, and kind of demand and supply were more synchronized in a way that we didn't have peaks in supply where demand wasn't there. And that has helped a lot in terms of maintaining kind of equilibrium as well as not eroding our margins by having a lot of waste and [regions]. That's number one.

但是，在我看來，真正推動這一趨勢的是我們已經合理化了，需求和供應更加同步，在沒有需求的地方我們沒有出現供應高峰。這對於維持某種平衡以及不因大量浪費和[區域]而侵蝕我們的利潤方面有很大幫助。這是第一。

Number two, I think that the cost in terms of the freight and other inputs have helped as well. I don't believe pricing has increased a lot compared to the previous years. We are more or less on the same -- more or less in the same range. However, it's more rationalization, more optimization of our assets.

第二，我認為運費和其他投入方面的成本也有所幫助。我不認為價格與前幾年相比增加了很多。我們或多或少處於相同的範圍內。然而，這是我們資產的更加合理化、更加優化。

Like I said, it's many other factors that have helped the banana, in general, to improve the margins and maintain cost at a reasonable level. So even though we have been impacted negatively with the foreign exchange in Costa Rica, in particular, last year, for instance, was around $650 million -- or 500 -- no, I think it was around...

正如我所說，總體而言，還有許多其他因素幫助香蕉提高了利潤並將成本維持在合理水平。因此，儘管我們受到了哥斯達黎加外彙的負面影響，特別是去年，例如，大約是 6.5 億美元——或者 500——不，我認為大約是……

600...

600...

Yes, 600-something [colon]. Today, we are talking about 450, 445. So you can see the impact of that kind of strength of the colon, that has impacted our costs tremendously.

是的，600 左右[冒號]。今天，我們談論的是 450、445。所以你可以看到結腸的這種強度的影響，這極大地影響了我們的成本。

And Mitch, I think we also need to remember that last year's second quarter was actually a lower than normal second quarter. Usually, our Q2 is our strongest quarter because of the inflation, and we hadn't caught up with our pricing, et cetera. So that really -- the comparison is also a little bit -- it's impacted because of that, too.

米奇，我認為我們還需要記住，去年第二季度實際上低於正常水平。通常，由於通貨膨脹，我們的第二季度是我們最強勁的季度，而且我們沒有跟上我們的定價等等。所以，確實 - 比較也有一點 - 它也因此受到影響。

Okay. And so is this still a part of your efforts to continue to focus on profitable volume, you're no longer just taking any volume at any cost, that's all part of this, correct?

好的。那麼，這仍然是您繼續專注於盈利量的努力的一部分，您不再只是不惜一切代價獲取任何量，這就是這一切的一部分，對嗎？

That is correct.

那是對的。

And right now, is the supply and demand balanced? How would you describe that for the upcoming quarter in the global market?

那麼目前供需平衡嗎？您如何描述全球市場即將到來的季度？

It's a normal -- I would say that what we see right now in the third quarter, as we started -- this is a -- we are just starting in the second month of the third quarter. So we see a pattern like the historical patterns that the market -- and the banana market and the consumption has gone down quite -- not drastically, but definitely in the same kind of mode of historical numbers and statistics.

這是正常的——我想說的是，我們現在在第三季度看到的情況，正如我們開始的那樣——這是——我們剛剛從第三季度的第二個月開始。因此，我們看到了一種類似於歷史模式的模式，即市場——香蕉市場和消費量大幅下降——不是大幅下降，但絕對是歷史數字和統計的相同模式。

So I believe that it's not a total collapse, but it's definitely softer, much softer than the second quarter and the first quarter.

所以我相信這不是徹底崩潰，但肯定是軟了，比第二季度和第一季度軟得多。

Sure. And last question. It was nice to see the asset sales in the quarter. Are there anything left in terms of asset sales of significance?

當然。最後一個問題。很高興看到本季度的資產銷售。資產出售方面還有什麼重要意義嗎？

I would like to tell you one thing that Fresh Del Monte is so rich with assets across the world. It's not that we are going to sell our assets just for the sake of selling assets, no.

我想告訴你一件事，Fresh Del Monte 的資產非常豐富，遍布世界各地。我們並不是為了出售資產而出售資產，不是。

We are selling assets that are really underutilized or not even utilized, lands, buildings, businesses that we believe it will -- their margins are too little like the plastics, for instance, that's where we kind of spin it off. This is the kind of assets that we have. We do have other assets that we may sell, but not in the same kind of pace that we have done during the last couple of years.

我們正在出售那些真正未得到充分利用或什至沒有被利用的資產，土地，建築物，我們相信會的企業——它們的利潤太少了，例如塑料，這就是我們將其剝離的地方。這就是我們擁有的資產。我們確實有其他資產可以出售，但速度與過去幾年不同。

So you'll still optimize your portfolio -- your asset portfolio, but it's going to slow down a little bit?

所以你仍然會優化你的投資組合——你的資產投資組合，但它會放慢一點？

Yes, for sure. But like I said, there are other things that are mitigating this. I mean, as I said on the last call, if you remember, Mitch, I said that we have so many projects and so many initiatives in the pipeline that will change our business, going forward. I can't kind of give details, but there is so much in the pipeline that will transform our business from what you see today to the future.

是肯定的。但就像我說的，還有其他事情可以緩解這種情況。我的意思是，正如我在上次電話會議上所說的那樣，米奇，如果你還記得的話，我說過我們有很多項目和計劃正在醞釀中，這些項目和計劃將改變我們的業務，繼續前進。我無法透露細節，但有很多事情正在醞釀之中，這些事情將把我們的業務從今天看到的轉變為未來。

Okay. Well, thank you for the questions.

好的。嗯，謝謝你的提問。

And we have reached the end of our question-and-answer session. I will now turn the call back over to management for any final closing comments.

我們的問答環節已經結束。我現在將把電話轉回給管理層，以徵求最終的結案意見。

Thank you so much, everyone. I appreciate your attendance today and hope to talk to you on the next call. Wish you a good day. Thank you. Bye.

謝謝大家！謝謝。感謝您今天的出席，並希望在下次電話會議上與您交談。祝你有美好的一天。謝謝。再見。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。