Universal Corp (UVV) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Universal Corporation third-quarter fiscal year 2024 earnings conference call.

女士們、先生們，下午好，歡迎參加環球公司 2024 財年第三季財報電話會議。

(Operator Instructions) This call is being recorded on Wednesday, February 7, 2024.

（操作員說明）此通話錄音時間為 2024 年 2 月 7 日星期三。

I would now like to turn the conference over to Jennifer Rowe, Assistant Treasurer at Universal Corp. Please go ahead.

現在我想將會議交給環球公司助理財務主管 Jennifer Rowe。請繼續。

Thank you for joining us.

感謝您加入我們。

George Freeman, our Chairman, President, and CEO; Airton Hentschke, our Chief Operating Officer; and Johan Kroner, our Chief Financial Officer, are here with me today and will join me in answering questions after these brief remarks.

喬治‧弗里曼，我們的董事長、總裁兼執行長； Airton Hentschke，我們的營運長；我們的財務長約翰·克羅納 (Johan Kroner) 今天也和我在一起，在簡短發言後將與我一起回答問題。

This call is being webcast live and will be available on our website and on telephone taped replay.

這次電話會議正在進行網路直播，並將在我們的網站上和電話錄音重播中播放。

It will remain on the website through February 7, 2024.

它將在 2024 年 2 月 7 日之前保留在網站上。

Other than the replay, we have not authorized and disclaim responsibility for any recording, replay, or distribution of any transcription of this call.

除重播外，我們未授權對本次通話的任何錄音、重播或分發任何轉錄，也不承擔任何責任。

This call is copyrighted and may not be used without our permission.

此通話受版權保護，未經我們許可不得使用。

Before I begin to discuss our results, I caution you that we will be making forward-looking statements that are based on our current knowledge and some assumptions about the future and are representative.

在開始討論我們的結果之前，我提醒您，我們將根據我們當前的知識和對未來的一些假設做出代表性的前瞻性陳述。

As of today only.

僅截至今天。

Actual results could differ materially from projected or estimated results, and we assume no obligation to update any forward-looking statements.

實際結果可能與預期或估計結果有重大差異，我們不承擔更新任何前瞻性陳述的義務。

For information on some of the factors that can affect our estimates, I urge you to read our 10-K for the year ended March 31, 2023.

有關可能影響我們估計的一些因素的信息，我強烈建議您閱讀我們截至 2023 年 3 月 31 日的年度 10-K。

Such risks and uncertainties include, but are not limited to, the impact of pandemic, customer-mandated timing of shipments, weather conditions, political and economic environment, government regulation and taxation, changes in exchange rates and interest rates, industry consolidation and evolution, and changes in market structure or sources.

此類風險和不確定性包括但不限於大流行的影響、客戶規定的發貨時間、天氣狀況、政治和經濟環境、政府監管和稅收、匯率和利率的變化、行業整合和演變以及市場結構或來源的變化。

Finally, some of the information I have for you today is based on unaudited allocations and is subject to reclassification.

最後，我今天為您提供的一些資訊是基於未經審計的分配，並且可能會重新分類。

In an effort to provide useful information to investors, our comments today may include non-GAAP financial measures.

為了向投資者提供有用的信息，我們今天的評論可能包括非公認會計準則的財務指標。

For details on these measures, including reconciliations to the most comparable GAAP measures, please refer to our current earnings press release.

有關這些措施的詳細信息，包括與最具可比性的公認會計準則措施的調節，請參閱我們當前的收益新聞稿。

Universal Corporation again delivered strong financial and operational performance in the third quarter of fiscal year 2024.

環球公司在 2024 財年第三季再次實現了強勁的財務和營運業績。

Operating income and net income for the quarter were up 13% and 28%, respectively, relative to the third quarter of fiscal year 2023, which helped increase our operating income and net income for the nine months of fiscal year 2024 by 20% and 13%, respectively, compared to the same period last fiscal year.

該季度的營業收入和淨利潤較 2023 財年第三季度分別增長 13% 和 28%，這有助於我們 2024 財年前 9 個月的營業收入和淨利潤分別增長 20% 和 13%分別與上一財年同期相比。

Our tobacco business continued to perform very well, driven by a favorable product mix and strong demand from our customers.

在有利的產品組合和客戶的強勁需求的推動下，我們的菸草業務繼續表現出色。

Improved margins, larger crops in Africa, and strong tobacco shipments in line with our expectations benefited our results in the nine months and quarter ended December 31, 2023, compared to the same periods last fiscal year.

與上一財年同期相比，利潤率的提高、非洲產量的增加以及符合我們預期的強勁煙草發貨量，使我們在截至 2023 年 12 月 31 日的九個月和季度的業績受益。

As we continue to be encouraged by the solid progress, the team is making to expand our ingredients business.

隨著我們繼續受到紮實進展的鼓舞，團隊正在擴大我們的原料業務。

The investments we have made to build out the research and development and corporate sales teams are starting to gain momentum and have positioned us for future growth.

我們為建設研發和企業銷售團隊的投資開始獲得動力，並為我們未來的成長奠定了基礎。

Some financial highlights for the nine months and quarter ended December 31, 2023.

截至 2023 年 12 月 31 日的九個月和季度的一些財務亮點。

Net income for the nine months was $79.3 million, or $3.17, per diluted share and was $53.2 million, or $2.12, per diluted share for the quarter ended December 31, 2023.

這九個月的淨利潤為 7,930 萬美元，即稀釋後每股收益 3.17 美元，截至 2023 年 12 月 31 日的季度淨利潤為 5,320 萬美元，即稀釋後每股收益 2.12 美元。

Excluding certain nonrecurring items detailed in today's press release, net income increased by $12.6 million, and diluted earnings per share increased by $0.49 for the nine months, and net income and diluted earnings per share increased by $12.1 million or $0.49 per share, respectively, for the quarter ended December 31, 2023, compared to the same period last fiscal year.

不包括今天新聞稿中詳述的某些非經常性項目，這九個月的淨利潤增加了1,260 萬美元，稀釋每股收益增加了0.49 美元，淨利潤和稀釋每股收益分別增加了1,210 萬美元或每股0.49 美元。截至 2023 年 12 月 31 日的季度與上一財年同期相比。

Operating income of $153.8 million for the nine months ended December 31, 2023, increased by $25.1 million, and operating income for the quarter of $87.5 million, increased by $9.9 million.

截至 2023 年 12 月 31 日的九個月營業收入為 1.538 億美元，增加了 2,510 萬美元，本季營業收入為 8,750 萬美元，增加了 990 萬美元。

Selling, general, and administrative expenses were up $21 million in the nine months on higher compensation costs and up $10.6 million in the quarter ended December 31, 2023, largely on higher compensation costs and unfavorable foreign currency comparisons compared to the same period last fiscal year.

由於薪酬成本增加，銷售、一般和管理費用在過去9 個月中增加了2,100 萬美元，在截至2023 年12 月31 日的季度中增加了1,060 萬美元，主要是由於與上一財年同期相比，薪資成本增加以及不利的外匯比較。

Some highlights for our segment.

我們細分市場的一些亮點。

Operating income for the Tobacco Operations segment increased by $29.9 million to $148.9 million for the nine months and by $10.5 million to $87.6 million for the quarter ended December 31, 2023, compared to the nine months and quarter ended December 31, 2022.

與截至2022 年12 月31 日的九個月和季度相比，菸草業務部門的營業收入在前九個月中增加了2,990 萬美元，達到1.489 億美元，在截至2023 年12 月31 日的季度中增加了1,050 萬美元，達到8,760 萬美元。

Tobacco Operations segment operating income was up largely on higher prices and a more favorable product mix, partially offset by lower tobacco sales volume.

菸草業務部門的營業收入主要由於價格上漲和更有利的產品組合而成長，但部分被菸草銷售下降所抵銷。

In the nine months and quarter ended December 31, 2023, African crops were larger, and carryover crop shipments from South America were significantly lower compared to the same periods in fiscal year 2023.

截至2023年12月31日的九個月和季度，與2023財年同期相比，非洲作物產量增加，來自南美的結轉作物出貨量顯著下降。

Operating income for the Ingredients Operations segment was $5 million and $2.2 million, respectively, for the nine months and quarter ended December 31, 2023.

截至 2023 年 12 月 31 日的九個月和季度，原料營運部門的營業收入分別為 500 萬美元和 220 萬美元。

In the quarter ended December 31, 2023, operating income for our Ingredients Operations segment was in line with results for the same quarter in the prior-fiscal year as incremental revenue and margin from the sale of new products offset the effects of market challenges for our core products and higher expenses resulting from the investments that we're making to position the segment for future growth.

截至 2023 年 12 月 31 日的季度，我們的原料營運部門的營業收入與上一財年同季度的業績一致，因為新產品銷售的增量收入和利潤抵消了市場挑戰對我們的影響。核心產品和我們為該細分市場未來成長而進行的投資而產生的更高費用。

Operating income for the segment for the nine months ended December 31, 2023, was lower as compared to the same period in the prior year, mainly as a result of lower operating income in the first quarter of the current fiscal year.

截至2023年12月31日止九個月，該部門的營業收入低於上年同期，主要是由於本財年第一季營業收入較低。

Results for the first quarter of fiscal year 2024 were negatively impacted by customer inventory recalibration.

2024 財年第一季的業績受到顧客庫存重新調整的負面影響。

As we enter our last quarter of fiscal year 2024, global leaf supply for all types of leaf tobacco continues to be tight.

隨著我們進入 2024 財年最後一個季度，全球所有類型菸葉的菸葉供應仍然緊張。

And as of December 31, 2023, our uncommitted tobacco inventory was at a low level of 8%.

截至 2023 年 12 月 31 日，我們的未承諾菸草庫存處於 8% 的低水準。

While we expect global leaf tobacco supply to remain tight in fiscal year 2025, in part due to El Niño weather conditions, we believe the strength of our diverse global footprint will help us satisfy our customers' leaf tobacco needs.

雖然我們預計 2025 財年全球菸葉供應仍將緊張，部分原因是厄爾尼諾天氣條件，但我們相信，我們多元化的全球足蹟的優勢將有助於我們滿足客戶的菸葉需求。

With our Ingredients business, we are pleased with the progress we are making on an expansion of our processing capabilities at our ingredients facility in Lancaster, Pennsylvania.

透過我們的原料業務，我們對賓州蘭卡斯特原料工廠在擴大加工能力方面所取得的進展感到滿意。

We expect those resources to be fully operational in the third quarter of fiscal year 2025 and positively contributing to our earnings as soon as fiscal year 2026.

我們預計這些資源將在 2025 財年第三季全面投入運營，並最快在 2026 財年為我們的收入做出積極貢獻。

Another important achievement in fiscal year 2024 has been the progress we made to advance Universal's global sustainability agenda.

2024 財年的另一個重要成就是我們在推動環球影業的全球永續發展議程方面取得的進展。

These include the December publication of our 2023 sustainability report, and our recently announced participation in a solar projects that we believe will help us meet our target to reduce operational greenhouse gas emissions by 30% by 2030.

其中包括 12 月發布的 2023 年永續發展報告，以及我們最近宣布參與的太陽能項目，我們相信該項目將幫助我們實現到 2030 年將營運溫室氣體排放量減少 30% 的目標。

We are pleased with our sustainability advances, and we continue to seek opportunities to further promote sustainability in our business.

我們對我們在永續發展方面取得的進展感到滿意，並將繼續尋找機會進一步促進我們業務的永續發展。

We are proud of our performance thus far in fiscal year 2024.

我們對 2024 財年迄今的表現感到自豪。

We believe our strategy of maximizing opportunities in our tobacco businesses by capitalizing on our industry-leading market position in the primary exporting regions and our robust sustainability practices, while at the same time, investing for growth in our Ingredients business continues to serve us well.

我們相信，透過利用我們在主要出口地區行業領先的市場地位和強大的可持續發展實踐，最大限度地提高煙草業務機會的戰略，同時投資於我們的原料業務的增長，將繼續為我們提供良好的服務。

Demand for leaf tobacco and our relationships with our long-standing and diverse customer base remains strong.

對菸葉的需求以及我們與長期多元化客戶群的關係仍然強勁。

And our position in the tobacco business can offer us opportunities in the future.

我們在菸草產業的地位可以為我們提供未來的機會。

We continue to make measured and thoughtful progress on our ingredients platform, and we are excited about the opportunities for our business.

我們繼續在原料平台上取得審慎和深思熟慮的進展，我們對我們的業務機會感到興奮。

We believe that we are on the right path for a successful future.

我們相信，我們正走在通往成功未來的正確道路上。

At this time, we are available to take your questions.

目前，我們可以回答您的問題。

(Operator Instructions) Ann Gurkin, Davenport.

（操作員說明）Ann Gurkin，達文波特。

Good evening, everybody.

晚上好大家。

Congratulations on good numbers.

恭喜你取得了好成績。

Thank you, Ann.

謝謝你，安。

Also a big congratulations on your progress versus your sustainability goals.

也衷心祝賀您在實現永續發展目標方面取得的進展。

That is well done.

做得很好。

Lot of kudos to you all for achieving those goals and maybe even achieving them ahead of time.

非常感謝你們實現這些目標，甚至可能提前實現它們。

Thank you.

謝謝。

I wanted to start, if I may, was on the Ingredients segment to have a number of questions.

如果可以的話，我想先在成分部分提出一些問題。

So operating profit of $2.2 million, you just talked about highlights, sales of new products, but also sales of core products or existing products at lower margin and also some additional costs for investing for future growth.

因此，營業利潤為 220 萬美元，您剛才談到了亮點、新產品的銷售，以及核心產品或利潤率較低的現有產品的銷售，以及為未來成長投資的一些額外成本。

Can you break out those additional, that cost component kind of what's an underlying operating profit number without the investment cost in it for the ingredient segment

您能否分解那些額外的成本組成部分，即基本營業利潤數字，而不考慮原料部門的投資成本

?

？

Ann, as you will know, we don't break out individual pieces.

安，如你所知，我們不會分解單獨的部分。

However, what we can tell you is that, you're now seeing a fairly complete R&D and commercial group cost structure.

然而，我們可以告訴您的是，您現在看到的是一個相當完整的研發和商業集團成本結構。

And so we only have seen a glimmer of the benefits of these investments, and we expect it will take until 2026, as Jennifer said.

因此，正如 Jennifer 所說，我們只看到了這些投資的一線好處，我們預計要到 2026 年才能看到。

Do we see positive earnings from these?

我們能從中看到正面的收益嗎？

So as we told you previously, we're making some significant investments in the R&D area as well as in the commercial group.

正如我們之前告訴您的，我們正在研發領域以及商業部門進行一些重大投資。

But those investments, it will take a little bit of time for those to really show earnings on top of that.

但這些投資需要一點時間才能真正顯示出收益。

Of course, as Jennifer pointed out, the facility in Lancaster won't come online until later this year.

當然，正如珍妮佛指出的那樣，蘭卡斯特的設施要到今年晚些時候才會上線。

And at that point in time, we will be able to actually produce that product.

到那時，我們將能夠實際生產該產品。

So again, it will take a little bit of time for us to get there.

同樣，我們需要一點時間才能到達那裡。

So we had a couple of weak quarters early on.

因此，我們早期經歷了幾個疲軟的季度。

There is still some weakness in the core products, but we are seeing some of those benefits from these commercial folks deals that we have hired and especially the R&D that we pointed out where there are some new products that we have put out there, which will be more sticky, which add value, which you margin up.

核心產品仍然存在一些弱點，但我們從我們僱用的這些商業人員交易中看到了一些好處，特別是我們指出的研發，我們已經推出了一些新產品，這將更具黏性，這會增加價值，從而增加利潤。

So all that looks positive, but it's going to take a little bit of time for us to truly see the benefit of all these investments.

因此，所有這些看起來都是積極的，但我們需要一點時間才能真正看到所有這些投資的好處。

Okay.

好的。

So the sequential slowdown from Q2 to Q3, maybe it's partially seasonal, but partially reflecting a step-up in these investments?

那麼，從第二季到第三季的連續放緩，也許部分是季節性的，但部分反映了這些投資的增加？

Is that kind of fair to think about it?

這樣想公平嗎？

Yeah, that is fair.

是的，這很公平。

And that level of investment should continue Q4 fiscal 2025.

這種投資水準應該會持續到 2025 財年第四季。

So we'll think about the margin kind of in the low single-digit range going forward because the level of investments in the mix of business or how do I think about margin progression?

因此，我們將考慮未來的低個位數範圍內的利潤率，因為業務組合的投資水準或我如何考慮利潤率的進展？

I expected it to continue to strengthen through fiscal '24 and then into '25, but should I change that thought process?

我預計它會在 24 財年和 25 財年繼續走強，但我應該改變這個思考過程嗎？

Well, as I pointed out, again, the platform, a commercial group and R&D group is pretty much built out.

嗯，正如我再次指出的那樣，平台、商業團隊和研發團隊已經基本建成。

So those costs are now baked in, you might have a person, you're a person there, but it means that those costs are in, and they're going to be around for a while.

因此，這些成本現在已經融入其中，你可能有一個人，你是那裡的一個人，但這意味著這些成本已經存在，而且它們將持續一段時間。

So the question there becomes, how much more can you sell at the moment, the capacity is limited?

那麼問題來了，產能有限，目前還能賣多少？

Yes, we still have capacity on core products.

是的，我們仍然有核心產品的產能。

But in order to sell these new products that we are going out selling with the R&D group -- with the help of the R&D group, you need to get that factory online, and that's not going to happen for a little bit.

但為了銷售我們將與研發團隊一起銷售的這些新產品——在研發團隊的幫助下，你需要讓工廠上線，而這暫時不會發生。

That's why we're saying it is going to take a little bit of time.

這就是為什麼我們說這需要一點時間。

Again, we had a weak, very weak first quarter where we took some inventory write-downs because raw material prices were coming down faster than anticipated.

同樣，我們的第一季表現非常疲軟，我們進行了一些庫存減記，因為原物料價格下降的速度快於預期。

We're sitting on a little bit of inventory there.

我們那裡有一點庫存。

So but in total, raw material prices are coming down.

因此，總體而言，原物料價格正在下降。

So from a revenue -- similar to tobacco, when green prices on tobacco come down, you just pass that on.

因此，與菸草類似，當菸草的綠色價格下降時，你就可以將其轉嫁給收入。

So we'll see where we end up with the margins.

所以我們會看看我們最終的利潤在哪裡。

The margin percentages are holding up really nicely at the moment.

目前利潤率保持得非常好。

And we only think that is going to better in the future, again, because of the R&D, the stickiness of the new products that we're developing, and all those things that come with this new investment we're making.

我們只認為未來會更好，再次，因為研發、我們正在開發的新產品的黏性，以及我們正在進行的新投資帶來的所有這些東西。

So what I think should be a high single-digit operating margin target for the Ingredient segment business, I should be thinking about hitting that target more in fiscal '26.

因此，我認為原料部門業務的營業利潤率目標應該是高個位數，我應該考慮在 26 財年更多地實現該目標。

I'm not going to give you an exact number, but we should see improvement in the future.

我不會給你一個確切的數字，但我們應該會看到未來的改進。

Because, again, otherwise, we wouldn't make these investments.

因為，否則我們就不會進行這些投資。

These are sizable investments, and we need to see good returns on those investments.

這些都是相當大的投資，我們需要看到這些投資的良好回報。

And the pace of investments, is it taking a little bit longer on for the investments in Lancaster?

投資的速度，蘭開斯特的投資是否需要更長的時間？

You brought CapEx down a little bit.

您降低了一點資本支出。

Is that a reflection of maybe the timeline for investing in the Ingredients business?

這是否反映了投資原料業務的時間表？

Or is there anything else to read into that?

或者還有什麼可以解讀的嗎？

It was a bit of a delay getting some of the approvals.

獲得一些批准有點延遲。

And when the facility comes online, we have to do trial runs, and we have to do some other things.

當設施上線後，我們必須進行試運行，我們還必須做一些其他的事情。

So it's taking a little bit longer than anticipated.

因此，它花費的時間比預期的要長一些。

We're working as fast as we can.

我們正在盡可能快地工作。

Everybody is screaming for product.

每個人都在為產品而尖叫。

And until we can make it, we can sell it.

在我們能夠製造出來之前，我們就可以出售它。

So certainly, everybody is fully aware that we want to put it online as quickly as we can.

當然，每個人都充分意識到我們希望盡快將其上線。

But we have to be conscious of being able to make the product right and everything being in order in that facility.

但我們必須意識到能夠生產正確的產品，並且工廠中的一切都井然有序。

And the increase in sales force, I think some of the opportunity was there to cross-sell our product among customers.

隨著銷售團隊的增加，我認為有一些機會可以在客戶之間交叉銷售我們的產品。

Are you achieving that any of that ability with your new product sales?

您是否透過新產品銷售實現了這種能力？

Yes.

是的。

Yes, we are.

是的我們是。

As we pointed out previously, again, with the help of the R&D group, we are using people from the different companies that we bought to go to customers with cross-products, little bit of a beverage, a little bit of a dry product in there.

正如我們之前指出的，在研發團隊的幫助下，我們使用來自不同公司的人員來向客戶提供交叉產品，一點點飲料，一點點乾產品。在那裡。

That is, again, slightly different, but it adds value.

這又是略有不同，但它增加了價值。

And you can margin up on those things because, again, if they bite, you have a product that is unique.

你可以在這些東西上增加利潤，因為，如果它們咬合，你就擁有了一個獨特的產品。

Okay, great.

好的，太好了。

I'm switching over to tobacco. how should I think about sales volumes in fiscal '25, given that it looks like the industry or the outlook for the global crop has tightened more, particularly in South America?

我正在改用菸草。鑑於產業或全球作物前景似乎更加緊縮，特別是在南美洲，我該如何看待 25 財年的銷售量？

How do I think about that top line or those volumes pricing fiscal '25 for tobacco?

我如何看待 25 財年菸草的營收或定價量？

As we stated, we continue seeing strong demand for all varieties of tobacco that we produce.

正如我們所說，我們繼續看到對我們生產的所有菸草品種的強勁需求。

And of course, the El Niño effect is there in South America and Brazil.

當然，南美洲和巴西也存在厄爾尼諾效應。

We estimate about 20% reduction of that crop size there as a country.

我們估計，作為一個國家，該國的農作物產量將減少約 20%。

And in Africa, we had some rains and the transplanting of tobacco is completed.

在非洲，我們下了一些雨，菸草的移植已經完成。

And right now, we are seeing a dry spell right there, but hopefully in the next coming weeks, we're going to see some rain.

現在，我們看到那裡有一段乾旱期，但希望在接下來的幾週內，我們會看到一些降雨。

Tobacco is a very resilient plant.

煙草是一種生命力極強的植物。

So we see also shipments now, not just for the fiscal year 2025, but also still in the last quarter of '24.

因此，我們現在也看到了出貨量，不僅是 2025 財年的出貨量，而且還包括 24 年最後一個季度的出貨量。

If you look at our balance sheet, we have over $1 billion of tobacco inventory.

如果你看看我們的資產負債表，我們的菸草庫存超過 10 億美元。

So we are estimating and projecting to substantially ship out some of that tobacco that we have.

因此，我們估計並預計將大量運送我們擁有的部分煙草。

As we stated, we have uncommitted inventory of 8%, which is low.

正如我們所說，我們的未承諾庫存為 8%，處於較低水準。

And part of that tobacco, of course, always the cut cutting time that it's March, and part of that tobacco might fall into the next fiscal year.

當然，部分煙草總是在三月的切割時間，部分煙草可能會落入下一個財政年度。

Okay.

好的。

And then regarding the tobacco, do you expect still that -- I guess I'm looking for a worldwide -- sorry -- uncommitted leaf number?

然後關於煙草，您是否仍然期望 - 我想我正在尋找全球範圍內 - 抱歉 - 未承諾的菸葉數量？

Maybe Jennifer has that.

也許詹妮弗有這個。

Yes, it was 14 million kilos at the end of December.

是的，12月底是1400萬公斤。

Okay, great.

好的，太好了。

And then, I guess, in your investor presentation, you did talk about on the prior presentation under other tobacco businesses, talked about some opportunities to offer to service customers, sheet tobacco on liquid nicotine.

然後，我想，在您的投資者演講中，您確實談到了之前在其他煙草企業中的演講，談到了向服務客戶提供液體尼古丁片狀煙草的一些機會。

But you took out lab services and the new investor presentation.

但你拿出了實驗室服務和新的投資人演示。

Is there anything to read into that?

有什麼值得解讀的嗎？

Is that a change in direction in terms of services offering customers?

這是為客戶提供的服務方向的改變嗎？

In that case, specifically about the labs, we discontinue that service that we were providing that was underperforming according to the targets that we have.

在這種情況下，特別是對於實驗室，我們將停止我們所提供的根據我們的目標表現不佳的服務。

But on the other areas, we continue seeing opportunities, especially in the sheet products that we have.

但在其他領域，我們繼續看到機會，特別是在我們擁有的板材產品方面。

We have projects ongoing as we speak here.

當我們在這裡發言時，我們正在進行一些項目。

And yeah, we see continuously opportunity, not just that, but in the services side as well.

是的，我們不斷看到機會，不僅如此，而且在服務方面也是如此。

We also stated in quarters before that on our dark tobacco operations, we are also taking a step further into servicing the rapa sorting and bobbinizing some of the products for the cigar industry and mass cigar industry.

我們也在先前的幾季中表示，在我們的深色菸草業務中，我們也進一步為雪茄產業和大眾雪茄產業的拉帕分揀和捲軸產品提供服務。

So we see, we continue to see good opportunities there.

所以我們看到，我們繼續在那裡看到很好的機會。

And are you gaining market share in terms of tobacco leaf sales?

您在菸葉銷售方面是否獲得了市場份額？

Yes, according to our database, yes, we are gaining market share.

是的，根據我們的資料庫，是的，我們正在獲得市場份額。

Great, congrats.

太好了，恭喜。

And then also on this investor presentation, there's a page talking about the increase in working capital needs, fiscal '23.

然後，在此投資者簡報中，有一個頁面討論了 23 財年營運資金需求的增加。

And how do I think about that in fiscal '24 and '25?

我如何看待 24 財年和 25 財年的情況？

And if that number comes down, which I think it would, what is the potential use for that freed up cash?

如果這個數字下降（我認為會下降），那麼釋放出來的現金有什麼潛在用途？

Well, Ann, as you all know, is it all depends on the size of the crops, pricing of the crops, currency of those crops.

嗯，安，正如你們所知，這一切都取決於農作物的規模、農作物的定價、這些農作物的貨幣。

So hopefully, you're right.

所以希望你是對的。

And we certainly see that working capital coming down a little bit going forward.

我們當然會看到營運資金未來會下降。

When that frees up, we certainly have plenty of investments on both the tobacco side as well as the ingredient side, where we can use those funds to add value and create shareholder value.

當資金釋放後，我們當然在菸草方面和原料方面都有大量投資，我們可以利用這些資金來增加價值並創造股東價值。

Okay.

好的。

And then can you help me at all with SG&A expenses for fiscal '25?

那麼您能幫我解決 25 財年的 SG&A 費用嗎？

As pointed out just now, again, I think we -- this one was slightly elevated.

正如剛才所指出的，我認為我們——這一點略有提高。

I do have to say that 78 with slightly higher than we thought.

我確實不得不說78比我們想像的略高。

But again, foreign currency comparisons compared to last year, last year was quite low.

但同樣，與去年相比，去年的外幣匯率相當低。

We have now some good performance comp that propped that thing up a little bit.

我們現在有一些良好的性能補償，可以稍微支撐這一點。

So again, going forward, we certainly will be higher than prior years just because of that R&D and those commercial policies that we are incurring.

因此，展望未來，由於我們正在進行的研發和商業政策，我們肯定會比前幾年更高。

Okay.

好的。

What is your appetite for M&A in the Ingredients platform?

您對 Ingredients 平台的併購有何興趣？

We will certainly be looking.

我們肯定會尋找。

We continue to look.

我們繼續尋找。

The pipeline is active, but our leverage at the moment, this is up.

管道是活躍的，但我們目前的槓桿率已經上升。

So until we bring that down a little bit more, we will remain on the sidelines unless something spectacular comes along.

因此，在我們進一步降低這一點之前，我們將保持觀望，除非出現一些引人注目的事情。

Okay.

好的。

And then just in terms of management structure, you announced a change for Preston's position and kind of what is his role entail?

然後就管理結構而言，您宣布了普雷斯頓職位的變化，他的角色意味著什麼？

And then, can you tell me who is treasurer of Universal now?

那麼，你能告訴我現在環球影業的財務主管是誰嗎？

Sorry, I've lost track.

抱歉，我迷失了方向。

Our new treasurer's name is

我們新任財務主管的名字是

[Wusheng Ma].

[馬武勝].

He goes by Wush.

他的名字叫「吳什」。

He joined us on January 1, and we're very happy that he has joined us.

他於 1 月 1 日加入我們，我們很高興他加入我們。

Right.

正確的。

And Preston is now transitioning to more of a management role.

普雷斯頓現在正在過渡到更多的管理角色。

Okay.

好的。

That's great.

那太棒了。

That's all I have.

這就是我的全部。

I appreciate your time very much.

我非常感謝您的寶貴時間。

Thank you.

謝謝。

Thank you, Ann.

謝謝你，安。

Thank you, and there are no further questions at this time.

謝謝，目前沒有其他問題。

I would like to turn it back to Jennifer Rowe for closing remarks.

我想請珍妮佛羅（Jennifer Rowe）發表結束語。

Thank you all for joining us today on our call.

感謝大家今天參加我們的電話會議。

Thank you, presenters.

謝謝各位主持人。

And ladies and gentlemen, this concludes today's conference call.

女士們、先生們，今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。