Great. So I'm here for the next session. Again, we're keeping in the theme of ag and crop protection. And so today it's my pleasure to host the session with FMC. As most of you know, FMC is an agricultural sciences company dedicated to helping growers produce food, feed, fiber, and fuel for an expanding world population through innovative crop protection solutions. With me today is Andrew Sandifer, CFO, Executive Vice President of FMC. And again, thank you for coming.
Thanks for having me today.
So obviously, a bit of news in the press this morning. So maybe if you would like to maybe provide some opening remarks in terms of management changes and sort of what we're seeing here.
Certainly. Look, I think everyone likely has seen press releases this morning. Late yesterday, our board of directors met, and then this morning named Pierre Brondeau, our chairman, as both chairman and CEO. Pierre was chairman and CEO of the company from 2010 through 2020 and has been chairman of the company over the last four years. He's replacing Mark Douglas, who's been our CEO for the last four years, who agreed mutually with the board to step down. So Pierre is literally starting off as a new employee of the company again today as CEO. Look, it's a big transition, but it's not a big transition. Pierre has been involved with this business for nearly 15 years, ran it for 11, has been chairman and working closely with Mark the past four. So he deeply understands the business.
I and the rest of the senior leadership team, most of us have worked with Pierre for years. I've personally worked for Pierre for almost 20 years. So he's someone I know very well and have tremendous confidence and faith in. So I think investors should feel very, very calm that there's a smooth transition going here and that certainly Pierre is someone very well qualified to come back and lead the business.
Great. And I guess in terms of the process that occurred, I mean, is there any insight you can give us in terms of what's been driving this? Has it been sort of an internal decision?
No. Look, I can't really comment on board deliberations. All I can say is simply there was an agreement and mutual discussion with the board, and Mark agreed with the board that it was time for him to step down and for there to be a leadership change. So with that change, we get the return of a very strong and seasoned leader in Pierre. And Mark will continue as a senior advisor to the executive team through September to make sure we have a very smooth transition.
Okay. And a lot of people that have been following FMC in the past are very familiar with Pierre, obviously in the growth that he has been able to deliver in the past. So looking forward to that. Also, in the press release, you reiterated your 2Q guide for revenue and earnings. Any comments on sort of the full-year guidance in terms of what?
Sure. So look, again, for those of you, a lot of news flow this morning, but in the release where we announced the management change today, we did confirm our guidance ranges for the second quarter. So yeah, we can talk a little bit more about that if that's of interest to folks. We did not explicitly and are not confirming full-year guidance at this time. The realities are this. Pierre has been involved in this business as the Chairman for the past four years, so he is involved. But there's a different degree of engagement in the detail at the country and product level as when you become a CEO.
So, just ask everybody, you got to give Pierre a little bit of time to roll up his sleeves, get back into the deep, into all of the details of the business, and we'll come back to you at the August call with more specifics around guidance for the remainder of the year. What I don't want to leave unsaid with that, although we're not confirming or reaffirming any previous guidance ranges for the full year, we are still anticipating growth. We still believe this market is 2024 is very much a year of transition. We believe this market is transitioning from correction to recovery. The timing and magnitude of that is subject to a lot of volatility. Certainly, if we can talk about our outlook for more near-term in the second quarter, where it's a pretty wide guidance range, and that's for a reason.
We do think this massive correction, and maybe just if I could for a minute, since perhaps not everybody is as up to date on the FMC story as some who follow us more closely might be. We really have gone through a very massive correction of channel inventories and the crop protection industry over the past four quarters. It really started about this time last year, quite honestly. So it's just coming up on the anniversary. And it is the history and a product of bluntly COVID disruption. In 2020 and 2021, we had tremendous disruption of supply and rapid inflation in the inputs for crop protection chemistry. And it led to some significant overbuying by the channel in 2022 out of a fear of lack of supply, out of concerns of rapidly rising costs, so both trying to hedge potential supply loss and rising inflation.
So we got into 2023, and the world started settling down a bit and became less disruptive from a supply perspective. Interest rates took off. And now that inventory that people were carrying becomes much more expensive. So I won't go through and try not to make this a long explanation of the history, but I do think for folks who may not be as deep to the FMC story or the crop protection industry story, important to understand we had a violent reaction to an overbuying and overreaction in 2022. It was with an overcorrection in 2023. 2024, we have said all along is a transition year. We were down significantly in Q1, consistent with the prior several quarters. In Q2, we're anticipating flattish to low teens growth. It's a pretty broad range.
It reflects the volatility that we're seeing in the current environment as we transition from this correction into a new stage of growth for the market. The one thing you have to remember about this business, the long-term consumption of crop protection products by growers has been steadily increasing for decades, has grown at 3%-4% compound rate for more than 30 years. We have a pretty long value chain. Now, we as manufacturers, the model's different in every country, but a generalized channel structure. We sell to distributors, who sell to retailers, who sell to growers. During this period of disruption and then leading to overbuying in 2022, too much inventory built up between the manufacturers and the growers. In the last four quarters, we've seen a very rapid and violent correction of that inventory build.
Depending on what part of the world and what stage of the channel and what type of product, we are seeing that correction come to an end. We're actually seeing in places where inventories are well below what has been historically held in the channel. And we even have a few places where we're a little slow to meet an order occasionally because we don't always have every single product on the shelf someone might want. There's a reason these products are carried in inventory during a growing season. The demand for them can be fickle and hard to predict. When bugs show up in your field, you need an insecticide today. Not two weeks from now, not five weeks from now. You need it today. So we are seeing these things rebalance.
The timing and the magnitude of that rebalancing through 2024 is a bit. It is a complicated issue we're working through. But I think fundamentals here, the in-market demand is still strong. As the channel inventory corrects and we get more in sync, the flow from manufacturers through the distribution channel into the growers' hands, we will see a rebalancing and a rebasing of the business. And that's where we see a pivot back to FMC of old in terms of our ability to drive growth with technology, with differentiation, and with a closeness to customers. And there's certainly places we can click down here around all those topics. But let me pause there for other questions.
Okay. Great. So yeah, maybe if we can sort of maybe dive into the second quarter, reiterating the guidance, $170 million-$210 million is the EBITDA range. What are you seeing right now in terms of across the regions and how that compares to what you're?
Absolutely. So yeah, as Richard mentioned, our guidance range for EBITDA is $170-$210. It's flattish at the midpoint versus a prior year period that was pretty significantly impacted by channel inventory correction. We guided intentionally a wide range because we are in a period of transition. We know we're getting to the point where this market is turning, but timing the exact month and day is very tricky. Not only that, there is natural volatility in the ag business with weather in particular in terms of the timing of use of products. So just would note that. I think right now we are in a situation where we are tracking where we expect it to be at this point in the quarter. Now, an important addendum to that statement, our business is very third-month loaded in the quarter.
The current buying behavior of growers, retailers, and distributors is to delay purchases as late as pretty much as they can. So our quarter is heavily weighted to the month of June. It's June 11th. There's still three weeks to play here. But what I can tell you today, Richard, is certainly we are tracking where we expect it to be at this time in the quarter when we get guidance. We're confirming those guidance ranges, and we're going to play out this next three weeks. But certainly, there are a lot of factors. There's always weather. There's customer behavior. There's all these things that can impact exactly where in the range we're going to land.
Okay. Got it. And then maybe just briefly on the second half, expectations for revenue of over 20% growth and I believe over 40%, 46% or so in terms of EBITDA growth at the midpoint of your full-year guidance. Does that still hold, I guess, in terms of?
So I'll repeat what I said earlier, but let me build on that. I think today I am not in a position to really affirm or confirm or update guidance for the full year. I think we're going to give Pierre a little bit of time to get into the details and get comfortable with where he specifically believes things are. What I do want to leave you with, and I don't want to I want to make sure everybody gets this. We believe we're making that transition. We believe the market is turning. All right? And importantly, we believe we're well prepared to accelerate out of that turn. What have we done in the last four quarters? We've taken a lot of pain. And the short-term pressures are real. We acknowledge the performance of the company has not been where we would like it to be.
But some of the choices we've made, we've held pricing better than most of our peers. We have not devalued the value of our products and our technology at a time when there was little to no demand to be had. We have rigorously managed our customer credit. Well, we've lost some sales at times or didn't sell as much as we might have. We've left credit capacity, the ability to respond when demand returns, to grow with customers. We've continued to invest in technology and introduction of new products. We have new products, both new formulations and products based on fundamentally new active ingredients like products based on our fluindapyr fungicide Isoflex herbicide that are really strong performing products. And then as the market gets back to more normal buying patterns, I think you're going to see very, very strong response too.
We've done all that. At the same time, we're doing a tremendous amount of self-help with permanently improving our cost structure, improving the effectiveness and efficiency of our back office, accelerating and getting efficiencies in the way we do early stage of discovery and R&D. They mean that every dollar of growth that we get will drop more to the bottom line. While I can't be specific about the second half today, I have to acknowledge and give me a little bit of room. I have a new boss starting this morning. He's the old boss, but he's the new boss. I want to make sure he's ready to put his marker down on where we are for the rest of the year. The trends underneath it and going into 2025, I think FMC is very well positioned to rebound and be very successful.
Great. Got it. Maybe, yeah, we can touch on sort of some of the comments. On the cost side, so you have guidance of $50 million-$75 million in cost savings this year. Can you remind us how that is in terms of cadence this year? You're going to see a lot of that in the second half, and that should help.
So Richard's referring to it, the restructuring program that we launched in November of last year. Our commitment is to deliver $50 million-$75 million in P&L impact. That is net of any headwinds and inflation in the year. We had a $20 million drop year-on-year in SG&A in Q1. You should expect substantial savings in SG&A in Q2. As we're doing some heavy lifting right now, utilizing in the back office, doing a lot of work on efficiency using automation and in some cases, some simple AI tools, and doing a lot to drive efficiency and standardization. Look, we operate a similar business. We sell crop protection chemicals in 106 countries. There's a lot that we can do on a highly standardized basis. So we've made significant progress on SG&A. I think you should expect to see that kind of improvement.
The comps get a little harder in the second half. We stopped spending pretty severely in Q3 of Q4 of last year, but you'll continue to see year-on-year improvement in SG&A throughout the rest of the year. Now, we're also working on cost improvement and efficiency in places like R&D. To be clear, we're not backing away from our long-term investment in R&D. We are looking for ways to make it more efficient. We had our CTO out talking last week about some of the AI tools and some of the partnerships we have now to help make the discovery process more efficient. I'll defer and refer people to that talk rather than me trying to explain advanced technology that's a little out of my perimeter.
But I will say there's a lot of exciting stuff that's going on in driving efficiency and being able to maintain impact and timeline of R&D programs while being more efficient on a dollar spend basis. And then the last piece that we don't talk quite as much about because it takes longer to flow through our P&L, we're doing things with our manufacturing footprint. We announced a charge as a subsequent event after Q1 where we're making some significant adjustments to our third-party partnerships, including some of our long-term tolling partnerships that will give us some improved cost structure. We're also done some adjustments, obviously, in our manufacturing operations. In the short run, some of those are headwinds as volume variances where we have unabsorbed fixed costs in the manufacturing facilities.
But there are some long-term structural things that are happening, not the same magnitude as the SG&A and R&D savings at the moment, but they're there. Just harder to see because of so many other things moving through the gross margin line. So I'd certainly suggest you will see continued delivery throughout the year, most heavy in the first half because the comparables year-on-year for SG&A were sort of undisturbed prior year versus had some pretty significant brute force reductions in the second half last year. But we're very confident that we're going to deliver that $50-$75 million in savings in the P&L this year. And it bridges on to the second part of our commitment. There is a $150 million run rate exiting 2025. Some of this, obviously, look, we're doing short-term spend control. Absolutely.
When your volumes drop as substantially as they have, you've got to do that. But we are making permanent structural changes, some of which, again, in the manufacturing footprint will take a little bit of time to flow through the P&L. So we are well on track to delivering that $150 million in run rate savings by the end of 2025 as well. And we'll get some more updates on that in the early months.
Okay. Great. So maybe turning to the business, crop protection obviously been very difficult 12 months. You did mention earlier that we are lapping sort of the start of the destocking. And you are pointing to growth over the next couple of years. Can you talk about the new product introductions, NPIs that you've highlighted? Is that driving the bulk of the growth in 2024? And then how is that launch? The launch is going to be sort of additive to that in 2025 as well.
Yeah. So let's talk about some of the factors here in 2024 and 2025. Certainly, as we're going through this year, as I've mentioned, we believe we are moving, transitioning from correction to recovery. Right? And so there is some return of volume and demand that will naturally happen where it's been a full year since this destocking event began. That doesn't mean we're immediately restocking or returning to prior levels, but moving away from actively bringing down inventories in the channel. We think we're getting to that point. So yes, part of our growth in the second half and going into 2025 is a return to more normal buying patterns. Right?
And again, that long-term 3%-4% growth in crop protection chemical consumption by growers as a base level of where this market should be growing at a minimum after you get past this big adjustment, what's happening in the channel inventory. But specific to FMC, I think a big driver has been and continues to be new product introduction. So again, for those who may not be as familiar with the FMC story, we're in an industry that the development timelines for new products can be more than a decade. Right? A new synthetic product can take 12-15 years from the time it's initially discovered to where it's fully commercialized. It's a long process. So when we look at new products, we look at the products that we've introduced to the market in the last 5 years, just given that long development cycle.
So the metric that we use and we refer to as NPI is sales of products that have been introduced in the last five years. Now, those products might be new formulations, improved formulations of improved products based on existing active ingredients, or it might be from fundamentally new active ingredients. So absolutely a key driver in the growth in 2024 that we're still anticipating is new product introduction. And throughout this correction, every single quarter, our new products have outperformed the sales of the overall company meaningfully. Right? So there is still a value in the technology. The market desires and wants the new technology. And often, particularly with new-to-the-world products, there isn't channel inventory of that product sitting there already. This is a fundamentally new product. So it is a great opportunity for us to continue to grow.
And it's a big part of our story from 2024 to 2025 to 2026 and beyond. We have four fundamentally new synthetic active ingredients we're in the process of introducing: Isoflex herbicide, fluindapyr fungicide, Dodhylex insecticide, excuse me, herbicide, and rimisoxafen insecticide. Isoflex and fluindapyr already in early stages are rolling out. It is country by country. It takes time to get registrations. You can't get it all at once, but it slowly builds. We'll be introducing Dodhylex in late 2025 into 2026. Rimisoxafen starts in 2027. Those four molecules represent $2 billion in peak sales by the end of the decade. Right? Those are not trivial. And these are very strong differentiated products. In case of Dodhylex, it's the first new mode of action for a herbicide in 30 years. Right? And it's specifically for use on rice as a primary crop.
We'll talk a little bit about why that's something that's different about FMC in a moment. But I do think these new products here are a very, very important part of the story with FMC. And what I've talked on so far is just the synthetic side. We're also got a significant platform in biologicals. We have a leading pheromones business, leading technology that really changes the game in pheromones. We'll start commercial introduction with pheromones in Q4 of 2025. And that gives a very different complement to synthetic insecticides. So I'll pause there. We can click down if there's interest further. But certainly, there's another $1 billion over the next decade of potential peak sales in the pheromones franchise. That's another key driver of an upward tilting trajectory for FMC going forward.
Yep. That's a very great point. In terms of the growth going forward past 2025, 2026, there's, I mean, the pheromones business is going to be one of the key drivers. Can you talk about how margins differ between those businesses?
Yeah. So if you haven't commercially introduced yet, what I'm going to talk to you about is what we're expecting. Right? But I will say this. The pheromones business, just a very, very quick tutorial. Pheromones are sensing signaling chemicals that insects use to communicate with each other and often, particularly for helping males and females find each other to reproduce. Pheromones have been used in agriculture for many years. You use them to confuse the males. You throw pheromones out in the place. They can't find the females. They don't reproduce. It limits the rate of reproduction for the next generation of insects. They just happen to be very, very expensive to synthesize by traditional methods. We acquired a company in 2022, a company we'd invested several years before in as a venture investor. It has a biologically based technology using genetically modified yeast to produce pheromones.
It's orders of magnitude cheaper than the synthetic products. It's both an opportunity to bring a product that complements our synthetic insecticides and can be used with them in a very effective way to manage insect pressure throughout a growing cycle, but also tremendously broadens the potential market for pheromones. Synthetically produced pheromones are on the market today. They're using high-value crops and in greenhouses and controlled environments just because they're so expensive. The real opportunity here is to bring the price point down to a level where you can use them in row crops. Our first commercially launched product is on schedule to be launched in soft launch in Q4 of 2025 in Brazil on soybeans. This is a place where there's a huge market opportunity. Yes, our belief and economics that we see today, these are above average margin for the company products.
They will be a strong complement to our existing synthetic insecticide portfolio.
Great. One question I get a lot about is the incoming patent expiration on the diamides. You've spent a lot of time discussing this. Maybe if you can remind people sort of what the key drivers are to maintain and limit the impact on your business, the formulations and that type of thing.
Absolutely. So again, some level setting. Diamides are a class of chemistry insecticides. We have two products, Rynaxypyr and Cyazypyr, Rynaxypyr being the substantially larger product. They represent between 35%-40% of the company's sales depending on the year. As Richard mentioned, they are protected by a broad portfolio of patents, but that patent portfolio is maturing. So the simplest patents to understand the composition of matter patents on the molecule itself for Rynaxypyr actually started expiring in 2022. And those patents have expired around the world. For Cyazypyr, they're continuing to be in place for another year or so, and then they'll roll off. But it's not just the composition of matter that matters. We have patents on manufacturing processes. Those patents continue on to 2027 and beyond, depending on the specific molecule and country.
Importantly, many of the formulations that we sell are themselves patented, including newly introduced formulations that have brand new patent life starting, including some formulations we've introduced in the last year. So patents here are a very important part of protecting the strength of this franchise. But they're not the only part by any means. Right? A big part of what we do is it's continuing to drive differentiation and understanding the value of these products create in growers' minds. We have very strong brands. So we're out there today, and people understand that Coragen and Altacor are products (these are brand names for formulations of Rynaxypyr) they're products that you know will reliably control your insect pest pressure. Right?
And that is something that it's not to be underestimated how much that does matter, particularly in markets that are more fragmented and where the communication with farmers has to be more broad-based. So that's a big piece of it. I would point to patents, brands, and then continued innovation. Right? So it's intertwined with patents. We've continued to introduce higher value formulations of Rynaxypyr and Cyazypyr-based products, whether higher concentration paired with other active ingredients to give you a broader spectrum of coverage and more efficacy, more efficiency for the farmer. The reality is that as these patents expire, we do in some certain countries and will in all countries over time have generic competition. The generic competition will be able to enter with very simple, older formulations.
I'll put a plug here for those of you who are doing some work to get to know FMC a little better or reacquaint yourself with FMC. I would suggest you might want to spend a little bit of time with our third quarter 2023 earnings presentation, which really lays out the whole patent timeline. And with our November 2023 investor day presentation, our recently retired Chief Marketing Officer, Diane Allemang, went through how we're going to shift the mix of the diamide business to where more than half of the sales we have by the end of the decade will be from newly introduced formulations. So while we do expect and absolutely have today in certain countries generic competition, what they'll be able to compete with is older, lower-performing formulations while we continue to shift the market to higher-performing, higher-value formulations of the diamides.
We've had very, very good response and very, very good growth, again, with high-concentration versions of Rynaxypyr, tremendous driver of growth in the Canadian market last year, seeing with value-added mixtures, including patented mixture formulations. We're seeing some very good progress with those types of products in Brazil and other markets. So I think we're very much in middle innings with the story of the diamide franchise. Through the patent portfolio, through continued innovation, through branding, we will continue to drive significant growth. The reality is they're better-performing products than other products on the marketplace, and they have a much more targeted impact. So they're much more environmentally friendly than many of the older chemistries that they continue to displace from the insecticide market. So again, this is a complicated subject, particularly around the patents. Lots of misinformation that's been out there at different times.
I'd again refer you to those two presentations. Curt and Pat on our IR team would be more than happy to walk anybody through that in more detail. But I would tell you this. There is a lot of room left for value creation and growth with the diamides for FMC.
Great. In terms of the current outlook in the environment, you've gotten into low single-digit price declines this year. Would you say the pricing pressure, what's been the key driver of that? Has it been competition? You talked about generics, but is it more about competition from other peers? Has it been?
So look, again, I'm not going to be too specific about the remainder of the year, but where we are today, we've had three quarters in a row of low- to mid-single-digit price reductions on average. It's not the same in every country or across every product. This is following two years of price increases. So remember, we wrote up an inflationary wave of recovering rapid increases in raw material prices. We're at a point now where we're anniversarying against in Q3 and Q4 of 2024; we'll be anniversarying against price reductions we made in the prior year. So it's not that we haven't already taken a meaningful reset in pricing. I think the pricing dynamics are such. One, obviously, yes, your less differentiated portions of your portfolio are often subject to more pricing pressure. These products are subject to more supply demand imbalances.
When there's weak demand, particularly in times of very low volume when the channel is actively destocking, it can be hard to hold price. That's where we've made some tough choices between price and volume over time. I do think we'll continue to be fighting price pressure. I do think it varies depending on the region and the products. I think it is important to keep in mind we're at a point now where we're anniversarying some of this downward movement in price. Some of that is moving back away from pricing that we put in place to recoup costs from that run-up in inflation in 2021.
Okay. So as we enter 2025, the expectation is that inventories at that point should be at a place where the worst is behind us.
Yeah. I think as we move into 2025, look, I'm very careful about using the word normal because we've been through a period in the last five years that I think anybody who tries to define normal at this point is a fool's game. What we are seeing is improving conditions. We are seeing channel inventories reduce. We will see a rebalancing, a resyncing of pull-through by growers from all the way back up the channel back to manufacturers where that's been broken in the past four quarters as that channel, the inventory that built up in between needed to be drawn down. For FMC particular, as that rebalancing happens, new products amplify the growth. They absolutely do.
Along with that, and I'll repeat this, the things that we are doing today to put our cost structure in a better place for the long term mean that more of that will drop through. In particular, look, this year, because we've had so much lower volumes, we have meaningful unabsorbed fixed costs that are hitting our P&L. As we start to ramp up manufacturing volumes again, and we're seeing that in our forecasts as we're looking forward to the rest of the year, those go away. That absence of headwind in 2024 becomes a tailwind in 2025. Right? Not prepared to put numbers around this just yet today, but I will tell you clearly there is a tailwind in 2025 from normalizing production levels and the absence of unabsorbed fixed costs.
All of those factors make me very confident that there is a much better 2025 to come here.
Great. Maybe if you could briefly talk about where we are on the balance sheet and free cash flow generation this year. I think you're targeting roughly 100% of net income in terms of free cash flow generation this year.
Yeah. So this year, look, we traditionally look at free cash flow conversion against net income. This year, our guidance for free cash flow that we gave on May 7th would suggest at that time around 100%. And again, we'll update guidance and give new guidance on the August call. So I want to be careful about there, about not being too specific. But I think the dynamics here, we were strongly negative free cash flow last year. Right? With the drop-off in business, with the collapse in payables in particular, we were profoundly negative free cash flow this year. We have a billion-dollar swing at the midpoint of our prior guidance range from free cash flow last year to free cash flow this year. It's driven by lowering inventories and rebalancing payables and inventory as our production normalizes.
That range of cash flow that we're anticipating, again, about 100% of net income, 104%. We think our long-term steady-state conversion from net income over, let's do it over a couple of years, there's always lumpiness in cash flow. Should be around 70%. That's historically what we've generated. We would expect that three-year average to normalize by 2026. So I think from a cash generation perspective, it's going to be a strong cash generation year. I think that it won't be 100% in 2025. Our business doesn't work that way. We have working capital needs. We do have some legacy liabilities. But it can be very substantially positive. So from free cash flow generation, we'll get the reset this year. We'll return to more of our patterns. From a balance sheet perspective in general, our leverage is higher than we would like right now. We are bringing that down.
It'll be through a combination of growing EBITDA and through deleveraging. From the free cash flow that we generate, we'll fund our dividend, and then we'll use the rest, all of the other cash flow this year to reduce debt. We're also in the process of selling our Global Specialty Solutions business. It's a small business line that uses similar active ingredients, but for non-agricultural applications like professional pest control. That process is well underway. We're progressing quite well in that process. Expect to have some news with that in the second half of this year. Any proceeds from that divestiture will also go to debt reduction.
But look, I think over the long term, and for those who've looked back at our history, and certainly with the return of Pierre to the CEO chair, we've always had a strong philosophy of a balanced return of cash to shareholders between repurchases and dividends. Now, given the leverage situation right now, we're not in a position to do repurchases. We really need to get leverage back to a more manageable level. We will do that through 2024 into 2025. We'll keep evaluating that as we get leverage to better levels than where we are today. But just over the past five years, including the disruptions of 2023, the split of cash returned back to shareholders has been about 50/50 between dividends and repurchases.
While repurchases are not something that's on the agenda for 2024, as we improve leverage, as we continue to rebuild the balance sheet from that perspective, we will continue to evaluate and look to restart repurchases sometime in the future.
Great. With that, any last remarks you'd like to make?
Look, again, I think I would just point to it has been a rough four quarters. We acknowledge the short-term performance of the company has not been where we want it to be. We are doing the right things to get the company's cost structure and organization prepared. We have protected the margins of our products. And importantly, we've protected the quality of our balance sheet from a receivables and credit quality perspective to where we are well prepared to accelerate as market conditions improve. So while that timing and transition may be a little bit bumpy, I think we are very well positioned going through the rest of 2024 and into 2025 to see strong sales growth and even more importantly, stronger profitability growth.
Great. With that, thank you for coming.
Thanks for having me.