FMC Corporation (FMC) Earnings Call Transcript & Summary

Hi, and welcome back. Our next fireside chat is with FMC, and we're pleased today to have both Andrew Sandifer, the firm's Chief Financial Officer; and Zack Zaki, the Director of Investor Relations with us. Before we get started, just two housekeeping items. One would be for important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. And if you have any questions about those disclosures, please reach out to your Morgan Stanley sales representative. Secondly, we will take your questions. So you can put those questions into the question box that you can see in the web portal that you are watching me on. We would ask that you do those sooner rather than later because they're going to be a delay for them to come through. And also sometimes, it's just better for me to feather those into the ongoing conversation because your question might fit neatly into what we're already talking about versus waiting to ask them at the end, but we can also do that if that's what's ultimately more appropriate. And as always, we will ask your questions anonymously. So you need not worry about that. So that's that. And Andrew and Zack, welcome, and thank you for joining us.

Our pleasure. Good afternoon, everyone.

Okay. Maybe just to set the table, we could just sort of do a high-level framing of how you expect to finish this year and then bridge it into the sort of soft outlook, soft guidance you provided or initial guidance you've provided for 2022.

Sure, sure. Glad to. Look, I think the second half, broadly speaking, in 2021 is largely going as we expected. We have seen very, very strong demand, very -- particularly for new products that we've been introducing to the market where we're getting very favorable reception. We've seen sustained solid demand. We're seeing pricing accelerate. Made some modest progress on pricing in Q3. But very much as we expected when we updated guidance in August, most of that pricing benefit we expected here is coming in the fourth quarter, somewhat naturally as we move through the growing seasons, moving to the new seasons in Brazil and the stocking season here in the U.S. So we're going to see a significant step-up in pricing speed this quarter to help offset some of the cost headwinds we've been experiencing. On the mention of cost, I mean, certainly, we could dig into this a bit more later as folks have interest, but costs are definitely -- are increasing and have increased. We see it in our inventory. We see it in the invoices receiving right now. Perhaps we're a bit early in calling this back in August when we adjusted our guidance. But I think we have definitely seen those increases and are feeling them, whether that's active ingredients in the raw materials that go into making the active ingredients, packaging, logistics, each of those elements of cost. And again, we can certainly click down on that if this is their interest. The timing of cost increases was a little better than we had anticipated in the third quarter. We talked about this in our earnings call last week, and more than half of that was tying of SG&A and R&D expenditure. But the half year impact still ends up being basically the same on costs. So net-net, our outlook for 2021 is pretty much unchanged from where we were in August. We expect EBITDA [ 13 20 ], which is a 6% EBITDA growth, flowing down from 8% to top line growth, 7% organic. And then with the benefit of the share repurchases we've been doing this year, we should put up double-digit 10% plus EPS growth. So looking ahead to 2022, Mark did sketch out some rough boundaries of what we think 2022 might look like. And I'm going to give a fairly typical caveat. We are still knee deep in the budget process. We are not giving formal guidance, but we did think it important to help people frame 2022 and think about the different factors that are out there. I think from a market fundamentals perspective, we're very optimistic about 2022. Soft commodity prices are in a good place and then the near term look to be pretty -- staying that way. There's very healthy demand for crop protection products. Farmer profitability is strong despite some rising input costs and other issues. For FMC, specifically, we're looking at -- we're expecting very strong demand and certainly volume growth, but continued volume growth that's high margin mix accretive products. And that's a recurring theme. I think people to hear -- listen to from FMC that very much when we think about volume, a lot of our volume growth really is faster growth of higher-margin products. So that mix benefit really flowing through volume in the way we think about earnings bridges. And those new products, they're typically better performing technologies, they're pushing out some older chemistries. And some of it's fundamentally new to the world of active ingredients, whether that's our new cereal herbicide, Isoflex or Fluindapyr fungicide or could be new formulations like Vantacor and Elevest which are new formulations of diamides. On the cost side though, looking in 2022, I do think we are pretty clear there's going to be cost headwind, and it's going to be sustained. Given that we turn inventory about twice a year, we know the costs that are going into our COGS -- flowing into inventory that will go into COGS in the first half next year. They are elevated. That's continuing to be a cost headwind as we go into the first half. Whether or not there'll be any meaningful cost relief in the second half next year, it's still an open question. We just don't know. We don't have a good enough line of sight yet. We're also expecting that logistics is going to be a continued challenge with either delays in high cost for ocean freight, timeliness of ocean freight being a problem as well as just having to rely a bit more on airfreight than we might like. But that said, despite the cost headwinds, we do think that the balance of conditions is such that it's really quite positive. Again, we're not ready to give formal guidance, but I would say our expectation is we're working through the budget process is that we should be back in the normal FMC algorithm of 5% to 7% top line growth, 7% to 9% EBITDA growth and then amplify that EBITDA growth at EPS through the impact of share repurchases. So that's our rough thinking at this point, looking as we go into 2022.

Maybe we could just unpack a couple of things you said there. One on sort of the pricing accelerating as you move through the year, and that was part of the plan. Maybe help us understand just sort of procedurally, how you price in the different regions? And because it isn't -- you wake up today and you say, hey, let's price today. There's obviously some structure to the market that you have to adhere to.

Yes. I think certainly, look, we are an Ag chemical business. We are a chemical business, but we're an agricultural chemical business. And it's important to recognize in the Ag industry, pricing is largely seasonal. And you've certainly -- likely have heard similar comments from many of our peers in the past several weeks. Your window to raise pricing is at the beginning of the season. Certainly, you can take additional pricing actions during the season, but it's less common. And again, our products are also used seasonally. So raising prices after the time of primary usage doesn't really have a lot of units flowing through at the new price. So as we looked to this year, coming into the second half, in particular, the end of Q3 going into Q4 is right as you're going into the planting season in Brazil, our largest market. That's the ideal and opportune time to reset pricing, which we've done. And we are now invoicing at substantially higher prices than at prior year and earlier in the year as we go into the new growing season in Brazil. In the U.S., we're in the stocking season where -- based on the way the distribution channel is set up in the U.S. and distributors are beginning to build inventory in the channel in advance of the spring planting season. That's the time to reset prices. So we went out in early October with a new price list and are invoicing and shipping at a much higher price today than previously in the year. So it really is, as you go around the globe and go through the growing seasons that you see that window to raise price and you also have the real flow of the units to go against that new price. So I think we try to be very clear, we're raising prices -- we've raised prices in Q3. We're raising prices in Q4. We'll continue raising prices in Q1 as we get into the season in Europe. We'll continue raising prices in Q2 as we get into the season in India. And then as you keep going down to each of the different markets we have around the world, there is a definite seasonal pattern there. So that's a bit of the lag that comes with implementing pricing in an Ag chem business. I'd say the second piece that impacts our movement of price is that, look, fundamentally, we sell differentiated technology-driven products. We do not sell on a cost-plus basis. So that conversation for setting price, typically is most robust when you introduce a new product, you have -- you really justify the value to help provide to a grower as a part of justifying your pricing position. You might adjust that from time to time for FX moves or for moves in cost, but you don't typically go have a conversation on a regular basis of, oh, my cost moved 1%, therefore, I must move price 1%. That's a commodity business. That's nonselective herbicides where you have much more formula-driven pricing, almost. But for the types of products that are predominant in our portfolio, that's not the way it works. It's much more a value conversation and much more difficult for growers and distributors and others to see what the movement in cost inputs are for us. So it has to be a bit more nuanced on a conversation. So you have to deal with both the seasonal dynamics and the value and use dynamics to be able to move pricing. But we do move pricing. We're seeing that acceleration now. And again, as we move through the calendar, move through the start of the new growing seasons around the world, you'll see continued traction on pricing.

You kind of raised an interesting dynamic because last year was really a year that was about foreign exchange headwinds, right? And you kind of talked about maybe it's a little easier to price for that because that's something that the customer can see. This is obviously an advantage for the customer when the FX moves in their direction, right? So if you take price, kind of just neutralizing things, and it's not changing the value that you're providing to them, right? Just kind of getting everybody back to parity. So is that the case? You have more nimbleness when it's FX because it's just something that's so clear and transparent versus the COGS thing is a lot more nuanced, particularly for your products?

Look, I think the biggest place where FX plays their own pricing is Brazil, and that market is conditioned to regular pricing updates based on FX movement. It's not formulaic, but it is regular. And certainly, last year, we saw -- strongly responded to FX movement, particularly the BRL with significant price increases. On cost, it is a more nuanced conversation. And it does connect with a bit with some of the more detailed elements of what's actually going on at cost. We can click down on that in a moment. But I think one of the things people should be conscious of this year is we are raising prices on the face of FX tailwind, not FX headwind. Last year, we were raising prices against an FX headwind. This year, we're raising pricing in an FX-tailwind environment. It's a bit harder to do from a quick flip of prices perspective. So it really does require you to be more selective, more strategic in where you're taking price and work that through. The goal still goes the same as although there's some lag, our intent is to recoup the increase in COGS through price increases over time.

Okay. Maybe we can dig in a little bit just to the operating environment. Obviously, you've referenced before that Lat Am, South America, were in that kind of peak period. And I would say, as far as I can tell, this year, the operating environment is still a lot better looking than it was last year just because the weather's cooperated, the planting seasons have gone well. Some of the crop prices are still high, but you're also getting participation from -- it's not just corn and soybeans. It's cotton, it's sugar, it's coffee, everything is kind of going in what appears to be a good direction in terms of the things that you can't control. So -- and you've got a little bit of a soft comp on last year. So are you seeing very good demand pull through as a function of all that?

Yes. I think certainly, Latin America, specifically, conditions are significantly more favorable at this point in Q4 than they were last year. We came out of the last growing season a bit dry, but then there were some timely rains and timely not rains, right, as people are starting to work fields and get out and plant. So I think broadly speaking, weather conditions in Latin America are much more favorable compared to the prior year period. I think to your other point, certainly, acreage is increasing, and particularly of crops that are important to us. Cotton acreages were down pretty substantially last year in Brazil due to pandemic effects, drops in demand for clothing, most notably. This year, there's been a 15% increase in acreage of cotton planted or being planted as we speak. That's a very important crop for us. So that's a big support for overall demand for crop products in Brazil. Similarly, sugarcane, strong pricing in the marketplace, a healthy market there is good for us. We're also a strong player in sugarcane as well as some other specialty crops. So Latin America, in particular, I think we're in a much better position than where we were last year. And you're right, certainly, we were impacted by the drought in the prior year period in Lat Am pretty profoundly.

And this might be simplistic, but I kind of sometimes think about so goes 4Q in Lat Am, so goes 1Q, right? If you have a bad 4Q, it doesn't mean you can't have a good 1Q, but it's a lot easier to have a good 4Q where there is a good pull on product, crop gets planted and harvested on time or early steps up well for the secondary planting, they can have a longer second crop. They tend to use more input. So I mean, obviously, it's only November and lots of things can happen between now...

Absolutely fair. But no, I think you're right. I mean, certainly, following last year's 4Q of '20, 1Q of '21 was relatively soft as well in Lat Am, in part because we intentionally put a foot on the brakes and brought channel inventories down. We knew that with the drought, we knew that the season was going to be a small one, and we wanted to make sure we were in a better place as we got into the next growing season to take advantage of what we are anticipating to be a favorable market environment. And to make sure if we needed to push price increases through, we'd be in a situation where we didn't have a bunch of inventory sitting in the channel at old pricing that had to clear out first. So I think we set ourselves up well for the Q4 of '21. And I do think the factors you're pointing to with what we know here in early to mid-November certainly portends well for a strong Q1 in Latin America as well.

Yes. And maybe just -- we often talk -- we think about Latin America, we talk a lot about Brazil in general and also for FMC in particular. But maybe you want to talk about sort of some of the other countries down there that are gaining prominence in your portfolio?

Sure. Look, 2 other very, very important countries for us in Latin America. One Argentina, which is breaking the $200 million mark this year, moving well up in our top list of countries. It's been a great growth story since we did some major changes in the way we go to market in that market about 4 years ago. Strong participation in soybeans in Argentina as well as some other crops. So it's been a very good growth engine for us. Strong growth this year will continue to be next year. I'd say the other market that is a very big contributor to Latin America is Mexico. A lot of fruits and vegetables and other specialty crops, lots of high-value applications for the diamides and for other parts of our portfolio. Hasn't been growing as rapidly as Argentina, but it is a strong contributor to the region. So those both have been very, very good pieces of business that help complement the Brazil business in Latin America.

Then maybe if we go up to North America, there was a lot of anxiety this year over drought conditions on the West Coast. It doesn't seem to have been that -- or seem to have been manageable maybe is the way to put it, but you can characterize it. How are you thinking about the North American market going through the fall application season and into next churn?

Look, overall, North American market is in great shape. There are, if anything, channel inventories are low, if not normal, but they're on the low side of normal. We feel pretty good about all of -- where farmer economics are and where demand trends are. You're right in that, certainly, we have a strong exposure to California with tree nuts and other specialty crops that were impacted by drought in 2021. We're hopeful of some of the early rains this year might help with some recovery there. But we've also been growing rapidly in the North America market and a few other places that are complementing that big position, especially crops in California. So for example, we're a relatively minor player in corn. One of the new products we've introduced this year is Xyway, which is a fungicide used in corn applications. And it's been a nice growth for us that helped counterbalance some of the headwinds in the almonds and other kinds of specialty crops in California this year. So it's been a nice balance of bringing some new products that are going after other places that aren't traditionally as big a point of strength for us in North America as well as continuing -- even though it wasn't the best year in the California markets, we still had a pretty good year out there. It wasn't quite as catastrophic as everyone thought it might be with the drought.

Okay. How about if we turn over to Europe now. What's going on there?

Yes. Europe's had a couple of bad years in terms of weather conditions. Rain at the wrong time or the absence of rain. Cold at the wrong time. So we're hopeful of more favorable and more balanced weather conditions going into the new year. Overall, commodity markets there are pretty strong. Channel inventory, particularly for our products, is in a pretty decent place. There are some reports of excess channel inventories for fungicides. We're not a big fungicide player in Europe. We're more into insecticides and serial herbicides in particular. But we certainly have seen improving market conditions there. Finished off the year with pretty good health in Europe. So very much anticipating a solid year in Europe. I think, fundamentally, Europe is the slowest growing of our regions. There's not a lot of acreage to be put into production incrementally, particularly in Western Europe. There's certainly growth areas for us, the further east you go into Europe and as well as Middle East and Africa, which we managed collectively with our European business. But the core EU 27 countries, not a lot of acreage growth there. But we should see some recovery with better weather and overall favorable market conditions.

And lastly, if we look at Asia Pac, I think you can -- you've had a lot of focus on the Indian market in recent years. So maybe -- and then just the recent deal with UPL. So maybe you can just update us there.

Sure. Look, Asia has been probably our fastest-growing market for several years now, and it's been a great story for us. India is our largest country. We completely reconfigured that business after the DuPont acquisition in 2017 and now are arguably tied for #1 position in the Indian market. It's a very fragmented market. But between us and UPL, we're -- depending on whose market research you want to read, we're #1 or #2, and again, depending on which report you want to rely on. It's been a great growth in specialty crops as well as rice, peppers and chilies and tomatoes and all kinds of fruits and vegetables, and a very prime target for the diamides. So a big growth with diamides across those kinds of markets. This year's business in India has grown nicely. We had a bit of an erratic monsoon, so it wasn't a perfect season. But still a pretty robust season. And certainly, we expect to continue that growth trajectory as we go into next year. But again, yes, we'll see how next year's monsoon, given that so much of the agricultural production in India really depends on the health of the monsoon season. And it's a little early to call too much there. So the other couple of really shining stories in Asia in the last year, one has certainly been Australia, where we've had significant growth. Second year of decent rains after multiple years of drought. But importantly, we introduced a new product down there. It's a brand name Overwatch herbicide which uses our Isoflex's new active ingredient to serial herbicide. It create new product in terms of managing resistant weeds and cereal crops, significantly better uptake than we anticipated with the launch. It's gotten us thinking a lot more positively about the prospects for that molecule broadly, globally as we roll it out. So Australia has been a good contributor to growth. Indonesia and the rest of the ASEAN countries have also been strong growers in the last year. I do think -- you did weave in there with India, and I don't want to miss that part of your question, the recent partnership announcement with UPL. So let me touch on that briefly. I mean, certainly, UPL is the latest of the large global partnerships that we have in our diamides business, which are part of our strategy of managing the life cycle of what is a very key product line for us. The UPL partnership, we're particularly excited about for 2 reasons. One, as I mentioned, we're sort of equal sized in the domestic Indian market, but we don't overlap very much. They have a different geographic footprint emphasis and some different product emphasis than we do. So them, being able to go to market with the diamides now as opposed to having to wait until after all the patents and process patents and registration data issues will burn away. Getting in now ahead of those things allows us to accelerate our access to the Indian market and leverage an infrastructure that bluntly we can't build that fast. We've done a lot to increase our participation in India, but UPL is a very large commercial organization and a footprint that -- and a bit of a fool's game for us to try to replicate in short order. So being able to take advantage of -- getting our products distributed through their access to market is a huge upside for us commercially within the Indian market. The second really exciting aspect of that partnership is it's the first time we're going to be manufacturing with another partner on the diamides. Currently, we manufacture diamides in facilities in China and in the U.S., production control fully by FMC. We're going to tap into UPL, which is a world-class manufacturing organization, and they make very strong margins on a post-patent portfolio, largely off of very robust operational excellence. So we're very intrigued by the opportunity to partner with them in production based in India, using our process, our patented process, but taking advantage of a cost structure and a culture of driving efficiency that UPL has. So it also has a secondary benefit of providing us a little more diversification in our sourcing of diamides to balance our production. Again, current production in the U.S. and in China, this will give us a third point of supply of the diamides. And given the amount of disruption we've lived through in the past several years, we definitely recognize that value to having some nimbleness and some resiliency built into the supply chain. So it's a really exciting global partnership with UPL just getting underway. We signed this 6 months ago, at the latest. But just really getting underway, it will be another year or so before we get into any kind of real joint production. But we are working through it. We are selling -- providing them some product that they're taking to market now, and that will continue to ramp up as we get into '22 and '23.

So from a supply chain perspective then, you presumably will no longer be shipping product from China into India because you'll just produce locally there. But will you have excess product to export from India to other areas?

Yes. Yes. That's the intent, that over time, we'll be able to export from India as well. So it really does help us maintain balance across all of the production. And it's a recurring theme in how we've been evolving our supply chain over the past 5 years, in particular, which is really trying to build backup points, more point -- not having single points of supply. Because in any geography where you are, there could be disruptions, whether it's a pandemic, whether it's a ship blocking the Suez, whether it's freezing weather in Texas. Any single point that you have in your network can be disrupted at some point. So having backup points becomes increasingly important. And we systematically work through our product portfolio to really reduce the number of places, the number of items that are single sourced. And particularly in our industry, where for many countries, the registration is tied to the exact address of the producing plant. You have to work in advance to be able to adjust and -- your registrations to allow you to swing from sourcing between plant A and plant B. So this is something we've been systematically doing over the past -- in an accelerating fashion, the past 5 years. And it's allowed us to weather some disruptions -- significant disruptions in the past 3 years. I mean, look, everybody's talking about COVID. And absolutely, that's been a big disruption. But in 2019, we have project Blue Sky in China, where there were pretty indiscriminate shutdowns of chemical parks across the country that disrupted production for a lot of our industry. Did have some cost impacts on us, but we were able to maintain continuity of supply, maintain volume growth and importantly provide growers the products that they needed at the right time. That set us up to be able to respond more readily to the challenges of COVID. And while we've not been immune to disruptions from COVID, everybody's had them, we've been able to respond, I think, a bit more agilely, a little more quickly. And that's allowed us to have stronger -- be able to maintain that production, maintain that growth. And certainly, again, adding a production point for the diamides in India is just another piece of that puzzle. But it's a broader trend where people who may know FMC's Ag business from a decade ago, where we were much more reliant on Chinese outsourced manufacturing. Up to about 90% of our sourcing coming from China in the early part of the 2010 decade. Now we're down something more approaching 45%. We'll never completely decouple from China. One, because we don't want to. It's a great manufacturing place. Two, you don't have any choice. If you keep tracing back far enough in the value chains you participate in, something's coming from China. It's more about building that resilience in the network that allows you to deal with uncertainty and disruption. So we're going to continue to do that, continue to invest in building new capacity that complements the capacity, the partnerships that we have in China that allow us to be resilient through any kind of disruptions.

Okay. Yes. And maybe this is just a good opportunity to swing into the cost and the logistics issues. And we're all very well acquainted with all the supply disruptions that have taken place over the past 12 months. And it doesn't sound like you're terribly optimistic that even if we have a more normal amount of production in the coming quarters that we're going to see much raw material relief. But presumably, availability will improve somewhat. And then we have to just kind of hope that logistical snarls don't get worse and maybe untangle a little bit. But we should still be carrying forward cost inflation into next year.

Yes. I think, look, fundamentally, we're going to see sustained cost inflation into at least the first half of next year. Into the second half, I think too early to give a firm opinion but we are not counting on relief. Let's just put it that way. When we look at what's going on in our cost structure this year, we've got about $150 million in cost increase overall hitting our EBITDA line this year. About $100 million to $110 million of that is really COGS. The rest of it, about $20 million increase year-on-year in R&D investments to support the new active ingredients that we're developing. Another $20 million to $30 million is growth of SG&A. It's below the rate of sales growth, but still we do need to grow a little bit of our SG&A. But within that $100 million to $110 million of cost that hit COGS, what we're seeing is, I think you framed it out well there, Vincent, is it's not just underlying inflation. It's availability, right? And it's the premium that you pay for having, in some cases, to buy from alternate suppliers. So now look, the biggest cost category for us is active ingredients and the raw materials and intermediates that go into those. I'm going to give you a simpler example because it's one that's a little easier to observe. And we're also -- and we also use a fair amount of plastic packaging, packaging being our next largest category. Resin costs for polyethylene and polypropylene have topped out and have started to relax a bit. Our packaging costs are not going down. And that's because there is scarcity, lack of availability of product. That means that we're having to go out and find alternate suppliers and use alternate suppliers and buy what's available at prices that do not reflect the kinds of relationship or volume purchasing we have with core suppliers. This is, I think, a perfect example of the kind of whipsawing of industrial value chains that we've had coming out of the pandemic that just hasn't settled down yet. So I can't -- I don't have the perfect tea leaves to read about the second half next year. I am optimistic that, that kind of excess volatility that we have right now that's disrupting these supply chains and forcing -- basically creating availability as it's forcing us to use less preferred suppliers should begin to ease. Normal is a dangerous word. And if COVID taught us anything, it's to be a little humble in the way we look forward. But normalizing we're sort of dampening from the high level of volatility we have now to settling into whatever the new normal is, I think does, on the horizon, represent some potential relief. Not dissimilar with the higher cost elements that are going through active ingredients, and those raw materials that go through that. There's a lot of whipsaw in the supply chains and there's a big supplier mix impact on our cost right now. So that while base -- there is some level of base inflation, there is, I think, a reasonable expectation that some dampening of this volatility will bring some easing of cost without there having to be fundamental base inflation reversal.

Okay. Maybe with the few minutes we have left, you mentioned Overwatch before, one of your new products. And obviously, new products are important to that volume mix component that drives the top line. So maybe you could just talk about beyond Overwatch, what are the new products? I think you had $140 million of new product sales year-to-date. Is that correct? And just sort of what that is, that's going to help bridge us into next year and drive that top line and the algorithm?

Sure. Look, it's a short-term and a longer-term story. Certainly, in the short run, products that we introduced new to the world this year, contributing about $140 million in sales includes Overwatch. It also includes two new formulations of the diamides as well as Xyway, the corn fungicide we spoke about a little bit earlier. We expect to continue introducing those products to additional countries next year. So that growth will continue onward next year as we take Vantacor in to additional markets and -- as it for example. We do have several other new active ingredients that are starting to come to market. Fluindapyr, which is a fungicide that we jointly developed with a partner company then bought full rights to last year, had a very small launch in some non-crop applications this year. We'll start launching it in a few other countries next year. And then continue launching in additional countries in '23 and '24. We have tetflupyrolimet, which is a new herbicide for use in rice that should start being introduced in 2023, 2024. As you can imagine, particularly in Asian markets, that's a big, big opportunity. And it's a -- that's a product we're really, really excited about in terms of really bringing a different mode of action and a different value proposition to the grower. Then there's a bunch more that come after that. I would certainly suggest that anyone who hasn't had a chance to get familiar with the R&D review we did in November of 2020, while that is coming up about a year old, it's still a very good comprehensive look at the 11 new active ingredients that we're bringing to the market over the next -- through the rest of this decade and we expect to contribute $2 billion in sales by 2030 at or above current margins. So it's a big part of the long-term sustained organic growth of FMC as we continue to take advantage of the benefit of our very strong diamides platform, that continues to progress. We will complement that with the introduction of these new active ingredients. And for my final little point here because I know we're out of time is the thing that -- one of the things that most excites me about this R&D pipeline is how little overlap there is with our current product line. That very, very minimal cannibalization. So it really is a strong complement as we think '22, '23, '26 out to '30 as the diamide platform continues to mature, that we have this strong complement of growth from these new products coming to market to help continue that well above market level organic growth of FMC.

Okay. Excellent. And you're right, we are up on the time. So I'm going to thank you both Andrew and Zack for joining us today and look forward to being in touch.

Great. Thanks very much, Vincent.