Becle, S.A.B. de C.V.

Good morning and thank you for joining Beclair's third quarter unaudited financial results call. During this call, you may hear certain forward-looking statements. These statements may relate to our future prospects, developments and business strategies and may be identified by our use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, predict, project, will, goals, target, strategy and similar terms and phrases and may include references to assumptions. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. our actual results may differ materially from those in forward-looking statements. For all the foregoing reasons, you are cautioned against relying on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Before we begin, we would like to remind you that the figures discussed on this call were prepared in accordance with International Financial Reporting Standards, or IFRS, and published in the Mexican Stock Exchange. The information for the third quarter of 2022 is preliminary and is provided with the understanding that, once financial statements are available, updated information will be shared in the appropriate electronic formats. At this time, we would like to remind participants that your lines will be in listen-only mode until the question and answer session. Now, I will pass the call on to Beckley's CEO, Mr. Juan Domingo Beckman.

Good morning, and thank you for joining us today as we discuss Beckley's third quarter 2022 results. Our regions posted solid numbers and our portfolio proved once more to be resilient against macroeconomic challenges such as inflationary pressures, and continued supply chain constraints. Despite these, underlying demand for our brands remains strong, allowing us to capitalize on market opportunities across regions and continue to build a better and more resilient organization. Looking at overall results for the quarter, total volume and net sales grew by 5% and 20% year over year, respectively. We saw the full effect of our price increases play out in regions that were particularly affected by cost inflationary pressures, and we were pleased that they were well received by the market. Our depletions and inventory levels demonstrate a strong and unaffected demand. As of today, we have not seen any signs of trade down, and we are reassured by our portfolio's depth of options and price points for consumers. In the U.S. and Canada region, volume was down versus third quarter of 2021 due to a decrease in the non-alcoholic and ready-to-drink categories, which were primarily affected by the quickly growing and high competitive environment in the space, the post-pandemic resurgence of on-premise demand, and a tough year-over-year comparison basis. However, our tequila portfolio is overperforming the category per Nielsen data. Results for Mexico and LATAM for the quarter were very positive due to a persistent growth in tequila, along with our well-executed premiumization strategy. On-premise sales continued to show off strong results as more COVID restrictions were lifted, while off-premise sales also showed good momentum. These results demonstrate our enduring leadership in the region and resilient demand for all our brands. Our strong results in the EMEA and APAC regions are attributed to growth in on-premise sales, increasing tequila adoption, and our premiumization strategy, which also played a key role in driving a double-digit increase in net sales value, allowing us to outperform our peers in key markets. These results came despite high inflationary environment and continued COVID restrictions, especially in China, suggesting a strong demand for our brands in the region. We are pleased with our brand's performance and our overall results. Our premiumization strategy continues to be a key driver of growth and has allowed us to successfully manage emerging headwinds. As a result, we were able to continue delivering sustainable value growth for our shareholders and remain confident in our brand's underlying demand to help us thrive in the face of macroeconomic challenges. I will now turn the call over to Luis Felix to discuss our U.S. and Canada results in detail.

Thank you, Juan, and good morning, everyone. We are excited to share our commercial performance in the United States and Canada for the third quarter and year today, 2022. In the third quarter, net sales value increased 14% year over year, despite a 1% contraction in ship volumes. We estimate that without disruption caused by Hurricane Ian, perform about volume on the quarter to quarter would have been flat. This decrease in shipments volume was due to a 15% year on year declining in our ready to drink margarita and non-alcoholic margarita mix offerings. This upsets the strong growth on our full strength spirits portfolio, which increased 8% in the third quarter and drove our overall solid top line results. The RTD and Margarita mixed categories have faced difficult conditions due to the robust reopening of the on-premise channel. and a highly competitive and dynamic prepared cocktail category driven by continuous growth of canned options and new agave wine introductions. We're undertaking a strategy to support our RTD offerings by addressing 2022's challenges and looking to innovation and investments within the category. We will carry these jointly with the strategic actions in our tequila and whiskey portfolios to simultaneously strengthen our overall spirits portfolio and restore our position in the prepared cocktail category. On a year-to-year basis, net sales value grew 8% despite a 4% shipment volume contraction, both compared to the same period of 2021. Year-to-date shipments were also primarily impacted by the ready-to-drink margarita and non-alcoholic margarita mixed offerings. which decreased by 17%. Shipments for the food transport portfolio grew 6% over the same period, and our tequila portfolio shipments were up 7%. Our net sales increase demonstrated the successful execution and positive impact of our permutations strategy, which accounted for 75% of NSB gains, as well as the positive effect of our April and May 2022 price increase on most SKUs, within our full-strength portfolio, which accounted for 25% of the gains. Excluding the prepared cocktail, malt-based, and non-alcoholic portfolios from the Nielsen data, our Nielsen takeaway for the 13 and 26-week periods ended October 8, 2022. We're up 3.8% and 2.3% respectively on volume and up 10.6% and 8.1% respectively on value. This compares to an equivalent industry volume contraction of 2.4% and 3.4% for the 13 and 26 week period. Respectively, with no change in value for the 13 week period and minus 1.3 decrease in value for the 26 period. As these numbers show, we thus continue to gain share in these categories. Including all categories, our Nielsen takeaway for the 13 and 26-week periods ended October 8, 2022. We're down 3.2% and 5.9% respectively on volume, but up 5% and 2.1% respectively on value. This compared to an industry gain of volume of 6% and 4.8% respectively and a 3.4% and 1.1% increase in value for the same periods. This demonstrates the meaningful impact of prepared cocktails, mild-based, and non-alcoholics in the overall industry figures. U.S. and Canada wholesaler depletions were down 1% in both the third quarter and the year to date. Our tequila portfolio depletions were up 5% for the quarter, with all of our brands showing growth. Our super premium tequila brands grew 13% for the quarter. On a year-to-date basis, our tequila depletion posted an 8% expansion with our super premium offerings growing by 14%. For both the 13 and 26-week periods ended October 8, 2022, our tequila portfolio growth in the off-premise outpaced the overall category volume growth of 3.7% and 3%, respectively, as measured by Nielsen. Our tequila portfolio continues to perform exceptionally well, further demonstrating the successful execution on our strategic initiatives and corporate priorities. Moving on to our marketing activities, we continue to support our portfolio with strong A&P spending during the third quarter and year-to-date periods. We look forward to taking advantage of our strategic opportunities for our super and ultra-premium tequila brands, to be provided by greater A&P spending in the fourth quarter, reaffirming our commitment to strengthening our brands. And now I will turn the call over to Olga Limon to discuss Mexico and Latin America results.