Second Half Outlook
Q: How confident are you in hitting your Q4 guidance?
A: Pierre emphasized strong confidence in meeting the fourth quarter targets, citing a thorough bottom-up process and improved visibility in key markets like Brazil, North America, and EMEA [0]. He mentioned that 60% of second-half growth is from new product introductions, which are seeing strong demand [0]. He also noted that in Brazil, they already have about 35% of orders in hand, compared to 0% last year, and in strong markets, this figure can reach up to 45-50% [4].

Industry Recovery Timing
Q: When do you expect the industry cycle to recover?
A: Pierre believes the bottom of the cycle was reached in Q2 2024 [5]. He expects normal business activities and a more normal channel to return in the first quarter of 2025 for Latin America, Europe, and North America, with Asia, particularly India, recovering well into 2025 [5].

Pricing Strategy
Q: Are you lowering prices at the expense of margins?
A: Pierre explained that they intentionally repositioned prices in Q2 to regain market share in less differentiated products after aggressively increasing prices during raw material inflation [6]. He emphasized that this is a one-time adjustment and there is no change in strategy to chase volume at any cost; margins remain a priority [6].

Cost Structure Impact
Q: How are costs affecting the second half, especially Q3 and Q4?
A: Andrew noted that in Q3, they face headwinds from unabsorbed fixed costs flowing through from downtime taken last year, which offsets raw material cost favorability [1]. In Q4, these costs diminish, leading to a flat gross margin cost impact and a modest tailwind from restructuring benefits [1].

Operational and Strategic Changes
Q: Are there any personnel or strategic changes underway?
A: Pierre stated that while the team is solid, he is focusing on improving forecasting, selling processes, and execution [3]. He emphasized the need for a more aggressive global and regional marketing strategy for diamides and intends to lower operational costs through strategic use of attrition without new restructuring programs [3].

Foreign Exchange Effects
Q: How does foreign exchange impact revenue and EBITDA in H2?
A: Andrew explained that in Q3, there's a low single-digit FX headwind on both revenue and EBITDA [2]. In Q4, while there's a revenue headwind due to currencies like the Brazilian real, there's an offsetting benefit in SG&A expenses, resulting in a minor tailwind to EBITDA [2].

Promotional Activities in India
Q: Is there a risk of overstock due to promotions in India?
A: Pierre clarified that the one-time incentives offered were to help customers holding high-cost products move inventory through the channel [7]. He assured that prices are now aligned with market demand, and there is no risk of channel overstocking [7].