Good morning. I guess we are ready to go. Thanks for joining us today. My name is Steve Bromley. I am the Co-Chair and Chief Executive Officer of Organto Foods. I appreciate you joining us today, and we look forward to spending some time and bringing you up to speed on Organto. We really focus on our business model for a bit, the results that we have been achieving, and then we will follow up with question and answers. As I am heading through the presentation, if you have a question, please do not hesitate to ask. Just go ahead, put your hand up and we will cover it as we go. We are in the healthy living and the healthy eating business, and healthy living is no longer a trend. Everybody is paying attention to it. Healthy living means different things to different people. Part of healthy living is healthy eating, and that is the sector that we participate in, and we focus on organic and fair trade foods. Why organic? Because consumers today are looking to remove genetic modification in a lot of the chemicals from their diets. I am not here to say that genetic modification is bad in any way, shape, or form, but it is not part of what organic food consumers are eating, and so we are focused on the organic side. Organic is projected to grow over 10%, both in the U.S. and in Europe over the next four to five years. We have seen rapid growth. You will see the rapid growth that we have had in our business. We really like the organic foods market. Fair trade foods are becoming more important as younger consumers today really care about where their food came from, and how it got to them, and how people were treated in the process. So having fair trade certified foods is also important. And so those are the two categories that we are focused on. Our overarching umbrella is that healthy living and healthy eating is not going away, and it is a key long-term shift in consumer sentiment, and we believe we are well-positioned to do that. Before we get into what we do, I always like to reflect back on the leaves that are in our logo. They really mean something to us. They are part of our guiding principles. We are focused on healthy foods, we are focused on sustainable foods, and we are focused on creating value in our value chain with our growers and grower partners, our suppliers that help us get the food to market, our customers, and then our team and our shareholders. So we are about creating value throughout the entire value chain, which is really important to us. And so those leaves really do mean something to us. We will get into the details here, but we have an integrated farm-to-shelf platform. We connect product that grows around the world with retail markets around the world, and our job is to bring that all together. And we control every step in that process. We like to say we have a capital-efficient model. We don't own all the farms, and we don't own the retail stores, but that doesn't mean that we don't have a lot invested in the supply chains. It's unfair to refer to us as asset light. We prefer capital-efficient. We'll get into that a bit more. Today, we go to market in Europe. Yes, we're a Canadian company going to market in Europe. We'll get into that a little bit. We go to market in 16 countries in Europe today, and we deal with top retailers in the European market. When we talk about the retailers, they're the big retailers that we're familiar with here in Canada. We're in high growth markets. We're at a real neat inflection point in that we repositioned the business three years ago, and we're exactly where we wanted to be as we look to the future. We've got a proven leadership team with lots of experience here in organic and fair trade foods. A little bit about what we do. We deal with growers, primarily in South America, Latin America, in Africa. A lot of these growers, other than our own growing operations, are small holder growers. They don't have the capability to get their product to market. On the other end of our platform, we deal with retailers in Europe. We'll talk about those retailers. They don't have the wherewithal to connect back to a lot of these smaller type growers that are out there. Our job is to bring those two together and control every step in the process. Our growers are the heartbeat of our organization. They are really, really important to us. We like to say we follow the sun around the globe because our retailers want the product consistently, and they don't want to have to worry about where it's coming from. Our job is to make sure that we provide that product to growers on a year-round basis, and we'll talk about that. We'll talk a little bit more about the retailers and how they're partners of ours. To dive into what we do a little bit, once the product has been grown, we buy it, we own it, and we're responsible for the entire supply chain from there through to when it's delivered to the retailer. We're responsible for all the cold chain. We're responsible to all the customs entry work that needs to be done. We brand it, we label it, we put it into the type of product that the retailers want. By the way, retailers all are looking for something a little bit different. One of our core products are organic and fair trade bananas. That sounds really simple, but we have 56 different SKUs of organic and fair trade bananas, depending on how a retailer wants it. They want a six bunch, an eight bunch. They want them this long. They want it at this level of ripening. We do all of that work for the retailers when it comes to bananas in general. We purchase the inventory outright, we own it throughout the entire life cycle, and we own it until it's finally delivered to the retailers. We're responsible for all the traceability, the product integrity, the certifications, all that goes into getting that product. Once organic ginger is available in Peru, it is our job to get it onto the shelf at a retailer in France or Germany or Denmark or wherever it might be going. Today, as I mentioned, we go to market in 16 countries in Europe. Our core products are organic banana and fair trade banana, ginger, mango, and blueberry. If we went back four years ago, because we repositioned this business about three years ago, we had over 20 SKUs, 20 products. But what we found out when we repositioned the business was that we were providing a nice service to a lot of retailers for no money, and a lot of those products have been removed from our portfolio, and we have really been focused on the core. We will continue to add. You will see us add a product here in the fourth quarter of this year, but it is very selective as to how we are growing the portfolio. We deal with about 20 major retailers in Europe. We deal with the number one and two retailers in Germany, France, and in Austria, and the number one and three retailers in Denmark. Question? The products are, do you think of them as kind of 80/20 bananas and mangos, or Yeah Is it more evenly split among those six? Yeah. The question, for those that are online, was how does the product portfolio split? Yes, 80/20 would be mango, and then the other products are lower volumes. Yeah. When we repositioned the business, and I don't want to go back through the history, but in 2024, we repositioned the business. We sold off a bunch of units. We streamlined. Our goal was we got to get to EBITDA positive as fast as humanly possible, and one of our decisions was to focus on products where we really had a strategic difference, and that was some of the lower-margin products. By design today, we're EBITDA positive with lower margins, and we're starting to move up that margin chain now. Yeah. In our prior life, we were building brands and spending, and so our top line was growing, and our bottom line wasn't coming with us, and that only works for so long, so we decided time to change, and so we did. Another question? I see, but I had thought that avocados were the majority of the business, and this didn't map onto the retail end of I AM Organic. I AM Organic. I AM Organic, yes. The question was, years ago, avocado was a much bigger part of your portfolio, and Alan, yes, it was. Yeah. Over time, margins in avocado got tougher and tougher. Okay. We've de-emphasized. We still have them in our portfolio, but it's not where we're spending all of our time, and hopefully the dynamics will change. In ag, what happens is product is short, so margins are good, and then all the growers plant everything, and they get their trees up and running, and now you're oversupplied for a while the market catches up. Strategically, we like avocado, but we're all about making the most money we can. Sorry, another question? You said 80% banana? Banana and mango. The largest part of the portfolio is banana and mango. Ginger's growing quite rapidly as well. These are all fresh products, so when you go to Loblaws and you see the organic and fair trade bananas, that's the product that we're putting onto the shelf in Europe. Sorry, there's another question? What's your average markup on what's the markup on that product? What is the basic, the easy shipping cost? Yeah. The question was, what are our average markups and what are our margins? It really depends on the product, first off. Bananas, as an example, will have a markup of 8%, 9% sort of thing, for a gross margin of around 8%. Other products are much higher. It depends on the particular product, and we will show you some of the numbers in a minute. One of the things that we are most proud of is how we have managed the supply chain this year. You will see our margins have been pretty good, given what is going on out there. It is a bit of a crazy world we are living in these days. Diesel is bouncing around like there is no tomorrow. Currencies are bouncing around. We hedge currency as much as we can. We have not traditionally hedged some of the bunker fuels and those sort of things, which we are starting to do now. We have managed really carefully, and it has been a partnership between growers and retailers. We have all had to do the best we can in really crazy, tumultuous times. I have been in the food business, sort of embarrassed to admit, 43 years now, and this is about as wild a set of geopolitical factors. COVID was tough, and then the wars started, so it is crazy. We are really proud that you will see in our numbers, our gross margins have grown faster than our margins. Pardon me, faster than our sales. A lot of companies have not been able to do that, and it is a tribute to our team that we have been able to manage the margins. We will get to that in a second. This is a little overview. Today, we have three offices in Europe, so we have operational offices in the Netherlands, in Spain, and in Munich, Germany. We have about 30 people in the company. Well over two-thirds are based in Europe today. We have a pretty diverse network. We go to market in 16 different countries. I like to tell people there is not a day that goes by where there are not ships on the water, multiple ships on the water, moving product from our sourcing locations to ports. We bring product into six ports in Europe. We start from over 20 ports around the globe as we bring the product to Europe. We have a lot of service providers that are core partners that we deal with. You will note that we note on here that North America is a future expansion opportunity. We are keenly interested in moving this model into North America. We believe we can add value in the North American market. Do not have anything to tell you today other than that it is an area that we really want to go to. For me, it will be a lot easier to explain to you that we are at Loblaws and at Metro than tell you we are at Carrefour, EDEKA, and Intermarché. Over time, we would like to come to North America. We believe we would be one of the only public companies focused on organic and fair trade foods on both sides of the ocean. We really like that opportunity and will continue to move forward. We spoke about this a little bit earlier, but our goal was to get EBITDA positive and beyond, and then start moving up the value chain. This is really the ladder that we are going to climb. We are in the current model at the bottom, which is lower margin, higher volume products. We're now starting into the higher margin products. Ginger is a higher margin product. Blueberries is a higher margin product. We'll start to move into those categories. Then we want to move into non-fresh. Non-fresh are seeds, nuts, and oils, same type of thing. We had lots of experience doing that when we were at SunOpta. There's a number of us on the team that were at SunOpta and were part of building SunOpta. We're going to do that again here with non-fresh, and then also into value add. If you think about bananas, converting bananas that don't come to market into organic banana purees for things like baby foods, et cetera. That's all part of the margin journey that we're on. But we're not starting on the margin journey until we're paying our own bills. We're doing that now, so now it's time to move with the journey. How have we been doing? These are the first half results. Our third quarter will be issued in two to three weeks, depending on when the auditors get through their review. But we've had a very successful first half. First, when we take a look at the numbers, our first half sales were $53.3 million. That trend will continue into Q3 and Q4. We're running at over $100 million in revenue now. Sales have been up 73% in the first half. As I mentioned earlier, margin's up 108%, so we're really, really proud of that. That was not easy, and I think the team's doing a really good job, and we're seeing that continue as well. Our cash overhead costs continue to decline as a percentage of sales, which is really important. We were EBITDA positive in the quarter, 500 versus about 200 negative in the prior year, and you'll see that continue as well as we move through the year. I have details on these. The balance sheet is in good shape. We have a cash position. We have no long-term debt, positive working capital, positive equity, so we're really pleased with the balance sheet. We find ourself in a good position where the business is growing. Just on how the business has evolved, in 2023, before we did the repositioning, we did $14 million in revenue. In 2024, we did $21 million. Last year, we did $61 million. This year, we've done $53 million in the first half, so we're trending over 100. Not guidance, but we're probably in the 130-140 range without any sort of strategic changes to the business going forward. During the first half of the year, how did we drive that growth? We added six new growers that were significant to us. We added eight new retailers. We moved into three new countries, so Switzerland, the Ukraine, and Spain were countries that we weren't serving. We moved in there. We added a number of new sea carriers as we're going to new ports. We never went to Spanish ports before. Now we're going into Spanish ports. We've expanded the platform. We made a key addition to our leadership team in June when Darryl Bergman joined the team. Darryl, a number of you might know him, he used to be the CFO of High Liner, and he has worked in the foods industry for quite a while, and also in other industries. Lots of public company experience, and specifically public company growth experience. I like to tell people, you can work in a company that you are maintaining, and then you can work in a company that is growing. They are two different jobs altogether. In growing companies, every day is a new day, and we are really excited by that. As I mentioned as well, we have been developing our strategic pipeline. I was the CEO of SunOpta back in my time. We consolidated the natural and organic plant-based industry a significant amount. At the time, the industry was quite fragmented. It is really interesting, 25 years later, it is still pretty fragmented. There are lots of opportunities to bolt some pieces on, and we are pretty excited by that. These are the numbers. John has copies of the presentation. This is also online, but if you want a copy, this shows the sales up 73%, margins up 108%. Cash overhead is coming down, and EBITDA trending where we wanted it to be. This is a little shot of the balance sheet with no long-term debt and positive equity. We have an operating line with Rabobank. They are one of the largest ag lenders in Europe. We have an operating line with them. We expanded it during the first half from EUR 4 million- EUR 7 million, so about an $11 million operating line. We are not using it all. But we have it, and we are pleased to be partnered with Rabobank. We have 190 million shares outstanding. On October 1st, our market cap was around $100 million. I think we are down probably in the $65 million-$70 million range at the moment. About 20% of the company is held by management and board, so we have got a real stake in the game. Back when we were repositioning the company, the board and a number of senior leaders, we did not take compensation or anything. We got this business turned around. So we all have equity stakes, so we are really committed to the long-term growth of the business. As we look out a little bit, really three phases to our growth. We are going to continue to scale the platform that we have. We see good growth opportunities. We were recently at a large trade show in Spain where numerous opportunities are on the table, so we expect to continue to grow and scale the base platform. On top of that, we are looking to move into new geographies, both with our own, just move into new geographies, take on new countries, and add new products. On top of that, really get at the M&A here, where it makes sense to find some synergistic and non-dilutive opportunities that we can continue to grow the business. We believe we can build a billion-dollar revenue platform here. It will take a little bit of time, but that is what we are all working on, and we believe there is a great opportunity. That is all based on the fact that healthy eating and living is growing. If you do a nice job in the category, you have opportunities to grow, which we are quite excited about. I mentioned I serve as CEO and Co-Chair. Darryl Bergman joined us. He is President of the company. Bob Kouw is our COO. If you saw a press release yesterday, we reorganized earlier in the year. Bob Kouw has been really focused on M&A. He is going to transition off the leadership team to a strategic advisor role and continue to help us with our M&A, so we are excited by that. Ralf Langner is our CFO based in Vancouver, and then Alex, Gian, and Anna-Chris are operators, and they are all based in Europe. We have a good team of some people that have been around a long time, like me, and a bunch of other folks that are really passionate and new to the industry. We have a great team in place. We have a strong board. I do want to point out a couple of people that are on the board. Joe Riz is on the board. He was a founding director of SunOpta and also was COO for a period of time. Joe has been in and around growth stories like this. Chad Hagen joined the board in January of this year. Chad had been the Chief Commercial Officer for SunOpta. As we look to grow in North America, Chad brings that Rolodex of he knows who is doing what in North America, so he will be a big help for us, and we are excited by that. Just to wrap up, and I can take any more questions, we really run an end-to-end integrated ecosystem where we are connecting growers and grower partners with retailers, which is really, really important. It is a capital-efficient model, so we do not have to invest in all of the farms, and we do not have to invest in the bricks and mortar for the retailers. We can utilize supply chain partners with those capabilities. It is capital-efficient. We have lots of receivables. We have lots of inventory. It is not like we are asset light, but it is more capital-efficient than having to own all that. We are trusted by some of Europe's largest retailers, so the Loblaws and the Metros and the Sobeys and the Whole Foods, those are the people that we are dealing with in Europe. Hopefully, the next time we chat, I can tell you that we are also dealing with some of those people that I just mentioned, but that would be great. The markets are growing. We really are excited about what we can do longer term as we build out the platform. I think we have a great team in place to make it happen. With that, I hope I left a little bit of time for more questions. Hi. Thanks for the presentation. Thanks. Given that you are dealing with major supermarkets, you indicate that major supermarkets in Europe are your clients, and it is not uncommon that they enforce 60- to 90-day payment terms. Yep. How would you allay my concern that as your sales continue to grow to, let us say, to EUR 5 million, I personally believe that cash flow from operations could turn significantly negative. How would you allay my concern? Yeah. So the question was, as you grow the business, retailers want 60-day, 90-day terms, and how do you manage that as the business grows? Yeah. So a couple of things. One is, in the fresh produce side of the business, terms do not go out 60 days, 90 days. And that is just because this stuff is fresh, and everybody is on a clock. From the minute a banana gets picked in the Dominican Republic to when we get it on the shelf, the clock is ticking. So normally, our days sales outstanding are 31 and a half. 31 and a half, 32 days. That is kind of the norm. And retailers, depending on how much swing they have, are paying in the 16 days- 35 days, kind of 38-day category. So we do not look at those extended terms that you look at in products that have longer shelf life. That's one, it's not a major impact. The second, while not part of your question, is how we pay the growers. Growers don't get paid for the full amount of the product when it gets on the boat. We take ownership of it, and depending on the grower, there's terms as to when they get paid, and they won't probably be paid the last part of that shipment until we've sold the product and know what the final quality was. We have to invest in working capital. As a general rule, 15% of sales is invested back into working capital, give or take a little bit. When we look out, we think that's very manageable. Sorry, Alan. How many people will be A company like Carrefour buying from you, they're a small part of their sales. They're going to be buying other products from other people for shipping. What would stop them? I don't know if they are in the shipping business or only in the retail grocery business. What would stop somebody from your sellers from doing something like that? The question was, for big retailers- They're- You're not the only supplier that they have, and what stops them from just doing it themselves and taking you out of the mix? Alan, on big, large commodities, they do go direct. Any of those big retailers, they can load up 10, 15, 20, 30 containers of tomatoes, and they can go directly to a grower that's got 20 or 30 containers, and they can make that work. In this particular case, this is still 7%-8% of the overall bigger piece of the pie. This comes with a lot more certifications, a lot more diligence, a lot more quality issues that need to be managed because it's in the niche, and that's where we bring the value. Inevitably, they could. Most retailers don't want to. They're retailers, and they need us. They want us to go do that lift for them. I guess they could, but we don't see that at this stage. Am I out of time? Thanks a lot for joining us today, and look forward to seeing you over the next few days.