Ispire Technology (ISPR) 26 Sep 242024 Q4 Earnings call transcript

Hello, everyone, and welcome to today's conference call to discuss Ispire's financial results for the fiscal year 2024 ended June 30, 2024. At this time, I'd like to inform you that this conference call is being recorded [Operator Instructions] Joining us today are Mr. Michael Wang, the company's Co-CEO; and Mr. Jim McCormick, the company's CFO.

First, Mr. on key you Mr. and brief will the highlights, company's then Wang will results. financial the McCormick company's review

Before I the statements. conference XXXX. historical call Private we facts that Litigation All contains you begin, Securities announcement the forward-looking would statements like in other statements statements Act its within Reform meaning than the remind of of to of this forward-looking are

or trends, its in on conditions historical Forward-looking assumptions and company regarding in believes company's and company performance its SEC. the and materially risk or forward-looking and future based expected implied unknown factors could the factors forward-looking expressed as current involve These other included statements the differ uncertainties, estimates as terms statements perception statements. Further by experience actual risks this factors the information developments and are results by made company's cause of the are to are with other relevant. known of and the those filings and well that many from

undertakes obligation be or subsequent circumstances forward-looking current update its or no to statements or reflect changes law. except by to as events required in expectation, may to company The

Wang. call like would turn I Wang. ahead. to go the to Michael Mr. Mr. now Please over

thank Thank a Fiscal year foundational joining you, XXXX operator, you us and was year for all this morning. for Ispire.

as of and growth, the an an reported beginning notable year, expansion. strong effects our mix operations. by South driven As Europe increase previous year-over-year a by revenue the which record of in reported We as increase was the of from Africa. margin gross primarily This in of revenue organic in with well driven margin leverage expansion. sales revenue growth increase And and product the mainly we Malaysian United fiscal XX.X% million, growth. sustainable we XX.X% margin accompanied in was by results, XX.X% all achieved and This was $XXX.X a record-breaking States, sales organic

the Those made two, our will for into also that costs; which improved generation. revenue company have down to Malaysian in product significant our advancements technology across increase One, we joint aim in positioned the investment shortly, venture. as the we internal point operation us I expansion, highlights, include margin and future Throughout year, of drive detail use the more go profitability

Three, intentional and space. for cannabis nicotine in increased global on our focus multi-state MSOs; operators the four, partnership

have credit to it our management to making we We our also approach we our to extended as customer portfolio reliable aim as balances. improve limit exposure by adjusted more outstanding

fiscal believe customer our year remain the upside future well momentum new and about margin portfolio projects, expense nicotine the capture continued positioned and a and stronger further we head discipline. we XXXX, into growth optimistic with the and growth and As we cannabis are to

machines to and strategic several confidential brand the partnerships we fiscal significant distribution Throughout supply Ispire States. operator as across with enhance products production and company's facilities Acreage the Holdings, vapor a Holdings, secured year, and secured Most our in feeding the Acreage all last Club to United presence recently, multistate the XXXX. vape long-term agreement we Ispire will and retail channels. a industry. In with its pack, with in leading-edge in Hill's April, aims a Acreage market expand Bank streamline cannabis its acreage reliability

into elevate Africa range vaping with partnership commitment revolutionize the strategy deliver potential cannabis Ispire market South accessories, Ispire's South to we May. the South Ispire's and including products distribution vapor a has leading high-quality entry Africa's the with we pack, This solutions. growing rapidly market African This line to Furthermore, or and African South collaboration supply expansion market. Under with bank and marks Ispire an hardware various X will signature also of and the aligns exclusive This products. the partnership industry global secured the standards. the the in cannabis cannabis agreement deal, supplier

Through called June. Science We are Ispire top and per X monthly our manufacturing purchase units commonly will design XX to receive is Technology the expected our in $XXX add to Ispire relationship, Limited leading original consistent orders additional into also million with an a of brand over line. next entered revenue month global months million and ODM. subsidiary, which be this in

and EU. nicotine August, into Ispire's Africa to entered agreement, expertise builds This the worldwide. Under will this Club America cannabis baking agreement Hill's by UAE starting the on leverages network the In the our with earlier and into our and and brand Hills partnership while global on This the in hemp launches followed the us product capture LLC, reputation in capitalizing branded sector our Hidden Hidden markets presence. Hidden growing distribution North and commercialize positions rapidly e-vapor with collaboration and Ispire distribute strategic licensing technology of strong South and larger subsidiary baking global the and worldwide, manufacture move in share vaping global a XX-year product expansion cannabis Ispire Hill's nicotine marking a market. U.K.

and experience. make of of kind create Berify with is prevent a our a access Chemular meeting safety we the that age that point-of-use FDA security innovation early share the for We progress for This that its the the and November. excited acceptance in received needed continue our next-generation request industry have vape to first underaged verification meeting hardware e-cigarettes to technology will are from to significant joint scheduled fastest we first we and as with and improve for venture is user understand ever

amend for application PMT a these our X is signals this into we joint and with this for or the resubmit We milestone flavors: recently submitted Chemular. reentry Ispire, in product the years We with the intend U.S. are important end an to Berify gating Once That first months. venture market. finalized coming as technology with is joint venture, solution application have a and in X disposable our

pad-based coming month. additional the in gating continues focus include on team end for a to which Our technology PMT will applications submitting systems,

are billion market, nicotine that ensure and this best-in-class ultimately can as demand long-term and access driving our worldwide additional to technology U.S. markets e-cigarette technology -- creating nicotine We for USD value. our customers, such doing XX

highlight year million our key fiscal during $XX.X Another closing successful offering of public March. is this in the

We by overcome team was very able volatile growth our our successfully as opportunities are achievement macro to very encouraged transaction to a additional creating this for complete Ispire. environment

significant achieve operations to in Chemular offering alignment facility. continue facility, Malaysian well Berify our for Gross to ship and we founded I i streamlining February the state-of-the-art its proceeds Since considerable as the impact tremendous while market going our with to forward margins. our and as products, our manufacturing will on continues see Malaysian product to from Spire advantage gross can't and this generate margins. size From operational stress our facility in revenue with XXXX, we opening further capitalize a the nicotine joint trend market helped down a driving venture mentioned as gross on previously business this as streamline aim facility establish in and be higher a international and But our our initiatives costs.

value our sales. Peterson Financial cannabis as shareholders move leadership President including moves International for Chief Vice our have Jim team strategic These McCormick our strengthened continued we for we the for creation and key as product our of Senior further as forward. Senior our positioned as John team, with Officer; success appointments, President and Ispire Vice Additionally,

year significant a year revenue both Fiscal our across year and all marked by XXXX foundational was Ispire, and a expansion. transformative organic from record-breaking growth for markets margin

cannabis. strategic Our in of market implementation leadership innovation key focus on nicotine initiatives and drove and successful the

to new partnerships forge expectations. to leading-edge U.S. technology relationships, expanding and By and continue We globally. our the further strengthen have globally, our markets we new in reach introducing exceeded our existing growth

have achievements opportunities. raised year's our truly product bar This for the

our remain committed innovation to our We are expanding and capitalizing potential. driving on proud market and of progress

we well positioned ahead, and our Looking market of on and leadership. to build this trajectory growth are momentum continue

call the review With who Jim? that, Jim our comment our CFO, McCormick, and I will over results. to will financial on turn

the June I on you, comments, key Thank XXXX. to ended will the results Michael. are this fiscal comparisons XX, opportunity otherwise stated. ended XX, year prior XXXX, year XXXX as for financial the the year take In like to XXXX. summarize unless June to refer to year my fiscal I would All our

growth achieved the we mentioned, organic XXXX. for Michael As fiscal year significant

the systems revenue compared of year fiscal previous fiscal in $XX.X across period by by in vaping fiscal key regions. our million This total revenues region. year. to was last year. the This increased $X.X a to for result the XX.X% the increased driven $XXX.X as XXXX European XX% year following sales performance million million open of over primarily or of increased same was our Overall, the by or

our of well XXXX. customer In in vaping fiscal the expansion XX% increase an the $XX.X growth over of customers was by expansion driven as of America, for year represented products, existing XXXX of sales U.S. or hardware million $XX.X overall year the these revenues million our year-over-year The fiscal North to base as sales primarily cannabis

revenues increase Pacific million, year were million Asia over $XX.X fiscal $X.X of XXXX. an

were of with and revenues arrangement $X.X For BRKFST on our international the the the rest to year-over-year, vaping sales $X Africa in million, South of brand. increased million an world, primarily licensing increase related singer-songwriter

purchasing as to margin cost grew period profit compared sourced million year-over-year. well overall as XXXX, can year our XX% or During from gross same resulting XXXX production higher lower ended improvement to and being gross margin initial sales profit our greater from Malaysian XX.X% fiscal XXXX. increased by to an gross in in improved the XX-month At Ispire's and $XX.X be our benefit increase June mix, costs fiscal the the product XX, time, attributed of year facility. volume XX.X% Gross product to revenue

to compensation. marketing ended million year operating as professional XXXX, $XX.X increased support required to year This was were reflected higher expenses in for increase expenses XXXX. well were fees to Total expenses footprint. as the expenses payroll due as These $XX.X million fiscal expanded compared primarily wages, the and Sales fiscal stock-based XX, business contract and for international June

the of of a XXXX. million As fiscal year year for XXXX, activities, these XXXX to a our compared as net XX-month in was loss ending period June million, fiscal loss XX, $X $XX.X result

Turning liquidity. to the and balance sheet

XX, of end that with June XXXX. being our XX, balances of fiscal the cash of of As year the fiscal compared end year $XX.X $XX.X at end June of year, XXXX, million at and the to XXXX, million XXXX fiscal

million, same balances working For of $XX.X respectively. $XX those we million have periods, and capital

the was for compared activities XXXX. in activities fiscal year XXXX, cash used to XX-month million in fiscal used activities million $X financing $XX.X year $X.X year XXXX. million XXXX. $XX.X period used by investing was was operating million in million cash activities XX, to fiscal $XX.X cash compared year investing provided financing XXXX, net fiscal to in In by $XX.X in June million Net ended in compared Net activities provided

Michael. to Ispire's this will I review With fiscal now the results. that, turn financial over concludes XXXX call the of year back

Jim. Thanks,

open like to would we thoughts. how relate to key our call the questions, long-term expand Before strategies I our on financial to

As sustained we XXXX, position remains to move like forward innovation for investments on growth. I at strategic continued believe future profitable into we the would fiscal Ispire that our focus reiterate innovation. our year and us

what leader Berify using a and We strive our technology excellence. the best-in-class a standard help to products to for are be industry in new set

We so and growth that are on We potential with they align to streamline a forward chain partnerships, opportunities supply develop. our future to progress as look mission evaluating updates ways and they consistent overall sharing basis. our

have you e-mail us ir@ispertechnology.com. contact through any If at questions, our please

to completes our prepared ahead. now open questions. are this and go operator, we Otherwise Please remarks,

Our Fortune with Partners. Capital from Scott of Instructions] comes first the question ROTH line [Operator

cannabis? gross and on in the the you First the Malaysia, by you the quarters categories over want brought manufacturing margins recent gross the margins the fourth improvement in last in-house of all, margins quarter on unpack in I versus can basically, once the X focus tobacco here, to

-- cadence improvement mentioned each And How bit, just gross around Malaysia, we those lines you fiscal as is the great. kind margins trajectory And look for sources little Malaysia would and the in renegotiating little and just year that you in a a more up in margins from color product bit of savings of much gross be China, a how in mix should impact here? ramp little at more 'XX currently on category.

the question. Okay. you Scott, thank for

And as cannabis by over just XX%. are margin. I most saw the margin. take And recent for will gross saw quarter, far the as in over overall, sectors As Cannabis and -- gross quarter that fact, higher the gross fact, both both we're side XX% in referenced. seeing category, both side margin increased

So cannabis QX record in the really gross a was for and both margin. e-cig quarter

this into the believe X continue hold ahead new trend now We for They're both year. gross Will strongly hand, On looking so. segments fiscal margin to up? will expand.

get gross that high year, both this hand, sides. will XX% on answer Scott, your other the strongly question? real are don't both the towards I aiming actually On sectors fiscal close. -- We, we does margin end both course, -- for believe for of of

it's No, Yes. helpful.

kind Malaysia? move from Just Malaysia products the remind standpoint in-house in getting of you more savings us that as you're coming from

Yes.

Malaysia, hardware production. I pivoting we terms For slight, a cannabis previously, primarily there say, we in for would utilize to wanted of is priority Malaysia

However, requests X e-cigarettes the last and for things us and changed months, markets quite brands tremendous bit especially worldwide for the Dubai, distributors Vape to a Expo June Malaysia. in World the we from produce received in demand from after

more This is geopolitical factories direction demand given risk the is we priority going decided realize in high-quality because China. for we worldwide, associated players internally a partially in have of there premium the with to are a lot such be products. Malaysia And that shifting e-cigarette high

there. details Gap] [Audio X that's think I Scott, So

sales an looks tobacco provide question, kind up as vape it Next you like the XX% ramped global update year-over-year. on it the sales, can of

you you Middle and move here. the have of brands standpoint. you've brands, a distribution expansion from and Africa, adding the into continue Hills get that opportunity into expand own that But of your kind to tobacco your on sense on But Europe Hidden just have as for you third-party the added East brands,

of X partnership And that partner, ODM great. ODM units you kind your that new are producing million be ramp-up with currently of just would additionally, the

I'll answer first. question your second

the but deal, formed have On sets first when increasing are we X months of didn't that. X June, immediately month increased or fiscal year, in let's we in we this relationship -- in July and the of ODM units enough, August, production the especially produce million new capacity just the tooling production of were to say, we rapidly available number molds, was more

the finally. capacity So X starting have with a million the month month we of September,

So forward that go it will way.

increase In calendar fact, to the towards even on end production year, of we further capacity. based demand may this need the

we already to already we where are are we standing our where upgrade So customers. are today, promise the we

certainly we well consumers beyond by month received hoping X We will that are be a units that million increase the further so quickly. products rather could

that that's So front. on

as first X And Burnaby On the As certainly, we started overlook nicotine just we by we hand, far initiative, countries or and launch BRKFST African decided strategy. a it the as brand. global their Middle to strategically, our in markets Africa global and followed nicotine brand, with launched North South East.

track there. into And Europe and are we year, then next expand early we'll on

phase market Of brand a launch of initial is course, the like critical. new any any in momentum building

for select So this South Africa as launching product. market we a

So reception been far, tremendously the positive. has

from Just million to in X units branded sum million year, of Africa South up. for just fiscal initial X demand about end alone, we toward BRKFST that's at expect a month products to units the ramp up this estimate

established North agreement So distribution with in Egypt as signed Middle Africa, we the supply a in countries. continue build-out several already and South agreement, a African the East, we

proven is So that be to successful. very

global way, more Middle Hills Hidden best the Europe why in mindful, Hills received East, are complete Latin completes is America. absolutely the what Hidden the That's comes We our Scott, brand well -- in what to a in and very and importantly, roadmap to in picture is suited market. Club nicely. in

often really we is So or with to DAT a give say tobacco, BRKFST gives Imperial footprint. us on global in global PMI, attention important some just and not now. footprint combination very to right are complementary us because is their a markets that, it's on just it so whether also brand or as us focused we let's know, that This attacking with

in feel top exercise where strong players. have do X we a we become of can So we advantage this the

line and improved priorities the as now last that breakeven your around here balance your cash from business, your have execution next margins standpoint? mentioned of then you here the from to and but flow provide accounts receivable, reach And was accounts or you meaning payable your that address time side that quarters can activities gross also improving generate too. and year, as you One sheet towards

to I our Jim Okay. And on will I then about AR turn matters. the touch will profitability and part. breakeven Yes. to talk briefly

breakeven are applications. technology as we PMTA investment heavy the aiming, and now far target, into the especially the As again with

global exercises and into initiatives. applications investment we know, our expensive importantly, more PMTA As all are lighting

breakeven is to now Our quarter. fiscal third target moved

So by XXXX. end we break the of to even are aiming March

is -- are this another want non-GAAP where you indicative to share to just with of it's However, basis, and want piece where data we on do data because I share point for I we headed. are a

non-GAAP a we expenses -- basis, on significant. a for On basis, $X.X are earlier, we the net -- compensation making actually $X.X loss actually million are reported really, stock factors were we even for The quarter, the as in option-based but June though key in there quarter, Jim profit. non-GAAP was mentioned million about

some And noncash other patent-related provisions expenses amortization and some contributed that. other to or like

important track, is actually are we because solid good from track partially this So on activities, profitability. toward operating

confidence quarter, So to us we the non-GAAP can target the XXXX. million by gave profitability GAAP-based truly get $X.X March that the

So questions Jim, to related AR can you answer from the Scott.

Sure.

balance look the Michael of receivable million from year. million and sheet We So sheet obviously priority last mine company. high is increase balance Scott, very in significant we a in $XX.X whole managing a saw is $XX.X at to and accounts the the

Now result getting ecosystem, on U.S. if that was expansion you into the largely new and the customers market will. and into getting our board cannabis them our of

I with the this by et Now on of call know cetera, the price high most think levels cannabis that challenges at comes cetera. will a industry people banking the faced et taxation, because issues, U.S.

our very moment see industry a we receivable. and the it's accounts at So reflected in cash-strapped that

top bit a quickly down. as receivable are accounts of get them with in that like their cases, our in market but in price as that terms on and getting we'd all doing customers a So we're those of not came accounts share on staying best, to collecting

in scale we're that increased that and talk in that forward, and level With U.S. cannabis going market. it's we the refocusing our need serviced, think comes we can the confident release customers, about say, opportunity do they to the efforts be will larger MSOs the to service the I at I that.

So we as quality of overall get flow receivable to are improving at quicker the coming company. that cash forward, base so to looking the our going in

about accounts of just really related in the what expansion that's is into payable, market. terms In item. hand increase U.S. the the And there X said hand I with in line the party getting

that AR terms So on will with and as related favorable forward carry forward. going we Is party be and that you, taken we for that have Scott? down factory, collect our good

the in going our element add way, guess, forward. to AR, I'll Scott, X I more By

nicotine addition Jim larger MSOs and push what to will the global another are nicotine terms we cannabis so forward full focus with our with percentage In of certainly the That's side. a more said about AR it side for determined on side ever on overall customers, the the because to total on, sales. us. on force than on reason the as And just far payment more is favorable help

of Our next Securities. from comes with question Bo the Tiger line U.S. Pei

year for e-cigarette. us sort cannabis guidance for give and outlook both even the especially management of or revenue some Can for growth XXXX, fiscal

you answer predict. the fiscal at it's are XX%, a really time is hard numbers to be swing hard we thank apologies the if even I that on XX%, we for level rate able many it's so now projects for to X% It for that. because pursuing to -- to the we stay to cut don't could an Bo, a XXX% decided grow going this honestly, to any or give not now. year and tell XX% right swing way don't We you be want really will opportunities share will question. that to first given This topic. We

But talk terms the briefly e-cigarette the Yes, you in from come see understandable. where opportunity geographic that for will baggage in incremental or from? or coming also Thanks will see, that's about totally XXXX revenue distribution, the of cannabis opportunities the just Yes. demand clarification. maybe you can

I certainly can color, That add some Yes. too.

as First only the sometimes the brands of of think of the cannabis for war facing the we retailers. not price cannabis a -- all Jim because challenges because are oversupply and all, but side, also industry I the the on and aware among mentioned,

we desirable we executing. that have are most a for the global for environment strategy us not macro anyone. nicotine Good it's is So that

So we international on going are higher markets side much see from fiscal year. to growth in probably e-cigarette this

itself. is that or going significant as contribute think alone e-cigarette ODM mentioned, and I revenue will past by revenue to I likely double alone

that, soon our and top launch breakfast On have other of we branded brand business in like and will other worldwide. his, we

answer back effect time fiscal will this a question, our growth simple the to of XXXX, of year, seeing PMTA vast to the your by the nicotine. see for in we meaning come start -- And majority are to we U.S. applications hoping our from are course, in market. next So global some hoping year

to with their be and miners As will a when is, be a consumers -- consumers it from we are and primarily monumental FDAs which variety aging to yet the technology, we finally point-of-use of getting will e-cigarette on absolutely of that because hands now. comes, course, able still offer protect right flavors and concerned

confident finally technology a be to we So we flavor. are our able variety will supply with of age-gating

I that years. future in position the Ispire really will well think

question next & Associates. Pablo Our Instructions] Zuanic of [Operator Zuanic the with from line comes

Mr. in terms give more you technology. Wang, gating color the of can

-- market? how when in unique by is be to answer market it can do example, with would you to product If that first. you this have roughly expect the first the you For this

proposed are out but variety a now, say blockchain-based reasons. advantage gating I Right we you. thank of to technology. have a do Pablo, of unique a several for our one, the solution -- will that there it's market, with solutions Yes. age Number

you a hackable, they teenagers as have will meaning, and way solution young not it that know, to So hack it. is any you people, if out software break that figure

break X unique is break a -- you if can solution blockchain-based it's But device. break because that very in you even you it, only cannot this

it cannot token. unique own has device each mask its You because break

a advantage. that's strong So

important important the think well. to that's the to I as parents FDA

our over other else backbone working have there already our advantage as are different key from technology is existing that out other solutions. we with everybody which The very solution, we is

hard web-based you to However, manage. are solutions use, it's It's Other simple rather age to web-based. verify your so-called hard a all

app with very is high and creates experience. very on clear. use, platform partners like forth. is for IDM like clear based, technology We use. and with back-end security friction work so so our solution it's to airport system to and another consumers trusted easy and an with their easy it So This

line process is age frictionless So a your verified. bottom is once

solution. So for solution a it we a answer knows weeks conferences. stated meeting. X the meeting that, is this feel as very usually the based who FDA presented on at And long to that's few within for unheard which earlier, this about the anyone how requesting And we from received for confident FDA of why, takes meeting, I for This for is respond of. to quest we

If strongly year. hoping So goes are to we a be at XXXX we FDA by the of to believe move referral work in U. will be calendar well this the to forward. going we half will the answer second your with well, question, end this received products technology launching close for closely are next to everything point

just... then And

while going just X just I'd Pablo, McCormick this used is also in the in is add much application is This also FDA e-cigarette issue has it's cannabis global I product thing, world, product, the around hardware. application and an has especially the Jim of obviously, the as where not that can just the Europe, through add as here, it but it a here. Michael, process. access

I'd thought that. just I So add

Great that. right. totally point, I mention didn't Jim Jim. is Pablo.

it. about this fact, absolutely we technology are European presented regulators. In some excited to They

you. our much the it's European point for market technology the would for that we than sooner products use likely from U.S. of market this view, highly Jim, So in thank

And then approved, roughly about most the gets the up contribution X just you mentioned hard sales the there? to market flavors predict U.S. roughly Can disposables. the X we And PMTA. with on from of FDA. you PMTA, I for could what time the the Are following talk it flavors. talking know line in our be if it's those

The Yes. as example, they for flavor, for -- let's flavors mango would And the only hands great all generally devices. get products that FDA say, will contain menthol approved flavors, technology, today, know, on right? in their flavor we sell typical that's rather flavor a or smokers, Pablo, or a question e-cigarette miners offer food reason FDA if having without tobacco is cases, their kids is some flavor. educating you worried consumer because

So why is that's and menthol. concern. only approved flavor far that's the so primary their tobacco And

demand of for this flavored e-cigarette absolutely consumer However, world. food is out

PMT you majority market, in vast Yes. is of or essentially not sold the the approved know, illegal. As U.S. are are we a still

important This it's $XX to way, why So can that to I a total devices. measure, check U.S. technology number will it. all have retail is the out, players e-cigarette including flavored don't total, a a that's So to sales want enable market, black you By market right? black year. billion put

So if you is distributors break roughly wholesale to revenue from say, brands down that number to, billion. let's $XX

us. is TAM So that available to

Certainly, with flavored You be the the it if first in age-gating offer is. imagine technology are read can billions. just that we there food is to how will potential much

broad big you but pike format a it's it's June. in it's delivery? delivery What's terms broad I what's vapes for but and if know question, general are about the one, in it's coming when bit delivery, but last sometimes of very you you question, nicotine larger to going think And ask X in that -- a the or attended example, -- And right. the down what next-generation about nicotine very of nicotine look -- Right, new things and all-in-ones a that's -- at we're about it. are

Yes.

In that's educating protection. important addition consumer technology, to for

the let's devices is safer are key from technology. ceramic getting that Of another reprice course, product concern. That's new away working traditional, the provide why say, based a on technology will safety we

we market. a very technology our So but this publicly heavy it's technology announced no clean that haven't a ceramic will yet, very is offer safe metal, technology, no to

that's technology, age-gating in for to come. clean what and the between looking think market years I So the is

add I please? can Michael, that, to

Yes.

in category are the that ballistic pouches example, traditional an Pablo, becoming dramatic for emergence out the of gone has not changes just popular is pouch seeing and to in the the one which and phenomenon. in cigarettes. delivery of very driven We're especially is the nicotine as stock where the globally the in U.S., then, alternative seen we've Europe, sector, it's nicotine but of a U.S. other combustible U.S.

And we're that trend. on jumping

pouches as we in But in a launch emergence so growing at other for have that's markets in year. the well. percent with the brand And our a a launch pipeline -- dramatic been very plans BRKFST of to CAGR XX-some and actually category Africa South that's

very hopefully. it's advantage of, Thank take a phenomenon to you, we're So interesting something going Pablo.

concludes Wang that comments. our for I'll and Mr. Ladies gentlemen, session. any turn floor back the question-and-answer final to

mankind first you for our the just And joining today. want quarter. forward next Thanks look to I to us I thank call, halfway again. only all is about for which

Thank conference call. concludes you. today's This

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