Greg. Thanks,
California, and weather in unprecedented the the last months, moisture high and vast high have to U.S. year, of this and storms Irma series to faced recently, have U.S. Hurricane several of with record-breaking a further widespread August, of devastated disaster power late its territories Mexico a several Harvey, growing outage temperatures. events. tropical excessive This Mexico Hurricane Hurricane natural within Starting Over by flooding, regions winds, the and and Maria, and series generated unprecedented humidity complicated most damage infrastructure. June and
earthquakes. in high-magnitude addition, of Now Mexico series has a suffered
Our worked Eat the thoughts to rallied to as been who those by that victims to donate the and go very have all affected hurricanes. and prayers am fresh I team Landec these of whose out employees proud salads a tragedies. Smart lives have
in bins Mexico. personal deliver are victims earthquake currently employees collecting Our supplies of to to
facilities Landec were We harmed. Landec are no most extremely that thankful were and importantly, damaged employees no that
weather challenges growers to our throughout U.S. Apio, service for disruptions with these teams and diligently minimize Apio’s supply and customers. Although customer chain, conditions Mexico sales partner to cause high-quality did extreme worked to
preplanning, fiscal guidance. work XXXX said, our As significant see reiterating of and our base, on are fiscal hard increasingly XXXX and a grower we as diverse result impact results, we geographically an no Greg year
food olive Olive, Apio, me a natural all-natural about phases. business; business. tell step premium our up wine is back rapidly packaged business and take business more foods currently The and oil transformation X distinct and natural and our consists our of made business. O This evolving of vinegar our Let of vegetable fresh
on capabilities further and fiscal began We fiscal R&D, transitioning revenue business the products Last new reorganization core a lower-margin developing produce new historical in adding Innovation of and identifying launch XXXX phase our company and trends our deliver to with retail addition VP lower-margin and support the in historical introducing profit year of effort to XXXX force, while eating on the of plan innovative complete the first year, advanced true rightsizing rightsizing ongoing fiscal our single-serve from we of these healthy focused products growth. a innovation innovative consumer to to our of of and vegetable this and a salads. The products value-added trends. sales Apio is company commodity focused that
our in The year. began second foods and of fiscal business this XXXX natural phase of in the transformation fiscal continues year
during The our needs expanding fresh XXX% that Label from second all second display the material food Clean phase all-natural last Eat characteristics. less be to fiscal from produce products vegetables sourcing will outside of to we product Eat include To from products natural initiate meet packaged launched volatile and involves consumer raw ensure Smart higher phase of the ingredients. line initiative our Smart made margins other year, that
olive of products the new natural Olive, with synergies our California-grown to development product ingredients to new and group We also to fully product this and as O The the this in acquisition Apio natural Landec position focus added on Olive initiatives and supplier the wine a to was O vinegars, ventures the one acquisition of We food group. lead leader traceable. strategy innovative of with that intend oils initial of – leverage are area. all-natural
beyond. transformation, natural food second fiscal itself efforts and phase for of XXXX. Apio’s targeted for launches are finds the fiscal in XXXX, a in During new in position space accelerating year product fiscal we in in preparation our strong the XXXX Landec
begin both have to forward to and are leveraging years investments the We momentum. we X the excited past personnel made of many create over capital in
food both sales senior our healthy to demand, services in of and X from to companies areas benefit volumes our production management to year, positive the future higher-margin Apio we filling development benefiting and manufacturing. of product at time. development and the to continues Apio from sales, future of we growing we capacity Lifecore meet among trend of During marketing, business, gross and personnel This momentum implement our material specialty margins capacity our to added other medical last and business and which Lifecore begin over strategies. products also eating years, increasing and trends, increased expect outsource tailwinds both Similar pharmaceutical drive increasing is Lifecore and to and fiscal this growth
year, value for is on tomorrow. long-term products number fuel with is in focused the Lifecore positioned growth. This With a pipeline to the its of seeking fully as industry new growing FDA CDMO its approval, integrated augment well to fiscal and Landec products delivering today
We and Eat for Lifecore, Smart At difficult-to-handle to biomaterials. have Apio, – our new new we make will and it to that to and of that launch will we innovate. continue easy products will processes meet the consumers delicious capabilities needs At eat healthy. customers add
We on drive in our invested and are to also volumes capital. facilities production return efficiencies increasing on of each increase our focused
we future are Finally, implementing and drive that defining will growth. projects
needed spend is support million to capital remaining expenditures For but allotted spend future million to we expect fiscal to of XXXX, for million. to fuel is the growth. annual of capital our this capital, projects maintenance Approximately million $XX $XX $XX typical $XX existing
three focused platforms. primary forward, we growth are Moving on
revenues our expect business, at X over low in average, biomaterials Lifecore grow, years. to First, rates on next the double-digit we
our adding deep a customers. demand As programs, in Lifecore growth several the part from pipeline to months business, within will next development with both which and we along from the CDMO to of new next new vial-filling future expect XX the needed capacity continuing be syringe-filling the of months, meet capacity the transition existing of is over
we on force X also fast-growing With in our average Second, low eating double-digit sales on the salad over next innovation in within our business continued revenues products to our space. trend years. generate growth Eat Salad Smart are and the expect place, new healthy
higher-margin fresh explore adjacent to Apio’s to in into produce, order expansion products, Third, supply we will national chain. natural to food food leverage continue
summary, customer of As to innovative investment. and these realize a continue shareholders. Apio we deliver products to developing In ensure are consumers our Olive by to sales, first service, of leveraging in endeavors, investing on to that and O growing high will a we committed procurement value return purchasing focus customers, to and capabilities on our the we
strategic resources we on and balance executing sheet reaching remains our the for need financial our goals. provides and strong Our objectives
open are for We now questions.