Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Whole Earth Brands Second Quarter 2023 Results Conference Call. [Operator Instructions].

At this time, I'd like to turn the conference call over to Jeff Sonnek, Investor Relations at ICR. Sir, please go ahead.

Jeff Sonnek

Thank you, and good morning. Bernardo hosted and Simon, recently COO Jeffrey co-Chief Officers; be Chairman; company's appointed of will Officer; for Executive Ohri Financial Q&A. America Rajnish Robinson, and be Branded presentation CPG by President region, the Irwin Executive interim Nigel North Today's Willerton, Chief will and available Fiaux, the company's XXXX. provisions The Reform meaning of the forward-looking statements comments during within Litigation today's Securities call Safe and of Harbor the Act Private of accompanying presentation contain the the

than historical beliefs management's of of discussed differ statements. to considered could as forward-looking statements. other known subject are the statements on in from All the materially statements forward-looking number based These statements to that Such cause and current forward-looking actual facts assumptions future a statements results as events. unknown results are are uncertainties concerning risks and expectations well and

and Some company's SEC. with the the of identified these in risks and discussed filings uncertainties are

financial We'll to non-GAAP also our Please included their reconciliations found website, be which Investor refer GAAP tables of the on Relations refer comparable measures investor.wholeearthbrands.com, measures. the to earnings most to financial can for release, certain measures non-GAAP today. directly in

ahead, a useful performance. now Relations the presentation earnings that may Irwin. turn the the website to like Mr. be Additionally, on Go With to provided in we've Simon. of supplemental analysis I'd your Investor company's that, over call

Irwin Simon

produced second adjusted of and you of our revenue thank today. all quarter Jeff, you, We million joining Thank $XX.X and for $XXX.X EBITDA. million generated call

with account on year, ahead currency line performance decisions incremental last second to bulk when and with the We sugar decrease consistent wholesome continue top strategic along improvement sales quarter, of avoid taking demonstrate with our initiatives margin was quarter basis a into to a year tariffs. prior the our progress meaningful constant to that in

improvement. XX.X%, our margin XX On consecutive quarter quarter improvement gross which margin marked and basis, of second was a our second sequentially profit adjusted point was consolidated basis

profit to team gross operations has of improvement. basis as XXX streamlining compared entire adjusted global productivity, drive laser-focused to Our margin and our remains sustainable points stabilizing, quarter fourth The margin our on approximately enhanced improved XXXX. evolving

Our and future reduced up for critical in diverse Whole cost dollars of track growth our business, on a our support brands. the sugar reinvention categories. is global supply a in emphasize will rightsizing portfolio and in freezing our additional of role I investments basis, better-for-you global chain confidence of want sweetener to Earth Brands is in leader our play

that unique product offer well effects address Our is assortment a headwinds. and consumers are that consumer entry-level ongoing price preferences positioned points of of brands for the portfolio with macroeconomic the feeling

also consumers strategic our our limit relationships increasingly have businesses sugar, competitive to surely moats both marketplace. for of in portfolio supply X that aiming and all sourcing relevant across refined approximately brands in provide With X We our represent are great avoid or products accounts. key a and today's

is set $XXX Our a and being consumers massive addressable mission displaced which sugar refined continue success, for positions sweeteners. us disrupting to lifestyle fast-growing to the natural total healthier sights have our billion help and market, by organic achieve on we

on through shift I'll Subaba are With from of that proposal community. take and the Board investment private I stakeholders. shareholders' all have that to that, some LLC. their maximizing for are special our of mind are recognize to strategic the methodically Suffice minds evaluation as potential matters is this for continuing offer Free top best Holdings The focused the work value non-binding as working beyond corporate committee interested it are solicited alternatives evaluating on well say we

all developments. on update will you we When and appropriate, any

our Officer was some was of shared of our process. International Rajnish accommodate our The Chief for Board structure President strategic alternative the announced mid-July, updates who appointed branded who Operating the Robinson, CPG leadership to Interim Officer the years in segment Jeff segment ensuring to near and we will businesses together be the recently act Ohri, our As July potential Committee of effective Ingredients bringing further evaluation President Board the and than to Co-Chief experience Flavor and value its highly XX. Executive that more in XX as special of capable term strategic continuing alternatives. Both executives as completes are

has leader, and CPG than more entrepreneur operator and experience industry outstanding seasoned and the across achieving cultures. a with ability is to business drive various pleased are markets and to growth we in results. years have is a in CPG of He who Under Rajnish dynamic an Robinson, demonstrated XX his and geographies underdeveloped acceleration X accomplished co-CEO. years. his Complementing him has business interim most segment branded represent extremely of notably the an the co-CEO. is we Flavor past leading and our is interim executing leadership, Jeff as with the our segment been that Rajnish well, He experienced over is growth Ingredients

continue and to carrying business further need our in global reinvigorate growth made for channel. a applications have our success and with contributions Rajnish reinvest Jeff to tasked our excited are profile. our to streamline efforts on to sales as We're new operations this to and Both and important forward diversify enhance margin build ingredient our

Brooks, quote [indiscernible] This Herb great As are moments team U.S. XXXX famously Gold hockey today. may I'm opportunities." "great and know, appropriate a the you fan especially big who said, from Olympic feels born Coach, to

health identifying CPG, founder experience resulted by believe was making excellent this to approach as in years largest Nigel our group CEO is these opportunities. opportunities of Sweeteners, for extremely huge improvements, with trends and The new absolutely through we're we bought energized We aligned today of saw and us. team which X being Rajnish when as we realized former ago is in that businesses powerful extremely Flavors We operational especially team's excited of in I we're lie and progress service Wholesome depth ahead great and business, at combined I'm our for improved with as and opportunities are operating of are Ingredients. tactical and the Willerton's have businesses. with wellness Jeff the the our

and are remarks to fortunate leaders alongside of We look have operating long-term pass I'll over support to their respective that, group business. the our on team the Jeff I segments and forward some for both units. to excellent the summary working to this call growth an of with Rajnish With across business Rajnish?

Rajnish Ohri

everybody, you, taking Good thank the Thank you call. to the Irwin. on for morning, and be time

global the strongly President picture and I Before with of business to am our healthier traveled me division, to lifestyle. placed the that have I role on are macro uniquely In say previous my let and extensively take our summarize all QX very lay firsthand towards consumers the business, optimistic excited my enthusiastic and the experienced, leading the talented a our CPG and Branded results I'm along our comments that as International very of first CPG on out of lead enthusiasm provide to very to we believe of team. I role strength options business. seen our teams our and

the and remain role, we by team my clear building provide a the to team, costs built efficiencies, our optimize been I continues that foundation healthier laying align part where the options. focused been and vision build where these in and all has we to therefore, innovate corporate goals in reaffirm are corporate to consumer to priorities. of I In which and leadership previous we were, want strategy assessing go, have of where midterm

is channel, revenue business ingredient paying well on to and sales drive branded was margin primarily hence flows. if basis, sugar planned continued lead avoid and down incremental effort Coming wholesome line to paid This in the our dollar a with of bulk cash margins to to decrease improvement, currency strategic million, profit generated $XXX.X our to mix optimize profitability. by tariffs, the lower our in strategy constant gross channel summary, QX which driven our our reduced which CPG growth of decision X.X% volume and

for sales, a constant in branded and wholesome segment X.X%, decline demonstrates of revenue the resiliency X% revenues, sugar our currency Excluding CPG portfolio. bulk confirms in decrease which accounted increased the which

positioned consumer label. assortment serve brands branded and environment diverse of current value, the a premium private in with Our well is portfolio points: X strong the which all CPG

reach assortment results. and great are constantly a product to strength geographical Our drive

believe world. syrup We are organic importer the and buyer sugar largest are of the the also we States United largest agave in of in the

With improve the mix well healthier and our price options. positioned and merchandise retailers the needs have, are portfolio their very to we help the provides, channel offerings address to we evolving consumer

approximately revenues of label and America, are unmeasured as club, our North XX% such channels service, food within generated In ingredients. private e-commerce,

trade an We slowdown given emphasis second promotions. to which private tracked continue that had planned price represent for in be is pressure an in we revenue, America channels the near-term Within due of to reduction economic during unmeasured see continues increases our healthy growth influencing expected North spending. label to and consumer quarter channels, XX% velocity the in and

much progressed However, improved point we as and in shelf believe better year, and with distribution. are inflection space levels we've an service production subsequent now and customer the position regain to we through reach a

In our position product drive very market products CPG pipeline we to new in Also grow natural with we the coming key in our and to line XXXX. early gain international markets. portfolio continue a range in adjacencies. focused to in branded our ourselves we a to innovation strategy, of have robust are business, Simultaneously, with to grow

are that margin. advancing which down to critical back our supply I'm unit levels basis we cost project, is a measure our service ongoing on driving America are of very North per on our transition so on pleased improving optimal rapidly. track true for customer this thereby are our reinvention that levels. Finally, share success to and chain is and year-to-date A very

preparing have to final new running be is facility Alabama on runs are sublease the [indiscernible] at and been first the stages the XXXX. June production ceased in facility end the offered the successfully facility April production since and of We for at 'XX. The later

Now Thank I for servicing a but work providing North in out America shout And healthier different in chain our would consumers. enthusiasm to over you, employees for Jeff, over to to the to team our hand recognize with Jeff. big and last a all like geographies across before efficiency. time least, not our well job and and done, great both you, supply alternatives I who

Whole Robinson, Inc. - President of & Earth Brands Ingredients Earth Flavors Interim Jeffrey and Co-CEO Whole Division Brands,

at XX% in flow Ingredients you, cash position Flavors us and allowed as deliver that consistency Rajnish. our diversification is greater growth a initiatives both this, fluent On Earth revenue and X-year in a of and our to diversification in the a and comp. Brands. a Thank in X.X% and second with second top XX.X% on operating entry leadership This segment quarter solid that global key which a is we increase combines barriers a such of strong XXXX, which free generator increase our environment generate of cash flow Ingredients results. revenue increase valued continue a currency broader XXXX second quarter Whole Flavors in in of X% has support with constant and the to note, quarter growth in the for

but the We will continue that continued quarters, by tougher long-term the to we growth. see will for of next face markets in encouraged that some end we remain opportunities the serve comparisons drive that we few

by continued of experience, deep for of product Our my licorice which suite for solutions. focus for based and our about Mafco of solutions, success be product what supported and XX our more years functions be our the and uses specific all been to never working grow lies business, our ability In to identify each products. ahead excited on I've various will our efforts nimble to are

markets licorice-based commercial a ingredients adoption aimed care, natural food our developed and industrial. across initiatives have beverage, and set end We at of in personal our driving pharmaceuticals of

that For a are recently products taste and food, in a substitute helping in the we U.S. presence our finally, continue that in certain care regulated profiles for we we oral our their the Within customers Union note comply I'd potential brands products the have that cosmetics, care variety products by are on of confection well used globally. to better-for-you are PFAS skin in been And personal for wide requirements especially growing purity. product new with many as focus improving market, and EU. European for positioned chemicals after-taste. are lingering forever regulatory In of within instance, the care,

that unique in which PFAS' replace have demonstrates how attributes can functions products and specific is. unique diverse manufacturing Our some root the processes, chemical licorice

also compete. to allowing is significant business our structure cost success, better is our commercial the footprint optimization which the improved following by us projects, advantaged Beyond

Bernardo, drive Taken this to has focus we're excited you. the With the the and growth, that, together, future very team about necessary our right for tools to and business. over

Bernardo Fiaux

everyone. will and through you, Thank by walking financial start performance. second Jeff, good our morning I quarter to

supplemental detail the for As presentation and earnings I additional to Relations the a reconciliations website. reminder, to release encourage please you our refer view non-GAAP end Investor on at of press our

product the quarter a to $XXX.X essentially consolidated prior constant quarter. versus second revenues year prior versus quarter. ended XXXX, X.X% were the decreased currency million the basis, For June year XX, second On product revenues flat

in year period. largely gross $XX.X driven second was gross was to year million $XX.X compared inflation, million $XX.X Reported profit to Adjusted the pricing quarter. prior compared the offset million profit The $XX.X cost partially million by actions. decrease was in by prior

$XXX,XXX period related Additionally, approximately XXXX the accounting period. the included quarter of profit year in valuations in the was XX.X% prior that adjustments reoccur. second year to inventory not noncash prior favorable did XX.X% of Reported gross margin the compared to purchase

excess gross higher The realized was prior compared decline cost versus year. XX.X% a to inflation increases. goods the due in Adjusted price prior was to of sold profit margin in of function XX.X% of year primarily cost

quarter, and profit margin to adjusted the XXXX, quarter adjusted approximately up to margin. is recover margin profit the compared lost demonstrating fourth work However, the points, team's gross basis as first as XX to XXX basis gross points hard improved of compared

Consolidated $X the operating was interest lower to of operating $X.X in period. net million increased net in year million the driven net as million prior million year The income second Consolidated $X.X loss the was income quarter. compared was well compared income loss prior expense. of $X.X as income operating by to

compared EBITDA Finally, second $XX.X was to million prior million in adjusted the quarter. consolidated $XX.X year

of period pricing revenues decline X.X% lower actions constant currency with quarter. the a were segment as the offset Consolidated segment X% in revenues in decrease $XXX.X prior to more for million adjusted segment X.X% compared the EBITDA Detailing million same by were basis, growth due compared was X.X% negligent for the On the prior quarter. for second year. of a a or $XXX.X quarter impact product than volumes. down X.X% XXXX, $X.X Branded year decreased from CPG to million FX product second results the to

revenues bulk As Rajnish sales, sugar the currency increased constant noted, excluding segment planned in decrease wholesome X.X%.

Branded for million $X.X due the of to segment facility. operating well higher in to the at cost million production income income for same was Operating as as fixed the as million our inflation, Decatur, of the the in year. decrease $X.X of compared quarter cost sales impairment discrete higher and expenses of including XXXX related $X.X was income of assets inventory of lines prior other CPG severance second period The primarily costs an either such Alabama to operating

revenues revenue X% a for prior to and was the period. $X.X segment quarterly of the compared of for of year were million income increased of both on quarter reported Ingredients Operating that product $XX.X Ingredients expenses for currency quarter corporate of constant public, XXXX the period. Flavor prior in segment which since has for the a in XXXX, $X second basis new to million record the million Flavor the year $X.X second the second million segment been for XXXX. company matched quarter Operating

and increase expenses. to due primarily offset partially an volumes was severance, in was increase The by which lower stock-based compensation

June briefly year-to-date cover results. our Now I'll

period, X-month on basis million period. XXXX, the to $X.X increased compared the to Consolidated product $XX.X year For income X-month basis, X.X% prior On million prior currency was operating period. million a versus $XXX.X a in consolidated period. June X.X% prior year revenues constant XX, product quarter grew year the to compared revenues ended

to million. Consolidated EBITDA decreased X.X% adjusted $XX.X

flow operating free $X.X X resulted expenditures million, by activities approximately $X.X free which flow the ended of provided Cash XX, and months adjusted XXXX, $XX cash for were June was sheet. balance and cash in $X.X flow period capital cash million, to million. Moving for million same of the and

and and debt we amortized $XXX costs. million of June of cash million had debt equivalents $XX.X of issuance XXXX, long-term and As cash XX,

repayments mandatory debt XXXX, million $XX year-end $X.XXX facility. XXXX decreased revolving XX, $XXX as million $X million. of of our a $X.XXX of loan by long-term from Our of term result there and repayments drawn credit on million the were million June At

million the to interest loan interest risk rates February swap interest XX% through of manage our to facility. During converts rate interest the rate into XXXX. facility notional an entered representing XXXX, on the X.XXX% variable to amount a term second of variable quarter agreement of to $XXX.X our agreement The of exposure we the rate related loan, the of term of rate

As conservative XXXX. in interest second our of to of to a million we mitigating a committed we'll financial $X savings policy the result, approximately in continue We expect half to proactive realize remain approach to and be risk.

is is to needs. accomplish through organic the leverage Reducing primary focus and top priority, our company's this

our goal. expect remain to we we leverage where are For ratio to constant, but can immediate XXXX, still taking actions our reach we

outlook, our reaffirming to shifting which we are today. Now

basis, is an which expectations growth and presented of our a the are currency on foreign outlook for As includes organic translation on reported our a presented reminder, impact basis.

expect revenues be growth $XXX to of of For product to X%. X% in XXXX, consolidated the to representing million we million, $XXX range

million consolidated adjusted in to range EBITDA the We expect to be $XX of million. $XX

flow priority cash is focus. a X past reflection results that top quarters of is and Our the of generation the

expenditures $X We capture total to approximately be million. expect

our as cash in $X order an add-backs, chain with half for to in projects the remainder complete events, the Finally, second renovation to of the a known we million of year, year. anticipate including supply continue decline respect of and expect we forecasted the our we

Thank questions. the call please you. for my Operator, concludes remarks. open That

Operator

Instructions]. [Operator

question RX from with Scott comes Capital. first Mushkin Our

Scott Mushkin

this Irwin, be a I think business. the little on amazing not you call, I'd remiss on other did acquisition mentioning the

So that. congratulations on

Irwin Simon

for your Thank you, note. thanks Scott, nice and

Scott Mushkin

a at context guys I real quickly. can -- long on, it more going also review anything come organically strategic debt to mean, looking to down, I in of the the structure, it's just having down you just that take that seems do So is going get there time. it's guess

Irwin Simon

sales over plan debt can gets we cash. there's Scott, things our down of a years. have next couple the And absolutely that I and do driving think driving of we couple in So a

we I $XXX understand have in ingredient not there and to think exclusives -- because what's regards have making have business making about do and Earth supply to buy why we our that's sugar out we quota. that lots million carry of we're sure important is we supply licorice have Whole also as going out inventory and and we we great into business, sure of

remember, the carry for do we had old we if this [indiscernible] with [indiscernible] and our inventories. days, you hay we had So the that's

we the there there of reduce is that, could inventories? Is So business. cash? how identified at ways is looking team And Is additional know this and that different we've can I we our that out finance costs of additional there we areas take cash. lots

So working we're something doing. on that the balance sheet is

I think brought of to -- the the interest that rates in did regards down the team X% our half down we to swap to level. just and

So that big big, is focus.

and So looking is big of at what in I other additional a the And and there's think the one, looking talked Jeff in opportunities our taking at sales some sales. big there. is great growing inventories thing costs out Rajnish growing our opportunities about

benefits of realized getting We things [indiscernible] We there. into haven't any the go and and the some yet. of [indiscernible]

there bring debt to there's cash next to of to lots there's to working X%. our to that couple ensure a of plan get of additional below us our for and levels cash in on years, down levers -- place we're out lots bring But levels things come is down. So the pull good there our in debt

Scott Mushkin

look there, be you do looking have were the else if obviously, mean, then going underway, strategic review of the review, out at else the I at possibilities offer what you strategic we the think what And there's else -- to considering? should what that guys you

Irwin Simon

here ago today rates. that know got some were has of looking important pull, of think, that here, there's COVID sale special what together our challenges important, and I caught was are are. for opportunities strategic the committee strategic I to at with us own company board the to challenges, but of brought and where is base, going got the during basically had you production interest other we is the levers where we business think again, great alternatives successes some alternatives higher base here's X the But some and with a our what's a strategic and and some the years and Listen,

review we're news is The a But we're not real house like on in a is there fire. with So thorough good the company. up trouble. there. is starting good It's

cash think I solid with flow, know a it's good good to great here with free base important businesses. there's

acquisition week. And -- the consumer last within this in an space package --

look as to for consumer companies think going businesses good with other look they're growth, opportunity. I for

to a identified think there's it product, every I the licorice of have final business there. Jeff ingredients and good what's opportunities our ingredient is unique opportunities and coming with product out licorice from lot the has and

The -- and and noise there's there of we good natural have regards is today sweeteners. out is with other sweeteners, artificial have sugars. thing artificial to But lots we the sweeteners news

that whole tremendous, it's the great with international here. expansion. X there's have in but we brand, lots today, sold brand or recognition of equity got So game We only has covered and X circuit countries tremendous a Canderel business so

make with what's So committee opportunities think we're here at that, review, are strategic looking look I as we through will for where and the it special the that board, and the at shareholders. the the sure go opportunities

Scott Mushkin

Perfect. have I I was it, price this in and know housekeeping saw then if item. realization quarter? X [indiscernible]. Then CPG the don't I What

Irwin Simon

Bernardo.

Bernardo Fiaux

Yes.

businesses. price on supplement So you Page volume can both breakdown of on the that for have X, and see the we

percentage segment was X.X CPG for . it Branded the quarter, second points. For

Irwin Simon

Scott, let me other just thing. add X

is other here thing we the in the place a what in think just have management team. I tad

in adults company does that shareholders running And us in to size in the side, team that's fresh for with business. and billion think key I XX both On great between a Litman, their that's that's Rajnish Nigel, gets XX [indiscernible], with there's what Jeff that his give an in in here this Bernardo and consumer myself and incredible running Brian eyes there's years, years $X.X bringing with and a and and here today.

Operator

Ryan Meyers Lake with Street question Our next Capital. from comes

Ryan Meyers

growth year, me, of second improved for one the the guidance the half implies First obviously. in

what And . Just guys in wondering what your assumptions is guys' in? sort you confidence that? are of baking level of

Irwin Simon

that? Bernardo, do want take you to

Bernardo Fiaux

are cost our for question. the we And programs flattened delivered June driven right? upon of pleased $XX.X chain expansion, margin from both of adjusted inflation The by has QX, a with EBITDA in the in impact results. first year-to-date. you based performance Yes, step-up -- the the million is restructuring and impact QX significant innovation very supply versus Thank perfect. Like

recovery As our pleased we you deliver in again priority, quarter improvements top heard are to that. is last and against today, margin

In terms of our to need revenue, will of on year left still and stay maintaining operational there's time levels lot seasonality in the help to regard. we a execution excellent and improve. service the to that demonstrate But focused this performance in continue as we sales

Irwin Simon

we've some there, we we're and think on I add in with Houston to said, recoveries. that just all early last ultimately Mexico sell out could did mentioned around our and and and that, to at here, like to thing I the come. those to regards way as that, regards and the week opportunities. did all And And have to not our aspartame great team definitely pay we taking Bernardo those. out came I we along all as comments with costs higher as sales the have third-party is growth as production co-pack not listen, will we've I And think bumps sugar there recognized were those in sat that other stages stuff moving to looking we the as And seen in but some much not the tariffs the want think

of Germany, which in countries. internationally that's where our we the levels, most growing thing is product think service and other Belgium. -- XXs have the the sell very is today, go didn't of we I what of bit thing, big big we going team. have focuses didn't we of back high few into it is one big other and getting the focus in our and important in one the is the distribution the of $XXX,XXX listen, also team service business Whether So $XXX,XXX, years little levels Also,

to should So there up is opportunities, that the levels be our we expansion can customers. is get levels our thing to the but they big ensure to service that some service big

Ryan Meyers

it. just how taking out And then quantify whatever to or chain supply wondering margin was you that I'm reinvention think cost businesses about exiting overall actually can Got whether sequential That's it's when or guys the of helpful. much business, want if call through you we the of lower-margin it. improvement,

Just to of helpful is I mix understand. curious what and think that that kind . would be

Bernardo Fiaux

take well. I'll as that

second of helped on In improvement majority of bulk decreasing, by quarter, and our not areas especially has side is being mix was that the the sales the driver quarter a the the first terms of up. that in in it although cost, has transportation sugar the driven by been margin one portfolio. been for Product major

Operator

next Our Capital question George comes from Kelly Partners. with ROTH

George Kelly

a couple PFAS to Maybe Flavors start, the more little for give business. could on on So the a replacement you opportunity. detail you if

on your an wondering commented -- target prepared And you You give see products that you're it just the could could of what significant opportunity was uses I for. actually what into, that's in detail is how remarks more just being about maybe how if you something like you're be? do looking that helpful more

Irwin Simon

Jeff?

Jeffrey Robinson

take that I'll Yes, Thank one. you.

foaming cleaners, They industries lot systems. surfactants, all uses in fertility, other immune accumulate coatings, in foam they potentially In are cancer, environmental are which of And organisms. words, to industrial fetal risk risks compounds, for scrutiny there's So they a they growth, coming environment and there. various And living surface firefighting different persist basically because of of agents water. under kinds particular, and in metabolism, lot identified there's a like bioaccumulation. thousands of the agent bodies PFAS on have of PFAS for chemicals across tension out there's

then licorice in the happens and if what friendly. also with where it's industrial the in funny so extracted impact PFAS root using used. functions they surfactant that up environmental But extremely So an industrial for maybe and now environmentally go been responsibility, PFAS towards certain compounds some and mostly now And by licorice uses just out with market us is compounds. licorice where But concern this licorice moving replaced compounds the forth, over was really better as environmental the change attitudes has certainly opening into it have historical water is PFAS applications. the started of land well. environmental in with surfactants. And And

George Kelly

kind is Okay. way a to I I there opportunity? of any -- size just give guess trying mean to.

Irwin Simon

subsegments to out don't our that want competitive reasons, don't for break We sales. do of the we

George Kelly

good mean that kind low a is sure I the for being enough. so if -- both financial Fair more and greater. it's And of margin see XX% been number that me, second that of you business remember the I'm high-level a from of if revenue you're reporting I grower. -- question operating to there. be opportunity that segment still right single-digit Flavors of wondering maybe model long the if growth I'm around here, for longer-term But margin to then that at term the there? And in good kind I think been -- and is margin on medium, to. and on medium opportunity the I'm place not side, it business. sort underwrite has kind if what's now is looking curious, a you Okay. this term? I'm Or strong, just

Jeffrey Robinson

but not which look at looking think numbers is how at you at our the to we -- look I I'm when it, going our break subsegments. to you're and out of have Well, business, really growth, in

there's supply long seeing and the we capabilities, seen we're industry It growth and traditionally but hadn't company, So made in targeted nongrowth. a haven't the regulatory value us product in we time. grown, as the actually which new volume most chain both single-digit guess that confection, which because Licorice best we and And in a have now in requirements segment, that I tobacco, is for growth which purity. declines. have

food, very compound very growth PFAS healthy we're in compounds. I and licorice different after-taste. PFAS find ingredient products licorice to use that certain mean, function to products where can uses healthy targeting a as replacement. and place we Again, more They more better-for-you specific the selective there's there. little are also have we of of margin where we There's improve there, bit mask taste. a and In

of derived licorice oral really, and care, from for are for really and of looking the care because skin even a source. products care market, And natural and natural lip And all products really care cosmetics, a looking that is these has source. eye different is they're care, personal products from that people interesting a in in it functions that are products, then dynamics lot

single-digit I broadening the we're the -- have think going some tobacco dynamics looking see to we're sector. and really in the is of at. growth now what changed and was we're of But decline, food model kind really So to really going growth

adopt them validate not because while them developments changing a it going would I we think to as people now what see in a licorice I clumps it's I of there's So -- the growth there. in tremendous but to compound we're representative takes and to are come say PFAS from margins should showing right a future. for surfactant, opportunities out And think these the

Irwin Simon

has that than Just as the and to that add -- it what of to, licorice I I to application and did. ingredient doing supply XX-plus as something think we unique regards years being had lot there recognized Jeff's originally before, said a with now us really more this

I that that's real here sauce So there. a there's think . special something

Operator

comes Arnold from Odeon. Alex final question with our And

Arthur Arnold

stuff talking of has for or was my just million when nonstandard the been all that sort chain supply of year, . I the add-backs, answered. have balance add-backs? you're of which $X is Most housekeeping, one about

Irwin Simon

Bernardo.

Bernardo Fiaux

we the remainder sight meaningful reinvention. Yes, add-backs any same don't the have of this in But is the really for time, chain year. supply the at

Arthur Arnold

sort give calendar committee have on can the of you'd about know report how Okay. that? guess And or findings then to of guys are thing you I on said -- other that report, time sort there's is, only us line you can special something some thinking you I but I question when you

Irwin Simon

thing. year, we back attention we've this that's will Listen, we on Jefferies, engaged to work I what said, lose focus business, come and is keep trying I've on others -- work and that's Sababa the the with And as don't is want main will and the most important thing we're I here. with do the what but

a customers sure people on time like we'll and line as and is got our and things focus board, but and going It's not of there. suppliers our fiduciary good out that -- out we the key we with a a make lose do there's don't special there there. So out our our a as lot committee, go responsibility

Operator

floor the to Irwin turn over for Please like I ahead. Now back Simon go would to comments. closing

Irwin Simon

you, everybody, today's for call. joining Thank

do place have lot a in we have a do we on. to And it, There's going see, can to one, you team number As here. lot key. the which is

As as get and good I really here. during a happen, company the plan ago, strategic some facilities, today. And week, last things together got before, X sat we it got is with really years couldn't said as team COVID -- this to unique make again, came there. opportunities really out we I couldn't And I

dig really So I thank are. the for want together team really we putting what there in to and it pulling and

see opportunity, None what's the more company, cash came shareholders see listen, a were see ensure plan of see to. to a And what's where good public we the value. always we we we uniquenesses a do good value. what for two, rebuild of is businesses, we'll right we right and here, down Number at happy But stock that. and look team the can shareholder as as here, lot to create at working flow, and hard how us

a of hard and lot within everybody to are around the working keep Mafco employees ensure focused. to world, There's they

Thank when the the you look much very great enjoy for We can you and everybody rest thank and to forward the of to talking Have updated soon. So joining again keeping you. a we summer. call. day,

Operator

This call. concludes conference today's

time. lines a your at day. this have Thank your disconnect may you participation, for and good You

Whole Earth Brands Inc - Ordinary Shares (FREE) 9 Aug 232023 Q2 Earnings call transcript