AGFS - Earnings call transcript Q2 2020

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Operator

Good afternoon. And welcome to the AgroFresh Solutions Second Quarter 2020 Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded. like Investor the Relations I'd to call time, Sonnek, Jeff at this to conference turn over At ICR. Sir, please go ahead.

Jeff Sonnek

of other good XXXX. Chief Safe of Litigation Graham forward-looking as actual historical and statements differ materially Thank by Harbor call forward-looking known and The results statements provisions and afternoon. the All considered results to presentation concerning statements. These discussed management's current will today's Act forward-looking than presentation statements on Reform statements. cause to you facts contain accompanying be comments are Jordi a unknown statements during Ferre, Securities assumptions are Chief risks meaning Executive expectations the Miao, well of and Such within the forward-looking statements subject based and Private from the number and the Officer; of events. beliefs uncertainties Financial future Officer. Today's led are of the in could as that

over With press measures. these of non-GAAP that, Some the the this certain the SEC. Investor to refer directly I'd measures Jordi risks discussed that financial refer can in well the like accompany as for We'll slides as also tables to with on in reconciliations will non-GAAP Ferre. GAAP identified Relations found company's now to included filings our and turn measures, presentation the of the which release, be section please of financial agrofresh.com, most call the uncertainties are website, to comparable to and their

Jordi Ferre

becoming respect successful to July This the first during standalone improved we in largely out expectations the public our with I'm We it To our turn Please performance, that strategies meant the combined the since aligned to for With closed was extremely sustained improvements company. we a hemisphere and to with is pursue on Jeff, second will X. consistent XX. southern operating the growth you, Thank saw everyone. transaction the more afternoon, and quarter us milestone flow season. our pleased flexibility business the with quarter robustly. refinancing structure, the good cash the with believe begin, timeline major laid capital allow for comprehensive and trends Slide

we to As able constant we some quarter increased quarter in prior expected, second second the in were quarter. of the currency first recover the period. terms the in year X.X% versus shortfalls Revenue

currency been proud margin EBITDA EBITDA ability generated team AgroFresh difficult chain many enhance a point I'm X.X% that to in the supply around in profile first not We able enough half improvement about life events. structure. decrease delivered and the at fully how has the basis ultimately service continued XXXX. customers to business in of improvement world. the the of first and in However, XX.X% for to perspective, the adjusted industries, to the so margins in environment. resulted drive the savings, been our improvements decrease the XXXX, improvement the midst first in COVID-XX we the an for experienced of pandemic which From and Our resulted We period. financial over was adjusted this to such the the sales, disrupt quarter Further, our resulted X.X% which half in year XXXX. we've our Combined, a despite we continues a in expenses the cost points growth quarter to in XXX adverse chain of our first revenue of second of constant supply XXX offset in in in first gross in of has growth basis drive SG&A accomplished continue to operational XX.X% prior half improvement half

on it Please number and brought by a ensuring mean Agro a of for operational superior our remained from operating hemisphere place AgroFresh the service SmartFresh staff and in fruits continue only. live that post-harvest pandemic. service amidst first Slide applied the to upcoming centers and allow of operating put season our wavering to about The the customers, our to we turn that business of during to to the When refer solid we it have XXXX northern preventative fundamentals available challenging all technical solutions will have measures X. We we able to environment be are half

pome the the X.X% business in generated including grew year SmartFresh growth quarter diversification SmartFresh Our which of core period. fruit, versus prior second our X.X% efforts, and contribution from

quarter as declined However, impacted consistent Latin and first the negatively for X%. crop America our with This that which revenue is and SmartFresh to weather crop by related disruptions in half, Australia, year. we call, the apple prior performance discussed during first versus estimated decreased Latin the the XX% American size reports an

regions growing of an in estimated prior production Pear Australia decrease XX% the of apple in Finally, Apple versus according year to Limited. approximately the in resulted key and drought Australia

impacted COVID-XX As the sharp call which are an and revenue Real, us first Rand hemisphere crisis our Brazilian as the it growth currency basis. discussed South movements on markets and some was for African in caused absolute a result quarter our during both key the negatively southern

on disrupted Additionally, pandemic. the the which been has global to by a particularly thoughts share flower I'd like global few business,

sales by flowers revenue of SmartFresh approximately a FloraHolland For in traded equivalent by our auction experienced which versus dropped EthylBloc, example, and XX% by solution for prior is period the XX% decrease year. and volume declined XX%. ornamentals, cut same global the retail

for it year an environment as the improvement are current of category next market. a believe with we well is as launching into innovation growth this we AgroFresh, this will to Although small return relatively

first the of the period. XX% half the with in for prior revenue our crop X, XX% Slide to associated to compared Turning mix XXXX, was apple year

EthylBloc market, diversification of as the which believe citrus mix. variables it is diversification the our core well by this impact in business, in season is our back both in and step purely key driven we are crop as of While our a our efforts, pandemic to poor a circumstantial

starting crops which sales apples and increase XX% manage the beyond melons our citrus, for new through results for we and in on in diversification While a current avocados. is to increase the with sales crop deliver XX% environment, focuses team,

of these We added are focused key benefit California, sales are Mexico. diversification also markets seeing as within and geographical the such as Peru

recent our for example, melons success SmartFresh customer, accomplished key applications a For with California Fisher through Ranch. based was

storage use their and Golden this are our Dewlicious the improved customer inventory with honeydew on We flexibility the cantaloupes helping window SmartTabs of SmartFresh solution melons. extend gaining and

sugar to transit longer to despite fruit allowing Our vine, ripen the industry retain time. enables post-harvest trusted the on melons firmness solution and greater content

during additional FreshCloud to and crops across standpoint, as to the Inspection well such being ready-to-eat broccoli, into expect From core our avocados launch business of received long-term customers and continue opportunities contracted of States. And to develop tomatoes by the is Quality technological third We ongoing apple this we United business. a that melons, we very number year. convert have quarter outside a Latin trials America the of

on new a our and utilize address note the crops. new markets to we regulatory continue and front, Finally, expertise to capabilities

SmartFresh and pear and During Japan ProTabs apple granted Morocco the persimmon in registrations in were plums. second for and for apple, quarter, for

disappointing for allowing which tree the Please in compared turn South process days, Peru experienced driven up of Harvista manage can our labor in before Customers hemisphere on faced ripening by to the color our XXX%, natural forces first the XX% to three XX% year. financial their harvest applied and be and season sales. and time use and to more up partially of sales harvest. apples quality XX harvest approval where develop the size, offset expand to the by time Harvista Harvista the the our southern sales prior SmartFresh extended Growth was XXXX markets power days optimum Harvista a by where us was brought technology better Slide slows remarkable increased in in portfolio Africa for great and grew which Argentina, the gain Additionally, to X, challenges. Brazil, Australia, which of help label This business. and growth crop These quarter to maturity. examples mangoes. regulatory incremental first was SmartTabs are access in of by a diversify round window

fact Spain local to the with applications XXXX/XXXX. prepared for as We deployed. well think last harvest can will solution disruptions XXXX, launched grapples registration we Harvista our diversification respond given operations anticipated customers is to during aggressive a react North was the Europe, days a crop. shortages. industry The and three View, in connection labor ahead industry submit establishing the platform. FreshCloud to plan Harvest COVID added of element FreshCloud with will with our application. minute the ahead as upcoming provides also appropriate likes as control season expected current by on hemisphere new and customers granted the outfield recently especially workforce Harvista northern half Italy to be value of analytics to of during America presence, the support have help that In optimize second time emergency apple our pandemic. tool look and plan of application penetration the shortages the permits official for called on Harvista window in advantages labor due quickly as brought that to for the such which is Harvista for crew the drive We providing for promotional timing labor the the Approval Harvista applied with more the maintain important and we of customers, for a the we before flexibility emergency, the super for provide timing As pandemic flexibility of initiative. to of its partner is season, use current harvest to the Harvista key Part a

we approval regulatory regulatory a regions blueberries, other hope which growth aim will further and Chile to While in we expanding to provide high of already portfolio value cherries US and running we crops. continue we are our opportunities. diversification received the Currently, trials crops, and both number and in for new

XXXX regulatory term diversification has of waxes. the AgroFresh post-harvest only capability driven fungicide, X, turn growth coating portfolios delivery growth and that Tecnidex of its believe to improved is and poised longer approvals, established well additional as and be technology providing. continue in time potential addresses will a providing the for Slide as of an via that We strong digital real Please to Harvista business, year with AgroFresh by crop tools citrus

during XXXX, for decrease result, the the decreased first call. was production during we markets XX% by and about events revenue Tecnidex extreme are significant period. largely largest Morocco spoke a as our These weather in and that due disappointing quarter performance to countries in Spain citrus and of Tecnidex first half two our impacted During

Spain quarter begin during for will XXXX/XXXX prepared which Morocco, fourth well are We the the XXXX. and season citrus in of

regulatory expertise and our will extends to believe Tecnidex categories. generate year to product full continue citrus XXXX. now Tecnidex that for We growth With other

the treated. fungus treatment TecStar second food certification we the is quarter, organic Union in to the processing European aid while key is obtained being control During for which [ph], COAD-XXXX water and

We Slide Please turn our platform insights are decision-making be enabling better FreshCloud provides some life. also will the and innovations and will time real returns. shelf excited customers product due be powerful citrus in made course. customer introducing with digital we These and season public which about data about more and that proximize breakthrough freshness XXXX/XXXX chain projected our are to in is to X. that insight supply

decision-making. As complements on, increase harvest HarvestView, with fruit of tool the which speed an launched Harvista FreshCloud automated assessment and to touched maturity optimize year and I've we this our

already than growers, platform starch process progression the using an Harvista. example, a markets application sold has it all Harvista successful deployment maximize is across maturation, and fruit, alongside of its course HarvestView to Harvista. through can plan solution in industry is HarvestView the very faster down can the to maturation proxy [ph] is North initial which of roll this effectively see more grow The year. to the the detectifies that introduction we value a beyond we fruit positive next optimized a well, the As by America this FreshCloud After an are we its were FreshCloud their of of environment, is received and plant today's crop slow as year, normal. for seeing maturing

and apple and tool capabilities focused tenderizes takes called to optimize visibility new within an have this of intelligent organization Quality the outside we a form Inspection. tool that Another FreshCloud This inspection the active mobile number tools process is is year, trials. position product the quality customers This core the visualization traceability of new US our of introduction quality customers in to making. with decision of business of with

US. highlights. that now FreshCloud just evidence as Graham customers, be other solutions discuss the second and marketplace. the outside service-oriented markets apple innovation financial our of evolutionary the an that with rollout and some is Graham? The we bring I'll of to speak stage innovations well will of the to our the as let journey

Graham Miao

Please and Thank XX. good Slide Jordi you, afternoon turn to everyone. to

season. The southern our completes second quarter hemisphere

As have we sales half decreased in noted seasonal we business million, the between of quarter second most Net of the million in shift to occasions, of for it's $XX.X valuable think $XX consider at quarter XXXX quarters fluctuations that to on numerous compared the can X.X% half. XXXX. versus look to sales each to quarters second the

the as the impact as The region, the first by business contribution of $XX compared strategy. revenue performance period. the by of the increase diversification net of Pacific impact versus sales the the primarily to for positive increase season. of Results million SmartFresh XXXX the XXXX. revenue for currency quarter the largely a currency XXXX, translation well the million Excluding were foreign for decrease of the reduced of and of result reduced of the SmartFresh the for our first a half southern $X.X half Net XXXX prior The as which in X.X%. foreign exchange, first year constant growth reflect of currency hemisphere completion Asia basis XX.X% the from on sales million, revenue of $X.X second half

hemisphere from expenses. revenue Australia, on adverse margin X.X%. such Argentina harvest currency a recorded year turn XX, and valuation impacted key gross patterns sales million result the with and Slide timing lower net XX.X% demand XX.X% revenue $XX.X was of which the along margin Chile, primarily of $XX.X Please operating the cost period. mix. margin changing leverage impact, to decreased and The Gross fixed result for this Excluding Brazil, compared conditions as customers. sales the prior primarily yield, million experienced volumes, we'll was prior the to year inventory approximately in basis Gross southern versus constant harvest lower quarter decrease in and profit second was where the negative period. profit was The markets in discuss on reserves

cost compared gross implemented which half were company's in XXXX, the point period, revenue year was result $X.X was Research compared to of the XXXX mix. The partially offset the million by that of to in first in the the of year-over-year the line million half increases compared year another XXX margin were the unfavorable supply XX.X% optimization to expand in expenses million million the to in $XX.X of the profit in diversification to million XX.X% $X.X in of improvement projects. business, will of R&D items winning in XX.X% our in in year important and business portfolio and refinancing our million product prior million million the apples, the Included beyond to second drive driven innovation. non-recurring current timing associated an strategy litigation, severance. prior SG&A to and our we $XX.X continue quarter cost with of invest were a $X primarily SG&A included to that quarter component expectations. second end costs period. and $X.X of For XXXX XXXX. in quarter development of $X.X basis increased year ago were at was drive first period. to with chain the quarter These XXXX decreased prior Year-to-date $X.X by R&D our M&A, and the support R&D as

and SG&A XX% pandemic. company's in approximately expenses related decreased the which a year-to-date other $XX.X cost in year to increase as million. initiatives, the the decreased period, as SG&A to global temporary items optimization On basis, XX.X% these Excluding to well miscellaneous versus reflects quarter ongoing second prior the travel

our $X.X $X.X period. and the million of the that XX.X% a amount strategy savings. SG&A in performance and in SG&A million year year the accelerated Excluding current year in the with in XXXX with prior decreased non-recurring in of optimization is This approximately period, costs versus prior cost X.X% XXXX, began consistent

we range continue half second to X% XX. the in expect to Slide savings Please turn additional to XX%. XXXX, Looking of of to the

prior Second The net of of period. drivers the interest operating year-over-year expenses net net in improvement million. loss lower million $X.X of expense $X.X year million the and of lower loss $XX.X XXXX, primary compared improved $X.X million were $XX.X quarter loss in to million to the

million interest quarter period. XXXX, to half prior XXXX, in million loss a expenses $X.X the million expense lower first a driven second increased $XX.X the a was to million prior million the period. $X.X of Adjusted $X.X Similarly, million. loss net of improvement net loss operating For in was EBITDA primarily $X.X compared compared as to lower $XX.X of of year of $X.X million a the in positive by and

the For prior year million million $X.X of compared or XXXX, to EBITDA improved by X.X% $XX.X first to adjusted half period. the

adjusted costs the hard margin improved year-to-date basis supply optimizing EBITDA work year, Our which base the reflects chain. to the versus prior combination XX.X% of in XXX our points operating our and

our We periods in operating results are the the control allowing generate leverage cost as to especially which efforts business lower pleased such the quarter. are second seasonally with even proactive of

higher million ended was again for our million. our period As cash of improving XX translate flow XX, compared million we year were operating Capital back million for same with of viewed year XX, be half improved organization. the grew for for year-to-date $X.X to provided of was of business months adjusted certainly our strength which an XXXX, for operating million more in months cash broader $X.X XX. with respective to cash period where flow, performance million million performance $X.X as to results the was and the operations compared $X.X should the higher XX.X%. second of to cash GFP, a prior a volumes are the prior versus months generated operating The growth the three of the June XXXX cash sales apparent $XX ended drove the timing the million business. look the we our June in expenditures our prior and season second June in by pandemic. align reminder, months This ended is through northern margin where to demonstrated flow hemisphere a quarter efficient EBITDA seasons, Turn of This flow our in to XXXX, in six in last year. $X for $X.X where ended were use also are more period, correspondingly hemisphere to The XXXX. adjusted The EBITDA cash margins us, total the remainder a June to Slide southern and XX, to we you developing extension XXXX margin front $X.X think as And wanted in global management XXXX the looking XXXX. due the we northern associated extend six trend of this for cash with of XX, operating for year the large the generated delays

continue from quarter, the and of June we as on XXXX. was our cash asset on end amendment preferred and to Paine facility. comprehensive a undrawn our Partners was to equity investment and Subsequent balance secured X% the million From $XXX range million at We with June perspective, as credit sales XX, convertible of of to our XXXX, $XX.X July million XX, X% a $XXX.X of of closed senior Schwartz extension annual sheet business XXXX, model. debt comprised to light revolver refinancing million, second our of was $XX.X expenditures consistent expect total capital XX,

forma AgroFresh's facility including $XXX AgroFresh. key The the a credit of half address to times for principal investor, aggressively approximately preferred of investment, ended company, transaction PSP support flexibility closing three balance doubled a December generate capital extension the XX, pro months With by two de-leveraging been to of loan is revolving improved XXXX. size the XX diversification and basis the Paine to in our significant on Schwartz. more for was reduced convertible And our sheet the XX, on us comprehensive refinancing to by X.X years and the a term million. debt The accomplishes The equity times significant for allows several million proceeds outstanding initiatives has the equity our strategic goals milestone maturities $XX this the XXXX. and June an of to growth structure of the with about company's immediate

attrition and to reconstitution forward to prospects sharing the during our Finally, investment to audience we Russell are pleased with investment the Index a years recent XXXX with look attractive larger AgroFresh's come.

to call back remarks, before Jordi Now, the closing I'll turn the Q&A. his opening to call for

Jordi Ferre

the our Thank you, provides in and this their and thank resilience operator, company's pleased the to XX. post-harvest continue the space larger employees shares CEO. and business please In almost turn The and grow continuing open for goal, our to to to In their growth. upcoming the remain four make as unprecedented our wanted role I my Slide all during years northern to debt With new to of our strategic felt never contributing intimately our season. Graham. uninterrupted questions. well to Parents, customers stronger common and welcome more in am this I And I hemisphere that, accelerating commitment continue with of again, consolidating agriculture providing very industry to time trust time our manage refinancing a products. and food business closing, the Paine to about customers a who're service our waste. ability to areas to relevant In I the during flexibility about valuable new prevent positive have the call who recent Schwartz of respect, investor meantime, Please knows

Operator

Gerry of with time, we'll with question-and-answer Please conducting now At proceed [Operator Capital the And Sweeney our you. session. question. your Thank Partners. from Instructions] the be question Thank you. first is ROTH this line

Gerry Sweeney

Graham, my Jordi call. and for thanks Hey, taking

Jordi Ferre

welcome. you're attending. Yeah, for Thank you

Gerry Sweeney

questions. few a had I've

the et keep the pushing that you have take pushing cetera. bit out from - here a or remarks line into you have your growth, registrations little pipeline, of more So just there's of opening pipeline, say opportunities, balance and your you a I'm and a in going to lot sheet

be into Sounds Harvista, a may have you opportunity big like there's US. Tecnidex the with coming

bit your that growth? going Now do room have you sheet, we put work? how a money to little are on balance we How more at to look

Jordi Ferre

thank Gerry, question. the for Well, you

I improving doing, stabilizing, profile, been - important. have all refinancing. in lot really projects that the very a I doing keep our work of repeating. think we all been our said, pipeline, think And the Like we customers the financial it's we've you diversification, things

So what's to important now? It's the right to actually and we're growing that's on going focus do. what business

our the our program, start months going Now, to organic. - do to years. of external well we've to and we're intention as And like how showing There And and work next resume also, part those opportunities. that? sense. are is you how said, makes we're it done and it in is be things when going to of And is lot going to going at look a M&A

and to So as to make believe company relevant. we is we're said that waste this going us. my preventing And wanted I I and bigger say for the remark, that's now do behind the post-harvest in food and refinancing final player we what more are for that

Gerry Sweeney

for Okay. maybe shorter What example, obviously Harvista, specific about - term? opportunities

Jordi Ferre

Yes. Harvista. will accelerate feel I year There's for see that you as strong growth. strongly many we that. very mentioned, Harvista, about Harvista And this very factors will

is continue of approvals our have regulatory we plan I well. very think part it that with of continued

the improving we of with ago. continued have We three years started the two, service which delivery

existing things able providing in mentioned which apply that the very of like been script going trials mentioned, We big about company. have with like the to proven penetration the fruits, that on right we very And provides is is going that my product. that mentioned I of key to response to efforts a the Harvista a quality of like But on of continuing be we flexibility one that of given customers increase there results this being we're I lot the my well US. the us to customers, of customers, time Harvista need are during it of Harvista digitalization the markets and to definitely, - number this the the blueberries. is and we doing. think cherries we're way have we see to and and we a as also the the very done diversification of is - we be the so and bullish like We growth part actually have anticipating

Gerry Sweeney

the Italy European were get it, a more so that cetera. Union, but open countries Got I Morocco, for doors if it's thrown Harvista, a in it of more but et even questions and that on out you there, year, sort of just was into couple believe as couple around, much does lot in a maybe so fall next fiscal Italy, not next the expansion, this of of

Jordi Ferre

a request lot applied of behind for labor to this which of emergency mean, whole mean, are in Spain, were going towards I the the Union. in approval call ongoing many shortages, pandemic reason this the terms especially, as in full for of industry to be to and permit is an number orchard. protocols brought the get in to expected granted labor in apple permit that to least been has with more European We especially the But already disruption of is industry you Italy supported season. engagement good know, And very far times and mentioning And that was we COVID-XX I we so the across we've Europe emergency actually, process. We additional is apply in I what Sure, decided the calls, of working days it's in to come XXXX, news. that a local partially lucky year at XXXX. the fact stringent XXXX mentioned the in XXXX, the

the sales I for first which will so see in you big the actual highlight. the a company, the time is And year, like would of Union to Harvista European this history of in accomplishment

Gerry Sweeney

think Harvista, mentioned I Got America? opportunity it, you some North an well, spending. there what as promotional about so is

Jordi Ferre

going we in this reminding based be more from on important very did of the is Yeah, customers of that's and more building on how comprehensive Harvista, dollars lot it put promote - year use focus to everything time, perspective. labor a to we ready a a plan

As that more Valley be we That have contingency them and much labor. It can you a expect to to it's do you the may affected help that the have in the large Harvista customers with less. means is know, Yakima customers actually COVID-XX bundle. read there very on help. of of disruptions we with again, by edge

we on to year. not I mentioned, so therefore, can mention only we also ready, very put really really strong even would And execute more the as the how more this about and effective. better like especially well to promotional help people And put are ground knowledge we Harvista industry you as able FreshCloud right forget I not we be but crop an but feel up and to to And the help and another also said able the for field. has been early sales customers manage HarvestView decisions, penetration from better through to driving information service the success us we making collect in that Harvista the in with opening be applications our and overriding their actually before, customers

with done trials this that. very feel approval year And also of the we application strong the blueberries. successful So we've about in

optimistic very in we're remain we seeing. what far, So

that Georgia not blueberry who states next we've in to only there's as this that doing with year, impact we're say production. revenue impact And for in now, blueberry do. lot diversification year. a on new also geographically very first done you that that are because of But trials would will think You blueberries, like important but I also also, the year, we customers allowing it's will not see this I see being from year have really an the trials

Gerry Sweeney

between maybe is Got look it, feel for brush North - north want some it's apples you Hemisphere to were on just or maybe divided if Anyway, basis. America at this just Northern looking an What broad between a maybe provide to sort at go and Europe, given for market the get America? - versus apple then combined of of North somewhere where want Harvista could we opportunities, in - addressable to for

Jordi Ferre

may potential the think and opportunity I now as new - change right crop. obviously, add you

would rate think, - think least we But do I reasonable been aspects a at at the work. whether million publicly that the and the opportunity go point, all but of that's Okay. I penetration sure considering on that not together made, $XXX felt one I'm

off some these future approvals take the before. Now mentioned improvements in I improve efficiency include I could increase. think start potential good that a but we and other And could to if all that that the with can crops it's obviously, going we're time, to the we regulatory

Gerry Sweeney

there been least gears active a a Paine but couple been any it, Got back investment switching in Schwartz things, my communication? sure little and agricultural by in the talks bit, acquisitions, have in. - on any you interested pretty or big understanding opportunities combining into by a also about Has again, Paine either pretty they're probably at has the space. [indiscernible] they're I'm presented Schwartz there getting

Jordi Ferre

strategic before, lot a providing per a and provide but not they a investing and investor. said in they services just expertise of in I They're are specialization a is and investment, products. Gerry, belief As agriculture what also they se, do, true which

to able have and the we into working went Of our be actually either not course, our have that ourselves also refinancing, we have engaging. clear is the we limitations active have very they also, although views obviously targets their view been through but it that until own that we because this, coming on

So interactions the happen comparing soon. decide of yes, action. are think, two and on very findings, a And to sides will discussions notes, I we be course going with

Gerry Sweeney

a overhead? from maybe opportunity statement, more little perspective there had how income [indiscernible] to dollars, about in and a it, here's is that, that bit been larger big absorption Graham focus supply And the a chip since the benefit that's there. little more talk talk just after you Got half bit maybe SG&A, over there maybe then some of more that about a is enhancements, switching an from chain gears second

Graham Miao

the are you, we the We the higher northern Gerry, do they the year. for thank rest second of benefits believe pointed the we that in the question. the the hemisphere. second advantage quarter seeing sales first as for continue year, six have And months half also volumes from to Yeah, of to the and of would

six that that margin anticipate we expenses a and we continue confident supply operating last full we comfortable the seeing for to not close feel but see reminder, have then started year results gross for - will should XXXX benefits months to that as chain and only X% we the we're first we are we - the that to year also rest also achieved we XX% year we - savings a to of the that the in seeing So we're for savings. - your question last on overall prepared compared mentioned year as the leverage, to year additional the a of ago. XX% to And and XXXX. operating SG&A as result remarks, as efficiency for year, expect And improve

Gerry Sweeney

appreciate my it. list Thanks of I okay. it guys. it, questions. Appreciate Thank you. for Got taking

Graham Miao

Gerry. you, Thank

Operator

turn Jordi any you. Thank for time, conference back the I'll Mr. you. At remarks. our conclude [Operator call over Thank Ferre we'll closing question-answer-session this and Instructions] to

Jordi Ferre

operator. to like - support Well, for show like to everybody you, in always AgroFresh. you and you the I continue thank Thank continue that interest

thank future, before said like very, their bullish. year this also And make opportunity year to Thank AgroFresh. AgroFresh good positive for towards final commitment making for passion, extremely I the As for and use I to difficult the we're that to the sure contributing you. their a - very employees and at

Operator

lines Thank you. We call. And does now that at gentlemen, may you do today's conference disconnect attending. you Ladies this for conclude and your time. thank

AgroFresh Solutions (AGFS) 10 Aug 202020 Q2 Earnings call transcript