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

Good morning, ladies and gentlemen, and thank you for joining Beckler's third quarter unaudited financial results conference 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 the 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 certain circumstances that are difficult to predict. Our actual results may differ materially from those in forward-looking statements. For all their foregoing reasons, you are cautioned against relying on forward-looking statements. We undertake no obligations to publicly update or revise any forward-looking statements, whether as a result of new information at future events or otherwise. Before we begin, we would like to remind you that the statements discussed on this call were prepared in accordance with the International Financial Reporting Standards, or the IFRS, and published on the Mexican Stock Exchange. The information for the third quarter of 2023 is preliminary and is provided with the understanding that once financial statements are available, updated information will be shared in the appropriate electronic format. At this time, we would like to remind the participants that your lines are on listen-only mode until the Q&A session. I would now like to pass the line to Beckless CEO, Mr. Juan Domingo Beckman. Please go ahead, sir.

Good morning, everyone, and thank you for joining us today as we discuss Beckless third quarter 2023 results. In the third quarter, U.S. and Canada experienced a notably notable recovery and overcame earlier hurdles related to off-cycle pricing adjustments. Volume and net sales in U.S. dollars were up versus the third quarter of 2022, primarily driven by the successful execution of our premiumization and pricing strategies. Our premium tequila segment continued to experience strong demand, outperforming the overall growth of the tequila market in the region. as indicated by recent Nielsen data. On the other hand, Mexico faced a challenging third quarter due to market factors affecting the spirits industry. However, we maintained a strong market position, supported by our premiumization strategy. Year-to-date performance in Mexico has shown resilience, marked by growth in value and increased revenue per case due to strategic pricing and product mix. In the EMEA region, the economic slowdown has impacted consumer spending, resulting in a decline in third-quarter volume and net sales. Nevertheless, we are outperforming major competitors in key markets and sustaining our market share growth. Meanwhile, the APAC region saw substantial growth in both volume and net sales, primarily attributed to the expansion of the tequila segment and increase among more consumers. The year-to-date growth in both regions is encouraging. We are confident in our grants, enduring value, and our capability to deliver sustainable growth for our shareholders. The successful execution of our premiumization strategy alongside Tequila's lasting popularity has played a vital role In addition, the recent price declines in the agave market are important tailings for our tequila portfolio on working capital requirements, cash flow, long-term profitability, and earnings generation capabilities.

Thank you, Juan. Good morning, everyone. I am pleased to share that the United States and Canada reported a positive third quarter, marking a recovery and normalization following the challenges faced in the first half of the year, primarily due to the off-cycle price increases. Can we know that the results in the following remarks were prepared on a custom currency basis? Starting in May, we began to notice a gradual improvement in net sales value, which continued into the current quarter, with an increase of 12.5% compared to the same period of last year. This positive trend is a result of price increases across our full-trend spirits portfolio and the successful execution of our premiumization strategy, driven by the resilient performance of our super and ultra-premium tequila brands. Shipments for the third quarter grew by 6.8% compared to the same period of last year. While depletions declined slightly by 2.5% due to the challenges in the RTD category, tequila depletions grew by 4% compared to the third quarter of 2022. As we anticipated in the previous conference call, our distributor partners have begun to restructure inventory to agreed upon levels during the third quarter of 2023 in preparation for the holiday season. This trend is encouraging. However, we need to be cautious as we are facing a high comparable base in the fourth quarter. In the competitive landscape, our performance in the U.S. during the quarter stood out positively compared to our peers. Based on the 13 weeks Nielsen value indicators, the overall spirits industry experienced a slow 1% growth, with the tequila category being a key growth driver, increasing by 5.5%. Our tequila portfolio grew by 7.4%, outpacing the category growth rate. Similarly, our whiskey portfolio consolidated its strong position, increasing by 7.6%, while the total whiskey category grew by 2.4%. Proximo NAPCA numbers are also showing positive performance. In the third quarter of 2023, our NAPCA consumer value grew by 4.7%, outperforming the industry average of 2.3%. As we approach the year end, our focus remains on maintaining the positive momentum. We remain confident that our tequila-based immunization strategy will continue to deliver substantial value, supported by a strong portfolio mix and the ongoing improvement of the RTD category. I will now turn the call over to Olga Limon to discuss the Mexico and Latin America results.