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

Good morning and thank you for joining Beckley's fourth quarter and full year 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 fourth 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 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, everyone, and thank you for joining us today as we discuss Beckley's fourth quarter and full year 2023 results. In the fourth quarter, we observed an improvement in volume trends across most regions. We had notably strong sequential performance in Mexico and the rest of the world. It's important to recall that in the U.S. and Canada region, the off-cycle price increase implemented on January 1st of 2023 resulted in distributors purchasing ahead of these changes, creating a challenging comparable for this quarter. Additionally, A runoff inventory sale from the Playa Mar brand in the fourth quarter of 2022 led to a decline in U.S. volumes during this quarter versus that period. Luis Felix will soon provide more detailed insights into the region's performance. From a brand perspective, we either gained or maintained market share in most of our key markets in 2023. We ended the year with historically high levels of market share in Mexico, both in terms of volume and value. Our commitment to staying close to our consumers and innovating accordingly continues to yield positive results. The past year has been marked by significant milestones in product innovation, including the launch of Reserva de la Familia Cristalino, an organic reposado, Creyente Cristalino Reposado, Maestro Dovel Atelier, and 1800 Guachimonton, among other notable additions to our portfolio. Looking into market dynamics, we recognized the ongoing challenges posed by macroeconomic and geopolitical conditions. We have observed a slowdown in consumer demand across several markets, indicating a return to historical trends. Nevertheless, demand for our brands remains strong and resilient, after two years of growth surpassing our long-term historical trends. Consumer demand for spirits is now normalizing from this elevated base. Regarding gross margins, we foresee a gradual improvement throughout 2024, driven by supply chain pressures, easing, and lower input costs. We remain confident that the collective strength of our brands and regions will continue to drive growth in 2024, even in the face of slower than anticipated industry growth, particularly in the United States and Mexico, due to recent changes in trends in the spirits category. I will now turn the call over to Luis Felix to discuss our U.S. and Canada results in further detail. Luis Felix.

Thank you, Juan. Good morning, everyone. I am pleased to share the results for the fourth quarter and the full year 2023 in the United States and Canada region. Please note that the following remarks are based on a constant currency base. In the fourth quarter, net sales value declined by 1.9%, primarily due to the steeper decline in shipments. However, on a full year basis, NSB increased by 2.7%, mainly driven by the ongoing strong performance of our super and ultra-premium tequila brands. This reflects the positive impact of our premiumization strategy and effective pricing initiatives that were implemented in early 2023. Shipments in the fourth quarter dropped by 6.7% compared to the previous year, mainly due to a significant decline in the RTD category. This decline was primarily influenced by a high comparison base resulting from a one-off sale of Plyamar. We discontinued this brand and sold off the remaining inventory in the fourth quarter of 2022, contributing to a 251,000 case headwind in the fourth quarter of 2023. Excluding the Plyamar effect, our shipments for the fourth quarter would have only declined by 1.2%. On an annual basis, shipments declined by 3.1% compared to the previous year. However, excluding the RTD category, shipments would have only declined by 1.1%. Depletions for the quarter increased by 1.6% year-over-year on the back of a 4.1% growth in the previous year. Yearly depletions decreased by 2.3% compared to the previous year, aligning to the previously mentioned 3.1% contraction in shipments, providing a resilient foundation as we step into 2024. Despite the overall market slowdown in some categories within the U.S., our portfolio maintained an advantage position relative to our peers. According to the 13-week Nielsen value indicators for the period ended in December 30th, The spirits industry grew by 1.6%, with tequila category increasing by 3.7%. Our tequila portfolio marginally trailed the category growth rate, growing by 2.9%. And our whiskey portfolio consolidated its strong position, increasing 1% per point, while the total whiskey category declined by 0.3%. Furthermore, Proximo's NAPCA numbers for the quarter indicates that the resilient performance of our portfolio, which was partially impacted by inflationary pressures on consumer spending, our NAPCA consumer value growth in the fourth quarter of 2023 was 2.7%, outperforming the industry average of 2.5%. Heading into 2024, we are confident that our pricing power, our ongoing tequila immunization strategy, and the portfolio mix will continue to deliver significant value. Now I will turn the call over to Olga Limon to discuss the Mexico and Latin America results.