Innospec Inc (IOSP) 2024 Q1 法說會逐字稿

Welcome to Innospec's first-quarter earnings call. The earnings release for the quarter and this presentation are posted on the company's website.

歡迎參加 Innospec 第一季財報電話會議。該季度的收益發布和本簡報發佈在該公司的網站上。

During this call, we will make forward-looking statements, which are predictions and other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated results implied by such forward-looking statements. The risks and uncertainties are detailed in Innospec's 10-K, 10-Qs, and other filings with SEC. Please see the SEC site and Innospec's site for these and related documents.

在本次電話會議中，我們將做出前瞻性陳述，即對未來事件的預測和其他陳述。這些陳述基於目前的預期和假設，這些預期和假設存在風險和不確定性，可能導致實際結果與此類前瞻性陳述所暗示的預期結果有重大差異。Innospec 向 SEC 提交的 10-K、10-Q 和其他文件中詳細介紹了風險和不確定性。請參閱 SEC 網站和 Innospec 網站以取得這些文件和相關文件。

In our discussions today, we've also included non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure is contained in the earnings release. The non-GAAP financial measures should not be considered as a substitute for or superior to those prepared in accordance with GAAP. They are included as additional items to aid investor understanding of the company's performance in addition to the impact these items and events had on financial results.

在今天的討論中，我們也納入了非公認會計準則財務指標。收益報告中包含了與最直接可比較的公認會計準則財務指標的調節表。非公認會計原則財務指標不應被視為替代或優於根據公認會計原則編制的財務指標。它們作為附加項目包括在內，以幫助投資者了解公司的業績以及這些項目和事件對財務表現的影響。

With me today from Innospec are Patrick Williams, President and Chief Executive Officer; and Ian Cleminson, Executive Vice President and Chief Financial Officer.

今天和我在一起的還有來自 Innospec 的總裁兼執行長 Patrick Williams；執行副總裁兼財務長 Ian Cleminson。

And with that, I'll turn it over to you, Patrick.

這樣，我就把它交給你了，派崔克。

Thank you, David, and welcome, everyone, to Innospec's first-quarter 2024 conference call. I am pleased to report a strong start to 2024.

謝謝 David，歡迎大家參加 Innospec 的 2024 年第一季電話會議。我很高興地向大家報告 2024 年的良好開端。

Excellent performance across all our businesses drove double-digit operating income growth and margin improvement. Performance chemicals delivered on our target for sequential improvement, as operating income more than doubled over last year. While customers remain disciplined in their order patterns, volumes have improved in our key end markets. Supported by our strong organic growth and technology pipeline, we are cautiously optimistic that we can maintain this improvement in 2024.

我們所有業務的出色表現推動了兩位數的營業收入成長和利潤率提高。高性能化學品實現了我們連續改善的目標，營業收入比去年增加了一倍以上。儘管客戶仍然遵守訂單模式，但我們主要終端市場的銷售量有所提高。在我們強勁的有機成長和技術儲備的支持下，我們對 2024 年能夠保持這種改善持謹慎樂觀態度。

In addition, our recent QGP acquisition is performing in line with expectations, as it was immediately accretive. Our focus remains on continued progress returning operating income run rates and margins to levels consistent with full year of 2022.

此外，我們最近收購的 QGP 的表現符合預期，因為它立即實現了增值。我們的重點仍然是繼續取得進展，使營業收入運行率和利潤率恢復到與 2022 年全年一致的水平。

Fuel specialties achieved another steady set of results. Gross and operating margins improved over the prior year and were within our targeted range. Our team has continued to build a strong pipeline of regional product and market growth opportunities in both fuel and non-fuel applications.

燃料專業領域又取得了一系列穩定的成果。毛利率和營業利潤率比前一年有所改善，並且在我們的目標範圍內。我們的團隊繼續在燃料和非燃料應用領域建立強大的區域產品和市場成長機會管道。

Oilfield services achieved operating income growth and margin expansion over the prior year. Softer production chemicals activity in the quarter was more than offset by further improvement in our other segments.

油田服務較上年實現營業收入成長和利潤率擴大。本季化學品生產活動的疲軟被我們其他部門的進一步改善所抵消。

In the second quarter, we expect significant headwinds in production chemicals activity. And consequently, operating income will be substantially lower than previous quarters. We are cautiously optimistic that operating income run rates will return to our targeted $15 million to $20 million per-quarter range in the second half of the year.

我們預計第二季化學品生產活動將面臨重大阻力。因此，營業收入將大幅低於前幾季。我們對下半年營業收入運行率將恢復到每季 1500 萬至 2000 萬美元的目標範圍持謹慎樂觀態度。

Now I will turn the call over to Ian Cleminson, who will review our financial results in more detail, then I will return with some concluding comments. After that, Ian and I will take your questions. Ian?

現在我將把電話轉給伊恩·克萊明森 (Ian Cleminson)，他將更詳細地審查我們的財務業績，然後我將返回一些結論性意見。之後，我和伊恩將回答大家的問題。伊恩？

Thanks, Patrick, and good morning, everyone. Turning to slide 7 in the presentation. The company's total revenues for the first quarter were $500.2 million, a 2% decrease from $509.6 million a year ago. Overall gross margin increased by 2.1 percentage points from last year to 31.1%. Adjusted EBITDA for the quarter was $64 million compared to $52.7 million last year, and net income for the quarter was $41.4 million compared to $33.2 million a year ago.

謝謝派崔克，大家早安。前往簡報中的投影片 7。該公司第一季總營收為 5.002 億美元，比去年同期的 5.096 億美元下降 2%。整體毛利率較去年上升2.1個百分點至31.1%。本季調整後 EBITDA 為 6,400 萬美元，去年同期為 5,270 萬美元；本季淨利為 4,140 萬美元，去年同期為 3,320 萬美元。

Our GAAP earnings per share were $1.65, and including special items, the net effect of which decreased our first-quarter earnings by $0.10 per share. A year ago, we reported GAAP earnings per share of $1.33, which included a negative impact from special items of $0.05 per share. Excluding special items in both years, our adjusted EPS for the quarter was $1.75 compared to $1.38 a year ago.

我們的 GAAP 每股收益為 1.65 美元，其中包括特殊項目，其淨效應使我們第一季每股收益減少 0.10 美元。一年前，我們報告的 GAAP 每股收益為 1.33 美元，其中包括特殊項目帶來的每股 0.05 美元的負面影響。排除這兩年的特殊項目，本季調整後的每股收益為 1.75 美元，而去年同期為 1.38 美元。

Turning to slide 8. Revenues in performance chemicals for the first quarter were $160.8 million, up 6% from last year's $151.4 million. Growth attributable to the QGP acquisition of 6%, volume growth of 13%, and positive currency impact of 1% were offset by an adverse price mix of 14% due mainly to lower raw material costs flowing through to selling prices. Gross margins of 23.4% increased 7.5 percentage points compared to 15.9% in the same quarter in 2023, benefiting from increased sales and production volumes. Operating income of $21.1 million approximately doubled on last year.

轉到投影片 8。第一季高性能化學品收入為 1.608 億美元，比去年的 1.514 億美元成長 6%。QGP 收購帶來的成長 6%、銷售成長 13% 以及 1% 的正面貨幣影響被 14% 的不利價格組合所抵消，這主要是由於原材料成本降低影響到銷售價格。受惠於銷售量和產量的增加，毛利率為 23.4%，較 2023 年同一季度的 15.9% 成長 7.5 個百分點。營業收入為 2,110 萬美元，比去年增加了一倍左右。

Moving on to slide 9. Revenues in fuel specialties for the first quarter were $176.9 million, down 7% from $190.3 million reported a year ago. An adverse price/mix of 6% and a 2% reduction in volumes were partially offset by a positive currency impact of 1%. Gross margins of 34.3% were 4.1 percentage points above the same quarter last year. Operating income of $33.4 million was up 3% from $32.4 million a year ago.

繼續看投影片 9。第一季特種燃料收入為 1.769 億美元，比去年同期的 1.903 億美元下降 7%。6% 的不利價格/組合和 2% 的銷售減少被 1% 的正面貨幣影響部分抵銷。毛利率為34.3%，較去年同期高出4.1個百分點。營業收入為 3,340 萬美元，較上年同期的 3,240 萬美元成長 3%。

Adjusting for the $7.4 million inventory write-off in Brazil in the prior year, gross margins were 34.1%, and operating income was 39.8%. The decrease in adjusted operating income year on year was mostly due to the timing of sales in our avgas business.

調整去年巴西 740 萬美元的庫存沖銷後，毛利率為 34.1%，營業收入為 39.8%。調整後營業收入年減主要是由於我們航空瓦斯業務的銷售時間所致。

Moving on to slide 10. Revenues in oilfield services for the quarter were $162.5 million, down 3% from $167.9 million in the first quarter last year. Gross margins of 35.3% decreased 4.2 percentage points from last year's 39.5% on a weaker sales mix. Operating income of $16.9 million increased 6% from $15.9 million one year ago.

繼續看投影片 10。本季油田服務收入為 1.625 億美元，比去年第一季的 1.679 億美元下降 3%。由於銷售組合疲軟，毛利率為 35.3%，比去年的 39.5% 下降了 4.2 個百分點。營業收入為 1,690 萬美元，比一年前的 1,590 萬美元成長 6%。

In the second quarter, we expect operating income to be significantly lower due to a slowdown in our production chemicals business. We expect operating income will be in the $7 million to $10 million range. However, we are cautiously optimistic that operating income run rates will return to our $15 million to $20 million per-quarter range in the second half of this year.

由於生產化學品業務放緩，我們預計第二季營業收入將大幅下降。我們預計營業收入將在 700 萬美元至 1,000 萬美元之間。然而，我們對今年下半年營業收入運行率將恢復到每季 1,500 萬至 2,000 萬美元的範圍持謹慎樂觀態度。

Turning to slide 11. Corporate costs for the quarter were $20.2 million compared with $17.7 million a year ago, due mainly to the growth and timing of IT expenditure and higher performance-related remuneration. The effective tax rate for the quarter was 25.1% compared to 26.2% a year ago.

轉到投影片 11。本季的企業成本為 2,020 萬美元，而去年同期為 1,770 萬美元，這主要是由於 IT 支出的成長和時間安排以及與績效相關的薪酬的提高。本季的有效稅率為 25.1%，而去年同期為 26.2%。

Moving on to slide 12. Free cash generation for the quarter was excellent with an operating cash inflow of $80.6 million before capital expenditures of $14.3 million. As of March 31, Innospec had $270.1 million in cash and cash equivalents and no debt.

繼續看投影片 12。本季的自由現金產生情況非常好，資本支出為 1,430 萬美元之前，營運現金流入為 8,060 萬美元。截至 3 月 31 日，Innospec 擁有 2.701 億美元現金和現金等價物，沒有債務。

And now, I'll turn it back over to Patrick for some final comments.

現在，我將把它轉回帕特里克以徵求一些最終意見。

Thanks, Ian. I am very pleased with the strong performance that all our businesses delivered in the quarter, including the new acquisition. In partnership with our customers, we remain well placed for growth through technical innovation and excellent customer service over the medium to long term.

謝謝，伊恩。我對本季我們所有業務（包括新收購）的強勁表現感到非常滿意。透過與客戶的合作，我們透過技術創新和卓越的中長期客戶服務保持良好的成長動能。

This quarter, our Board approved a further 10% increase in our semi-annual dividend to $0.76 per share. With net cash of over $270 million, we continue to deliver on our record of returning value to shareholders while maintaining flexibility for M&A, dividend growth, organic investment, and buybacks.

本季度，我們的董事會批准將半年度股息進一步增加 10%，至每股 0.76 美元。我們的淨現金超過 2.7 億美元，繼續為股東創造價值回報，同時保持併購、股息成長、有機投資和回購的靈活性。

Now, I'll turn the call over to the operator. Ian and I will take your questions.

現在，我將把電話轉給接線員。伊恩和我將回答你的問題。

Thank you. (Operator Instructions) Mike Harrison, Seaport Research Partners.

謝謝。（操作員說明）Mike Harrison，海港研究夥伴。

Hi. Good morning. Congrats on a strong start to the year.

你好。早安.祝賀今年取得了良好的開局。

Thanks, Mike.

謝謝，麥克。

Thanks, Mike.

謝謝，麥克。

I was hoping that you could provide a little bit of additional detail on what you're seeing in that performance chemicals business. You mentioned that some customers are remaining disciplined in their orders? Just curious, does that mean there's still some lingering destocking effects going on in some product lines? Maybe help us understand what you've been seeing in terms of order patterns and trends as you look at that February, into March, into April time frame?

我希望您能提供一些有關您在高性能化學品業務中所看到的情況的更多詳細資訊。您提到有些客戶仍然遵守訂單紀律？只是好奇，這是否意味著某些產品線仍然存在一些揮之不去的去庫存效應？也許可以幫助我們了解您在 2 月、3 月、4 月時間範圍內所看到的訂單模式和趨勢？

Yeah, Mike. We're still seeing very positive trends. I think the destocking was by application by business, for instance, agriculture. But if you look at overall performance chemicals, i.e., personal care, home care, et cetera, globally, we're seeing uptick. We're seeing strong order patterns coming into the second quarter.

是的，麥克。我們仍然看到非常積極的趨勢。我認為去庫存是由企業申請的，例如農業。但如果你看看全球範圍內的整體性能化學品，即個人護理、家庭護理等，我們會看到其成長。我們看到第二季將出現強勁的訂單模式。

We're feeling like destocking has been put behind us, and we're just moving forward. We're finally starting to see the market come back to some normalcy. And we believe that throughout the year, we'll see an uptick continue. Q2 looks very strong to date.

我們感覺去庫存已經被拋在了身後，我們只是在向前邁進。我們終於開始看到市場恢復正常。我們相信，全年我們都會看到成長持續上升。到目前為止，第二季度看起來非常強勁。

And maybe just in terms of that price mix number in performance chemicals. I believe in the past, you had said that that's mostly mix. And if ag is soft, I would understand where that's affecting mix. But it also sounded like you were saying that raw materials are lower, and that's weighing on pricing. Maybe just a little more color there and when you might expect to see some stabilization in that price mix number in performance chemicals.

也許只是就高性能化學品的價格組合而言。我相信過去，您曾說過這主要是混合的。如果 ag 很軟，我就會明白這會影響混音。但聽起來你好像在說原物料價格較低，這對定價造成了壓力。也許只是多一點顏色，當您可能期望看到高性能化學品的價格組合數字穩定時。

Yeah, Mike. that was a year-over-year comment. So we are seeing much lower raw material costs now starting to flow through to the revenue lines. There's still a little bit of mix in there. Ag is not where we'd like it to be.

是的，麥克。這是逐年評論。因此，我們看到更低的原材料成本現在開始流入收入線。裡面還是有一點點混雜的。Ag 不是我們想要的地方。

As Patrick alluded to, our main business in personal care, home care, we're seeing great volume growth year over year. And sequentially, we're continuing to see the business expand. So we expect raw materials to stabilize. So we expect that price mix to flatten out throughout the rest of the year, but we're in good shape going into Q2 and for the rest of the year.

正如帕特里克所提到的，我們的主要業務是個人護理、家庭護理，我們看到銷量逐年大幅增長。接下來，我們將繼續看到業務擴張。因此我們預計原材料將穩定。因此，我們預計今年剩餘時間價格組合將趨於平穩，但進入第二季和今年剩餘時間我們的狀況良好。

All right. And I guess for my last question, I understand the commentary that you provided on Q2 in the oilfield business. But I was just hoping that you could give us maybe some broad thoughts on the full-year outlook. The consensus number is $6.75,

好的。我想對於我的最後一個問題，我理解您對油田業務第二季度提供的評論。但我只是希望您能給我們一些關於全年展望的廣泛想法。共識數為 6.75 美元，

I know I can't just annualize the first quarter, given what you said about oilfield. But annualized in Q1 would get you more to a $7-type EPS number. So maybe just help level set us on some of the modeling assumptions that we should be keeping in mind for the rest of the year.

鑑於您所說的有關油田的內容，我知道我不能只對第一季進行年度化。但第一季的年化每股收益將達到 7 美元。因此，也許只是幫助我們了解一些我們應該在今年剩餘時間內牢記的建模假設。

Yeah, Mike. Let me take that one. So oilfield, obviously, we've guided in the comments earlier to a $6 million to $10 million operating income quarter. Our expectation is that in Q3 and Q4, we get back into that $15 million to $20 million operating income range. There's no reason that as we sit here today why we can't do that. So that broadly puts us in that $60 million to $70 million operating income range for the full year in oilfield.

是的，麥克。讓我拿走那個。因此，顯然，我們在早些時候的評論中已將油田業務的季度營業收入指引為 600 萬至 1000 萬美元。我們的預期是，在第三季和第四季度，我們的營業收入將回到 1,500 萬美元至 2,000 萬美元的範圍。當我們今天坐在這裡時，我們沒有理由不能這樣做。因此，我們油田全年的營業收入大致在 6,000 萬至 7,000 萬美元之間。

Mike, just to give an additional color, there is potential. WE start seeing some orders in the latter part of Q2. But again, I think, as Ian said, let's stick to the numbers that he's put forth for Q3, Q4 as well.

麥克，只是為了增添一點色彩，就有潛力。我們在第二季下半年開始看到一些訂單。但我再次認為，正如伊恩所說，讓我們堅持他為第三季和第四季提出的數字。

All right. Thanks very much.

好的。非常感謝。

Thanks, Mike.

謝謝，麥克。

Thanks, Mike.

謝謝，麥克。

Thank you. (Operator Instructions) David Silver, CL King & Associates.

謝謝。（操作員說明）David Silver，CL King & Associates。

Yeah. Hi. Good morning.

是的。你好。早安.

Morning, David.

早安，大衛。

Good morning, David.

早安，大衛。

Morning. I'd just like to start out with a clarification, I guess. I'm just curious. But in oilfield, there's a disparity between how the gross margin line performed versus the operating income. Just curious, but you talked about lower margins on the gross profit line. But there was something of a increase year over year on operating income.

早晨。我想我想先澄清一下。我只是好奇。但在油田，毛利率與營業收入之間存在差異。只是好奇，但您談到了毛利線的較低利潤率。但營業收入卻逐年增加。

So what between the gross profit? Or how would you characterize that -- I don't know, those two lines on the segment financials going in opposite directions? And is that something that will persist through the year? Or is that just a one-quarter phenomenon? Thanks.

那麼毛利之間又如何呢？或者你會如何描述這一點──我不知道，分部財務數據上的兩條線走向相反的方向？這種情況會持續一整年嗎？還是這只是四分之一的現象？謝謝。

Yes. David, what we're looking at here is that we've had a slowdown in our production chemicals business in the quarter, but the rest of our businesses continue to execute extremely well off the same cost base. So we've been able to grow the revenues, maintain the costs, and that's what's helped year-over-year operating income become higher.

是的。大衛，我們在這裡看到的是，本季度我們的化學品生產業務有所放緩，但我們的其餘業務在相同的成本基礎上繼續表現得非常好。因此，我們能夠增加收入，維持成本，這有助於營業收入逐年提高。

Our production chemicals business does attract a lot of service-intensive work. So that is a high cost. So we've just dropped a little bit of our SAR line. And as the production chemicals business comes back, you'll see that SAR line rise a little bit as well. So nothing unusual, just the business is doing well outside of production chemicals, and we're pleased with the results.

我們的化學品生產業務確實吸引了大量服務密集型工作。所以這是一個很高的成本。所以我們剛剛降低了一點 SAR 線。隨著化學品生產業務的恢復，您會看到 SAR 線也會略有上升。因此，沒有什麼不尋常的，只是化學品生產以外的業務表現良好，我們對結果感到滿意。

No. Thank you for that. I admit, when I read it, I had to look it over a couple of times and think about it. So thank you for clarifying that.

不。謝謝你。我承認，當我讀到它的時候，我必須仔細看幾遍並思考它。所以感謝您澄清這一點。

On the fuel specialties side, there is -- the margin pickup is getting back to that targeted, I don't know, 32% to 35% range. Just a couple of questions about that. So would you say that -- the more recent margin improvement, is that related to the return of jet fuel aviation markets returning more to normal? Or would you say that the margin improvement is maybe -- the margin improvement this quarter is maybe tied to some different end markets or product lines?

在特種燃料方面，利潤率回升正在回到目標，我不知道，32% 到 35% 的範圍。對此只有幾個問題。那麼您是否會說，最近的利潤率改善是否與航空燃油市場恢復正常有關？或者你會說利潤率的提高可能是－本季利潤率的提高可能與一些不同的終端市場或產品線有關？

No, it's different end markets, David. We didn't have a lot of jet fuel in the quarter. It tends to be lumpy. It's a consistent blocking and tackling, lower raw materials, steady prices in the marketplace, increased volumes. It's a little bit of everything.

不，這是不同的終端市場，大衛。本季我們沒有很多噴射燃料。它往往是塊狀的。這是持續的封鎖和解決、較低的原材料、穩定的市場價格、增加的產量。一切都只是一點點。

And we've set a plan years ago to get these margins up, and the group has done a really good job. So as we see an increase in avgas, we should see maybe potentially even a low margin uptick there as well.

我們幾年前就制定了一項計劃來提高利潤，該集團做得非常好。因此，當我們看到航空汽油量增加時，我們也可能會看到利潤率的小幅上升。

Okay. And then also sticking with fuel specialties for one more. But the comment in the press release -- and I'm sorry, I'm fumbling with my pages. But it seemed like you did call out a number of growth opportunities in different -- in multiple end markets across the fuel specialties portfolio.

好的。然後還要堅持使用特殊燃料。但是新聞稿中的評論 - 對不起，我正在摸索我的頁面。但看來您確實在不同的燃料專業產品組合的多個終端市場中提出了許多成長機會。

And I mean, over the last several years, you've definitely launched a number of new initiatives, oceangoing vessel -- I'm sorry -- additives and stationary power, et cetera, along with some other opportunities. Which of those -- or what would you call out as the more promising ones right now that led you to call that out during -- in the press release? Thank you.

我的意思是，在過去的幾年裡，你們肯定推出了許多新舉措，遠洋船舶——對不起——添加劑和固定動力等等，以及其他一些機會。其中哪些——或者您認為現在更有前途的是什麼，導致您在新聞稿中指出了這一點？謝謝。

Yeah, David. I think it's a combination really of the IMO products and GDI. If you look at a lot of the Eastern European nations, they're starting to use the gasoline direct injection product, and that's been a nice uptake. We've been preaching that for quite some time. And the hope was that it would start getting some legs, and we're finally starting to see that.

是的，大衛。我認為它實際上是 IMO 產品和 GDI 的結合。如果你看看許多東歐國家，他們開始使用汽油直噴產品，這是一個很好的吸收。我們已經宣講這一點有一段時間了。我們希望它能夠開始發揮作用，我們終於開始看到這一點。

So GDI's taken off. IMO's taken off. And applications outside of fuels had a good quarter as well. So in general, we see some nice tailwinds in this fuels business that we've got to continue to take advantage of.

於是GDI就起飛了。IMO 起飛了。燃料以外的應用也有不錯的季度表現。因此，總的來說，我們在燃料業務中看到了一些不錯的順風車，我們必須繼續利用它們。

Very good. One more, if you don't mind, on performance chemicals and, in particular, on the QGP contribution. So you did call out the sales growth. I was wondering if you could maybe talk about that 6% increase as above trend or right on trend. Just, how does that relate to your overall expectations, let's say, for the first 12 months' revenue generation from that asset?

非常好。如果您不介意的話，還有一則關於高性能化學品的內容，特別是關於 QGP 的貢獻。所以你確實提到了銷售成長。我想知道您是否可以談論 6% 的成長是高於趨勢還是符合趨勢。只是，這與您對該資產前 12 個月的收入預期的整體預期有何關係？

And then secondly, you did take a small charge, I guess, for adjustments to the contingent consideration related to that acquisition. If I'm interpreting it correctly, I mean, I think that means it's performing at or above original expectations. And if that's the case, I mean, if you wouldn't mind qualitatively talking about what that adjustment contingent consideration was related to. And maybe is there a maximum earnout associated with that that maybe we should think about? Just framing the contribution from QGP and the implications of the incremental charge you took for contingent consideration. Thanks.

其次，我猜你確實收取了一小筆費用，用於調整與該收購相關的或有對價。如果我的解釋正確的話，我的意思是，我認為這意味著它的表現達到或高於最初的預期。如果是這樣的話，我的意思是，如果你不介意定性地談論調整或有考慮因素與什麼相關的話。也許我們應該考慮與此相關的最大收益？只是列出 QGP 的貢獻以及您出於偶然考慮而收取的增量費用的影響。謝謝。

Sure, David. So in terms of QGP's performance in the first quarter, it's exactly on track from a revenue and operating income perspective. What's really pleasing for us is that the business performed exactly how we expected it. But behind that, there's an awful lot of work going on with the integration across our manufacturing, our sales, our finance, supply chain. And we see lots of opportunity in that business going forward.

當然，大衛。所以就QGP第一季的表現而言，從營收和營業收入的角度來看，完全步入正軌。真正令我們高興的是，業務的表現完全符合我們的預期。但在這背後，還有大量的工作正在進行，涉及我們的製造、銷售、財務和供應鏈的整合。我們看到該業務未來有很多機會。

And that's going to take us a little bit of time to bring all that together and to see some real growth, but we are very confident that we've made a great acquisition. The people are fantastic. The integration is going really well. As we move through the year into next year, we think we can accelerate that growth.

我們需要一點時間來整合所有這些並看到一些真正的成長，但我們非常有信心我們已經完成了一次偉大的收購。這裡的人都很棒。整合進展非常順利。隨著今年進入明年，我們認為我們可以加速這種成長。

So as we sit here, everything is bang on track, which is great. In terms of the contingent consideration, that is the accretion charge going through. That's absolutely expected. There's no changes to our expectations of the earnout right now.

因此，當我們坐在這裡時，一切都步入正軌，這很棒。就或有對價而言，這就是正在發生的增值費用。這絕對是預料之中的事。目前我們對收益的預期沒有改變。

But obviously, that will change from quarter-to-quarter. And as the business transitions over the next two to three years, we'll keep you updated on what that earnout is going to look like. But right here right now, everything is on track and looking good.

但顯然，每季情況都會改變。隨著未來兩到三年的業務轉型，我們將隨時向您通報收益的最新情況。但現在，一切都步入正軌並且看起來不錯。

Okay. Thank you for that. I'm going to get back in queue. Thank you.

好的。謝謝你。我要回去排隊了。謝謝。

Thanks, David.

謝謝，大衛。

Thank you. There are no further questions. I will now hand the call back to Patrick Williams.

謝謝。沒有其他問題了。現在我將把電話交還給派崔克威廉斯。

Thank you all for joining us today. And thanks to all our shareholders, customers, and Innospec employees for your interest and support. If you have any further questions about Innospec or matters discussed today, please give us a call. We look forward to meeting up with you again to discuss our second-quarter 2024 results in August. Have a great day.

感謝大家今天加入我們。感謝我們所有股東、客戶和 Innospec 員工的關注和支持。如果您對 Innospec 或今天討論的事項有任何其他疑問，請致電我們。我們期待在 8 月再次與您會面，討論 2024 年第二季的業績。祝你有美好的一天。