BCPC - Earnings call 3 2023 | Balchem Corporation

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Operator

Greetings, and welcome to the Balchem Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce you to your host, Martin Bengtsson, CFO. Thank you, Martin.

You may begin.

Carl Bengtsson

you. Thank everyone. morning, Good joining of call quarter Balchem XX, for discuss ending morning the XXXX. results Corporation our you this conference to September Thank for the call Financial is President Chairman, and Bengtsson, name CEO. is Chief My hosting Harris, Martin and this with our me Ted Officer;

can time, statement. actual cause release measures. not advice assumes Please the We to commentary in update Statements could most in the forward-looking today's that differ Balchem's recent are financial this made facts expectations, that counsel, our like Form are to Today's statements. the reconciliation SEC, our include auditors earnings prove these XX-K, in no non-GAAP details. forward-looking Following no including would obligation and statements. read historical further expectations considered X-K from statements call company our risks forward-looking results factors XX-Q at and refer correct, of factors The assurance in I to and the give identified and for to our forward-looking call various and reflected will materially reports.

I will call now Harris, to and President turn our Chairman, Ted the CEO. over

Theodore Harris

morning, Good morning, reported with to third our and conference we despite results higher call. strong volumes. quarter This financial profitability and welcome solid margins year-over-year Martin. sales Thanks, softer

its and down margin EBITDA the a challenging year in were the margin of grew Earnings Our an the XX% sales, from adjusted quarter perspective. Gross from of record XXX quarter, of prior $XX that an up noting our versus to up of and points we comparable XX.X% of operations basis adjusted points delivered with XX.X%. revenues $XX XX.X% was strong year. the strongest from $XXX expanded XXX increase gross basis EBITDA It prior million margin million, revenue quarterly is we worth million X.X% as prior versus quarterly revenue year's of and were prior results. XX.X%, such, percentage a year's very Balchem's history, quarter a by

earnings third net of adjusted Our on an of of GAAP million, per in million, a earnings per share of earnings on non-GAAP XX.X% non-GAAP resulted third in $X.XX basis. an a $XX resulted of income net increase $X.XX an quarter On quarter X.X% $XX share basis, our increase of basis.

be operations resilience million Cash $XX a for flows the Overall, another XXXX, of market highlights from million. free quarter record of continues were cash model third business quarterly Balchem, of for our in that to strength environment challenging. with $XX and quarter the solid performance with flow that

spending markets Martin the last behavior market changing remain part as I the behind we high of of uncertainty initiatives. well quite year pressures strategic level around minutes results inflationary Before us, largely about within dynamics macroeconomic customers to destocking cover we the to experienced consumer well you late as as call the talk key of overall consumer this environment. challenging. result the some take within our update as more financial of conditions to to our in the on detail, are global situation operating which few back passing would and broader The like to a today as And macroeconomic is while in adjusting a and buying our on year geopolitical are early the and the

growth long are that reset is fundamentals the markets deliver for broader predict allow continue the it term. believe market growth for truly to and serve our portfolio will with underlying growth, when to positioned over will solutions While time we for the do of hard to of over timing of we the the products well above-market us we continued and and normalize

driving is in that or well. HNH market awareness area Health segment enhanced are of penetration report pleased our focus and through are and strategic One communication Human efforts. progressing increasing & to the initiatives We Nutrition marketing consumer on

To begin, our KXVITAL appealing and This make more as Albion end build help and Minerals, our we for identity includes and OptiMSM. consumers. VitaCholine, to to HNH laid portfolio's such strong ingredients modernizing foundation positioning to unifying and awareness brands marketing strengthening a have our brand

recognition, Our premium resonate consumer goal is positioning our to that audience. expand enhance create with campaigns brand awareness our and target

benefits Additionally, campaigns have XXXX, will effectively through our personalized will initiatives ANA, expand nutrient. Association a with shared an of our consumers organization partnership promotes ANA, market to evidence-based this marketing formed we the awareness. nutrition, drive of Balchem goals. educate new with partnership that In will believe Nutrition involve a complement help size the underappreciated the This choline. launch communicate and growth to nonprofit consumer about collaboration to ANA or American existing health creating choline, We content that and increased

and another transparency quality in supplement market priority Ensuring key us. the is for

customers, Albion meet have for TRAACS the These such partnering current quality the We removing selected initiatives TruQuality and the commitment available implemented improving formulations to KXVITAL retailers to supplements consumer build trust brands. efforts either in that ensure labs and by highest identifying of analytical products as involve and Minerals and or further to the to from standards, with via excellence. the market, the benefits. market our in quality stability product counterfeited enhance our These programs for demonstrate

showcased create food our of trade Furthermore, Vegas, and in our we the supply-side combining recent elements, HNH beverages. nutrients to focused aim food concepts of nutritional show across accelerating in categories ingredients. portfolio West cross-selling By on portfolio. that these minerals, we are innovative synergies and we Las supplements, the At leverage

minerals competitive high demand KX offers vitamin in For which advantage example, stable the the presence formulation is in combination by like in the a of providing and DELTA magnesium, of Albion market. a chelated minerals KXVITAL and patented manufacturers

marketing support for OptiMSM and premium specialty nail brand proposition organic and continue which our demonstrated is recent and we consistency This prioritize significant scientific Balchem's joint efforts, our addition improvements to In of safety and diameter. study promoting our compound for unmatched in to A research products skin on the in purity known its hair density sulfur OptiMSM, to adds widely hair, support further care. used healthy aging, study value nutrients.

of not feeding that health ReaShure production, to showing transition are transitioning a Heather highlights through body we study papers Wisconsin. are laboratory Nutrition enhance from cows, but of research to of X These ReaShure dairy where to existing period cows providing also helps milk Within benefits that period dry of & add improve White's Dr. publication by are from their and University the proud milk announce segment, the to the at that by producing data conducted the the papers our calving Health growth. to new offspring Animal only feeding they

of we further proposition choline, making strategic or This it our cows making the Health and both progress on Balchem's on & all market-leading Nutrition we their we driving committed level. the expanding and the value our Overall, make sustainability of dairy Animal for to & delivering and penetration of rumen-protected recommended place. segments. In initiatives, a high-quality consumer awareness, Health healthier and production our significant are world status strengthens quarter, higher efforts purpose progress regardless the to health, choice Human research making transition products in market Nutrition also continued advance a remain

year-over-year over ever proud public to This reductions As are our our Climate. X commitment our the achieved quarter emissions. In this years, successfully to last first have the of third milestone reported journey previous to several have completed greenhouse Scope calls, very transparency. noteworthy disclosure and Scope in gas X year, underscores CDP on both in our we we sustainability

number for Scope We we a are X alongside have preparing XXXX, to reporting that our X emissions Scope been in our of report emissions X and years.

global members Additionally, retirement Corbion reaching of in Board elected President Inc., Netherlands; and Directors based age. Balchem's and were pleased company Directors States, Olivier mandatory Chief company a global the long-tenured new Officer replace the Vice from of Board to Board after on the Balchem Rigaud, Board members the Executive based agriculture food very was Fresh Produce role elect quarter, to Monte Senior to the Financial X Vicente, Board of who X our in September NV, and of a in retired Board Monica food Del X. to Officer fresh produce United Chief biochemicals and the

global Rigaud Vicente bring Ms. experience and Board. relevant Mr. acumen and strong business expertise and the each market to

both contributions with results financial that, excited over in will years come. And now back over to Martin? the on them their go and the to Balchem more I Board We the forward look call turn to through the to to have detail. are Martin

Carl Bengtsson

Thank you, Ted.

year. with our expectations margin highly overall, in we the more to the able normalized we encouraging in to third adjusted The As operations Ted Balchem. quarter margin mentioned, line gross the and margin during were levels our from margin, quarter profile to another saw and experienced inflationary from prior for would was we solid EBITDA see performance the rate be earnings following period strong contraction restore that

primarily third volumes Our we're demand $XXX more see across prior million end our as yet net broad-based and driven a X.X% lower volatile, sales quarter below continued recovery by has were market to of segments. to be year,

Our $X prior third up million dollars were XX.X% the to gross margin compared million or year. of $XX quarter

manufacturing the margin sales improvement costs. by points XX.X% lower in The margin input of year. percent favorable up, was basis and XX% to gross XXX prior Our compared mix in driven was significant primarily

quarter was to third costs, for $XX charge lower partially higher Consolidated the year. expenses, due adjustments decrease prior compensation-related $XX million a impairment offset compared to in transaction expenses were operating expenses. favorable as million and and the integration-related to primarily by restructuring-related The

to from was third $XX operations non-GAAP from third increase an quarter compared or adjusted compared XX%. quarter. the for earnings quarter. the margin an prior an Adjusted $X of of EBITDA in million detailed were On up of year operations the of were our above this XX.X% earnings XXXX, adjusted morning, with year to rate million million, of XX.X% prior quarter GAAP $XX as the $XX million XX.X% EBITDA million or $XX release earnings basis,

is $X environments. by expense Interest in million, increase year. the to third million This $X the was significantly higher of rate interest expense interest compared increase for the driven an prior quarter

$XX We to a quarter our an the overall debt $XXX pay and with quarter debt debt net continue in the down solid our reduced ended flows X.Xx. ratio by debt million on net million of basis third use to leverage and of with cash

consolidated tax closed XXXX year. quarter XX.X%, respectively. at million, company's the XX.X% quarter prior for from and third rates the Our effective net of XX.X% were And income XXXX up the $XX and

of share to diluted compared This per $X.XX, income prior an earnings net into quarterly the $X.XX of translated year. increase net

earnings increase of quarter to $X flow translate prior which $XX as continue were Our third pleased share. $XX million million, Cash an million translated of per quarter we from an operations $XX cash. were $X.XX from or increase XX.X%. diluted cash were flows to earnings our with free X.X% of particularly delivering record And into net million, in we adjusted the year, the

of Health months & we by generated lower within impact As segment it X.X% nutrients August $XXX quarter Nutrition look of markets. from and third prior by acquired and higher in business, perspective, exchange segment increase incremental and acquisition for partially our a since changes a quarter, to we at the the of increase offset minerals sales driven an from year. the sales contribution the The the of Bergstrom the of rates, favorable currency was in XXXX beverage foreign Human within X late sales food related million,

delivered aforementioned manufacturing transaction Our Nutrition by adjustments partially mix, favorable restructuring-related higher segment was Health million, lower the the prior and of compared quarterly charge. offset earnings costs, $XX by Human impairment XX.X% of costs favorable from a to year. an operations This to increase sales, input & driven

the were earnings picture performance destocking With $XX with of seems very adjusted segment Nutrition an from pleased of the this normalizing. & third overall million quarter quarter. Human $X the We overall Health our us in operations behind segment Third were million, XX.X%. for HNH, demand or be to within increase

last inflationary-driven acquisitions despite nutrients be behaviors. nicely. food and growth, shifts consumer to The beverage and year we to The business has made buying in are and minerals contributing appears returned the business stabilizing

& to our While the encouraged by uncertainty Sequentially XXXX, we're line segment quarter up as segment volatility as Nutrition Health bottom sequential growth compared second sales the for and Nutrition year-over-year remain, and Human X.X%. were improvement. well top of Balchem's Human the in & Health

sales, and quarterly Our Health prior markets, sales Nutrition monogastric impact a of million, $XX to species driven related of year, segment by of Health from the Animal Animal prior currency partially lower generated compared year, Nutrition a foreign favorable ruminant operations lower primarily delivered to input sales offset rates. decrease in decrease manufacturing by of the decrease XX.X% the partially due by earnings a in & costs. million, changes & the a in both $X XX.X% from to offset aforementioned exchange

The Similar segment decrease what our operations to of were Third in Chinese American also show particularly QX Europe, from dairy Animal feed quarter adjusted increased market Nutrition demand XX.X%. North Health call, this European products. market in increasingly is competition the $X & challenging experiencing for million, market and market. from segment to earnings a animal we also earnings continues but softness discussed in conditions our low-cost

no recent U.S. North prices dairy U.S. industry, for encapsulated and milk nutrients protein in Additionally, our have decreases challenged America. impacting further in rumen-protected demand the

protein that Balchem We animal the opportunity the markets at term, continue to but for very believe over longer remain significant provide they challenging markets moment. growth

forward, input do but take market down monogastric costs European business Looking expect Chinese come our normalize, as this we to the domestic see some and may strengthens, time.

and improve a early of months part U.S. in business, over growth XXXX, our the conditions milk ruminant the in lower ruminant term. result and U.S. as near of the the a margins will higher improve, we of anticipate prices, will and return enabling that overall farm course XXXX the our to Regarding market business dairy feed remaining the dairy costs of the of

Specialty offset nutrition prior segment currency exchange and Our of prior primarily related changes increase by an Products to the in manufacturing by lower sales year Products quarterly due to versus foreign business. an the XX% plant a in business higher partially average sales input sales lower the Specialty impact $X of rates, earnings operations year, compared of favorable Gases of delivered selling in from performance million, the and X.X% to prices $XX costs. increase higher delivered million, driven

this million, increase $XX an for segment Third were earnings operations XX.X%. of from quarter adjusted

with strong were Specialty growth improved quarter margins delivered of on performance the modest as We pleased in the growth. sales Products earnings

destocking their overall updated as systems the device markets of stabilized in anticipation further the well the While ongoing market quarter regulations, to progressed. control in continued volumes upgrade be emissions the challenged to a as as customers medical taking of as result quarter environmental in conditions downtime

were this growth Specialty believe within to earnings pleased we We volumes to in normalize. very drive positioned well with fully are we our and Products as ability benefit environment,

solid So a reporting overall, of environment. for the in X was out with X segments quarter another sales quarter in third Balchem challenging growth earnings market and our

for now over Ted some call to the going back remarks. turn to I'm closing

Theodore Harris

Thanks, Martin.

strength reported in We are economic quarter, facing margin with of adjusted pleased prior light of morning uncertainties with this results in the the quarter solid and the geopolitical in significant record marketplace. EBITDA are financial leading year's performance particularly earlier to and improvement the continued for the we comparable the

and continue outlook and a growth show a results an We confident we to long-term as ability deliver for to remain the in our markets variety of for Balchem market conditions, company. in

I'd call questions. like to Martin back over up hand the open to for to Now Martin? the call

Carl Bengtsson

for point, the this of formal Ted. the you, concludes This questions. we portion conference. open will Thank now At conference call the up

Operator

from Bob Instructions] Securities. [Operator comes question first Labick Our CJS with

Bob Labick

European a break Congratulations Martin, with you up on Maybe and it from also of some wanted of further. there. had from solid you headwinds Chinese give then just has down farmers X flowing. made a there start us if on performance. could It that's imports. the and bit little situation following sense sounds to the I ANH feed kind between like how Maybe comments demand competition the

Europe then first, overall, it early And you just please? recovering see But sales How maybe to has going the break about, dropped $XX haven't of level do kind talk down XXXX. forward? seen you million, since

Theodore Harris

was you almost that give noting Yes, add chime XX% out question. strong We it color. profits revenues for Bob, gate I shot, quite grew to a and some XXXX worth and I'll up do is thanks year of just for can it Martin, about the XX%. a the think But ANH. in

off a coming strong very year. of we're So

real business. really situation. with experiencing is our business context, European some starting clearly ANH put challenges European guess business, the in we're about of ANH XX% that, said I it having into to But our monogastric our

Europe, the costs, economic it's commodity with of So situation to and a starting that's and But in both side the lower lower the speaking, see costs. driven, part high And market, in certainly -- back the do are energy demand think, demand stabilizing by come smaller in feed we is experiencing I high generally bit. on down for we little geographies. There's Europe, that just us. driving

than than was be QX better better little little a from bit a think I expect to a and volume we QX. QX QX bit perspective,

costs some So we back down, do is commodity down little see, are as come costs volumes that pick to have encouraging. energy have come which up a starting bit,

imports up demand is enough part other and increased But low demand the in soak China, the is you to Chinese from competition the and being of that's noted, their not that as marketplace from driven certainly the occurring by equation capacity. the

moving offshore, So is impacting it us. that's and

as environment, challenging Europe see in as the and situation that see. believe some as is a recover. do And step it's we economy like of in easing to But first that we for should time at picks that is, little stabilizing China up Europe. least said, some feel that in a -- the up you well, we've is where demand which we that picks it again, as to it it But take fully may need bit

The is ruminant situation quite different.

as there's think protein associated year. prices with bit quite that little versus market. the timing year overall prices just also to as was of having this the that quarter U.S. really and healthy, down of a so I have particularly But this quarter as on element impact QX well milk the come a significantly, an that's there's market, last well in QX was strong timing

up somewhat depressed kind course and appetite months, as add in that increases. pick Farm the as demand should But decline to back X commodity a and much feed to cost the we this margins this over X to next improve supplements see we the country. of period of demand shorter to of see

U.S. in see in the around do ruminant the turning business we the near term. So

are the new about tailwind sales product also of which innovations, We to as in should That in we give months. will market coming the X to excited one some several new with X to the bring marketplace. well

ruminant shorter-term term. European a we're situation is longer So facing, a that issue is little bit the certainly

our it's business. guess That business, business actually important quite business monogastric XX% and also and I And North is to poultry animal the American swine note, and includes that well. performing of the our is companion

the So believe, two global and the turning issues around, business term. near we're European on, with in global monogastric that ruminant focused ruminant we

Bob Labick

just And more next investment was Okay, maybe more then products. the could year for choline little does the we you super. impact happy for P&L? plan bit your it? What measure expect in you you about other And and you raising ANA. there, discuss if awareness How hear about making obviously should to with to dig see out on success anything? How it do a

Theodore Harris

calls We're that but we've working last hard little on quarters program really the over building of about awareness been about excited very the scenes. the behind talking broad the a bit few

organization ultimately ANA only that that can communication that, We consumers. the to help really had they a have past like one is deliver high-quality in team that in maybe think drive us we've part are gap really nonprofit to partnership we in is helping but the do quality penetration that great increased that marketplace. struggled sort address marketing a consumers, we've our of and of content really us increased The awareness and with

our retailers bit identify nutrient as as having claim we've very I'm marketplace to our in industry a good products about, these or ANA. part the content more not that products or counterfeit be And and represented efforts what working marketplace. success to other It's than little talked with are -- the or to these comes had products some about essentially aren't we the they as with just associations to they excited broadly have. it something very partnership identify on But the that well mineral vitamin customers and in in is

more attention the couple value that things them And retailers, does our to those high-quality bringing what eliminate the from products some we've a allows having us for but been which to has And products also of proposition strengthens off of sales encouraging. our brightly, identifying the that marketplace, certainly is of product those, retailers been bringing taken the those to and shine marketplace. those to trusted of the

So and our about to effort. is report from is going this and rates, in to penetration consumer We purchases rates. be all around higher sales. numbers it what we products of the talk growth this really kinds a we're of overall, out be of data should we're see higher over be pleased Nielsen going drive. facts, to we're able on trying to ultimately and to should which see it able Ultimately, with and about able really to those those time, what We're

Operator

comes Polak question next Tony Aegis with Our of Capital. from line the

Anthony Polak

this Or could you if item, interest mostly other over acquisition? increased. go also? that other expense wondering the interest and Is significantly was expenses I is that which for from

Carl Bengtsson

this driven Tony, debt. Martin. on expense interest really It's the the by is

So about essentially if think the rate variable are perspective. an from fully interest we we environment, interest rate

now a index were gone year pay of plus we down and X%, where an a there's that So spread, rate X.X%, maybe X.X%. from has sulfur we effective ago, and at rate a

that really our to the change interest it's rate applied So debt. in

reducing we Now our keep debt.

or down to $XXX outstanding we're so of debt. So million

change at the is in So that the But to that offset increase the pay that, really clip. rapid interest we more expense. a interest has rate the continue in fairly and than down

Anthony Polak

on anything autism there is new And the drug scenario?

Theodore Harris

that new doesn't hasn't address proactively or the Tony, of to been future are done in certainly scenes. there and really things earnings lot talk there no and a changes mean to headline there we to as will about, work say But whole that calls is that progress update. behind

complete. now We have to our manufacturer. over in we but That's moved to the well do, year manufacturing contract new that as a talked a have, taken us past, about is

of to of batches all that file order and batches stability be have with FDA. needed to in completed We BLA the engineering completed kind the

they as so. We behind year launch over could well been both we're do BLA perspective, Balchem's any couple of to there's the be this to that FDA. at while to team and CureMark to it feverishly on was would be anticipates next in done submittal working the support And in filed left hands And the and so year, from finalizing be our BLA hearing all then is scenes that, expectation get of what months ultimately would are working for the FDA. or believe we've of that are as of the market the the year, hard very course support the the only there from that of submission a

Obviously, this control and there's is there we're out and of them nothing on leak completely working in make know see going, our at more are that and hard, next we could we that can sure year. that isn't do very point they're very to they're and time that that. But into just on every-other-week know calls how to this provide and things working we hard with

that's encouraging. So

But of talked as that the of of headline-worthy course, such the we'll submittal that the approval certainly the let When we everybody about BLA. nothing know. milestone would And BLA. being happens, have ultimate biggest

Tony. we that, where on that's So are

Operator

Kyle from with comes Our Sidoti. question next May

Kyle May

that thing I And the story talked Human one saw if forward at to is is several do. segment. a something to, the that third clarify Health starting the I to in business. initiatives we these or the contribute strengthen if wondering initiatives. you are better growth further getting just wanted could you going was strategic Nutrition even if to & this to to I that already than the strong about quarter quarter from really had back really Looking already But Ted, you come

Theodore Harris

But more no something strengthen question forward. we're I seeing going it now. it there's some that the business will that think of is

that paying some seeing Health value credit of give we those think And are Nutrition quarter strong for but we initiatives really I in there. much Human to had, the that can't there portfolio & our we off. is the

when portfolio also mean opportunities. and those from talk they're is or that that, And we coming coming KX to opportunities And maybe and are are to having and about and by in Delta. chelated key our added our our from minerals that KX the XXXX, are our customers sales reps opportunities who sales maybe are MSM choline buying I customers what visiting legacy

sales, portfolio So expectation of products those part adding was seeing our some and of are the of synergy these of some we materialize. to

to early think accelerate I over and we have that we'll And broader see start up. these but days, further will marketing ramp think I it's science time. that just initiatives

about excited the really are We portfolio.

synergies Unfortunately, team but I trade be premier we're Our in call, And really focused Las really out. the whole which side is and this it's supplement spending is a can't trade show, because Vegas. we're this there supply show, West on is of really across the team the have out and it's really it's but portfolio, and food the our the minerals, we formulation just the it's also and system from feedback that not beverage all vitamins, and that expertise gone nutrients well. there

So this. come on more all to of

helping contribute bit little right think it's as I passes. a time but will now, more

Kyle May

can a wondering if translates a the a of what maybe picture of the seeing But Got uncertainty from and give now kind us perspective macro we market. and And then it. of some you That's you're XXXX. I sense on to as look ahead that just that helpful. question. big know maybe and expand both Martin on in of touched you kind how

Theodore Harris

during really to most have inventory excess supply slowed in period that for normalized. demand resulted normal inventory customers those is I uncertainty we from eased, I part late demand about think went of having issues the We what's I of phase use that we the a this that it on. very through a good going the because year, high now levels of word think this as descriptor last where that talked the the pandemic year early think destocking resulting chain levels

kind their what I think, coming of they months lower X can causing will landing, keep, control. But X of around there controlling hard soft and levels that's customers months, cash what demand generally is landing, in speaking, the uncertainty really like look inventory, to managing

Now products know regular lead assurance supply of times. their that they get chains, they can they within have normal

recessionary little bit that of top that. environment corner the we're right geopolitical or uncertainties that's in of a down the course, on hunkering because then they're so of And the nearing or of uncertainty the around and

what in to really heightened that there talking what real in Health to like. we're Having really year-over-year growth see that, demand minerals be as business said a that we & the nutrients to uncertainty and future just Nutrition Human That's quarter. pleased seems to business, amount were return our about, will look of our

Our Nutrition for been business stabilizing. that a organically is after was quarter having quarters, X% up organically in business or X% the so few down

QX. beverage so still business less than was a in food little Our it but down year-over-year, bit and was

And so improvement we see a in that. sequential

And this still do if will, some going so environment. on you see we uncertain stabilizing, in

Health the stability ANH clear couple But of facing past the And signs so that the business business. I of & Nutrition some and kind we're in challenges performance we a Human least at Nutrition the of of business. we by getting were really shows Health think encouraged Obviously, of uncertainties. Human have the

Kyle May

helpful, more me. for Great. the I One and That's overview. question appreciate

Just think just about anything activity? about the of for tell environment M&A environment last the give the that's the the if deal in completed landscape you as maybe a or year. us strategy curious last acquisitions, going the we or But on was for the of can sense behind maybe August scenes. Obviously, can't us you

Theodore Harris

healthy We least feel still active, at internally at We is an and leverage like our from position. perspective. remain a M&A conservative

not more M&A M&A using to and said has having say, more is to So hasn't keep from slow the would we but gotten acquisitions, normal can a normalized perspective. normalized market a the additional gotten activity but word, back not an level. back is we relatively -- that, I make today even that market, The

being today then, around some with of rates deals valuations that we course, interest fewer change that math see, creates are there does the forth. than and so And high, normally barriers. so So

I environment, a next to a Balchem. slower makes identified bit the likely perspective value have portfolio sense So we've continue to of work, a the healthy we of but think impact opportunities for of that acquisition is a continue to and that it that's that and timing going little strategic we from

Operator

There are no this Ted like further closing to the turn questions I over time. for Harris floor back would at to remarks.

Theodore Harris

you everybody like the on your today. your would today. I Alicia. well for you, spent as support as We Thank appreciate time really time to call just thank the

see at the the November a to Baird will February we look there. like XXXX of Global certainly seems long next time Chicago on late participating And Conference We Industrial we away, reporting hope our in year. forward In results, to of some you be X. meantime, but QX

with us we'll today. and the So you thank end joining call, for that, again

Operator

This you. concludes Thank teleconference. today's

lines time. your may disconnect Thank You this for participation. you at your

Balchem (BCPC) 27 Oct 232023 Q3 Earnings call transcript