Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you provide more details on the new Natur-Tec wins and the sectors involved? A: Vineet Dalal, Vice President of Natur-Tec, explained that growth has been observed across all regions and market segments, particularly in Asia and North America. In North America, growth is driven by national distributors expanding through acquisitions, and there is increased demand for compostable products and cutlery resin. In India, growth is seen in apparel packaging and food service resins, with a major fast fashion brand adopting their materials.
Q: What trends are you seeing in the Zerust industrial market in Europe, particularly Germany? A: G. Patrick Lynch, CEO, noted that there are still headwinds in Europe, especially with the transition to electric vehicles affecting manufacturers like Volkswagen.
Q: What are your expectations for gross margins going forward? A: Matthew Wolsfeld, CFO, stated that gross margins will depend on the mix of business units. The industrial and Natur-Tec gross margins have stabilized, and the oil and gas business has a more favorable margin. He estimates that about half of the 500 basis point improvement in gross margin year-over-year was structural, with the rest due to mix.
Q: What are your growth expectations for the oil and gas sector in fiscal 2025? A: Wolsfeld expects significant growth in fiscal 2025, with anticipated growth rates of 20% to 30%. This is due to investments in new regions and existing and new customers. However, the business line will remain volatile due to the size and timing of opportunities.
Q: Can you provide an update on the certification for Zerust technology in the US? A: Wolsfeld mentioned that an API change is expected to take effect in late fiscal 2025, which could impact the adoption speed of VCIs in the US. This change is more about enhancing the credibility of VCIs in the preservation business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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