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Alpek Sab De Cv Ord
7/16/2020
We are connected to ALPAC's webcast presentation. I would now hand the call over to Mr. Alejandro Elizondo.
Good morning, and welcome to ALPAC's second quarter 2020 earnings webcast. Please turn to slide two. I am Alejandro Elizondo, company IRO, and I have the pleasure of being joined by our CEO, Depe Valdes, and our CFO, Jose Carlos Pons. This presentation is divided into two parts. First, Mr. Valdez and Mr. Ponce will provide commentary on Alpec's overall second quarter 2020 performance, as well as an update on relevant events. Afterwards, we will move on to the Q&A session. Let me remind everyone that the information discussed today may include forward-looking statements regarding the company's future financial performance and prospects, which are subject to risks and uncertainties. Actual results may differ materially, And the company cautions the market not to unduly rely on these forward-looking statements. Alpec undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Today's webcast presentation is being recorded and will be available on the company website at www.alpec.com. I will now turn the call over to Mr. Pepe Valdez.
Thank you, Alejandro. Good morning, everyone, and thank you for joining us today. I hope you are all staying healthy and well. Turning to slide three, I would like to focus on three key elements that we believe are the main themes for this quarterly period. First, the company has continued to surpass expectations, particularly on sales volume as we transition to a post-COVID-19 environment. APEC's strong financial performance is supported by solid business fundamentals, which we will further explain in this presentation. And finally, we continue to carry out our strategic growth plan to clearly identify catalysts and a capital-effective approach. Let's begin with APEC's performance during the COVID-19 pandemic on slide four. Before I go into the details, I would like to personally thank each and every one of our more than 6,000 employees who are the heart of our company and who keep our economy growing. These individuals come to work every day with a clear goal in mind, to bring our customers the products they need to supply of essential goods, such as bottled water and packaged foods as well as urgent medical supplies such as face masks and medical gowns. Rest assured that your safety is our first priority and we will continue working alongside you to maintain safe working conditions. I could not be prouder of you and I thank you for your dedication. The impact of COVID-19 pandemic on our business has not changed significantly during the second quarter. is three main effects have been the weakening of crude oil and petrochemical feedstock prices to historical lows in April, resulting in both an inventory loss and negative raw material carry forward effect. Higher than expected integrated pet margins on a global basis as a result of a tighter supply-demand balance and continuous strength in the food and beverage, hygiene, and medical industries, which translates into solid demand for our products. Let me take a moment to go into more detail on a topic related to pet demand. We have all witnessed how the general population has become increasingly concerned with safety and hygiene. As a result of this new focus, we believe pet has gained market share in the food service category as fountain dispensers are being replaced by pet packaging. This fundamental shift in behavior has been accompanied with a call to action to strengthen pets' circular economy. As a leader in the recycled pet segment in the Americas, ALPEC is fully committed to supporting initiatives aligned with achieving higher recycling rates. We believe that choosing pets and properly disposing it is the best alternative to fight climate change within the packaged food and beverage segment. At this point, I would turn the call over to Jose Carlos, who will go into more detail regarding our financial results.
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