Oatly Group AB (OTLY) 27 Jul 232023 Q2 Earnings call transcript

Good morning and welcome to the Oatly Second Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded.

I'd now like to turn the conference over to Mr. Brian Kearney from Investor Relations. ahead. go Please

our and for everyone, On joining on Officer, Jean-Christophe us call and Daniel Good Chief our second thanks quarter call Financial Flatin; Officer, Executive Oatly's our Hanke. call. Operating XXXX today's Officer, are Ordonez; morning, Christian Chief for Chief earnings today's conference

the please Before Slide we review begin, X. on disclaimer

in of Act these statements. and this to management's and uncertainties or have operations beliefs, with strategy, our the actual documents Private implied of call, the in within risks refer and filed meaning from forward-looking regarding we industry forward-looking could position, the differ the made During cause financial could savings. based expressed risks the SEC and results discussion market from of that statements Litigation and management to statements of Reform today. and detailed statements future described materially business on statements including for may actual made that expectations are a results anticipated the materially make Please involve forward-looking those trends, differ These XXXX, events Securities current business any or cost growth, those

call, measures, refer and management on certain non-IFRS to financial note please currency revenue. Also, including today’s EBITDA, adjusted EBITDA, will constant

accordance information measures While in measures the isolation the non-IFRS in or the will presentation in measures not most reconciliation today’s with to of company information, with to believes for the comparable release accordance refer be considered to as financial these provide of the is useful presented non-IFRS financial IFRS. prepared financial for substitute intended this IFRS. Please information a

on also for has website posted In reference. its addition supplemental a presentation Oatly

turn over to like to the call I’d now Jean-Christophe.

want everyone. the morning, today's good you presentation. Page I X, and take away Brian, from to messages key Thanks,

is potential become clear so be my realize strengthening CEO initiating business are that it to new the to has our One continue go on bold potential and to both plan Asia significant has actions. Oatly refocusing foundation take a to I improvement we and an we equally are amount strong far, very our In time resources from. energy I'm core because here believe business we in in taking must excited a have of our bold growth First, Oatly's profitability. action to where

adjust expect us We growth. for this profitable segment evolving environment will this enable and the to set post-pandemic to up

corporate as Another action taking we a further functions our overhead further are segment. reduction increase Americas a of both company. costs agility reduction and focus is our will This in and our

reducing actions in positive revenue guidance are while and track margin these for gross four adjusted XXXX we for growth, on quarter bold XXXX. to EBITDA our our Finally, keep reach us targeted

So let's in. dig

much Slide Oatly is X outlines believe why I company. uniquely so exciting

revolutionize we capacity, to We oatmilk the remains enormous where us in industry opportunity and from sales convert underlying building growth, have strong. an into as is dairy we front distribution Oatly look consumers in regions key category of especially driver for plant-based. category the a gains, of And The have food bond sustained and investments. growth demand

margin significant us. of in expansion a have opportunity also We front

In full gross just were year XX% XXXX, at margin. we

are we This long-term believe XX%. to we at quarter, XX% of target reach can XX% we our and

our unique Finally, is what mission truly purpose-driven makes and Oatly culture.

of see can the three mission. you Here pillars our

know myself the make and employees working a to we world Our day to when are come work place. every we that better

plan to we our how outlines realize X Slide potential.

between balance meaningless, whilst achieve an that appropriate performance is is purpose. not possible. without know will We and purpose without we performance First, purpose performance

instituted And allocation by are and business, analyses. mandate have purpose, dual So disciplined have fact-based driven we that our to significantly decision of stronger resource before performance to achieve we our business have a a must to business. we rigorous are us for able bigger processes strengthen

aligned and accountability We have regional increased also accordingly. incentives

embraced able hands-on needed have focus And and approach and are in-person our finally, priorities execute have to to over ensure management resources our of the the to teams support on Daniel execution. I on past and the year,

Slide X outlines where we are in this journey.

you This laid and plan began a quarter corporate for recall our simplicity we ultimately, would increase and prepare on agility, earnings XXXX out drive growth, business our plan where If call, our we EMEA and third profitability. with functions.

our has positive see, market can adjusted revenue you As then been consistently EMEA and and since performing well strong EBITDA. consistently solid shares, improving segment with growth

chain, have increased business steadily adjusted expanded where investments stabilized and strengthened the now Americas approach to we our improved EBITDA. demand this We have and driving supply

While to is clear. yet we we improvement be, consistent all the way not are the where want to

our Asia approach to Finally, expanding we business. are this

in actions our cost the capture operating actions. structure, business, We have for Daniel details incentives opportunity the of local conviction aligning taking these provide us additional refocusing This focus core driving includes on the and improving opportunity. the on Asia, and to on management growth. will profitable long-term will help its

the X savings Slide announcing cost outlines are actions today. we

approximately save eliminated on roles by can of as reducing as well come from You across we cost jobs, hired cost consultants entire and that will we not unfortunately outside savings These project $XX are have non-people expense, that company such as see reliance XXXX. our fewer targeting primarily expenses, million including to related for. the yet some

compared expect overhead all are XXXX. reducing both savings now we to fall in bottom-line, these advertising total absolute to expect we decrease so, and value XXXX Since our Importantly to of demand not the investments. generating to we

not be reduction to to $XX million $XX of our compared are SG&A, XXXX savings reduction in a as the XXXX. clear, as Just forecasted an million calculated

to this growth. what order investment in careful profit and strongly will approach rest. diligently and not that believe these appropriate is are profitable team then being of We applying level are an necessary surgical to very a ensure we have eliminated all margin the and drive fits and cost one growth, size has We Each drive support reductions evaluated approach. in

outlook. our Slide you to the detail, perspective Daniel XXXX to performance take my and Turning in updated XX. want more but our will you quarter in through Christian I give on

range to for XX%. the growth XX% a of conservative of prior reducing X/X the more Asia Americas. is constant from by the remainder the driven currency by being Approximately are with of a driven outlook the our to reduction We range outlook segment XX% to sales X%

outlook business EMEA not has Our changed. the for

are quarter expectations outlook to both maintaining business our fourth from volume margin wins the in reduced EMEA gross sold margin expected and the offset is as Asia We in favorability and Americas.

we future achieve believe our will on in taking Importantly, XXXX growth. to business the adjusted actions and we across are track EBITDA the bold keep enable us sustained positive

turn to With over would you Officer, like Ordonez, Operating operational to I to an that, now Daniel Chief our update. give it

EMEA into executing XXXX well I'm XX. Slide growing beyond I customers, foodservice strengthening priorities on the is on you. here Thank be core very expanding to you will EMEA of markets. good JC, its coffee morning, with adjacent happy everyone. with and portfolio our and begin markets, the segment

XX Slide priorities. on first of the two touches those

happy continue see chart Europe. Airways. traction product can expansion customer of left quarter. with we our shows Starbucks base, that of many customers we're that and XX% foodservice Qatar in across the our markets Netherlands, four new on gain our in UK continues Italy, our growth growing The McDonald's our the markets You category the core of needle continued very the about share including to continues have and self-serve to partnership to new and into Also, gain strong the in with Germany, new an expansion

sold is to X,XXX a Our big hit day. proving with store every up Amsterdam first cups ever pop-up in

on in our occasions. beyond Slide XX is expanding progress an portfolio update coffee our

as reminder, Milk, replicates a a non-coffee As limited was Whole dairy more mostly non-coffee our such product No the we're that just Semi a from portfolio products to directly offering somewhat Oatly expanding that original and Sugars. Skim portfolio

very We're We it as this Blue enhances margins. about calling are expanded the portfolio. product while excited offering Go our portfolio, expanding this

furthest quarter, is next growth of a in category. mixed as XX% year-on-year mixed increase and the shift new this this Our In consumers UK business the is the second we usage impact along into bring the shift. volume

seeing we're So the while and on volumes margins. in still good progress early days,

update our gives XX expansion, is geographical an which progressing well. Slide on you

markets distribution that share today with signed I'm excited basis XX total we to Amazon new also partnership by increased that in with Our will announce quarter. expand their them. a of have our European the points volume

will Amazon UK France, our expanding Germany, the Belgium Netherlands, success and and in of We Italy, Spain, later year. the capitalizing be the to in

into will press the release lookout further formal a expansion details. partnership geographies. additional exciting more new with Be help for us in this accelerate our Additionally, the

to well against the progressing Slide they XX. priorities. now their Americas on on Americas Turning The are and excellent supply remains chain

We are slightly our a also commercial priorities, our pace slower expected. good progress making originally but working on strategy at we than is

aggressively across is not and the team commercial opportunities all foot gas pursuing our taken We additional have our off stove channels.

to JC simplifying further the mentioned, its drive and further Americas As overhead is agility. structure simplicity

Let me each these. into click of double

And in-store with transaction on on the on brand Americas a XX priorities, and accelerating expanding promotion, XXXX the the commercial co-packers our consolidating high network. reminder chain quality is we're where supply side, Slide and Ya distribution, Ya execution focused we are the focused building investments. of

see our in at remaining high reliability you that transaction significant XX, Foods fill is rates Ya appropriately and On evidenced our improvements Slide to This is well. us capabilities progressing quite operational as bringing by partnership can Ya levels.

both our closely relationship operational strategy ground on improvements. higher and Ya the very well Overall, the term like with working have on we're level. things terrific very planning is Ya and transition We Ya well longer with at going as as pleased day-to-day very I'm Ya continuous the level And on the innovation progress.

consolidation transaction XX, now us enables network. consolidate Slide complete is slide co-packers how and Ya Turning This substantially shows our now it into to the this network. Ya chain supply impacts our

marked exited red. We the co-packers have in

far facilities. significant exiting that drive we were You they can see very agreements in manufacturing logistics. those our And able from by are to now savings away far,

believe XX% see reduced by freight the continuous Terrific And that. doing improvement. is this beginning have our by can supply we there about the chain on additional year, exactly Slide progress liter of and per XX, team. outbound for you we're Since runway that we

new Americas in quarter a On of sales investments for significant to in far. investments product. driving can The pleased is segment. with are to consumers already very amount and X% increased are media, the These campaigns plant-based, brand we Slide see XX, consumers and the and to continue building the in progress up very important the are buzz net cream cheese loving have so you the our of we consumers converting the

Turning XX. to Slide

we distribution. With and to advertising, stable regain started additional the have supply chain

pleased to distribution at our build distribution about chain is increased since in our it bit expected see and in direction, trends to October. the back where stabilized retail be We're have fill the XX% below but pushed this moving time. rates a We we right XX% supply by

have teams Our and conversations new sales with very had lapsed productive customers.

While confident just it a originally gain will we expected. that than is we we little taking distribution, continue remain to longer

increased fiscal the right to and that drive volume margin to build put important absorption. direction is JC we pleased As on with translate can we're very slower into the is volume Slide outlook the the just that improvement see has driving moving the mentioned. build you has very distribution has XX, expected trends growth, are year through in which the started growth but distribution in advertising which behind promotions, increased slightly what than expected, the conservatism Again,

ago, job Since Oatly done starting year in Asia and brand sites zero, building to have into Asian produce joining now the company products China. terrific job JC as on a establishing that plant-based has the region. Turning leader market the remains a a the and The that two over in production amazing team the high potential has quality the from I the in by huge team done Slide XX. appreciate still and come

to growth. continue region we the for been opportunities into significant the has As see era, transitioning post-pandemic

However, we consumers behaviors are purchasing different expected. than

products, have sampling, our These has a things P&L we across prior large investments For positioning in we such post-pandemic been retail for tailwind to significant promotions, foodservice, were and expected distribution, ourselves tailwind materialized e-commerce. as those calls, included new advertising. upfront This and earnings expected. in-store as not who listening

plan fundamentals So ourselves we payoffs. to we how uncertain able is and consumers current with reset our accelerate we're continue before to adjust investments why We behaving, justify reality strategic need these the business the we of initiated to significant to Asia. and cannot need we to for have meaningfully continue the of are to This improve distract growth. cannot

our outlines plan. Slide improvement XX

expanding all across to rapidly We a will more a business be mentality the very of transitioning from controlled channels expansion.

a primarily We with our agility. expansion and portfolio, our efforts brand unrivaled where focus will have core on within position we innovation presence, believe businesses, an strong we superior

the to on adapt capitalize emerging will We environment. strengths to those

believe our we of Asia strong in we in revenue XX% Nearly a position channel. and have in that foodservice, is

that foodservice retail geographically Our markets is fairly believe the business sense makes most we those since and concentrated, local already consumers in knows expansion the us.

same a resulted changing and especially piloting were time. of multitude a retail at Many be very in also process. e-commerce will the and We to new we the products innovation channels. team's of Historically, expensive the and process had in testing that distribute, produce which

many slowing we SKU We By processes better to simplify and how expansion on down be will be our eliminating plans SKUs, SKUs. operate. focusing able optimize therefore our fewer will on unnecessary and

mentioned, and focus enable more on JC be simplified migrating structure the processes, streamline to as cost businesses will team that Finally, we to execution. a will local

As opportunities and market. I are have both we excited the JC said, Asia in the about

that actions and recalibrate our critical believe how you these the they forward which look We operate, a We expect updating team profitable will is move refocus on towards growth. to progress. we

over to a to financial Christian With you that, I update. will give turn it

a a for of revenue improvement is for $XX versus quarter quarter. which Thank an million you, growth you slightly Daniel, improvement morning reported our revenue Gross EBITDA year. in XX.X%, million was XX% everyone. QX. currency sequential margin basis $X and from was prior the P&L overview prior point and constant XXX XXX which Slide This and good was XX loss, year-over-year XX% gives came quarter, improvement point versus the the below basis the a year Adjusted We a the expectations. growth.

the growth. shows our XX bridging second quarter Slide items revenue of

XX%, XX% price can a result grew revenue total by foreign for currency You in for to growth of X% constant headwind offset exchange revenue a mix grew volume was that the X%, X% partially quarter. growth see that

the and by Slide bit XX it double shows revenue a on clicks bridge segment. further

XX% sales constant posted to in which growth sales EMEA We offset currency an Asia. see constant both was decline pleased by and are high-teens, of that currency Americas

a August number down as the forward. mix took Americas going third price lapse in move increases so will the that to year, As we through we expect we last reminder, they come strong quarter, of price that

presentation. bridge These by also EMEA. of slight full XX To of our of Slide in segment gross mix primarily the the rates this A improvement in in recovery we increases. the extent, of provided the margin were The and margin costs and Americas offset impact driven in sequential improvements partially slower shows gross you sequential headwind. quarter-over-quarter bridge. benefits expected is a absorption supply COVID-XX margin chain was impact a year-over-year and in from the benefited lesser China, the than price quarter by post the EMEA appendix

EBITDA post-pandemic be advertising. The Asia $X Americas and you segment by quarter. report good and million the than to Slide cash reported see a $XX million with loss expected as with our of the profitability by in continuing a Turning the to segment left segment chart, on impacted can expected line XX. loss improved continues EMEA the also prior In in approximately came prior $XX the to promotions increase Corporate adjusted despite The as and and expense segment year to recovery. million slower hand profitability. in largely

and raised balance and we On now cash transactions on related have the million cash fee balance million. the sheet, and over transaction revolving financing the funding quarter. quarter report credit $XXX to facility the $XXX equivalent the I'm at paying all of of end we previously happy our sheet that After down our announced during balance, closed business,

facility. In revolving approximately our we addition, $XXX in have amended available million credit

Slide XX you guidance. shows updated our

currency For now XXXX, in to of foreign XX% expect from we basis with range headwind XXX growth exchange. sales the an X% approximately constant

largest the and the quarter We by improvement continue XXs quarter. in reach the fourth to gross quarter-over-quarter with high expect the in occurring margin fourth sequential to increase

with the spend capacity related better $XXX as we next to reduction support growth expected an million year. have to the in CapEx enough We The of also years. production projects now adjustment to for of expect to couple timing demand, in is million to $XXX this primarily align

the expect quarter the of improve from move we EBITDA year, of will in second gross we then the EBITDA dollars meaningful slightly forward that a sequentially, and As dollar quarter. more fourth be the improves will as margin improvement the savings through driver balance SG&A

to EBITDA our us bold As and expected adjusted are keep we business sustained the in positive XXXX, enabling to on future are JC mentioned, actions track the growth. while that strengthen taking achieve

Operator, take our prepared concludes remarks. question. we are This prepared to now

[Operator Bank comes Christian Instructions] question with America. The of with Junquera first

bill to reduction you assuming slow slower much that conservative than category also mentioned organic guys Scanner by you talked are sales entirely Is outlook your How the driven data in U.S. slower on everybody. Or You of that expected for by have Americas that earlier a sales outlook guys the for the versus was morning, the driven distribution for more continues segment? the oatmilk that business. Americas the the just call U.S.? retail about? shows Asia you sequentially. growth in Good

Hi, Christian. speaking. Jean-Christophe

reset, related is the question your U.S. to hand to part the answer question I answer Asia give only U.S. over of detailed The due XX% the the is and the is, Daniel to on the down of -- the guide your rest to to first you

and you, And to so Thank which of progress the saw of in our reaching promotions, comes in months about in with can range both which working ability more a XXs continue volume slightly come. now fill year, as and units is rest you two supply see expect progress. good We is the the in sustained have it's for Christian. after behind resolved now very -- progress to we fulfill to When have XX% good but we're calendar expect, our distributions oatmilk, recorded solid reset reset ACV the expectations, rates we our it seen TDP, remarks growth, to issues. on chain part you issues

plant-based face seeing more is performance let's a muted what course in you're for it. Of general. But

outperform continues oatmilk all crops. other to Our

and will and we forward to will investment move is to So back. we're U.S. as of make on grow. This proven the have as share growth, as growth very the but perseverance stimulate in pay eventually continue course, to we we continue EMEA, more category come to continue that we we'll category and gain confident in

The Lavery next Sandler. question with comes Piper Michael with

a come have countries several into to I your a we next. get that could and I is to back a would wanted markets? just just just that. think a little skis your and But get to sense on to in know what rollout in bit this of do to about translate don't test McDonald's of it take relationship could want over be broader you launch European that or other how what

it's saw, can you now country Indeed, more and good, -- you Austria, country know, on there's strategy. substantial you world as to Good EMEA us started space grow that you in but foodservice. tell to less are I this it's to around a part Michael. Very come foodservice our And it's our head volumes speak expanding priority There to is In with as of morning. than East XX% of we strategy. basis. from by we and the come in for EMEA, a

not field, you So coming in in the but some quarters important some should this McDonald's, others. just expect upcoming names

So indeed, it strategy. our a is priority of

know more -- Are at across guess, what your you're there. more they Is certainly adapting? to many then at-home think purchases? the foodservice board? a expected. be bit numbers And least way And try about just adjusting picture the pressure to macro would've little Asia, just are worse the give on was people mostly consumer house the as your just there. the to that more much? frugal You've reopening I And strategy and Are how got sense just the were back you you is more Certainly I are we've on hoped. of focused. leaving seeing? headlines very I gone or hasn't cutting appropriately can we'd seen where the maybe some fit they granular the not you than us But the

consumer of this What a think the far the which piece you as is you long view are But ground? as how far quite as it, sense on last? malaise could as just do of I have reasonable. seeing the

Michael. so you much, Thank

been to it's our category. our to China greater do a the deeper we past view building in this and -- back Where on think I really has business in that. region. opportunity what's over Asia and for driving me business Let's the a bit five share years, great come come This from? happened

positioned leading quite could We Asian ago, honestly phenomenon a pandemic there. our few they business hit have the to prolong doing growth. that and the And was That bets been put everything number bond intent. so boom. from was innovation could continue that the and benefit to they quite sustainability as years plant-based post-pandemic establishing for a and of have their And the we be a

we region assumptions. not customers, a are environment you had consumption, what consumer So restrictions, today? seeing has aligned surprised we quickly behaviors, zero zero said, And we like realized from of macro as moved As paying to all got exactly happened? bets COVID consequence, are our the you, because placed, as What's the all off. we we were not with the that

of we were We the the they at And products them. the on, expenses we bets had level channels, put not were putting saw for. were looking generating we customer, been new justifying of time, had some not revenue same the behind

that So see we strategy. because reset in of not in book, a my very kind the and quickly wait need is saw is to circumstances, what

So act and immediately. we quickly decided act to and

With on the finally If the our teams. the seen? the diagnosis, to travel, in and strong been on able order have past And a market very be what the to reopening to and I there the internal ground with brand. by able myself, we twice own start in months go we act we've have two Daniel of

a competencies. wonderful a of have We dedicated team with lot

asset neither Ma'anshan We a a unprofitable people base, is that distractions, plant we great activities production the had. really too activities, finally great And the many manufacturing our time, many clearly facility of saw not our activities too started we At in and we that great. becoming ideas. nor fully leveraging have facility that same were our have lot

reset to plan our Refocus, to portfolio rationalize recalibrate we and alluded decided what is and in So simple clear three structure. do, Daniel our cost things: what his

and had portfolio, foodservice some and SKUs, you far most as cities. So partners we SKUs are of heard, very means few refocusing our were margin key which we or the too retail not business, on dilutive our Rationalize only core factories. they filling on our were many key

sorting out our can And finally, imagine, be business today. of We line the to as with in recalibrating that. are we you have all cost structure,

expresses We we working. business, our that confident refocusing will the a us That play by we market by foodservice allow and business will continue chains, down to category as is play the are to the very to have drive by what's And role, partners core the growth. which we long-term will on down on that in role doubling category in leaders, improve great retail. we do local doubling to believe on our with as well that as

I as that Michael, can is, like superfast. what well Finally, know, on moving say market this is you that me,

have move So to in very And fast we very are team that we a confidence China lucky we that that lot a is go moving a of reset. as fast. China, building me strong Oatly equally future gives once things are this through short-term

before we conscious trips see consumers, also We more of not pandemic. is but question. see are What also quite spending tiers premium, price which we your aspects it number of was in trends our was a considering exploring still pricing high on high about is the Talking of that one strategy. therefore the and where which different

to see efficient and that need with which we find ways totally obsessed innovations, are people means still answer that. finally And we novelties to

that's and see we greater Michael. what that's happening analyses of what's China, in our and Asia So

ahead. over back further And this concludes Kearney Please any turn Mr. go observation. for session. would to the conference question-and-answer the to I like

I might couple So, be helpful that I've to this of venue. that tackle think received a questions there in were

would leads elaborate to seeing EMEA's that In market for continue be, prepared be first of what there? outlook sales that confident we And the, remarks, we're The on to kind Daniel. our the changed. in has probably could what for and not us you said

oatmilk With now, pleasure. see you're the in the EMEA We continue segment. getting the metrics see core going markets, proof our continue than solid familiar volume in gains we In direction, category markets, -- the year-on-year in consistency performance of to growth. move grow growth share at we EMEA, Thanks, what with Brian. growth. right I stimulate to more guess the the that continues and in to double-digit core continuous in the

on excited segment only that to things opportunities that continue as this Now, well us portfolio. the across in more expect more about forward. architecture one, Number to pack started our and move in what prerecorded as Portfolio, expand the explore. innings, non-coffee as three which well as forward makes is occasions the only regions portfolio, in we alluded we we the other moving are early size to remarks is much

Secondly, foodservice. to and in generate XX% to the EMEA our are accounts. only on impacts less conversion to it's big drive of and Foodservice, the consumption than in the revenue and opportunity explore starting we foodservice

We are and to investing continues route be that to in capabilities, both sure innovation make in to case. market the

We're three is excited geographies. about And number new super the new geographies.

our Oatly now seen have We most regions. in Europe appearing products, the prominent cities across in the new

Barcelona, the Oatly one name beginning. already easily Madrid, that's the the SKU. stores whether coffee Warsaw, you it. or Milan, only [Calp] Spain, in Montpellier very we is Barista to it's start of see Oatly you in And it's turning Brussels, find most whether will number in France, Paris, in So in that And in

to up come and strength there model, of patience much more bright EMEA. is in the with future to our playing So

And then be how think that on could you and forward? the would path other And to for Christian to we've question of if gone remind about the that going profitability. everybody drivers

to that, Happy do Brian.

we have on taken adjusted in during half XXXX. XXXX, is actions are still stated our that the confident that of prepared achieve EBITDA take will to that positive we second what we in track with and we remarks are So the

might XXXX consists recall, our and in key As path you beyond. profitability of the to expansion throughout drivers gross margin profit

and with business profitability. growth grow to continue optimizing also we streamlining As our and to our balance organization

achieve margin the XXs drive in our profit improvement. margin which the the expansion earnings quarter. we QX gross profit buckets of gross a four margin track, out sequential high Our is would call, on fourth the laid In to

is four increases distribution, as improving the those that that behind improve we of we effects already. supply buckets as we're growth. largely of liter mix in seeing into largely network will is continue per expand price the half second of effects three our channel us, and also year as have but chain Improved namely it the implementation our optimize cost we and behind also And We our EMEA, us, done. operations

believe the margin to, that improvement JC segment, We such that COVID-XX plans improvement in the recovery that implement, that as are we the with SKU gross will that and in call about profit is to in related in China. the we China Asia spoke rationalization result bucket to

over So remain seen margin profit now we've We story. and that's track improvement four the gross sequential quarters. on

on In identified second we expense prepared will see with XXXX already behind our SG&A million annualized of of forecasted and Asia terms out of segment savings, the $XX and this Americas noted lower the today's is corporate SG&A have optimizing as than call, we and the us, that half total $XX which streamlining Thus, year. an is expenses million the in million million 'XX and communicated organization, be of $XX reduction remarks, US$XX our of as will happening in XXXX. in in SG&A of we the our

will actions adjusted We XXXX. that are in EBITDA result positive in these combined confident

order to and every and do what's focused driving full year guiding the myself, is having profitable North I EBITDA choices, and add adjusted organization that is we this single to XXXX say laser one you, you wanted which in profitable is what to just growth. The of for team, goals, actions, delivering and star to Star, Christian. on day. decisions positive the Thank our our leadership we Christian, guiding is clarity thank have everything, fuel one my voice

about summary just taken us my you. gave voice taking. I or have to guide are actions confident, because detailed to Thank add to wanted what we say So that's talk we you makes we a

call follow free to a Have conference any you. me relations our reach This great out and Feel investor if up Thank have you questions. concludes today. day. to Terrific.

has Thank today's conference This for now you concluded. attending presentation.

now may disconnect. You