Good afternoon, and thank you for joining us on Acomo's first investor and analyst call. As presented at the annual general meeting of shareholders in April, we will more frequently engage with our investors and analysts. In today's call, the result of the first six months of 2024 will be covered. This morning, the H1 2024 earnings press release was issued and was published on the Acomo website. This call is a webcast, and its transcription will be made available on the company's website. Please note that this call may contain forward-looking statements. These statements do not, however, guarantee future performance, and therefore no reliance can be placed upon them. The company undertakes no obligation to publicly correct or update any forward-looking statement made during today's call, except as may be required under the applicable securities laws. Today's agenda will cover several topics. I will start with the overall performance of the group, after which the results of the individual segments will be discussed. As ESG is an important building block of our strategy, I will explain what we have done in this respect. After that, some strategic initiatives will be presented and explained how these relate to the strategy as presented during our last AGM in April. Finally, I will elaborate on two important organizational developments, after which you will have the opportunity to ask questions. The Q&A process will be channeled through a moderator. You are invited to submit your questions during or after the presentation using the mail functionality. Analysts will be allowed to raise questions verbally via phone during the Q&A session. The headlines of H1 2024, as mentioned in the press release, are the excellent performance of the spices and nuts segment and the continued impact of the cocoa market prices on the organic segment results. I will cover these topics in more detail later in the presentation. The consolidated sales in the first six months were EUR 668 million and were stable versus prior year. Volume and revenue increased for the spices and nuts segment, as well as for our tea business. The edible seeds and organic segments reported somewhat lower volumes. The gross margin was healthy, which underlines the robustness of our portfolio and our value-added services. The G&A expenses increased due to higher labor costs, especially in North America. The EBITDA is with EUR 41 million, 9% below prior year. The results from our organic cocoa business account for more than 100% of the reduction in EBITDA. Financial expenses increased slightly despite lower working capital usage due to a changed currency mix compared to the first six months of 2023. The operational cash flow was below the cash generated in the first half of last year. After a long period of high cash flows due to a reduction in working capital, the cash flow changed due to a slight increase in working capital over the last few months. The current working capital level is, however, still below the first half of last year. During the last two years, our working capital decreased significantly. This was mainly driven by inventory volume reductions. Besides volumes, the inventory value on the balance sheet is also impacted by the purchase price development of our products. Higher prices result in higher values, which for a number of our products is the case. Our inventory levels play also an important role in our commercial policy. We have long and short positions based on our expectation of market developments and, for example, supply chain disruptions. Working capital remains an important area of attention. However, as stated, it is also an important instrument of our commercial policy. When looking at the ratios per the end of June, it shows that the solvency ratio is very solid, with 54%. The equity per share increased to EUR 13.89, and the leverage ratio slightly increased due to the EBITDA development. The headroom in our financing facility is large and provides sufficient availability of funds for growth. Based on the underlying performance and the financial fundamentals of the group, the board has decided to set the interim dividend at EUR 0.40 per share, which is equal to the interim dividend of 2023. To take a closer look at what the underlying performance of the group drives, I will now discuss the individual segments. I will first start with the cocoa market situation, as it continued to impact the first six months' performance. As presented during our last AGM, cocoa is an important product group for Tradin Organic and for the group. The graph on this slide shows the cocoa market price development during 2023 and the first six months of 2024. During 2023, the cocoa prices increased in a straight line by more than 60%. That impacted materially market behavior and the financial results. The first four months of 2024, the situation became even more extreme, and the price development accelerated very fast, leading to an unprecedented level of $11,000 per ton. Since then, there is a downward trend, but now the volatility is extreme. We see market changes of more than 10%, plus and minus, in a single day, showing the high uncertainty in the market about crop development and expected bean processing volumes. As the levels change materially per day, it is difficult to manage and time correctly. The measures taken have reduced our exposure and have shortened the timing between purchase and sales. But with the set volatility, the environment is very challenging. Defaults at the supplier side still exist and impact the availability of beans. Organic ingredients reported a lower result versus prior year. This reduction was for more than 100%, contributable to the cocoa results. As presented on the previous slide, the price developments have been and still are extreme. It should be noted that actual margins on physical sales reflect the high price levels, but that the availability of beans and the timing of sales have an impact on the reported results. During the AGM, we said that the higher margins will offset a major part of the losses of the hedges during 2024. We also indicated that it was impossible to predict how much would be reported in the first half of 2024 and how much in the second half of the year. Based on what we know today, we do not have a different view. Having said that, if the extreme price volatility continues, the full year result cannot be predicted. The other product groups are generally picking up, with good performance of North American Fruit and Vegetable Desk, as well as the premium juices business. Furthermore, I am very happy that Floris Wesseling will start per the 1st of September as the new CEO of Tradin Organic, after an extensive search process. I will come back to this at the end of the presentation. Our spices and nuts business performed again very strong. I am very happy that this is applicable to all our companies in this segment. Both sales and margins increased, which shows the strength of the business, how professional our teams are, and how attractive this segment is for us. Therefore, I am pleased that we reached an agreement with Caldic on the acquisition of their nuts and dried fruits business in Northern Europe. I will discuss this in more detail later in the presentation. Edible seeds had a slow start of the year in the U.S. Overall, the North American business sold lower volumes, but the performance of the individual lines of business differed. The wildlife business, which sells bird food and backyard poultry products, was impacted by a warm winter, which led to lower demand and consequently lower volumes. This was a market-broad development. Versus last year, our market share remained similar, and margins were at comparable levels. The export of sunflower products to Europe was substantially lower due to non-competitive pricing for U.S.-grown products. The contract manufacturing volumes increased, showing our value add to our CPG customers, resulting in increased demand. Our SunButter brand, which is a healthy and free-from alternative to peanut butter, reported increased sales and margins and benefited from the launch of Jammers, which is a frozen SunButter jelly sandwich. European seeds business improved their performance through increased sales and profits due to an extended and broader product portfolio. Royal Van Rees, our tea business, achieved higher volumes and sales. Margins were slightly lower due to market price developments. Geopolitical and economic developments continue to have an impact on Van Rees. The unpredictability in ocean freight routes, with the tension in the Red Sea, as well as freight rates, have a negative impact. The North American business that works closely with a number of customers performed very well and continues to develop positively. Although food solutions saw declining volumes of distribution products, the focus is on dry and wet blends, and the volumes of these product groups increased. Consequently, the margin increased because of the higher value-add component of these product groups. For wet blends, we are reaching maximum capacity, and we are making investments in this area, which I will explain in a minute. ESG is important to us, and in this area, there are a number of internal and external developments. As from the reporting year 2024, Acomo has to report on ESG items in accordance with the Corporate Sustainability Reporting Directive, called CSRD, which is part of the European Green Deal. In relation to the CSRD requirements, we performed the double materiality and gap assessment. This resulted in applicable ESRS standards and for our business relevant metrics. We are in the process of taking the necessary steps to collect data, compile information, draft disclosures, and secure limited assurance on the sustainability statements. Last year, we also set targets to be achieved by 2030 and implemented initiatives helping us to progress on our route to these ambitions. The first set of targets were partly included as the sustainability component of the financing agreement and serve as a basis for further target setting on the material sustainability topics. Besides CSRD, another EU directive will become applicable for Acomo. This is the Corporate Sustainability Due Diligence Directive, called CSDDD. To prepare ourselves, we have started the usage of the Sedex methodology and data for all Acomo companies. Greenhouse gas emissions are an important indicator for measuring the environmental impact. In H1, we further reduced our Scope 1 and 2 emissions through energy reduction initiatives, purchase of renewable electricity, and installation of solar panels. Furthermore, we launched the Scope 3 calculation project within the group. As said, Acomo has a sustainability improvement loan as part of the group financing facility. Acomo achieved three out of four targets in relation to this loan for 2023, resulting in a reduction of the charged interest rates. Now, I would like to share with you two strategic initiatives which are in line with the strategy as presented during our last AGM. On the 1st of July, we announced that we have reached an agreement with Caldic on the acquisition of their nuts and dried fruits business in the Nordics. This business is based in Malmö, Sweden, and is active in the food service and retail channels in Sweden, Norway, and Denmark. The company has its own processing and packing facility and employs 28 FTE. The turnover is around EUR 20 million. The rationale for this acquisition is twofold. Firstly, during the AGM, we said that the spices and nuts segment is core to us, and we want to further grow in this area. We have expertise and skill, and the market characteristics are attractive to us. Secondly, the Caldic business is well positioned in a geographical market where we had no physical presence so far, in which we currently serve via export. In addition, we know the company well, as we have supplied them with both conventional as well as organic products in the past. We will bring the business under management of Delinuts and will rename the company into Delinuts Nordics. The profile of the Caldic business perfectly fits the structure of Delinuts, and the sales channels are similar. We believe we can leverage the portfolio and the capability from all our Acomo companies, both conventional as well as organic, and combine this with the expertise and knowledge of our new Swedish colleagues. Finalization of the acquisition is subject to approval of the Swedish authorities, and the transaction is expected to close in Q3. Another strategic initiative is the capacity expansion for the production of wet blends by our food solutions business, Snick Euro Ingredients. Snick operates three different lines of business: the distribution and trading of ingredients, the production and sales of dry blends, and the production and sales of wet blends. The wet blends production is reaching maximum capacity, and for further growth, we need to expand. We believe expansion is justified as the margins and returns of our food solutions business are attractive, and we see opportunities for further growth. For the expansion, we have rented a building in Oostende, Belgium, not far from our existing facility. The building suits our blends very well and will house both wet blends production as well as storage of products. We expect that production will start early 2025. Besides the strategic initiatives, we made two important steps in relation to the organization. I am very pleased that two key vacancies will be filled shortly. Firstly, our new Acomo Group CFO, Mirjam van Thiel, will start per the 1st of October. Mirjam is currently Finance Director America for FrieslandCampina, where she has worked since 2015. She also was Finance Director Malaysia and Finance Director for the Philippines. From 2002 to 2015, she worked for Kraft Heinz in various senior finance positions in the Netherlands, France, Indonesia, and Australia. She has broad international and business experience, which is very relevant to us. She also proved to be successful in different settings, and her experience will be an asset to our group. Secondly, Floris Wesseling will start as new CEO of Tradin Organic per the 1st of September. With over 20 years of experience in the food industry, Floris has a successful track record across various geographies and product categories. He held roles with full P&L responsibility for a major part of his career and developed a broad management skill set. Floris is a purpose-driven leader and a true globalist, with a firm belief that business can be a force for good. He is therefore a very good fit for Tradin Organic and will develop the organic value add concept and the organization further. As I have now covered all topics of the agenda, we now open the call for questions. The moderator will coordinate the process. Thank you. Okay, are there people who want to ask a question? You can do it via the message box. Okay, the first question is: Does Acomo have any plans for buyback shares in the short term or medium term? Acomo has no such plans, as we have discussed before during AGMs, that buyback of shares is not something we consider as an option for the shorter term. We like to expand our business, and buying back shares is not part of our strategy. Okay, another one is: Can I explain the hedging mechanism on the cocoa? Well, obviously, this is something which is close to our heart, as you can imagine, given the developments in the cocoa market. We tried to explain that a little bit more in detail during the AGM. In essence, what we do is, as soon as we have an obligation to purchase, so we have a purchase contract, we enter into a hedging contract to sell the product for a similar price. As soon as we have the sales contract, we close our hedging contract, and then we lock in the margins we make on the sales. In essence, that's the way how it works. It's a standard mechanism in the market, and the way how we use our hedging is not dissimilar to what other companies are doing in the market. Historically, it has proven to be a very successful instrument to hedge and to mitigate the risk connected to cocoa. What we have seen in the market development during both 2023 as well as 2024, there was, in some cases, a mismatch between the lapsing of the hedge and the time of the sale. We have taken measures during 2023 to make that much closer, to reduce the number of hedge contracts, and that's basically where we are now. So we have a very close monitoring of our hedge contracts and the positions that we have. Okay, Reg, you are on the call. You like to ask a question. Reg is an analyst from the ING. Reg? Yes. Good afternoon. Thank you for the opportunity to ask the call. I guess it does relate to the hedge. I think what would be helpful is if you could provide us with more details of how much of an impact that hedge is having. I know you've given us some of the guidance that more than 100% of the EBITDA loss in organic is coming from that hedge. But if you could quantify it, that would be really helpful because I think what we would need to see is a trajectory where we see a diminution of this hedge impact over time. And you've given some sort of range, but perhaps you could give us more granularity. Yeah, no, that's fine, Reg. I understand. The impact, so the decline or the change in EBITDA that you see at the organic segment, like I said, it's for more than 100%. It's a little bit more than 100%. So it gives you an indication of, in absolute terms, what the amount is. So it's a little bit over 100%. What we have seen is that, and if you recall the price graph that I've shown during this call, you've seen that the market has changed. So what we have seen is that the cocoa results have improved during the first half of year. Having said that, again, it's very difficult to predict where we will end at the end of the year, but we see a positive trajectory in recent months. But again, difficult to predict how it will develop in the course of the year, given the extreme volatility that we are facing in the market. But there is a downward trend, which is positive to our results. Okay, thank you. And then related to that, I don't think you've, if I've gone back to my notes to the Tradin acquisition itself, I don't think you've ever disclosed the percentage of sales that cocoa and juices represent. And my understanding is those are the only two commodities where you have hedging programs. Can you tell us what percentage of turnover is generated from those two businesses, please? Yeah, the cocoa business accounts for around 17% of the organic business and around 6% of the total Acomo business. The only businesses where we hedge are cocoa and coffee, so not in the juices business. But coffee is— Sorry, sorry. That's fine, Reg. No, but the coffee business is rather small, I would say. So there, we don't see a big impact of hedges and market development. So the cocoa is really the one that actually has a material impact. Okay. And then, I guess, strategically going forward, how do you view the long-term value added of being in the cocoa business? What's your thoughts on th at? Yeah, historically, and when we look at, let's say, the last 8-10 years, cocoa has been very, well, and let's say before 2023, cocoa has been a very attractive product group for Tradin. It has contributed substantially to the profits. The margins were very attractive. That's one. And the other thing is that cocoa is a product where we don't trade, per se, the beans, but we actually make a semi-finished product out of it. So we process, we have a plant in Middenmeer in the Netherlands where we process the beans and make butter, liquor, and powder out of it. So we do add value to the beans. And also, the organic certification is important in the cocoa market as well. So based on where we are today, we do believe it's also going forward. It will be part of the portfolio of Tradin. Okay, thank you. And I don't want to focus on the negative. I'd also like to focus on the positive as well. And clearly, a very strong performance in spices and nuts in the half. What's your expectation? How was that delivered? And how sustainable do you think this sort of rate of improvement is? Now, what we see is that the growth is actually coming both from a pricing perspective in the market as well as from a volume growth. If you look at the consumer trends in general, we see that the demand for nuts as being a plant-based protein is growing. We have scale, we have the expertise, and with the acquisition, obviously, of the Caldic business in the Nordics, we believe we are very well positioned for further growth in that area. If you look at the other product groups in spices and nuts, like spices and the tropical products, also there, we have the skill and the expertise, demand is growing. So yeah, we feel we can further develop that business. And what I said in the press release, which I really like a lot, is that the success of spices and nuts is not depending on a single company, but all companies in the segment performed very, very well. That's what I think is really a compliment to all the teams in the business that we have. So again, we feel we have a good future there, and we have a reason to play, and we will. Okay, great. But do you think that performance can be sustained? I'm just trying to get a feel for whether this is just a great half where everything just went right for you, or whether there's something in there that's really driving it that we don't see from the outside at the sort of 30,000 feet level. No, if you take a step back and you look at the results, how they have developed over the last five to six years, you actually see an upward trend. And yes, it's not per se a straight line, but in general, there is a strong increase in margins and in volumes. So yeah, I believe we can further continue, again, to develop. It won't be a straight line. It never is, right? But we see a lot of opportunities to further develop the business. Okay, great. That's really helpful. Thank you very much. Okay, thanks, Reg. Okay, we have a few other questions. One is, do we want to do more acquisitions? Yes. What we have presented at the AGM regarding the strategic direction of the company and where we want to focus upon, we said that we like to further grow in spices and nuts. And as I also said during today's call, we want to further invest in edible seeds, especially in the U.S. And in food solutions, we want to further invest as well. And that may be investments in capabilities and in equipment, and that may be investments through acquisitions. So yes, we want to continue, and we will continue to look further at acquisition, especially in those three areas. One of the other questions is more generally, you are talking about capacity expansion for Snick, what are the payback criteria and CapEx plans? Well, what we will do for Snick, so that's our food solutions business. We want to expand further because, especially in the dry and the wet blends, because that's where we have our IP, that's where we make our own blends. We own the solutions. We have customer intimacy, so we help our customers to develop their products based on the blends that we supply them. Those processes are always longer-term processes. It's not that you go in tomorrow or today and you sell your products tomorrow. Sometimes you develop concepts and products in cooperations with your customers. So it's a long-term investment. It's a very sticky business. Will we expand further in CapEx? We may, but we take one step at a time. We will keep track on the investments that we make and the corresponding increase of the business. The payback criteria that we use, well, you may have noticed that the returns on capital investment in food solutions is by far the best, let's say, in our entire portfolio. So you can imagine that also here, we believe that we will generate attractive returns with these investments. Okay, we have Patrick from Kepler on the call as well. So Patrick, can I invite you? Yes, Allard, good afternoon. Couple of questions from my side. So I'm still a bit puzzled with regard to what you indicated on cocoa, albeit that I was distracted here for a second. So the indications you gave for organic ingredients at the AGM, if I'm right, were before cocoa prices start to decline, albeit on a very volatile pattern. So to what extent are they still valid? And then related to that, you just indicated that the downward trend in Q2 in prices is positive for Acomo. So is it possible to break down, let's say, the half-year EBITDA loss around EUR 6 million, break it down for Q1 and Q2? Well, first, during the AGM, we were indeed at the high end. So we were at the $11,000 a ton during the AGM. Since then, we have seen a downward trend, indeed. For us, it's the most important thing that it stabilizes. So a downward trend in itself is fine, but, well, like I've shown, the changes on a daily basis are extreme. So they still can impact financial results because it's the timing when you eliminate or when you make your sales contract and when you settle your hedge contract. So that's difficult to predict. So for me, stability is actually the best, preferably on a lower level. That's also obvious because high cocoa prices have an impact on consumer behavior in the end, for sure. So the lower, the better. That's clear. A breakdown between Q1 and Q2, I have to say that Q2 has been much better than Q1. That's for sure. But again, it's difficult to say that it's also there. The decline is not a straight line. So the impact for Q3 and Q4 can be different, and we will see how that will develop. Overall, like I said during the presentation for the slides, it's what we've stated at the AGM that overall for cocoa, we believe we will make up for the majority of the losses during 2024. We still believe that that will be the case. Having said that, there is no guarantee, obviously, due to the fact that it's very difficult to predict how the actual price development will be and what the impact of the volatility will be. By making up for the losses, yeah. Yeah? No, go ahead. No, and for making up for the losses reported in H1, you mean the losses made in H1? Or do you mean, let's say, the full decline also seen in 2023? No, no, no, no, no. No, no, no. I talk about 2024, so not about making up for 2023. Yes. Okay. Are you requiring clients to pay a premium in these times of such a strong price volatility in cocoa? Yes. Yes. The margins we make on the physical sales, they do reflect the actual current high market prices. So yes. And obviously, we do need that to offset the hedge results. Yeah. All right. Okay, that's very helpful. I had a question on edible seeds. Yeah, this division had some strong years, while, let's say, in the first half, EBITDA was down substantially. Do you consider this kind of part of a normal cycle because results in edible seeds have been volatile some years ago? And the second one on edible seeds is what could the rationalization optimization bring in terms of cost savings in time? Yeah, if you look at edible seeds, and then predominantly, let's say, what you refer to is the American business, yes, it has been always impacted by, let's say, weather conditions, especially in the wildlife products. What I've said is that this was a market-broad development. So in general, if, let's say, we have normal winters, then it's not a structural change in our business. So having said that, for the rest, yes, we do rationalize. And what we said and announced before is that we have closed one of our plants in Texas. So that will lead to a more efficient production, and that will be phased in over time. So that's mainly related to the contract manufacturing business, which we want to make more efficient, and we are seeking to expand the volumes there as well. So all in all, we do continue to further develop the business in the U.S. as well as in Europe. And so yeah, I have no reason to believe that there's a structural change and that the first half year is a signal of a structural change. Yeah. And any qualification to, let's say, the rationalization optimization would bring in EBITDA in time? No, it is a decent amount. But as you can imagine, with contract manufacturing, you always have a negotiation position with your customers. Those are long-term contracts that we establish. But it will generate some savings. But yeah, let's say it won't materially change the trajectory of the edible seeds segment. All right, Allard. That's very helpful. Thank you very much. Okay, thanks. Thanks, Patrick. Okay, one of the things is, can you comment on the multiples paid for Caldic? Well, the current multiples, the multiples that we pay for these types of acquisitions are single-digit. I think what we paid for the Caldic acquisition is market conform. And yeah, we didn't disclose all the details. But what I can say, we did disclose the turnover, and the margins that this business makes is very similar to the margins of our current spices and nuts business. Okay, one of the other things is your capital allocation strategy may include future divestments in some of our common segments. Well, currently, we are not considering any divestments. As stated during the AGM, we alluded to what our strategic direction is for the individual segments that we have. And that's our strategic direction that we stick to. One of the other questions you outlined is growth through contract manufacturing. Is it led by competitors having capacity constraints? Well, not per se, I would say. We believe we can further grow in contract manufacturing because we have skill and expertise. And obviously, in contract manufacturing, to be efficient and effective, you need to have skill and be a reliable partner. And for the CPG companies in the U.S., where we do do the contract manufacturing, reliability is very crucial. And we have proven to be a reliable supplier to them. And for some of them, actually, it's a certain rationalization internally within their own manufacturing footprint to more concentrate production, and that gives some opportunities for us. So that's, in essence, the main reason. One of the other questions, volatility within all food products is probably going to become a bigger issue because of global warming. So there will be issues like with the cocoa at the moment. How will Acomo manage to remain profitable with the future-changing environment? Well, I think one of the strong elements and assets of Acomo is that we have a lot of sources where we can supply. We have diverse sourcing. We source products across the globe. We have multiple opportunities to source our products. And we've seen actually examples of that during COVID-19, where in certain countries, there were lockdowns either at plants or in ports. And we've been able to deal very well with them. And actually, that is why some of our customers came back to us or former customers, because they sourced themselves in certain origins and found out that they were locked and then could not source the products. So they came to us. I think given the fact that we have changes in climate, we have the opportunity to change our sourcing, and we will do so. On top of that, if you look at projects, especially, for example, in our organic segment, where we are very close to our suppliers and the farmers, we help them to adapt to the changes in climate and have projects like irrigation and other projects to have a more sustainable yield and to deal with the changes in the climate. Okay, then I think we're going to end the call. So if there are people who have other questions or later have questions, please feel free to reach out. I thank you all for joining the call and hope to meet next time. Like I said before, we like to engage and to continue to engage with our analysts and our investors. Thank you for joining and talk to you next time. Thank you.