Pilgrims Pride Corp (PPC) 2023 Q4 法說會逐字稿

Good morning, everyone, and welcome to the Fourth Quarter and Fiscal Year 2023 Pilgrim's Pride Earnings Conference Call and Webcast.

大家早安，歡迎來到 2023 年第四季和財年 Pilgrim's Pride 收益電話會議和網路廣播。

(Operator Instructions)

（操作員說明）

At the company's request, this call is being recorded.

應公司要求，此次通話正在錄音。

Please note that the slides referenced during today's call are available for download from the Investors section of the company's website at www.pilgrims.com.

請注意，今天電話會議中引用的幻燈片可從公司網站 www.pilgrims.com 的投資者部分下載。

After today's presentation, there will be an opportunity to ask questions.

今天的演講結束後，將有機會提問。

At this time, I would like to turn the floor over to Andrew Rojeski, Head of Strategy, Investor Relations and Net-Zero Programs for Pilgrim's.

現在，我想請 Pilgrim's 策略、投資者關係和淨零計劃主管 Andrew Rojeski 發言。

Good morning, and thank you for joining us today as we review our operating and financial results for the fourth quarter and fiscal year ended on December 31, 2023. This morning, we issued a press release providing an overview of our financial performance for the quarter and the year, including a reconciliation of any non-GAAP measures we may discuss.

早安，感謝您今天加入我們，我們將回顧截至 2023 年 12 月 31 日的第四季度和財年的營運和財務業績。今天早上，我們發布了一份新聞稿，概述了本季度的財務業績以及年份，包括我們可能討論的任何非公認會計原則措施的調節。

A copy of the release is available on our website at ir.pilgrims.com, along with slides for reference. These items have also been filed as Form 8-Ks and are available online at sec.gov.

我們的網站 ir.pilgrims.com 提供了該新聞稿的副本以及可供參考的幻燈片。這些項目也已作為表格 8-K 提交，並可在 sec.gov 上線上取得。

Fabio Sandri, President and Chief Executive Officer; and Matt Galvanoni, Chief Financial Officer, will present on today's call.

法比奧‧桑德里 (Fabio Sandri)，總裁兼執行長；財務長馬特加爾瓦諾尼 (Matt Galvanoni) 將出席今天的電話會議。

Before we begin our prepared remarks, I would like to remind everyone of our safe harbor disclaimer. Today's call may contain certain forward-looking statements that represent our outlook and current expectations as of the day of this release. Other additional factors not anticipated by management may cause actual results to differ materially from those projected in these forward-looking statements. Further information concerning these factors have been provided in this morning's press release, our Form 10-K and regular filings with the SEC.

在我們開始準備好的發言之前，我想提醒大家我們的安全港免責聲明。今天的電話會議可能包含某些前瞻性陳述，代表我們截至本新聞稿發布之日的前景和當前預期。管理階層未預見的其他額外因素可能會導致實際結果與這些前瞻性陳述中預測的結果有重大差異。有關這些因素的更多資​​訊已在今天上午的新聞稿、我們的 10-K 表格以及向 SEC 提交的定期文件中提供。

I would now like to turn the call over to Fabio Sandri.

我現在想把電話轉給法比奧·桑德里。

Thank you, Andy. Good morning, everyone, and thank you for joining us today.

謝謝你，安迪。大家早安，感謝您今天加入我們。

For the fourth quarter of 2023, we reported net revenues of $4.5 billion. We had adjusted EBITDA of $310 million, and our adjusted EBITDA margin was 6.8%. Our Q4 performance demonstrated the continued effectiveness of our strategies of portfolio diversification, key customer focus and operational excellence to create more stable results. The U.S. portfolio improved, given growth with key customers in case-ready and enhanced production efficiencies with operational excellence in Big Bird.

2023 年第四季度，我們的淨收入為 45 億美元。我們調整後的 EBITDA 為 3.1 億美元，調整後的 EBITDA 利潤率為 6.8%。我們第四季的業績證明了我們的投資組合多元化、以關鍵客戶為中心和卓越營運策略的持續有效性，以創造更穩定的業績。美國產品組合得到改善，主要客戶的業務已就緒，並且 Big Bird 的卓越營運提高了生產效率。

Our efforts to further add value to our portfolio through the prepared foods continue to gain momentum given the growth of our branded offerings through retail and increased presence in foodservice.

鑑於我們的品牌產品透過零售和餐飲服務業務的增加而成長，我們透過預製食品進一步增加產品組合價值的努力繼續獲得動力。

In our geographical diversification, the U.K. and European business continued to drive profitable growth from the impact of operational excellence efforts throughout our manufacturing network, increasing strength of key customers and diversification through continued progress of our branded offerings. As for Mexico, the business in the quarter was impacted by weakening supply and demand fundamentals, but our efforts to diversify our portfolio through brands continue to flourish as both new and existing offerings grew within the trade and customers alike, and we continue to grow with key customers across retail and foodservice.

在我們的地理多元化方面，英國和歐洲業務繼續推動獲利成長，這得益於我們整個製造網絡卓越營運努力的影響，透過我們品牌產品的持續進步增強了主要客戶的實力以及多元化。至於墨西哥，本季的業務受到供需基本面疲軟的影響，但隨著新產品和現有產品在貿易和客戶中的成長，我們透過品牌實現產品組合多元化的努力繼續蓬勃發展，並且我們繼續與零售和餐飲服務領域的主要客戶。

Our investments in operational excellence efforts to expand capacity and cultivate redundancy in live operations remain on track. For the fiscal year, net revenues were $17.4 billion. Adjusted EBITDA was $1 billion, with adjusted EBITDA margins of 6%. U.S. faced depressed market conditions and elevated input costs in the first half of the year, but we maintain our leadership mindset and focus on controlling what we can control, the execution of our strategies to our relentless pursuit of operational excellence.

我們對卓越營運的投資仍在按計劃進行，以擴大產能並在現場運營中培養冗餘。本財年淨收入為 174 億美元。調整後 EBITDA 為 10 億美元，調整後 EBITDA 利潤率為 6%。美國上半年面臨市場低迷和投入成本上升的情況，但我們保持領導思維，專注於控制我們能控制的事情，執行我們的策略，不懈地追求卓越營運。

As conditions evolve throughout the year, our business became increasingly well positioned to capture the upside and further accelerate profitable growth. While pricing has not fully recovered to 5-year averages, we're still navigating dynamic markets, much changed from the past year. In the first half of 2023, there was substantial production growth and cold storage inventories above the long-term average. As a result, ample chicken supply was not fully offset by domestic demand and increases in commodity chicken values typically experienced in the spring, did not materialize.

隨著全年情勢的變化，我們的業務越來越有能力抓住機會並進一步加速獲利成長。雖然定價尚未完全恢復到 5 年平均水平，但我們仍在活躍的市場中航行，與去年相比發生了很大變化。 2023年上半年，產量大幅成長，冷庫庫存高於長期平均。因此，充足的雞肉供應並未完全被國內需求所抵消，春季商品雞肉價格的上漲並未實現。

As we progressed throughout the year, given depressed market pricing and elevated cost environments, egg sets and chicks placed sell, trigging more historical seasonal sets and placement patterns. When paired with growth in retail and food service demand later in the year, the overall slowdown of chicken production led to balanced markets and price movements align with historical patterns throughout Q3 and Q4.

隨著我們全年的進展，鑑於市場定價低迷和成本環境升高，蛋組和雛雞的放置銷售，引發了更多歷史季節性蛋組和放置模式。再加上今年稍後零售和食品服務需求的成長，雞肉生產的整體放緩導致市場平衡，價格走勢與整個第三季和第四季的歷史模式一致。

As for U.S. chicken supply, Q4 ready-to-cook production decreased 2.1% relative to last year, driven by fewer heads despite slightly higher live weights. Starting in Q3 of 2023, we saw reduced exits on a year-over-year basis and seasonal cuts at levels in line with the 5-year average. Egg sets continue to trend in line with the 5-year average throughout Q4 2023 and hatchability was similar to last year.

至於美國雞肉供應，第四季即食產量較去年下降 2.1%，儘管活重略有增加，但雞頭數量減少。從 2023 年第三季開始，我們看到退出量比去年同期減少，季節性減少量與 5 年平均值一致。 2023 年第四季度，產蛋量持續與 5 年平均值保持一致，孵化率與去年相似。

Taken together, chick placements slated for production in Q4 decline year-over-year, reducing headcount. As indicated by sets, placements and production data, supplying Q4 returned to more historical levels. Market pricing also declined seasonally and trend near 5-year average throughout the quarter, even with elevated production volumes.

總而言之，第四季的雛雞投放量較去年同期下降，導致員工數量減少。從產量、投放量和生產數據來看，第四季的供應量恢復到了歷史水準。儘管產量增加，市場定價也出現季節性下降，整個季度的趨勢接近 5 年平均值。

While supply declined in the second half of calendar 2023, USDA broiler production outlook suggests Q1 of 2024 to be on par with Q1 of '23, followed by 3 quarters of moderate growth, resulting in a yearly slight increase of 0.8%. This slight increase in chicken is coupled with a significant decline in beef production expected in 2024 as the USDA outlook suggests a 2.9% reduction for the balance of the year as a smaller herd is expected to drive fewer cattle. Even with an expected increase in pork production of 2.1% and higher beef imports, U.S. implying net protein availability is expected to increase less than 1%.

雖然 2023 年下半年供應量下降，但美國農業部肉雞產量展望顯示 2024 年第一季將與 2023 年第一季持平，隨後三個季度溫和增長，年度小幅增長 0.8%。雞肉產量略有增加，預計 2024 年牛肉產量將大幅下降，因為美國農業部的展望顯示，由於牛群規模較小，今年剩餘時間產量預計將減少 2.9%。即使豬肉產量預計將增加 2.1%，牛肉進口量增加，美國的淨蛋白質供應量也預計將增加不到 1%。

On the demand side for 2023, the U.S. retail market experienced positive fall in all categories. Fresh chicken was consistent with this overall trend as volume was 1.1% higher, but relatively flat in Q4 as white meat volume grew slow to levels compared to 2022. This differs from previous quarter where retail breast meat experienced large year-over-year growth.

2023年需求方面，美國零售市場所有類別均出現正跌幅。鮮雞肉與這一總體趨勢一致，銷量增長了 1.1%，但第四季度相對持平，因為與 2022 年相比，白肉銷量增長緩慢。這與上一季度零售胸肉同比大幅增長不同。

The white meat volume in Q4 was mostly impacted by an increase in dark meat offerings, especially more affordable cuts. Starting the new year, demand for white meat has increased significantly and remains well positioned as a great alternative to other proteins.

第四季的白肉銷售主要受到黑肉供應量增加的影響，尤其是更實惠的切肉。從新的一年開始，對白肉的需求顯著增加，並且仍然是其他蛋白質的絕佳替代品。

Chicken across other categories in the store fared well in the quarter as deli posted solid dollar and unit increases, while frozen value-added chicken continue to add incremental volume growth. The frozen commodity segment, which is much smaller than the value-added fresh and deli segments for chicken continued its decline. Nevertheless, on the whole chicken, we provided value to customers as a center of the bent plate stable.

該店其他類別的雞肉在本季度表現良好，熟食店的美元和單位數量均出現強勁增長，而冷凍增值雞肉繼續增加增量增長。冷凍商品領域遠小於加值的新鮮雞肉和熟食領域，持續下滑。儘管如此，從整體上看，我們作為彎板馬厩的中心為客戶提供了價值。

The food service distribution channel continued its trend of higher volume sales with lower price levels. Similar to last quarter, chicken experienced volume growth in both value-added and commodity tax across most subchannels. Encouraging signs of volume growth remain within the channel, as chicken continues to serve a larger base of operators relative to prior year and realized increased buy rates, both of which had added to substantial increase compared to Q4 of 2022. The noncommercial subchannel maintained its strength and incremental volume throughout the quarter and the year.

食品服務分銷通路持續保持銷售量較高、價格較低的趨勢。與上季類似，雞肉在大多數子通路的增值稅和商品稅數量均出現成長。該通路內銷售成長的跡象仍然令人鼓舞，因為與去年相比，雞肉繼續為更多的營運商提供服務，並實現了購買率的提高，與2022 年第四季相比，這兩者都實現了大幅成長。非商業子通路保持了其實力以及整個季度和全年的增量。

Turning to exports. Global demand for chicken has been strong throughout the fourth quarter, given the global higher cost of other proteins and produce movement disruptions in the Middle East. These disruptions have favored the U.S. as it backfilled products delay in transit. In addition, high [tap] even influenza and some Southeast Asia countries are providing the U.S. additional opportunities as local supplies are tightening. As for -- even influenza in U.S., the dynamics are relatively consistent with prior quarters as most of our trading partners have adjusted their trade restrictions to minimize impacts as much as possible.

轉向出口。鑑於全球其他蛋白質成本上漲以及中東農產品運輸中斷，第四季度全球雞肉需求一直強勁。這些中斷對美國有利，因為它彌補了產品運輸途中的延誤。此外，隨著當地供應緊張，流感高發生率和一些東南亞國家也為美國提供了額外的機會。至於美國的流感，其動態與前幾季相對一致，因為我們的大多數貿易夥伴都調整了貿易限制，以盡可能減少影響。

Our manufacturing network across the United States also continues to enable access and service to multiple markets, given our diversification of production facilities across several states and control zones.

鑑於我們在多個州和控制區的生產設施的多元化，我們在美國各地的製造網絡也繼續為多個市場提供准入和服務。

As for China, there has been limited movement on adherence to existing trade agreements. Since the majority of business is driven by chicken paws, there has been no mature effect on broiler meat. The export market has also been impacted by an increased evolution by U.S. consumers to dark meat as freezer inventories remain low relative to historical and season standards. As a result, overall stock levels remain relatively tight, providing further support for the overall market.

至於中國，在遵守現有貿易協定方面進展有限。由於大部分業務都是雞爪帶動的，所以肉雞肉還沒有成熟的效果。出口市場也受到美國消費者轉向黑肉的影響，因為冷凍庫存相對於歷史和季節標準仍然較低。因此，整體庫存水準仍相對緊張，為整體市場提供進一步支撐。

Turning to feed grain. Corn prices have eased as the supply picture in the U.S. has improved. Recently, yield adjustment by USDA confirmed the '23, '24 crop as a new record at 15.3 billion bushels. While some important weather periods lie ahead, we couldn't current forecast for Brazil and Argentina to have a combined record production, global ending stocks for corn are forecasted to build significantly.

轉向餵穀物。隨著美國供應情況的改善，玉米價格有所回落。最近，美國農業部的單產調整確認 23 年和 24 年作物產量創下 153 億蒲式耳的新紀錄。雖然未來將有一些重要的天氣時期，但我們目前無法預測巴西和阿根廷的總產量將創歷史新高，預計全球玉米期末庫存將大幅增加。

Like corn, soybeans saw a recent adjustment to U.S. yields which more moved forecast ending stocks 19% higher. South American soy production has been the key to recent price movement with Argentina's production forecasted to rebound to 50 million metric tons from 25 million metric tons in last year's draft. USDA's Brazil forecast is currently 156 million metric tons, in line with last year's record production of 162 million metric tons. South America has continued to price its global destination to compete with U.S. export demand.

與玉米一樣，大豆近期美國收益率也進行了調整，這使得期末庫存預測上漲了 19%。南美大豆產量一直是近期價格走勢的關鍵，阿根廷大豆產量預計將從去年的 2,500 萬噸反彈至 5,000 萬噸。美國農業部目前對巴西的產量預測為 1.56 億噸，與去年創紀錄的 1.62 億噸產量一致。南美洲繼續為其全球目的地定價，以與美國的出口需求競爭。

On top of soybean price reduction, soybean meal prices have fallen as U.S. crush industry expansions yielded a record crush in Q4 of 2023. Argentina's rebound in soy production is playing a role in the global soy meal outlook as well. Soybean meal oil prices are also under pressure as U.S. soy oil is facing competition from substitute fats and oils in food and feed as well as renewable fuel channels.

除了大豆價格下跌之外，隨著美國壓榨產業擴張，2023 年第四季壓榨量創歷史新高，豆粕價格也出現下跌。阿根廷大豆產量的反彈也對全球豆粕前景產生了影響。由於美國豆油面臨食品和飼料替代油脂以及再生燃料管道的競爭，豆粕油價格也面臨壓力。

In a slightly different picture, meat production is down year-over-year and global ending stocks are forecasted to be tighter. In the U.S., wheat acres for the 2024 harvest are lower as well. Nonetheless, prices have generally moved lower given the global feed grain picture.

略有不同的情況是，肉類產量年減，全球期末庫存預計將趨緊。在美國，2024 年收穫的小麥面積也有所減少。儘管如此，考慮到全球飼料穀物的情況，價格普遍走低。

Turning to the U.S. business. Our consistent focus on execution of our strategies of key customer partnership, diversification and operational excellence has sustainable profitability improvements despite uneven market fundamentals in the commodity segments and lingering inflation throughout the quarter.

轉向美國業務。儘管大宗商品領域的市場基本面不穩定且整個季度通膨持續存在，但我們始終致力於執行關鍵客戶合作夥伴關係、多元化和卓越營運策略，從而實現了可持續的盈利能力改善。

Our case-ready business continued to grow ahead of the industry, given strong demand from key customers, enhanced promotional activity and increased distribution through retail. Our offerings of differentiated higher attributes continues to gain momentum as we added business throughout the quarter and beyond, further differentiating our portfolio. Big Bird continues to improve its operations through a combination of mix optimization, live operation improvements and labor effectiveness. These efforts continue to drive quarter-over-quarter improvements in production costs.

由於主要客戶的強勁需求、促銷活動的加強以及零售分銷的增加，我們的整箱業務繼續領先於行業增長。隨著我們在整個季度及以後增加業務，我們的差異化更高屬性的產品繼續獲得動力，進一步使我們的產品組合與眾不同。 Big Bird 透過組合優化、現場營運改善和勞動效率相結合，不斷改善其營運。這些努力持續推動生產成本逐季改善。

Moving forward, we will continue to invest in training and automation to drive further improvements in yields and line efficiencies. Small Bird continues to improve both volumes and profitability, giving robust demand from key customers and retail, deli and QSRs. Performance was further aided by successful completing and start-up of our Athens expansion product, strengthening our relationship with key customers and our operational excellence, reinforcing our foundation for profitable growth. Our efforts to further diversify our portfolio through value-added products, continued to gain momentum as Prepared Foods posted yet another strong quarter as volumes and profitability improved.

展望未來，我們將繼續投資於培訓和自動化，以進一步提高產量和生產線效率。 Small Bird 持續提高銷售量和獲利能力，滿足主要客戶以及零售、熟食店和快餐店的強勁需求。我們的雅典擴建產品的成功完成和啟動，加強了我們與主要客戶的關係以及我們的卓越運營，鞏固了我們盈利增長的基礎，進一步提高了業績。我們透過加值產品進一步實現產品組合多元化的努力繼續獲得動力，隨著銷量和盈利能力的改善，預製食品又迎來了一個強勁的季度。

Our branded offerings were exceptionally well received as Just BARE and the Pilgrim's brands collectively grew 59% compared to last year. Digital influenced sales more than doubled compared to last year, and it remains a key driver in our branded growth and repeat business. Food service also continues to increase marketplace traction through key customer relationships and targeted promotional activity. Moving forward, expanding distribution of our existing innovation through retail and further diversifying our portfolio in Food Service will be key to driving continued growth.

我們的品牌產品非常受歡迎，Just BARE 和 Pilgrim 的品牌與去年相比總共成長了 59%。與去年相比，數位化影響的銷售額增加了一倍多，它仍然是我們品牌成長和回頭客業務的關鍵驅動力。食品服務也透過關鍵客戶關係和有針對性的促銷活動繼續增加市場吸引力。展望未來，透過零售擴大我們現有創新的分銷以及進一步使我們在食品服務領域的產品組合多樣化將是推動持續成長的關鍵。

Our investments in people over the past few years have resulted in a suitable net staffing and reduced turnover levels throughout our U.S. facilities. Given our sustained improvements, we were able to capture a significant portion of our operational excellence initiatives throughout the plant. As for the U.K. and Europe, consumer segment has steadily improved as inflation has shown signs of easing and real wages increase. Shoppers have also increasingly traded into chicken, pork sausage and lamb relative to other categories. Given our diversified portfolio across proteins, our business was well positioned to capturing on those strengths.

過去幾年，我們對人員的投資實現了適當的淨人員配置，並降低了整個美國工廠的人員流動水準。鑑於我們的持續改進，我們能夠在整個工廠實施卓越營運計劃的很大一部分。至於英國和歐洲，隨著通膨出現緩和和實質薪資上漲的跡象，消費領域穩步改善。相對於其他類別，購物者也越來越多地購買雞肉、豬肉香腸和羊肉。鑑於我們的蛋白質產品組合多樣化，我們的業務處於有利地位，可以利用這些優勢。

Within retail, key customers grew faster than others throughout the trade and our offerings so better than the category average. Our branded portfolio continued to be particularly successful as net sales grew over 10% compared to the full-year 2022. Richmond and Rollover brands have been especially well received by customers throughout the sales, have increased over 17% and 31%, respectively. As consumers became increasingly confident in the overall economic outlook. Prospects to further diversify through a recently launched brand innovation may become even more attractive.

在零售領域，關鍵客戶的成長速度比整個產業的其他客戶成長得更快，而且我們的產品也比同類產品的平均水平好。我們的品牌組合繼續取得特別成功，淨銷售額與 2022 年全年相比增長了 10% 以上。Richmond 和 Rollover 品牌在整個銷售過程中尤其受到客戶的好評，分別增長了 17% 和 31% 以上。隨著消費者對整體經濟前景越來越有信心。透過最近推出的品牌創新進一步多元化的前景可能會變得更具吸引力。

Our Food Service business remained relatively stable even as consumers increased their at-home eating occasions, what can favor our strong retail presence. We continue to drive operational excellence throughout all aspects of our business. To that end, we streamlined our management and back office supporting during the quarter given our growth aspirations and diversified portfolio. Based on those efforts, we will increase our speed to market, enhance relationship with key customers and further simplify our operations. We'll continue to explore alternatives to further drive profitable growth.

即使消費者在家用餐的次數增多，我們的食品服務業務仍保持相對穩定，這有利於我們強大的零售業務。我們繼續在業務的各個方面推動卓越營運。為此，鑑於我們的成長願望和多元化的投資組合，我們在本季簡化了管理和後台支援。基於這些努力，我們將加快上市速度，加強與主要客戶的關係並進一步簡化我們的營運。我們將繼續探索進一步推動利潤成長的替代方案。

In Mexico, throughout the quarter, the business experienced weakened supply and demand fundamentals from increased exports, imports and lower exchange rates. Nonetheless, the team achieved positive margins during the quarter and improved profitability compared to last year through consistent execution of our strategies.

在墨西哥，整個季度，由於出口、進口增加和匯率下降，供需基本面疲軟。儘管如此，透過持續執行我們的策略，該團隊在本季度實現了正利潤，並且與去年相比，盈利能力有所提高。

Our presence with key customers continue to strengthen as volume increased double digits throughout the quarter. These efforts were further amplified by our efforts to diversify our portfolio through brands. Favoritos grew by 40% to compared to Q3 and is nearly 4x since the beginning of the year. Similarly, Unique Taste is up close to 20% for the quarter and has nearly doubled since the start of 2023. Also, the initial results from our recently launched Just BARE fresh offering throughout retail has been very promising.

隨著整個季度銷售的兩位數成長，我們與主要客戶的關係持續加強。我們透過品牌實現產品組合多元化的努力進一步放大了這些努力。與第三季相比，Favoritos 成長了 40%，自年初以來成長了近 4 倍。同樣，Unique Taste 本季成長了近 20%，自 2023 年初以來幾乎翻了一番。此外，我們最近在整個零售領域推出的 Just BARE 新鮮產品的初步結果非常有希望。

Our operational excellence efforts to expand our capacity remain on track as we have completed construction of our hatchery and seed meal in Merida on schedule, with production expected to begin in March of 2024. Our efforts to enhance redundancy in live operations through relocation of our breeder farms is also progressing as planned. To date, we have finished over 60% of the project and anticipate on schedule completion during the first half of this year.

我們為擴大產能而做出的卓越營運努力仍在按計劃進行，我們已按計劃完成了梅里達孵化場和種粉的建設，預計將於2024 年3 月開始生產。我們努力透過搬遷飼養場來增強現場運作的冗餘度農場也正在按計劃進行。截至目前，我們已完成該專案60%以上，預計今年上半年如期完工。

Our efforts to drive sustainability throughout our business continue to make progress. Throughout 2023, our teams identify innovative ways to improve our energy efficiency through updated processing and equipment management techniques. As a result, all regions improved their electrical and natural gas usage intensity. We continue to make progress for our social efforts, as Newsweek recently recognized Pilgrim's as one of the America's greatest places for women and one of the America's greatest place for diversity.

我們在整個業務中推動永續發展的努力不斷取得進展。 2023 年，我們的團隊將透過更新加工和設備管理技術找出創新方法來提高能源效率。結果，所有地區都提高了電力和天然氣的使用強度。我們繼續在社會努力方面取得進展，《新聞周刊》最近將 Pilgrim's 評為美國最適合女性的地方之一和美國最多元化的地方之一。

We also continue to invest in team member well-being through our Better Futures Program, in which more than 490 Pilgrim's team members and their children have enrolled in tuition-free higher education throughout 2023. And our Hometown Strong Program that has approved more than 150 community projects for investments to date.

我們也透過「更好的未來計畫」繼續投資於團隊成員的福祉，在該計畫中，2023 年有超過490 名Pilgrim 團隊成員及其子女接受了免費高等教育。我們的「家鄉強計畫」已批准了超過150 個項目迄今為止的投資社區項目。

We also continue our organic growth. Our investments to support our key customer growth remains on target as our Athens expansion was completed on time and as planned. Performance to date has met our operational excellence goals and production has achieved or surpassed quality and service expectations. Similarly, construction of our protein conversion facility in South Georgia is progressing as scheduled and anticipate a start-up in March.

我們還持續有機成長。我們為支持主要客戶成長而進行的投資仍然達到目標，雅典的擴張已按計劃按時完成。迄今為止的業績已經達到了我們卓越營運的目標，生產已經達到或超越了品質和服務預期。同樣，我們在南喬治亞島的蛋白質轉化設施的建設正在按計劃進行，預計將於 3 月啟動。

We have already secured additional business with selected key customers, creating profitable growth in 2024 and beyond. Equally important, this investment further diversify our portfolio and creates operational redundancy to ensure sufficient service levels throughout our business.

我們已經與選定的關鍵客戶獲得了額外的業務，從而在 2024 年及以後創造盈利增長。同樣重要的是，這項投資進一步豐富了我們的產品組合，並創造了營運冗餘，以確保我們整個業務提供足夠的服務水準。

With that, Matt, if you can comment on our financial results.

馬特，請您對我們的財務表現發表評論。

Thank you, Fabio, and good morning, everyone. For the fourth quarter of 2023, net revenues were $4.53 billion versus $4.13 billion a year ago, with adjusted EBITDA of $309.5 million and a margin of 6.8% compared to $62.9 million and a 1.5% margin in Q4 last year. In the quarter, we reported GAAP net income of $135 million versus a GAAP net loss of $155 million in 2022.

謝謝法比奧，大家早安。 2023 年第四季，淨收入為 45.3 億美元，去年同期為 41.3 億美元，調整後 EBITDA 為 3.095 億美元，利潤率為 6.8%，而去年第四季為 6,290 萬美元，利潤率為 1.5%。本季度，我們公佈的 GAAP 淨利潤為 1.35 億美元，而 2022 年 GAAP 淨虧損為 1.55 億美元。

For fiscal year 2023, net revenues were $17.4 billion versus $17.5 billion in fiscal '22, with adjusted EBITDA of $1.03 billion and a 6.0% margin compared to $1.65 billion and a 9.5% margin last year. We achieved $321.6 million of GAAP net income this year versus $745.9 million in 2022. Adjusted EBITDA in the U.S. for Q4 came in at $200.3 million, with adjusted EBITDA margins at 7.5%.

2023 財年，淨收入為 174 億美元，而 22 財年為 175 億美元，調整後 EBITDA 為 10.3 億美元，利潤率為 6.0%，而去年為 16.5 億美元，利潤率為 9.5%。我們今年的 GAAP 淨利潤為 3.216 億美元，而 2022 年為 7.459 億美元。第四季美國調整後 EBITDA 為 2.003 億美元，調整後 EBITDA 利潤率為 7.5%。

Our Big Bird business profitability significantly improved year-over-year as throughout the second half of the year, commodity market pricing rose back to more historical seasonal levels, along with further operational improvements achieved by the business. Also driving the improvement in the quarterly U.S. results were increases in profitability in both our case-ready and small bird businesses. These businesses utilize key customer partnerships to increase distribution. Our Prepared Foods business continued its momentum of branded product sales growth with both retail and Food Service customers.

我們的大鳥業務獲利能力較去年同期顯著提高，因為整個下半年，大宗商品市場定價回升至歷史季節性水平，同時該業務實現了進一步的營運改善。推動美國季度業績改善的另一個因素是我們的箱裝和小型禽類業務獲利能力的提高。這些企業利用主要客戶合作夥伴關係來增加分銷。我們的預製食品業務持續保持零售和食品服務客戶品牌產品銷售成長的勢頭。

Finally, in the quarter, we recorded approximately $18 million of insurance proceeds associated with the winter storm that impacted our operations in Texas and Louisiana in February 2021. However, the impact of these proceeds were offset by a year-over-year increase in incentive compensation and other actuarial-related true-up charges during the quarter. For the fiscal year, our U.S. net revenues were $10.03 billion versus $10.75 billion in fiscal 2022. With adjusted EBITDA of $531.5 million and a 5.3% margin compared to $1.37 billion and a 12.7% margin last year.

最後，在本季度，我們記錄了與2021 年2 月影響我們在德克薩斯州和路易斯安那州業務的冬季風暴相關的約1800 萬美元的保險收益。然而，這些收益的影響被激勵措施的年比增加所抵銷。本季的補償和其他精算相關的調整費用。本財年，我們在美國的淨收入為100.3 億美元，而2022 財年為107.5 億美元。調整後EBITDA 為5.315 億美元，利潤率為5.3%，而去年為13.7 億美元，利潤率為12.7% 。

Coming out of a record 2022, the U.S. portfolio proved resilience in the face of depressed commodity market pricing in the first half of 2023 and recovering in the second half to post solid financial results. In U.K., Europe, adjusted EBITDA in Q4 was $102.5 million versus $62.9 million in 2022. European business delivered its seventh consecutive quarterly improvement in adjusted EBITDA. For the full year, Europe's adjusted EBITDA was $317.2 million versus $168.7 million in 2022.

在經歷了創紀錄的 2022 年之後，美國投資組合在 2023 年上半年大宗商品市場定價低迷的情況下表現出了韌性，並在下半年復甦，取得了穩健的財務業績。在英國和歐洲，第四季度調整後 EBITDA 為 1.025 億美元，而 2022 年為 6,290 萬美元。歐洲業務調整後 EBITDA 連續第七個季度改善。全年歐洲調整後 EBITDA 為 3.172 億美元，而 2022 年為 1.687 億美元。

During the year, Europe announced a number of restructuring programs in pursuit of further operational excellence, including plant closures, back office support consolidation and streamlining the management organization structure. These changes provide the foundation for further cost savings and will allow us to partner more efficiently with our key customers in the region. We recognized approximately $44 million of restructuring charges during the year and anticipate additional charges in the first half of the year as restructuring program progresses.

年內，歐洲宣布了多項重組計劃，以追求進一步卓越運營，包括關閉工廠、合併後台支援以及精簡管理組織結構。這些變化為進一步節省成本奠定了基礎，並使我們能夠更有效地與該地區的主要客戶合作。我們在這一年確認了約 4,400 萬美元的重組費用，並預計隨著重組計劃的進展，今年上半年將產生額外費用。

Mexico made $6.8 million in adjusted EBITDA in Q4 compared to losing $15.8 million last year. When considering the full year, Mexico made $185.5 million in adjusted EBITDA or an 8.7% adjusted EBITDA margin bettering last year's 6.1% margin. The fourth quarter was seasonally challenged, however, considering the full year, the supply-demand dynamic was well balanced. Our Mexican team did an excellent job in managing continually challenging live operations environment in the country.

墨西哥第四季調整後 EBITDA 為 680 萬美元，而去年則虧損 1,580 萬美元。考慮到全年，墨西哥調整後 EBITDA 為 1.855 億美元，調整後 EBITDA 利潤率為 8.7%，優於去年的 6.1% 利潤率。第四季面臨季節性挑戰，但考慮到全年，供需動態保持良好平衡。我們的墨西哥團隊在管理全國不斷充滿挑戰的現場營運環境方面表現出色。

Our GAAP SG&A in the fourth quarter was lower than prior year, primarily due to reduced legal defense costs and cost efficiencies achieved in the U.S. and U.K., Europe. These reductions were partially offset by higher incentive compensation costs recorded in the quarter. Overall, our SG&A decreased year-over-year by approximately 9%.

我們第四季的 GAAP SG&A 低於去年同期，主要是因為美國、英國和歐洲的法律辯護成本降低以及成本效率提高。這些減少被本季記錄的更高的激勵補償成本部分抵消。總體而言，我們的 SG&A 年減約 9%。

We finished the year spending $544 million in CapEx. This included approximately $29 million associated with the rebuild in Mayfield, Kentucky Hatchery, following December 2021 tornado in which we received insurance proceeds to cover. Also during the year, we incurred significant CapEx with the Athens, Georgia plant expansion, which started up in Q4 of this year and with the construction of the protein conversion plant in South Georgia, scheduled to start up by the end of Q1 2024.

今年我們的資本支出為 5.44 億美元。其中包括與 2021 年 12 月龍捲風過後肯塔基州梅菲爾德孵化場重建相關的約 2,900 萬美元，我們收到了保險賠償金。同樣在這一年中，我們因喬治亞州雅典工廠擴建（於今年第四季度啟動）以及南喬治亞州蛋白質轉化工廠（計劃於 2024 年第一季末啟動）的建設而產生了大量資本支出。

We will continue to prioritize our capital spending plans to ensure the safety of our team members, optimize our product mix and strengthen our partnerships with key customers. We reiterate our commitment to invest in strong ROCE projects that will improve our operational efficiencies through automation and tailor our operation to address key customer needs to further solidify competitive advantages for Pilgrim's. We are anticipating spending between $475 million and $525 million in CapEx in 2024.

我們將繼續優先考慮我們的資本支出計劃，以確保團隊成員的安全，優化我們的產品組合併加強與主要客戶的合作夥伴關係。我們重申我們對投資強大的 ROCE 專案的承諾，這些專案將透過自動化提高我們的營運效率，並客製化我們的營運以滿足關鍵客戶需求，從而進一步鞏固 Pilgrim's 的競爭優勢。我們預計 2024 年的資本支出將在 4.75 億至 5.25 億美元之間。

As conditions evolve, we may revise our spending outlook to accommodate our growth aspirations. However, we will remain disciplined in our capital allocation. We have a strong balance sheet, and we will continue to emphasize cash flows from operating activities, management of working capital and disciplined investment in high-return projects. Our liquidity position remains very strong. At the end of the fiscal year, we had approximately $1.8 billion in total cash and available credit. We have no short-term immediate cash requirements with our bonds maturing between 2031 and 2034 and our U.S. credit facility not expiring until 2028.

隨著情況的發展，我們可能會修改我們的支出前景，以適應我們的成長願望。然而，我們將在資本配置方面保持紀律。我們擁有強大的資產負債表，我們將繼續強調經營活動的現金流量、營運資本的管理以及對高回報項目的嚴格投資。我們的流動性狀況仍然非常強勁。截至本財年末，我們的現金和可用信貸總額約為 18 億美元。我們沒有短期即時現金需求，因為我們的債券將於 2031 年至 2034 年到期，而我們的美國信貸安排要到 2028 年才會到期。

Our liquidity position provides us flexibility during times of volatility in the U.S. commodity markets and allows us to explore further growth opportunities. including organic growth to meet our customers' needs. At the end of the fiscal year, our net debt was approximately $2.6 billion, with a leverage ratio of approximately 2.5x the last 12 months adjusted EBITDA. Which is right in the middle of our targeted leverage ratio range of 2 to 3x. Net interest expense for the year was approximately $167 million. However, this does include approximately $20 million in early extinguishment costs associated with the purchase of our 2027 notes during the fourth quarter.

我們的流動性狀況為我們在美國大宗商品市場波動期間提供了靈活性，並使我們能夠探索進一步的成長機會。包括有機成長以滿足客戶的需求。截至本財政年度末，我們的淨債務約為 26 億美元，槓桿率約為過去 12 個月調整後 EBITDA 的 2.5 倍。這正好位於我們目標槓桿率範圍 2 至 3 倍的中間。本年度淨利息支出約 1.67 億美元。然而，這確實包括與第四季度購買 2027 年票據相關的約 2,000 萬美元的早期銷毀成本。

We anticipate our 2024 net interest expense to be between $125 million and $135 million. Our full-year effective tax rate was 11.7%. Due to the mix of our multi-jurisdictional pretax earnings, routine income tax adjustments on discrete items were amplified, including the impact of changes in FX rates in certain jurisdictions. As such, our effective tax rate did not follow more normalized levels of between 23% and 25%, which we expect for 2024.

我們預計 2024 年的淨利息支出將在 1.25 億美元至 1.35 億美元之間。我們的全年有效稅率為 11.7%。由於我們的多個司法管轄區稅前收入的混合，對離散項目的常規所得稅調整被放大，包括某些司法管轄區外匯匯率變化的影響。因此，我們的有效稅率並未遵循我們預期 2024 年 23% 至 25% 之間的更正常水準。

We will continue to follow a disciplined approach to capital allocation as we look to profitably grow the company and will continue to align investment priorities with our overall strategies of portfolio diversification, focus on key customers, operational excellence and commitment to team member health and safety.

我們將繼續遵循嚴格的資本配置方法，以實現公司的獲利成長，並將繼續將投資優先事項與我們的投資組合多元化、專注於關鍵客戶、卓越營運以及對團隊成員健康和安全的承諾的整體策略保持一致。

Operator, this concludes our prepared remarks. Please open the call for questions.

接線員，我們準備好的發言到此結束。請打開電話提問。

(Operator Instructions)

（操作員說明）

Our first question today comes from Ben Theurer from Barclays.

我們今天的第一個問題來自巴克萊銀行的 Ben Theurer。

First of all, congrats on a very strong finish in 2023. Two quick questions.

首先，恭喜您在 2023 年取得了非常出色的成績。有兩個簡單的問題。

So first one, probably more for Fabio. As we look into 2024, I know you've talked about it in the prepared remarks as it relates to just feed availability being tighter, those prices coming up, but then there should be more pork and still chicken should be the favorable one. So as we think about just the supply side and your role within that supply. What are you doing in order to grow maybe your production within the U.S., leveraging also the fact that feed cost has come down. So how should we think about Pilgrim's specific supply situation into '24 versus '23? That would be my first question. And then I have a quick follow-up.

所以第一個，可能更多的是法比奧。當我們展望 2024 年時，我知道您在準備好的發言中談到了這一點，因為這與飼料供應更加緊張、價格上漲有關，但隨後應該有更多的豬肉，而雞肉仍然應該是有利的。因此，當我們只考慮供應方以及您在供應中的角色時。您正在做什麼，以增加您在美國的產量，同時利用飼料成本下降的事實。那麼我們該如何看待 Pilgrim 在 24 年和 23 年的具體供應情況呢？這是我的第一個問題。然後我會進行快速跟進。

Sure. Thank you, Ben. As we look at our portfolio Ben, we have a strategy of organic growth in conjunction with our key customers. And I think we've been growing over the last year. As an example, in Q4 we increased ahead of the industry, as the need from our key customers demand more volume from us. I think part of that was because of our project in Athens that started during Q4 to supply growth for our key customers.

當然。謝謝你，本。當我們審視我們的投資組合時，我們制定了與主要客戶合作的有機成長策略。我認為我們在過去的一年裡一直在成長。例如，在第四季度，我們的成長領先於行業，因為我們的主要客戶的需求要求我們增加銷售量。我認為部分原因是我們在雅典的專案於第四季度啟動，旨在為我們的主要客戶提供成長。

The pricing of grain, which is -- should be a benefit for the whole industry and for us overall, will not change our focus on our key customers. We have a well-diversified portfolio. We are well balanced between small birds, tray-pack and Big Bird and Prepared Foods, and we expect it to continue that.

穀物定價應該對整個行業和我們整體有利，不會改變我們對主要客戶的關注。我們擁有多元化的投資組合。我們在小鳥、托盤包裝和大鳥和預製食品之間取得了很好的平衡，我們希望它能繼續下去。

Okay. Perfect. And then my second question, just as it relates to like the trajectory and the deliveries you had in the European results because obviously, we remember that in the past, you have those issues where the cost plus was more like a grain plus and unnecessary there. When would you say you stand right now in recovering all that input cost pressure you had from Brexit over the pandemic in Europe.

好的。完美的。然後是我的第二個問題，就像它與歐洲結果中的軌跡和交付有關一樣，因為顯然，我們記得在過去，您遇到了這些問題，即成本加成更像是穀物加成，並且在那裡是不必要的。您認為您現在什麼時候可以恢復所有因英國脫歐和歐洲疫情所帶來的投入成本壓力？

And what's like kind of the run rate profitability we should assume for 2024, just given the very strong results we've already seen in the fourth quarter. So how to think about European profitability in '24? That would be my second question.

考慮到我們在第四季度已經看到的非常強勁的業績，我們應該假設 2024 年的運行率獲利能力是怎樣的。那麼如何看待24世紀歐洲的獲利能力呢？這是我的第二個問題。

Sure, Ben. Thank you once again. Yes, 2021 and 2022 were very difficult for our European business. As we mentioned, most of our contracts with customers were based -- what we thought was cost driven, but it was only grain driven. All the other costs, like labor, packaging, ingredients, were expected to stay fixed. But as we saw some massive inflation in the European region, especially utilities, ingredients, packaging, everything. We saw a disconnection between our costing and our pricing. We renegotiated all those contracts during 2021, 2022, and we're seeing some of the benefits coming through our bottom line in 2023.

當然，本。再一次感謝你。是的，2021 年和 2022 年對我們的歐洲業務來說非常困難。正如我們所提到的，我們與客戶的大多數合約都是基於——我們認為是成本驅動的，但實際上只是穀物驅動的。所有其他成本，如勞動力、包裝、原料等，預計將保持不變。但我們看到歐洲地區出現了大規模的通貨膨脹，特別是公用事業、原料、包裝等一切。我們發現成本會計和定價之間存在脫節。我們在 2021 年、2022 年重新談判了所有這些合同，我們將在 2023 年看到一些收益。

I think combined with that, we also simplified our business. We integrated all the plants and businesses that we have in Europe. We have a very diversified portfolio there, just as an example, we have the fresh pork and lamb business. We have poultry business. We have the meals business. We have a very robust branded business. We have also a Prepared business and a Food Service business.

我認為除此之外，我們還簡化了我們的業務。我們整合了我們在歐洲擁有的所有工廠和業務。我們在那裡擁有非常多元化的投資組合，舉個例子，我們有生鮮豬肉和羊肉業務。我們有家禽業務。我們有餐飲業務。我們擁有非常強大的品牌業務。我們也有準備業務和食品服務業務。

So there are many segments that we serve in Europe. And as the consumer is gaining more confidence in Europe as we see the inflation easing, he is going back to the retail and to the branded offerings. And we are seeing a benefit and we're capturing also that growth with our key customers in that region.

因此，我們在歐洲服務的領域有很多。隨著通貨膨脹的緩和，消費者對歐洲的信心增強，他將回歸零售和品牌產品。我們看到了好處，我們也與該地區的主要客戶一起獲得了這種增長。

As far as the future, as we restructure our network and we are benefiting from our lean structure right now, we expected to see those benefits coming to the bottom line, and we see the strengthening of the region as a whole.

就未來而言，隨著我們重組我們的網絡，並且我們現在正從我們的精益結構中受益，我們預計這些好處將最終實現，並且我們看到整個地區的增強。

Our next question comes from Ben Bienvenu from Stephens Inc.

我們的下一個問題來自 Stephens Inc. 的 Ben Bienvenu。

Congratulations. I'd like to pick up where Ben left off on the Europe segment. As it relates to -- any consideration we should give to seasonality in the business, notwithstanding the self-help initiatives that you all have underway? And then maybe reiterating the question he asked of what is the baseline profitability off of which we should model quarter-to-quarter earnings in this business?

恭喜。我想繼續本在歐洲部分留下的內容。儘管你們都在採取自助舉措，但我們是否應該考慮業務的季節性？然後也許會重申他提出的問題，即我們應該根據該業務的季度盈利建模的基準盈利能力是多少？

Because you ended the year just under 5% operating margins. You started the year at 2%. You've made fantastic progress and margins went up sequentially every quarter during the year. So does that trajectory continue? Do we stabilize and vastly off of some new baseline? Help us think about the possibilities there?

因為您年底的營業利益率略低於 5%。今年年初的利率為 2%。你們取得了巨大的進步，一年中每季的利潤率都在連續上升。那麼這個軌跡還會繼續嗎？我們是否已經穩定下來並大大偏離了一些新的基線？幫助我們思考那裡的可能性？

Of course. Thank you for the question. Yes, as I mentioned, we have a very well diversified portfolio. To your point, there is a little bit of seasonality in Europe. I think Q4 tends to be a strong quarter with year-end festivities, and we have a strong business in the branded in the ham and in the sausage business. Nonetheless, our business are growing faster than the industry. I think that's what we want to do to partnership with our key customers, creating differentiated offerings, both in Fresh, Prepared in Retail and in the Food Service. And we're seeing a strong beginning of Q1.

當然。感謝你的提問。是的，正如我所提到的，我們擁有非常多元化的投資組合。就您而言，歐洲有一點季節性。我認為第四季度往往是一個強勁的季度，伴隨著年終慶祝活動，我們在火腿和香腸業務的品牌業務方面擁有強勁的業務。儘管如此，我們的業務成長速度仍快於產業。我認為這就是我們想要與我們的主要客戶合作，在生鮮、零售和食品服務領域創造差異化產品的原因。我們看到第一季的強勁開局。

Of course, there is a little bit of seasonality and Q1 last year was still impacted by a very high inflationary period. And now we're seeing a deflationary period. So what we expected is a little bit of a reduction in our revenues, but we expect a continuing on our robust bottom line.

當然，有一點季節性，去年第一季仍然受到通膨非常高的時期的影響。現在我們正面臨通貨緊縮時期。因此，我們預計我們的收入會略有減少，但我們預計我們的利潤將繼續保持強勁。

Again, there is a little bit of seasonality in Q4, so we expect Q1 to continue to be strong compared to last year, but with seasonality not as strong as Q4. But for the year, we expect year-over-year growth with all the operational excellence initiatives that we took during 2023 to come into the full year benefits in 2024.

同樣，第四季度有一點季節性，因此我們預計第一季與去年相比將繼續強勁，但季節性不如第四季度。但就今年而言，我們預計我們在 2023 年採取的所有卓越營運措施將實現年比成​​長，並將在 2024 年帶來全年效益。

Okay. Very good. Thinking about the U.S. business, strong results in the fourth quarter. We've seen commodity fundamentals improve into the early part of 2024. It looks as though that should persist as we move through 2024. How should we be thinking about sequencing of profitability this year? And did you all have any weather disruptions or operational hiccups associated with the weather that we saw in January, early February in the first quarter that we should be mindful of?

好的。非常好。考慮到美國業務，第四季的業績強勁。我們已經看到大宗商品基本面在 2024 年初有所改善。看起來這種情況應該會持續到 2024 年。我們應該如何考慮今年的獲利排序？你們是否都遇到過我們在第一季 1 月、2 月初看到的任何與天氣相關的天氣幹擾或營運問題，需要我們注意？

Yes. Thank you. As we look at our U.S. business, as I mentioned, we have a very well-diversified portfolio. We are able to capture upside in the commodity market and protect the downside with a more stable, small bird, tray-pack and the business -- and the Prepared Foods business. As looking to the drivers in terms of supply and demand, I think we are seeing some tailwinds in terms of cost, especially on the grain.

是的。謝謝。正如我所提到的，當我們審視我們的美國業務時，我們擁有非常多元化的投資組合。我們能夠抓住大宗商品市場的上漲空間，並透過更穩定的小鳥、托盤包裝和業務以及預製食品業務來保護下行空間。就供應和需求方面的驅動因素而言，我認為我們在成本方面看到了一些順風車，特別是在穀物方面。

As I mentioned, there is some record production in U.S. and in South America, which will provide us close to $188 million in cost reduction during the 2024 year. Of course, not all of that will go into the bottom line as we have a lot of our pricing based on market or based on cost plus initiatives. But if you look at the supply, we're expecting muted supply growth during the Q1, and we're seeing some very strong demand for chicken.

正如我所提到的，美國和南美洲的產量創下了紀錄，這將為我們在 2024 年節省近 1.88 億美元的成本。當然，並不是所有這些都會進入底線，因為我們的定價有很多是基於市場或基於成本加成計劃。但如果你看看供應情況，我們預計第一季的供應成長將放緩，而且我們看到對雞肉的需求非常強勁。

As we mentioned, I think chicken is a great value for the consumers. The spread between chicken and beef and pork are close to record levels, and we're seeing a strong increase in the promotional activity by the retailers. If you look at what's happening in retail right now, we're seeing the shoppers doing more trips and buying less every trip that they do. And that it's really important for the retailer to drive traffic and chicken is a great way to drive traffic for the stores. So we're seeing the increase in promotional activity and an increase in the demand, especially from our key customers on that segment.

正如我們所提到的，我認為雞肉對消費者來說具有很大的價值。雞肉與牛肉和豬肉之間的價差接近創紀錄水平，我們看到零售商的促銷活動大幅增加。如果你看看現在零售業發生的事情，我們會發現購物者的旅行次數增多，但每次旅行的購買量卻減少。對於零售商來說，增加客流量確實很重要，而雞肉是增加商店客流量的好方法。因此，我們看到促銷活動的增加和需求的增加，尤其是來自該細分市場的主要客戶的需求。

On the Food Service, we're seeing some lower traffic and the consumer spending a little bit more at home. But what we are seeing is that an increase in penetration of the chicken offerings. So we're seeing strong demand, both in Food Service and the Retail, starting of the year. Now as the year progresses, we are expecting -- or USDA is expecting a little bit of an increase close to 1% in terms of supply for Q2 and Q3, which is in line with the expected seasonality of the graining season.

在餐飲服務方面，我們發現客流量下降，而消費者在家中的消費則增加。但我們看到雞肉產品的滲透率增加。因此，從今年年初開始，我們看到食品服務和零售領域的需求強勁。現在，隨著時間的推移，我們預計——或者說美國農業部預計第二季和第三季的供應量將略有增長，接近 1%，這與預期的糧季季節性是一致的。

And then a slight growth in Q4 of 0.8% for a total of 0.8%. And as I mentioned as well, the net availability of protein for the U.S. is expected to be really muted as with the reduction of the beef prices. So everything on the drivers are in line for a strong year for chicken in 2024.

然後第四季小幅成長 0.8%，總計成長 0.8%。正如我也提到的，隨著牛肉價格的下降，美國的蛋白質淨供應量預計將真正減少。因此，驅動器上的一切都符合 2024 年雞肉強勁的一年。

And then to your question on disruptions and so far in Q1, we've had relatively minor disruptions from the weather relative to the storms earlier in the quarter. So nothing that was very impactful overall.

然後，關於您關於幹擾的問題，到目前為止，第一季度，相對於本季度早些時候的風暴，我們受到的天氣幹擾相對較小。所以總的來說，沒有什麼是非常有影響力的。

Our next question comes from Andrew Strelzik from BMO.

我們的下一個問題來自 BMO 的 Andrew Strelzik。

I wanted to just follow up on the prior question about the U.S. margin outlook. And if I think about your 5-year average margin in the U.S. is just north of 6% operating margin. And you said in the fourth quarter, the cutout was in line with the 5-year average. Obviously, feed costs are heading well below the 5-year average or constructive on the demand backdrop. So it seems to imply that 2024 U.S. margins could be solidly above that kind of 5-year average just north of 6% as well. Am I thinking about that correctly? Is there anything that I'm kind of missing within that picture?

我想跟進之前有關美國利潤率前景的問題。如果我考慮一下你們在美國的 5 年平均利潤率略高於 6% 的營業利潤率。你說第四季的削減與五年平均值一致。顯然，飼料成本遠低於五年平均水平，或在需求背景下具有建設性。因此，這似乎意味著 2024 年美國的利潤率也可能遠高於 5 年平均水平，略高於 6%。我的想法正確嗎？這張照片裡有什麼我遺漏的東西嗎？

No. Great, Andrew. I think it goes back to the portfolio, as I mentioned before. We have a well-balanced portfolio. I think the commodity pricing and the grain cost impacts only partially our portfolio as we demonstrated over 2021, 2022 and 2023. The tray-pack and the small bird business are more cost driven or margin driven, and we have a great partnership, and we continue to grow on those business to offset the volatility of the big bird.

不，太好了，安德魯。我認為這可以追溯到投資組合，正如我之前提到的。我們擁有均衡的投資組合。我認為商品定價和穀物成本僅對我們的投資組合產生部分影響，正如我們在2021 年、2022 年和2023 年所展示的那樣。托盤包裝和小型鳥類業務更多地受成本驅動或利潤驅動，我們擁有良好的合作關係，而且我們繼續發展這些業務，以抵消大鳥的波動。

So some of the benefits of the lower grain cost will go through our bottom line, especially again on the commodity segments. But on the other segments, we expect more stable margins.

因此，穀物成本降低的一些好處將影響我們的利潤，尤其是在大宗商品領域。但在其他領域，我們預期利潤率會更加穩定。

To fare with the last year or normal years, as we always mentioned, we want to be the best operator. We want to capture the upside and protect the downside. And the one we can say is that we will always perform above the competition, whatever the market will allow us to capture.

為了與去年或正常年份相比，正如我們一直提到的，我們希望成為最好的營運商。我們希望抓住有利的一面並保護不利的一面。我們可以說的是，無論市場允許我們佔領什麼，我們的表現將始終優於競爭對手。

That makes good sense. And my second question is on hatchability. And if I look at the slide and the data that you provided on that slide, hatchability has basically gone straight down this year. Some of that, I guess, is probably seasonal, but we're now outside, most recently the 5-year average. Can you just maybe talk about a little bit what's going on from a hatchability perspective.

這很有道理。我的第二個問題是關於孵化率。如果我看一下投影片和您在投影片上提供的數據，今年的孵化率基本上是直線下降。我猜，其中一些可能是季節性的，但我們現在已經超出了最近五年的平均水平。您能否從孵化率的角度談談正在發生的事情？

I think if I rewind, we were supposed to see increases in that kind of steadily and hasn't really materialized. And so how are you thinking about hatchability going forward for the industry and the limitations that creates on production growth for chicken in '24.

我想如果我倒帶一下，我們應該會看到這種穩定成長，但並沒有真正實現。那麼您如何看待該行業未來的孵化率以及 24 年雞肉產量成長所受到的限制。

Yes. Sure, Andrew. That has been a topic that we've been discussing over the last 2 to 3 years, right? I think the hatchability issue has started, as we mentioned, as we changed -- as the primary breeding, companies change their breeds to improve the quality and the yields on the breast meat. We started in several years ago with the issue of the woody breast and the reaction from the primary breeders was to change their breed to improve the quality and reduce that issue. And that impacted the hatchability.

是的。當然，安德魯。這是我們過去兩三年一直在討論的話題，對嗎？我認為孵化率問題已經開始，正如我們所提到的，隨著我們的變化——作為初級育種，公司改變他們的品種以提高胸肉的品質和產量。幾年前，我們開始解決木質乳房的問題，主要育種者的反應是改變他們的品種，以提高品質並減少這個問題。這影響了孵化率。

That as well as a breed that it performs better on the conversion creates a little bit of a challenge on the life side, on the ag production and on the hatch. And I think that's what we saw, right, from 82% to close to 79% to 80% level. The impact of that change in the breed to our industry. Of course, we are improving our management of the breeder side.

這以及它在轉換方面表現更好的品種在生活方面、農業生產和孵化方面都帶來了一些挑戰。我認為這就是我們所看到的，從 82% 到接近 79% 到 80% 的水平。品種變化對我們產業的影響。當然，我們正在完善飼養員方面的管理。

And I think that has improved the hatchability, especially for us. We are better than the average company right now. But there is still some challenges on the hatchability that maybe with a new breed will be resumed the prior level that we used to have on the 80%, 82%. But I think it's still a management issue on the weight of the male -- especially of the male and an overall hatchability of this new breed. So as we go throughout the years, we expect to get that better.

我認為這提高了孵化率，尤其是對我們而言。我們現在比一般公司好。但孵化率仍存在一些挑戰，也許新品種的孵化率會恢復到我們以前80%、82%的水平。但我認為這仍然是一個關於雄性體重的管理問題——尤其是雄性體重和這個新品種的整體孵化率。因此，隨著這些年的發展，我們希望變得更好。

As the number of -- or the volume that we expect for the incoming months or the next years and the expectations and a little bit of the bottleneck that, that poses, I think that's why the industry is trying to increase the number of breeders as we see the pullet placements, it was a little bit higher than year-over-year, but that's the reaction of the industry, expecting to improve hatchability through age as another issue that we have, we have a little bit of an older breeder age, which is impacting hatchability once again. And the increase in the breeding flock is going to counter that with a younger flock which should be more productive.

由於我們預計未來幾個月或未來幾年的數量或數量以及預期和由此帶來的一點瓶頸，我認為這就是為什麼該行業正在努力增加育種者的數量我們看到小母雞的安置情況，比去年同期要高一點，但這是該行業的反應，期望隨著年齡的增長而提高孵化率，這是我們面臨的另一個問題，我們的種雞年齡有點大，這再次影響孵化率。種雞群的增加將抵消年輕雞群的影響，而年輕雞群的生產力應該更高。

Okay. And if I could just squeeze one quick one in here. On the balance sheet and the cash balance. So you talked about the strength of the balance sheet, the CapEx is coming in maybe a little higher than we had otherwise thought. But your cash balance is pretty robust. Your projects, generally speaking, are kind of winding down.

好的。如果我能在這裡快速擠一粒就好了。在資產負債表和現金餘額上。所以你談到了資產負債表的實力，資本支出可能比我們原本想像的還要高。但你的現金餘額相當充裕。一般來說，你的專案正在逐漸結束。

How are you thinking about leveraging that cash balance, you talked about some optionality for growth. But I guess when you think about the opportunity set, what's attractive? And how are you thinking about allocating the cash.

您如何考慮利用現金餘額，您談到了一些成長的選擇。但我想當你考慮機會集時，什麼是有吸引力的？您如何考慮分配現金？

Andrew, it's Matt. Thanks for the question. I think our main focus really -- I mentioned it a couple of times in my prepared remarks, is really on organic growth. And that growth with key customers. We've had some projects that we've been either executed or in the process of executing, which is providing us further production and kind of tightness with our key customers, and I think that's where we're going to probably see more of our cash from a CapEx.

安德魯，是馬特。謝謝你的提問。我認為我們的主要焦點實際上是有機成長，我在準備好的發言中多次提到這一點。以及關鍵客戶的成長。我們已經執行了一些專案或正在執行過程中，這為我們提供了進一步的生產和與主要客戶的緊密關係，我認為這就是我們可能會看到更多的地方來自資本支出的現金。

And that's why when I gave that range, it really -- I did put a little bit of a caveat on that, that this could change with other broader, bigger organic growth opportunities that we have for that cash at this time. So that's something we've been executing on very well over the last year to 18 months, and I think we're going to be seeing more of that as we go forward. I don't know if Fabio wants to add any other color to that?

這就是為什麼當我給出這個範圍時，我確實對此提出了一點警告，即這可能會隨著我們目前為該現金擁有的其他更廣泛、更大的有機增長機會而改變。因此，這是我們在過去一年到 18 個月裡一直執行得很好的事情，我認為隨著我們的前進，我們將會看到更多這樣的事情。不知道Fabio是否想在此基礎上添加其他色彩？

No. And again, Andrew, we've always look into how can we create value for the shareholders. We have a lot of growth initiatives, one, I think, to Matt's point, it is to grow with our key customers. But we have our targets in terms of acquisition, we will do an acquisition when we think it's accretive to us and will help us either on improving our portfolio in regions or in brands or in growing our Prepared Food offerings.

不。安德魯，我們一直在研究如何為股東創造價值。我們有很多成長計劃，我認為，按照馬特的觀點，其中之一就是與我們的主要客戶一起成長。但我們在收購方面有自己的目標，當我們認為收購對我們有利並且有助於我們改善我們在地區或品牌的投資組合或增加我們的預製食品產品時，我們就會進行收購。

Our next question comes from Peter Galbo from Bank of America.

我們的下一個問題來自美國銀行的彼得·加爾博。

Just a couple of P&L questions for me. Matt and Fabio, you talked about, obviously, the deflation we've seen in feed costs in U.S. feed costs. Matt, I was just hoping maybe you could give us an update on the other part of the cost equation. So labor and conversion, just kind of what you're expecting for '24 and then maybe a blended either COGS inflation or deflation rate for the U.S.

只是問我幾個損益問題。馬特和法比奧，顯然，你們談到了我們在美國飼料成本中看到的通貨緊縮。馬特，我只是希望您能給我們提供有關成本方程式其他部分的最新資訊。因此，勞動力和轉換率，正是您對 24 年的預期，然後可能是美國的混合銷售成本通貨膨脹率或通貨緊縮率。

Yes. I think at least directionally, Peter, I think relative to labor, as Fabio you mentioned in his prepared remarks, we were getting to the point of being fully staffed, which is great. So that does, of course, come -- and then when you think about -- and per person basis, our increases in '24 will not be as high as they were, shall we say, in '22 and early part of '23, just the market is kind of becoming a little more stable over the past.

是的。我認為至少在方向上，彼得，我認為相對於勞動力，正如法比奧你在他準備好的講話中提到的那樣，我們已經達到了人員配備齊全的地步，這很好。當然，這確實會發生——然後當你考慮一下——以人均計算，我們在 24 年的增幅將不會像 22 年和 23 年初那樣高，只是市場比過去變得更加穩定一些。

But I think the main driver that we're seeing from a cost perspective, that's a huge chunk of our COGS is the grain which we are seeing the tailwinds, which is excellent. But when I think about the other key cost drivers, labor should be relatively in check and ingredients and other things of that nature, nothing that is causing any level of extraordinary change.

但我認為，從成本角度來看，我們看到的主要驅動力是我們的銷貨成本的很大一部分，這是我們看到的順風車，這非常好。但當我考慮其他關鍵成本驅動因素時，勞動力、原料和其他類似性質的東西應該​​相對受到控制，沒有任何程度會導致任何程度的非凡變化。

I think as we do every year, we started the year looking at all the efficiencies that we can capture. We call this the opening the gaps looking at all the opportunities in every single operation throughout our network. And then we created action plans to close those gaps or capture that operational excellence, as I mentioned. Every year, we expect it from $100 million to $200 million in operational excellence, in operational effectiveness.

我認為，就像我們每年所做的那樣，我們在新的一年開始時就著眼於我們可以實現的所有效率。我們稱之為“打開差距”，著眼於整個網路中每項業務的所有機會。然後，正如我所提到的，我們制定了行動計劃來縮小這些差距或實現卓越營運。每年，我們期望在卓越營運和營運效率方面投入 1 億至 2 億美元。

And that is part COGS part revenues because we talk about improving the mix. We talk about reducing overall plant cost, and we talk about capturing improvements in yields. Of course, as Matt said, that is grain non-impactful. But there is a little bit of inflation in terms of packaging ingredients and somewhat utilities that we can counter.

這一部分是銷貨成本，一部分是收入，因為我們談論的是改善組合。我們談論降低工廠整體成本，我們談論提高產量。當然，正如馬特所說，這對穀物沒有影響。但我們可以應對包裝成分和公用事業方面的一些通貨膨脹。

So we are always expecting to improve our operations year-over-year, and that's an exercise that we do bottom up from all the operations at all the plants, and we sum and add up all the way through our total P&L.

因此，我們始終期望逐年改善我們的運營，這是我們從所有工廠的所有運營中自下而上進行的練習，我們一直在總損益表中進行總結和累加。

Got it. That's helpful. And then just, Matt, on the SG&A front, I think you obviously mentioned it's down about 9% for the year, in '23. Just trying to either get a sense on '24 either dollar growth rate in SG&A or a rough range. I think you've been between $125 million, $135 million a quarter, if that's still a fair range to use.

知道了。這很有幫助。然後，馬特，在 SG&A 方面，我想您顯然提到了 23 年的 SG&A 下降了約 9%。只是想了解 24 年 SG&A 的美元成長率或大致範圍。我認為每季的收入在 1.25 億美元到 1.35 億美元之間，如果這仍然是一個合理的範圍的話。

Yes. No, I think it's good. That's a decent range. I think what I would also kind of think about it, Peter, is this year, we really did see a significant decrease from 2022 in legal defense costs. I certainly don't anticipate us moving up to the 2022 levels. Certainly, we'll have some level of increase in 2024 versus '23 because we'll get ourselves back in more of a -- we believe, hopefully, at more of a stable incentive compensation cost that will kind of kind of true back up to more of a normalized level for the U.S. business. But I think if you kind of think about this, thinking '24 being somewhat between 2023 and 2022 is a reasonable way of thinking about it.

是的。不，我認為這很好。這是一個不錯的範圍。彼得，我想我也會想到的是，今年我們確實看到法律辯護費用較 2022 年顯著下降。我當然預計我們不會達到 2022 年的水準。當然，與 23 年相比，我們在 2024 年會有一定程度的成長，因為我們將更多地恢復到——我們希望，我們希望獲得更穩定的激勵補償成本，這將是一種真正的支持達到美國企業更正常的水準。但我認為，如果你仔細考慮這一點，就會認為 '24 介於 2023 年和 2022 年之間是一種合理的思考方式。

I think, I mean the total SG&A, we're also benefiting from the consolidation of the back office in Europe. Although there is a little bit of exchange rate impact there as well.

我認為，我的意思是總銷售、管理費用（SG&A），我們也受惠於歐洲後台的整合。儘管匯率也有一點影響。

And our next question comes from Adam Samuelson from Goldman Sachs.

我們的下一個問題來自高盛的亞當·薩繆爾森。

So I guess the first question, just on Mexico. Obviously, that business is short cycle, given the nature of that market, you alluded to a challenging October, which I think impacted the overall fourth quarter. Can you talk about the supply-demand trends as you look first quarter into the second as we sit here today? And is there anything that would kind of have Mexico off the normal -- more normal seasonal cadence that you would have seen in prior years where typically, the second quarter is the high point.

所以我想第一個問題是關於墨西哥的。顯然，鑑於該市場的性質，該業務是短週期的，您提到了充滿挑戰的十月，我認為這影響了整個第四季度。今天我們坐在這裡，您能談談第一季和第二季的供需趨勢嗎？有沒有什麼事情會讓墨西哥偏離正常的——前幾年你會看到的更正常的季節性節奏，通常第二季是高點。

Yes, sure. Thank you, Adam. Yes. Mexico was a little bit weaker than expected in Q4, although better than the prior year. I think the major drivers were very cheap imports coming from Brazil and also from the United States during Q4. And I think that, combined with an increase in production in the overall industry during Q4 put some pressure, especially on the live bird market. And we know, as I mentioned, the short cycle and how that market is really volatile.

是的，當然。謝謝你，亞當。是的。墨西哥第四季的表現略弱於預期，但好於去年。我認為主要動力是第四季度來自巴西和美國的非常便宜的進口產品。我認為，加上第四季度整個行業產量的增加，帶來了一些壓力，特別是活禽市場。正如我所提到的，我們知道短週期以及市場的波動性。

As we started Q1, as we always mention, Mexico can be very volatile quarter-over-quarter, but very strong and consistent year-over-year. We saw already an improvement from those levels. We're seeing the improvement right now. I think the year has still started a little bit weaker than we expected. But we're seeing the improvements right now. As we see the strengthening in the pricing in U.S., which will prevent export going there. I think there's a lot of work production also flowing from United States to Mexico. And -- but we are seeing already an improvement in the market right now. And as I mentioned, we expect the Q2 market to be really strong.

正如我們在第一季開始時所提到的，墨西哥季度環比可能非常波動，但同比卻非常強勁且穩定。我們已經看到了這些水平的改進。我們現在看到了改善。我認為今年的開局仍比我們預期的要弱一些。但我們現在看到了一些改進。正如我們看到美國的定價走強，這將阻止出口到那裡。我認為還有大量的工作生產也從美國流向墨西哥。而且——但我們現在已經看到市場有所改善。正如我所提到的，我們預計第二季市場將非常強勁。

Okay. That's helpful. And I guess just a follow-up on the U.S. business on your Prepared business in the U.S. And I know there's been a lot of growth in the Just BARE brand. Can you maybe just talk about the profitability of the Prepared Foods business at this point. Historically, that was a more challenging piece because of scale? Are we getting to a point now where Prepared can be a more material earnings contributor? And if so, or is there a thought about incremental capital and capacity needs in that unit?

好的。這很有幫助。我想這只是你們美國Prepared業務的後續行動。而且我知道Just BARE品牌有了很大的成長。現在您能談談預製食品業務的獲利能力嗎？從歷史上看，由於規模的原因，這是一個更具挑戰性的作品？我們現在是否已經到了Prepared可以成為更物質收入貢獻者的地步了？如果是這樣，或是否考慮過該部門的增量資本和產能需求？

Sure. And that's exactly the strategy, right, Adam you have a portfolio that can capture the upsides in the market and protect the downsides. And I think our Prepared Foods play a significant role there. As we have an exposure to the Big Bird market. We want to have the counter that volatility with a more stable Prepared business that can benefit from cheaper inputs in the commodity.

當然。這正是策略，對吧，亞當，你擁有一個可以捕捉市場上行空間並保護下行空間的投資組合。我認為我們的預製食品在那裡發揮著重要作用。因為我們接觸到大鳥市場了。我們希望透過更穩定的準備好的業務來應對波動性，這些業務可以從更便宜的商品投入中受益。

As 2022 and 2023 move along, we saw that strong growth on our brand. I think not only we are benefiting from lower commodity prices, but we're also capturing upsides because it's a differentiated product that really resonated with consumers. And that's what we are seeing that strong demand. And we are helping our key customers with driving, not only with profits, but also driving traffic. As we see the commodity market improving we can see a little bit of a reduction and on a squeeze on the margins of that business. Again, we expect it to be more stable.

隨著 2022 年和 2023 年的到來，我們看到了我們品牌的強勁成長。我認為我們不僅受益於較低的大宗商品價格，而且還抓住了好處，因為它是真正引起消費者共鳴的差異化產品。這就是我們看到的強勁需求。我們正在幫助我們的主要客戶開車，不僅可以帶來利潤，還可以增加流量。當我們看到大宗商品市場改善時，我們可以看到該業務的利潤減少和擠壓。再次，我們期望它會更加穩定。

But we are seeing double-digit profitability in that business in 2023, and we don't expect that to be different in 2024. As for growth, you are correct, we talk about the growth with our key customers, and we are reaching the 100% capacity, especially in the fully cooked business with Just BARE brand and also with the Pilgrim's brand where we do a relaunch during the Q2.

但我們預計該業務在 2023 年將實現兩位數的盈利能力，並且我們預計 2024 年情況不會有所不同。至於增長，你是對的，我們與主要客戶談論增長，我們正在達到100% 產能，特別是在Just BARE 品牌和Pilgrim's 品牌的全熟業務中，我們在第二季重新推出。

And ladies and gentlemen, our next question comes from Priya Ohri-Gupta from Barclays.

女士們先生們，我們的下一個問題來自巴克萊銀行的 Priya Ohri-Gupta。

Andy, maybe just one to start with for you -- or sorry. Can we talk a little bit about working capital, just with some of the release that you're seeing on the green side. Is there scope for working capital to potentially be even a benefit this year as we think about your free cash flow composition?

安迪，也許只是給你一個開始——或者抱歉。我們可以談談營運資金嗎？僅談談您在綠色方面看到的一些釋放。當我們考慮您的自由現金流組成時，今年的營運資金是否有可能帶來好處？

My initial reaction is, yes. I mean I think we should be able to see some working capital benefits going forward, especially with where grain is going. It may take a bit of time to let that kind of fully get itself through inventory as such. But we are seeing that is definitely the direction where we're taking, and we've seen that a little bit here in the fourth quarter. But as grain as starting to hit these kind of low four areas in corn, that is something that we're seeing that also Priya.

我的第一個反應是，是的。我的意思是，我認為我們應該能夠看到一些營運資金的好處，特別是在糧食的去向方面。可能需要一些時間才能讓這種情況完全通過庫存。但我們看到這絕對是我們正在採取的方向，我們在第四季度已經看到了一點。但隨著穀物開始觸及玉米的這些低四個區域，我們也看到 Priya 也出現了這種情況。

I think also in terms of the inventories, Priya, we've been pushing a lot of reduction in our inventories, especially for frozen category. And we're seeing the overall inventories in the market also going down, especially on the dark meat and that has helped the whole industry and help our working capital.

我認為就庫存而言，Priya，我們一直在大力減少庫存，特別是冷凍類別。我們看到市場上的整體庫存也在下降，尤其是黑肉，這對整個產業和我們的營運資金都有幫助。

That's helpful. So I guess, as a follow-on and maybe building on one of the prior questions that sort of put you guys in a little bit more of an enviable position when it comes to your cash flow generation, your existing cash. you've already sort of outlined the CapEx guidance. As we think about that cash that's building, would you be able to maybe talk us through the scope to potentially increase some of those organic projects versus looking a bit more aggressively inorganic opportunities? And how high of a cash balance would you be comfortable sitting on?

這很有幫助。所以我想，作為一個後續問題，也許是在之前的一個問題的基礎上，當涉及到你的現金流生成，你現有的現金時，這會讓你們處於一個更令人羨慕的位置。您已經概述了資本支出指南。當我們考慮正在累積的現金時，您能否向我們介紹可能增加一些有機項目的範圍，而不是尋找更積極的無機機會？您願意持有多高的現金餘額？

And I think when you talk about the inorganic versus organic, Fabio had mentioned on the inorganic side, look, we want to grow our company, but we want to be very prudent relative to any type of acquisition that we do to make sure it's completely on strategy and we're paying a right and fair price for any type of acquisition that way.

我認為當你談論無機與有機時，法比奧在無機方面提到過，看，我們希望發展我們的公司，但我們希望對我們所做的任何類型的收購都非常謹慎，以確保它完全在策略上，我們將為任何類型的收購支付正確且公平的價格。

So we're not -- certainly not excluding any opportunities for inorganic, but it's something that's got to be the right fit for us at the right price. Relative to organic we have some capital needs that are out there. We've got opportunities to grow with our key customers. We are not going to -- we're going to be very -- one thing -- we'll use the word prudent again on those types of investments. But we have opportunities to be more on the organic side relative to that growth. I don't think there's something that we look at as a cash limit as it relates to how high it can go. If there is a reason to do some type of buyback, we would consider that, but that is not #1 on the list, as I've mentioned before.

因此，我們當然不會排除任何無機產品的機會，但它必須以適當的價格適合我們。相對於有機食品，我們有一些資本需求。我們有機會與主要客戶一起成長。我們不會——我們將非常——一件事——我們將在這些類型的投資上再次使用「謹慎」這個詞。但相對於這種成長，我們有機會更能實現有機成長。我不認為我們將現金限額視為現金限額，因為它與現金限額有關。如果有理由進行某種類型的回購，我們會考慮這一點，但這並不是清單中的第一，正如我之前提到的。

And ladies and gentlemen, with that, we'll be concluding today's question-and-answer session. I would like to turn the floor back over to Fabio for any closing remarks.

女士們、先生們，我們今天的問答環節就到此結束。我想請法比奧發表結束語。

Yes. Thank you, everyone, for attending our call. Our team faced exceptionally volatile market conditions throughout 2023. Nonetheless, we maintain focus on strategies of key customer partnerships, portfolio diversification and operational excellence. And these efforts were combined with a leadership mindset and commitment to our values, we elevated our performance and demonstrated our ability to drive profitable growth despite circumstances.

是的。謝謝大家參加我們的電話會議。我們的團隊在 2023 年面臨異常波動的市場狀況。儘管如此，我們仍然專注於關鍵客戶合作夥伴關係、投資組合多元化和卓越營運的策略。這些努力與領導思維和對我們價值觀的承諾相結合，我們提高了績效，並證明了我們在任何情況下都能夠推動獲利成長的能力。

Moving forward, we will continue to drive our strategies, along with an unwavering commitment to team member safety as well being along with an unyielding attention to quality, service and sustainability. Given our progress and efforts, we can continue to cultivate a better future for our team members and achieve our aspiration of becoming the best and most respected company in 2024 and beyond.

展望未來，我們將繼續推動我們的策略，堅定不移地致力於團隊成員的安全，並堅定不移地專注於品質、服務和永續性。透過我們的進步和努力，我們可以繼續為我們的團隊成員培育更美好的未來，並實現我們在 2024 年及以後成為最好、最受尊敬的公司的願望。

Thank you, everyone.

謝謝大家。

And ladies and gentlemen, that concludes today's conference call. We thank you for attending today's presentation. You may now disconnect your lines.

女士們、先生們，今天的電話會議到此結束。我們感謝您參加今天的演講。現在您可以斷開線路。