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Mosaic (NYSE: MOS)
Q3 2024 Earnings Call
Nov 12, 2024, 11:00 a.m. ET
Mosaic’s Q3 2024 Earnings Reveal Resilience Amid Challenges
Overview of Today’s Discussion
- Prepared Remarks
- Questions and Answers
- Call Participants
Opening Remarks from the Operator
Operator
Good morning, everyone, and welcome to The Mosaic Company’s third-quarter 2024 earnings conference call. All participants are currently in a listen-only mode. Following the prepared remarks, we will open the lines for your questions. [Operator instructions] Please also note that today’s event is being recorded.
I will now turn the floor over to Jason Tremblay. Please proceed.
Prepared Comments from Jason Tremblay
Jason Tremblay — Vice President, Enterprise Strategy and Business Support
Thank you, and welcome to our earnings call for the third quarter of 2024. We will begin with opening remarks from our President and CEO, Bruce Bodine, followed by a fireside chat and an opportunity for questions. Clint Freeland, our executive vice president and chief financial officer, will also be available, along with Jenny Wang, executive vice president in charge of commercial operations. Please note that we will be discussing forward-looking statements today.
These statements include projections regarding our financial and operational performance. Such forward-looking statements are based on management’s expectations and beliefs as of today, but actual outcomes may differ significantly due to various risks and uncertainties. For further information on these factors, please refer to our press release and the filings we’ve made with the Securities and Exchange Commission.
Updates on Financial Performance
Bruce Bodine — President and Chief Executive Officer
Good morning. Thank you for participating in our call. I want to start by recognizing the outstanding efforts of Mosaic’s team who helped us prepare for and recover from Hurricanes Francine, Helene, and Milton. I’m pleased to report that we avoided safety incidents and significant environmental harm during this period.
Despite facing personal challenges from the storms, our employees worked diligently to return operations to normal as quickly as possible. I am grateful for their commitment. Additionally, I have an important announcement: Clint Freeland will be retiring as our CFO at the end of this year. Clint has greatly improved our financial structure and capital allocation during his six years with us. We thank him for his leadership and wish him well in retirement. Luciano Siani Pires will join us as CFO Designate on November 18.
Financial Results and Strategic Outlook
Now, turning to our third-quarter performance, we experienced some setbacks from the storms as well as from electrical issues at our Esterhazy and Colonsay potash mines. Nonetheless, we have overcome these challenges.
In the third quarter, Mosaic reported $2.8 billion in revenue, resulting in net income of $122 million and adjusted EBITDA of $448 million. The decline in adjusted EBITDA was due to challenges linked to lower potash prices and a slow agriculture recovery in Brazil. However, ongoing strength in our phosphate business helped offset some losses.
We remain focused on controlling what we can, and we are optimistic about benefiting from recovering fertilizer market conditions. We expect our annual phosphate production to reach between 7.8 million and 8.2 million tons by year-end, following the completion of our planned maintenance activities later this month.
Cost Management Strategies and Future Projects
Regarding cost management, we are making good progress. We aim to achieve $150 million in annual savings by the end of 2025. Additionally, we are on track to realize a $200 million reduction in capital expenditures this year. Our Mosaic Biosciences division is experiencing growth, with our biological products now applied across 9 million acres globally.
Given our access to major markets and the strength of our brand, the Biosciences model is set for long-term growth, driven by new products and partnerships. Notably, this division largely self-funds its growth and does not depend heavily on external capital.
Capital Allocation Focus
Investing wisely in our core competencies remains essential. This year, we’ve wrapped up key projects at our low-cost Esterhazy mine and the MicroEssentials conversion at Riverview. Looking ahead, we will complete the Hydrofloat project at Esterhazy and the Palmeirante blend plant in Brazil next year. Additionally, we are reallocating capital for our MWSPC joint venture, which is valued at approximately 1.5 billion.
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Market Insights: Fertilizer Demand Boosted by Strong Agricultural Fundamentals
The financial outlook remains promising as we examine the company’s potash mine strategy in Carlsbad, New Mexico, alongside impressive shareholder returns this year, totaling $415 million which includes $210 million in share repurchases.
Current Market Conditions and Future Expectations
Recent months have seen a rise in corn and soybean prices, bouncing back from August’s lows. Other crop commodities such as palm oil, sugar, and coffee are also enjoying strong prices. North American farmers are meeting solid yields, which helps to offset lower commodity prices. An early harvest has also allowed for more fall field work, positively impacting the demand for fertilizers in the short term. In Brazil, ratios for corn and soybeans remain healthy.
Upcoming Trends in Ethanol Production and Biofuels
The corn barter ratio in Brazil is on the rise, indicating a favorable situation for the upcoming safrinha crop. Additionally, there has been a consistent increase in Brazilian corn being utilized for ethanol production, further bolstering corn prices. Over time, biofuels will continue to drive demand for grains and oilseeds, strengthening the long-term agricultural landscape. Notably, Indonesia plans to launch a B40 biodiesel program starting in January, which reflects the growing emphasis on biofuels.
Global Fertilizer Demand and Supply Situations
India’s latest ethanol mandate might push it towards becoming a net importer of corn, while Brazil’s new biofuel policy aims to gradually increase the use of soybean biodiesel in diesel fuel and adjust gasoline’s ethanol content.I worldwide fertilizer demand is exceptionally high this year due to the affordability of essential nutrients after years of reduced application. Farmers in various regions, particularly North America, are drawing more nutrients from the soil; this could lead to increased demand in 2025 as they work to replenish soil health.
Potash and Phosphate Market Analysis
The potash market appears well-balanced, with indications that prices have reached their lowest point as resistance to low offers emerges. Expectations point to near-record global shipments in 2024, with potentially higher numbers in 2025 driven largely by demand in Southeast Asia. In the phosphate sector, the market is trending strong due to ongoing global supply issues as China continues to limit phosphate exports. Projections for total Chinese exports in 2024 stand at around 7 million tons, a decrease from last year’s 7.9 million tons.
Company-Specific Segment Performance
The potash segment reported adjusted EBITDA of $180 million this quarter, down from $267 million the previous year. This decline is attributed to decreased prices and lost production due to electrical issues in Esterhazy and Colonsay, compounded by a Canadian rail strike that has since been resolved. The company anticipates potash sales volumes between 2.2 million to 2.4 million tons in the fourth quarter, with pricing expected to be between $200 and $220 per ton. To address potential shipping impacts from labor issues at Canadian ports, Canpotex has developed contingency plans.
As for the phosphorus segment, it generated adjusted EBITDA of $265 million, a rise from $201 million a year ago, owing to solid pre-hurricane production levels and strong margins. However, the production loss from Hurricane Milton of approximately 250,000 tons will affect fourth-quarter figures. The expected phosphate sales volumes are in the range of 1.6 million to 1.8 million tons, priced between $570 and $590 per ton.
Mosaic Fertilizantes reported $83 million in adjusted EBITDA, a fall from $147 million a year earlier. This decrease stems from $32 million in bad debt reserves linked to a customer bankruptcy and an additional $20 million set aside for legal matters. The company anticipates recovering most of the bad debt through insurance claims.
Looking Ahead: Optimism for 2025
Overall, the company is back to full operational capacity and is optimistic moving into 2025. Strong agricultural fundamentals signal a continued demand for fertilizers. The focus on refining the company’s portfolio while exploring opportunities in Mosaic Biosciences aligns with the goal of enhancing shareholder value.
Jason Tremblay — Vice President, Enterprise Strategy and Business Support
Thank you, Bruce. Before moving into the Q&A session, we want to clarify common investor queries raised during the quarter. Specifically, how do the current agriculture and fertilizer markets appear, and what are expectations for next year?
Bruce Bodine — President and Chief Executive Officer
Thank you, Jason. The fundamentals for agriculture are solid and fertilizers remain affordable, which supports continued demand. We anticipate tight phosphate supply conditions impacting the market well into next year, while the potash market appears stable. Now, I’ll pass over to Jenny for her insights.
Jenny Wang — Executive Vice President, Commercial
Thank you, Bruce. The strength in agricultural fundamentals continues for multiple crops. It’s essential to remember that only one-third of phosphate and potash is utilized in corn and soybean production. The prices for other agricultural commodities, particularly palm oil, sugar, and coffee, remain robust, indicating significant fertilizer demand growth this year.
Brazilian Corn and Soybean Fundamentals Show Signs of Growth
In Brazil, the domestic prices for corn and soybeans have recently gained a premium over international future prices. This shift is attributed to the devaluation of the Brazilian real and a surge in demand, particularly from the bioethanol sector. Sales of corn and soybeans have returned to last year’s levels, mirroring fertilizer purchases for both the safrinha corn and summer crop.
Turning our attention to biofuels, the recent government-approved fuel bill in Brazil indicates a promising change. The bill proposes to raise the biodiesel and bioethanol blending rate by 5%. This adjustment could lead to a substantial increase in the demand for corn and soybeans, with projections suggesting an additional 4 million tons of NPK fertilizer needs by 2032 if these blending rates are implemented.
In India, the landscape is shifting as the country has transitioned to a net importer of corn. The government’s investment plans aim to boost corn usage for ethanol production alongside sugarcane and rice, setting ambitious goals to reach an E25 blending target by 2030, following their current E20 target.
Now, looking at the phosphate and potash markets, phosphate supplies remain tight this year, a trend expected to persist into 2025 and beyond. Overall demand levels this year are comparable to 2023, hampered by supply constraints. Recent monsoons have exacerbated the situation, pushing demand beyond supply capabilities. Anticipated reduced shipments in 2024 due to adverse import conditions are likely to create a buildup in demand for 2025.
In North America, forecasts indicate a robust crop yield, with nutrient removal expected to increase by 4% to 5% compared to 2023. To address this, growers must replenish their soil nutrients. Although some growers have been cautious, recent yields and earlier harvests have created a more favorable outlook, boosting their interest in phosphate purchases.
Fertilizer conditions in Brazil are similarly tight. As the economic situation improves, we expect Brazilian fertilizer demand to continue rising in 2025. However, on the supply side, a lack of new supply is anticipated for 2024.
Chinese exports are constrained by strong domestic needs in both fertilizers and industrial applications. As of the end of Q3, the production of lithium iron phosphate (LFP) for electric vehicles surged by 51% to reach 1.8 million tons. The competition between agricultural needs and industrial demands has tightened the availability of phosphate rock, prompting China to increase its imports of phosphate rock to meet its requirements.
This dynamic is expected to continue into the next year, sustaining a very tight phosphate market. In terms of potash, there is a broad recovery in demand worldwide, particularly in Southeast Asia. The rise in palm oil prices and positive rice market conditions have bolstered potash demand in countries like Malaysia and Indonesia, which saw a 57% increase in input growth this year. We foresee global potash shipments rebounding to 2021’s record levels, with supplies from Russia and Belarus restoring to pre-war conditions. The market appears balanced globally with low prices encouraging further growth in demand by 2025.
Jason Tremblay — Vice President, Enterprise Strategy and Business Support
Next question: How do you foresee phosphate production levels in light of achieving your target run rate in the fourth quarter?
Bruce Bodine — President and Chief Executive Officer
We indeed anticipate reaching our target run rate by the end of this quarter. Our turnaround schedule, concluding in a few weeks, will facilitate this goal. Once we achieve the target, we expect sustainable phosphate production, although it will vary quarterly due to turnaround activities and product mix considerations.
For instance, some turnaround activities planned for early next year are intended to prepare us for the North American spring demand, which may lead to lower production during that quarter. Despite this, we aim to balance out production through the remainder of the year. Different products require varying amounts of P2O5, meaning our product mix will significantly impact production levels and achievement of quarterly targets.
Jason Tremblay — Vice President, Enterprise Strategy and Business Support
Next question: Regarding the $32 million in bad debt recorded in Brazil this quarter, what is your outlook for future credit losses?
Bruce Bodine — President and Chief Executive Officer
We perceive minimal risk for further credit losses. While challenging market conditions exist, not all participants face the same issues. Many of our clients, such as grain traders and co-ops, remain financially stable. During the onset of the credit crisis, we proactively reduced our exposure to retailers heavily impacted by credit problems.
As we move into the safrinha and summer soybean seasons next year, we’ve implemented additional risk mitigation measures, including requiring prepayments from customers and ensuring the integrity of sales contracts. We also utilize credit insurance programs to hedge against losses. Our prudent risk management approach should continue to limit exposure to future losses.
Jason Tremblay — Vice President, Enterprise Strategy and Business Support
Thank you, Bruce. Now, let’s open the floor for additional questions. Operator, please proceed with the follow-up inquiries.
Questions & Answers:
Operator
Ladies and gentlemen, we will now begin the question-and-answer session. Please limit yourselves to one question each. We will pause briefly to compile the question list. Our first question comes from Richard Garchitorena from Wells Fargo.
Please proceed with your question.
Richard Garchitorena — Wells Fargo Securities — Analyst
Thank you, and good morning. Congratulations to Clint on his retirement. I would like to start with the phosphate sector. It appears you achieved strong margins despite adverse weather. Given that you’re also on track to meet your cost-saving goal of $150 million, how would your costs have appeared if the temporary shutdowns hadn’t occurred? Also, did these shutdowns affect costs this quarter?
Bruce Bodine — President and Chief Executive Officer
Thanks, Richard. Yes, we are quite proud of our margins, which illustrate the effectiveness of our cost-reduction programs. These programs have greatly influenced how production impacts our fixed cost absorption. Even though…
Mosaic has faced disruptions from hurricanes in Louisiana and Florida, impacting shipping and production. Despite these challenges, production levels remain stable at approximately 100,000 to 110,000 tons, showing improvement over historical averages.
Quarterly Assessment Amid Storm Disruptions
These recent hurricanes have posed challenges, particularly with shipping out of ports. The overall production has remained flat compared to the second quarter of this year, showing resilience despite the weather-related interruptions. While costs were expected to decrease due to improved efficiencies, the hurricanes and turnaround work hindered these reductions.
Financial Projections and Cost Improvements
Going forward into the fourth quarter, the company anticipates significant cost reductions of $20 to $30 per ton once production normalizes. Investors should keep an eye on these improvements as the company works to reach a full run rate.
Biosciences: A Growth Engine for Mosaic
Interest in the Biosciences segment has surged, covering approximately 9 million acres. This area encompasses nutrient-efficiency products, which are expected to facilitate substantial growth for Mosaic. CEO Bruce Bodine expressed excitement about this vertical, as it shows promising acceleration in market coverage.
Details on Product Offerings and Future Pipeline
Jenny Wang, Executive Vice President of Commercial, elaborated on the two primary products in North America and Central America: PowerCoat and BioPath. These products are designed to enhance nutrient use efficiency. In total, more than 70 products currently on the market are used in conjunction with fertilizer.
The product pipeline appears robust, including nitrogen fixation materials nearing field trials and registration, as well as products improving phosphorus solubility. This reflects the ongoing investment Mosaic has made over the last few years.
Potash Market Outlook for 2025
Looking ahead to 2025, projections indicate a demand growth in the potash market between 1.5 million to 2 million tons. While supply may arise from various regions, clients like Canpotex and Mosaic are positioned to meet this demand, particularly through their operations in K3, Colonsay, and Belle Plaine.
Supply Chain Dynamics and Market Response
The supply side is also evolving. Assumptions indicate that EuroChem’s VolgaKaliy project will ramp up production, along with additional outputs from Uralkali. Meanwhile, Laos expansion is expected to contribute significantly to future capacity, enhancing the overall market availability of potash.
As the company moves forward, its focus on efficiency and growth in the Biosciences sector positions it well for a challenging yet promising 2025. Investors and analysts alike await further developments, maintaining a cautious optimism about potential market improvements.
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Forecasting Fertilizer Markets: Insights into Supply and Demand Dynamics
Bruce Bodine — President and Chief Executive Officer
The anticipated increase in fertilizer supply in 2025 is significantly driven by Russia and Laos. However, this expansion comes with uncertainties. If the expected supply fails to materialize, we could see a tightening in the market.
Production Plans in North America
In response to a question about production capabilities, Bruce Bodine noted recent investments at Esterhazy. The Hydrofloat project is set to generate an additional 400,000 tons when it becomes operational in mid-2024. Combined with production from Belle Plaine, total output could reach approximately 9 million tons. For Canpotex’s market share in North America, Colonsay will be utilized sparingly once Esterhazy’s enhancements are complete. Colonsay will be prepared to ramp up production if needed, particularly during maintenance or unforeseen supply delays.
Analyzing Phosphate Rock Procurement
Turning to phosphate, analyst Chris Parkinson raised concerns over run rates and the effects of downtime. Bodine explained that the company is showing signs of recovery, with expected normalized earnings and production rates between 7.8 to 8.2 million tons expected after completing major turnarounds this year. These turnarounds will conclude shortly, allowing December production to run smoothly. A major sulfuric turnaround is scheduled for early next year, which may create fluctuations in output. He projects that conversion costs will decline by $20 to $30 per ton annually, with the rock costs remaining stable at approximately $55. These figures provide a clearer framework for expected performance in the upcoming years.
Current Trends in Brazil’s Fertilizer Market
Benjamin Theurer from Barclays inquired about the fertilizer market dynamics in Brazil. Bodine deferred to Jenny Wang, who detailed the situation. Brazil has faced challenges due to commodity price drops and liquidity constraints among farmers. However, recent trends indicate an uptick in agricultural prices, particularly locally, where they surpass U.S. prices. This shift is attributed to a weak Brazilian real and new demands from bioethanol plants. Currently, 67% of the corn crop for the upcoming safrinha season has been sold, a notable increase compared to previous years. Farmers are also ahead of their fertilizer purchases, having secured over 60% for the upcoming season, signaling a more optimistic sentiment despite ongoing challenges.
Impact of Subsidies in India
Lastly, analyst Justin Pellegrino raised a question regarding unmet demand for phosphates in India due to government subsidy issues. The response highlighted the challenges posed by the subsidy environment and how these issues might alter the availability of products moving into 2025.
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Challenges in India’s Phosphate Market: Demand Surges Amid Supply Shortages
Bruce Bodine — President and Chief Executive Officer
Thank you, Justin. We’ve noticed a considerable shortfall in demand trends in India. It’s evident that adjustments in the MRP or subsidies are crucial to encourage farmers to meet the necessary crop demand. Now, I’ll pass it over to Jenny for further details.
Jenny Wang — Executive Vice President, Commercial
Thanks, Bruce. This year, the demand from farmers in India for DAP has been robust, bolstered by favorable monsoon rains and high commodity prices. However, supply has struggled to keep pace with this demand.
The import economics, as you mentioned, hinge on two primary factors: government subsidies and the price difference between international and farmer rates. Currently, farmer prices are set at a low $360 per ton, while international market prices hover around $640. This significant gap indicates that the government has not adequately adjusted subsidies.
This situation has led importers to hesitate in sourcing from the international market, which in turn has resulted in shortages for farmers. We project a reduction of around 2 million tons in DAP shipments this year due to these dynamics. Farmers still require this amount, stemming from both decreased consumption and completely depleted inventories.
Looking ahead to next year, we foresee certain changes. The price for farmers will likely need to be adjusted, as $350 is too low to sustain good farming economics. Adjustments will also be necessary for government subsidies.
Regardless of how these factors unfold, Indian farmers will still need to apply DAP, especially given the already-publicized phosphate shortages in the country. This context may influence government considerations for subsidies through 2025.
Operator
Our next question comes from Andrew Wong from RBC Capital Markets. Please proceed with your inquiry.
Andrew Wong — Analyst
Good morning. I have several questions regarding phosphates. Could you clarify the 8 million-ton phosphate run rate? Are we annualizing a monthly or quarterly production level when there are no turnarounds? Additionally, when considering all variables, what is a realistic annual production projection going forward? Regarding phosphate demand, what factors into your assumptions for next year related to pricing and affordability, as this has significantly impacted phosphate demand this year? Thank you.
Bruce Bodine — President and Chief Executive Officer
Hi, Andrew. The phosphate run rate of 7.8 million to 8.2 million tons assumes normal interruptions, based on historical turnaround times and typical weather disruptions. Recently, however, we’ve experienced more prolonged turnaround periods and weather-related challenges, such as hurricanes. If similar weather patterns persist, we might downgrade our expectations slightly, but we maintain that 8 million tons is our anticipated annualized figure.
In terms of demand growth, while high phosphate prices are a factor, we need to consider overall input costs at the farm gate. For example, potash prices are currently more favorable. The cost of land and other inputs also plays an important role. Furthermore, high crop yields we’ve seen in various regions may help improve farmer economics overall. In Brazil, for instance, the barter ratios have been increasing.
Simply put, the affordability for farmers remains vital, given the significant nutrient demands following this year’s crop yields.
Jenny Wang — Executive Vice President, Commercial
Thanks, Bruce. Regarding demand growth next year, it may not increase simply due to falling prices; rather, it hinges on a tangible improvement in supply. Our current projections for 2025 anticipate no major supply increases but rather enhancements in production capabilities. Thus, if supply improves next year, we expect demand to grow. Pricing itself likely won’t dictate demand size significantly.
Operator
Next, we have Edlain Rodriguez from Mizuho. Please go ahead with your question.
Edlain Rodriguez — Analyst
Thank you. Good morning, everyone. I’d like to follow up on the phosphate affordability issue. Bruce, given the current data suggesting that phosphate affordability is an outlier compared to other nutrients, what’s your perspective? Are we witnessing a major opportunity with DAP, or is there some underlying concern about the pricing structure?
Bruce Bodine — President and Chief Executive Officer
Thank you, Edlain. It’s clear that phosphate prices are currently high relative to other nutrients. While I mentioned the broader context, your specific question focuses on phosphate.
To feel more confident in pricing stability, we would expect announcements regarding significant new capacity in the market. As Jenny noted, the phosphate market’s dynamics are unique due to supply limitations. Such constraints are what are driving prices, rather than any market manipulation. Should new capacities emerge, historical patterns suggest a shift in market dynamics could follow.
Market Insights: Mosaic’s Outlook on Fertilizer Supply and Demand
Stable Trends Ahead: Mosaic remains confident in its fertilizer margins moving into 2025
Mosaic’s recent analysis indicates that without significant changes in supply, their forecast for fertilizer prices remains unchanged in the near term. The company anticipates strong stripping margins, as they navigate existing supply trends and market conditions.
Phosphate Prices Driven by Raw Materials: High raw material costs contribute to elevated phosphate prices
Jenny Wang, Executive Vice President, pointed out that current high prices of phosphate are partly due to similarly high costs of ammonia and sulfur. Should there be any changes in supply-demand dynamics for these raw materials, phosphate prices could be influenced accordingly. Bruce Bodine, President and CEO, raised no immediate concerns about price shifts but remained attentive to market conditions.
Shipment Outlook in Brazil: Consistent growth anticipated despite historical fluctuations
Lucas Beaumont from UBS highlighted the consistent shipments trend Mosaic has observed over the past few years. Reflecting on past growth rates, he queried if the market would return to a more robust growth phase. Bruce Bodine expressed optimism about Brazil’s fertilizer demand, relating it to improved farm economics and growing market conditions. Jenny added that despite lower sales volumes, Mosaic prioritizes value over volume in its strategic approach.
Expansion to Meet Demand: New investments bolster Mosaic’s distribution capabilities
Bodine mentioned the Palmeirante investment, which will add one million tons of distribution capacity in northern Brazil, where they currently lack a physical presence. This development positions Mosaic well to expand, provided it aligns with economic and risk considerations.
Concerns Over Potash Shipments: Uncertainty remains regarding Belarus and Russia’s export strategies
Analyzing potential supply disruptions, Jeffrey Zekauskas from JPMorgan asked about Belarus and Russia’s potash shipments. Bodine stated there haven’t been signs of curtailment from these regions, reinforcing that their supply data has remained consistent. Meanwhile, he acknowledged the ongoing need for flexibility in their supply chain responsive to any changes in the market.
China’s Phosphate Production Trends: Increased production forecast amidst local consumption growth
Inquiries about China’s phosphate production brought forth details from Jenny Wang. She noted a predicted increase in phosphate-related product output compared to previous years, primarily due to rising local consumption. This uptick reflects a shift towards different production methods that cater to market demands effectively.
Mosaic CEO Discusses Business Outlook and GMO Adoption in Earnings Call
Economic Factors and GMO Crop Management
Partially driven by the overall economics of the crops, Mosaic’s business strategy is also influenced by the adoption of genetically modified organisms (GMO). This year marks the first in which GMO corn and soybean are being cultivated. Increased fertilizer management will be essential to maximize yields as these new crops are grown. This development will be a focal point for future reports.
Bruce Bodine — President and Chief Executive Officer
Praising Resilience and Future Position
As we conclude this call, I want to reiterate several key points. Mosaic has successfully navigated three hurricanes among other challenges. Today, we are well positioned to take advantage of improving business conditions. Our focus remains on leveraging our strengths while recognizing where we must enhance returns. Consequently, we are actively reducing costs and capital expenditures.
Strong Demand and Future Outlook
The Mosaic Biosciences division is experiencing rapid growth. Our plants and mines are operating efficiently and safely to meet the robust demand for our products. Overall, we are optimistic about our future. The outlook for the remainder of this year and into 2025 remains positive. Thank you all for joining today’s call, and I wish everyone a great and safe day.
Operator
[Operator signoff]
Call Participants:
Jason Tremblay — Vice President, Enterprise Strategy and Business Support
Bruce Bodine — President and Chief Executive Officer
Jenny Wang — Executive Vice President, Commercial
Richard Garchitorena — Wells Fargo Securities — Analyst
Clint C. Freeland — Executive Vice President, Chief Financial Officer
Steve Byrne — Analyst
Joel Jackson — Analyst
Chris Parkinson — Analyst
Benjamin Theurer — Analyst
Justin Pellegrino — Morgan Stanley — Analyst
Andrew Wong — Analyst
Edlain Rodriguez — Analyst
Lucas Beaumont — UBS — Analyst
Jeffrey Zekauskas — Analyst
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