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Good morning, and thank you for joining Beckel's fourth 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 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 2024 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 Beckel's CEO, Mr. Juan Domingo Beckman.

Good morning, everyone, and thank you for joining us today as we discuss Beckler's fourth quarter and full year 2024 results. Before our regional directors and CFO take you through the details of our results, I'd like to offer some perspective on the year and our broader position as a company. It's been a year of navigating challenges across our key markets with widespread market contraction, affecting the entire value chain. We've seen increased pressures from macroeconomic factors and evolving consumer trends, which have led to competitive pricing dynamics and inventory adjustments across regions. Despite these headwinds, we were able to deliver robust financial performance in 2024, backed by our decisive and strategic actions that have strengthened our position for the year ahead. In the U.S. and Canada, we maintain our position as price leader throughout 2024. While we leverage promotional programming selectively, we remain disciplined in protecting long-term brand equity and prioritize premiumization. In Mexico, we also made solid progress in executing our premiumization strategy, driving market share gains while benefiting from early signs of market recovery. Meanwhile, despite weak consumer confidence in EMEA and APAC, we sustained depletion growth supported by key markets and our premium portfolio. Our premium strategy remains a core driver of long-term growth and value creation. Tequila continues to be a standout performer versus other categories. And our strategic pricing initiatives have helped us maintain or expand market share by the end of the year across most regions. As we enter 2025, we remain committed to protecting and expanding these gains. We also saw strong operational performance with gross margin expanding by 280 basis points and EBITDA margin improving by 370 basis points in 2024. driven by favorable raw material trends, productivity improvements, and foreign exchange benefits. Additionally, we deliver tangible cash flow conversion and ROIC improvements through optimized supply chain management. While Cuervo remains the dominant force in most major tequila segments around the globe, we remain confident on our brand portfolio and our capability to capture untapped opportunities. In an evolving market, innovation and strategic marketing will be key to capturing additional and profitable market share and strengthening our long-term position. Moving forward, continuous improvement remains a key priority, especially as we navigate through volatile industry and macroeconomic conditions. with a clear strategic vision, strong focus on execution, and a deep commitment to growth. We are confident in our ability to deliver sustainable value in 2025 and the years ahead. Thank you, and with that, I'll turn it over to Luis Felix to discuss our US and Canada results.

Thank you, Juan, and good morning, everyone. Please note that the figures shared in today's remark are presented on a constant currency basis. The U.S. and Canada region faced a dynamic environment in the fourth quarter as we took deliberate actions to rebalance trade and distribute our inventories. Net sales value declined by 21.3%, primarily driven by lower shipments versus a minus 8% decline in depletions. However, when excluding RTDs and margarita mix, depletions declined by 6.2%. highlighting the disproportionate impact of RTD declines, which accounted for 1.8% of our total depletion losses. While year-end inventories remain slightly above historical norms, our disciplined approach to managing shipments and working closely with distributors have positioned us well for 2025, even as some of the stocking effects may persist in the first half. Our four-quarter performance reflected a combination of industry-wide headwinds and proactive commercial decisions. To support distributor stocking efforts, we adopted a measured approach to shipments, ensuring better alignment with full-year depletions. Importantly, We remain a pricing leader throughout 2024, maintaining a disciplined approach while competitors took more aggressive measures. We leverage promotion selectively, ensuring long-term brand equity remains intact. From a competitive standpoint, our portfolio is outperforming key industry benchmarks. According to 13-week Nielsen data, for the period ending January 4th, Proxima grew dollar sales by 1.8% in full-strength spirits category, while the overall spirits industry, excluding prepared cocktails, declined by 0.3%. We're also gaining share in the on-premise channel where SIP source data shows we are outpacing industry trends by 2% in Q4. Proximo continues to benefit from improving tequila trends, leading to slight shared gains when excluding prepared cocktails from total spirits. Meanwhile, the RTD category continues to present challenges. With category growth concentrating in small formats, we are currently under index. To address this, we plan to increase innovation efforts with RTDs in 2025 to stabilize declines. Looking ahead, we are taking proactive steps to manage the complexities of 2025. Our focus remains on strengthening our market position, optimizing portfolio mix, and executing our long-term commercial strategy. Additionally, we're closely monitoring potential tariff developments. And while our CFO will provide further details, we are prepared to navigate any challenges effectively. I will now turn the call over to Olga Limon to discuss the Mexican-Latin American results.

Thank you, Luis, and good morning, everyone. The Mexican market remains challenging, with macroeconomic pressures driving a contraction across the spirits industry. However, the second half of 2024 improved over the first half, as the industry volume contraction slowed from high single-digit in the first half to low single-digit in the second, per NISQAM data. This provides cautious optimism as we move into 2025. We had an encouraging fourth quarter with a stronger performance marked by a smaller decline in shipments of just 1.4% and a 2.8% increase in net sales value and improved depletion trends. As we currently command a significant share of the spirits market by volume and value, our efforts not only bolstered our results, but also contributed to broader industry stability during the second half. Within the industry, the tequila category outperformed the overall spirits industry, favoring Cuervo. In this category, we strengthened our competitive position and expanded our market share throughout the year. Premium brands were a key driver of this success, leading to a 4% increase in price per case for the quarter and a 3% rise for the full year. During the first three quarters of 2024, depletions consistently outpaced shipments as retailers adjusted inventories in response to softer demand. By Q4, our shipments and depletions were more closely aligned with the market contraction, and we ended the year with healthier inventory levels. In the second half of 2024, we also observed a gradual return to typical seasonality patterns, aligning with consumer demand. This period has historically carried significant weight in terms of volume and sales. We expect 2025 to reflect a similar seasonality structure, supporting more normalized performance over the year. In Latin America, inflation and political uncertainty continue to weigh on the region. While shipments improved in the fourth quarter, depletions registered a slight contraction. We anticipate challenges to persist in 2025, but we believe our strong brand equity positions us to navigate these dynamics effectively. As we enter 2025, we remain cautiously optimistic for both Mexico and LATAM regions. Despite volatile market dynamics, the signs of recovery and our strategic initiatives position us favorably to maintain our market leadership. We remain focused on leveraging our premium portfolio and meeting evolving consumer demands to sustain momentum through 2025. I will now turn the call over to Shane Hohen, Managing Director of EMEA and APAC Region. Thank you.

Thank you, Olga, and good morning, everyone. In 2024, shipments in the EMEA and APAC region declined by 5% compared to 2023, while depletions rose by 2%. Net sales remained stable, reflecting the continued premiumization of our portfolio. While the region faced persistent trading challenges, strong momentum in priority markets helped offset pressures in others. Tequila continues to be a key growth driver, with premium offerings gaining traction across the region, reinforcing the long-term opportunity in this category. Additionally, consumers in developed markets continue to gravitate toward well-known and accessible premium brands supporting our broader portfolio strategy. Throughout 2024, consumer confidence remained fragile with Q4 purchases reflecting continued caution. Intense price discounting was particularly evident from our competition in selected markets during November and December. Additionally, our distributor working capital constraints and destocking efforts further weighed on shipments. Ongoing conflicts in Eastern Europe and the Middle East continue to disrupt business operations to the end of the year. With these challenges, the EMA and APAC regions showed resilience, supported by stable macroeconomic conditions in key markets and ongoing category momentum. Looking ahead to 2025, we remain optimistic with Tequila continuing to show significant volume and value growth potential across multiple markets. Our portfolio strength and established route to market strategy position us well to capitalise on these opportunities as we anticipate sustained growth across the region and further expansion opportunities. I will now pass the over to Rodrigo, who will take you through the financial results.

Thank you, Shane, and good morning, everyone. I will now walk you through the financial results for the fourth quarter and full year 2024. In the fourth quarter, the company reported consolidated net sales of 12.9 billion pesos, reflecting a 2% decline year over year. This result was unfavorably impacted by the year-end's inventory rebalancing effort in the U.S., partially upset by a strong rest of the world and Mexico regional performance, plus an FX advantage. Excluding the ready-to-drink category, net sales declined by only 0.3% in Q4. EBITDA for the fourth quarter increased by 11% year over year to 2.7 billion pesos, with the EBITDA margin expanding 250 basis points to 21%. This result was driven by, one, A 54% gross margin, which expanded 150 basis points compared to the same quarter last year, despite unfavorable geographic mix. The highest margin region, the US, saw a steeper volume decline than other regions, reducing its relative contribution to net sales value from 56.5 in Q4 of 23 to 49.6 in Q4 of this last year's 24. However, this was more than offset by benefits from lower agave-related input costs, productivity improvements across our supply chain, and favorable effects. And second, operating expenses efficiencies across the middle of the P&L, including distribution and non-working AMP, which contributed another 100 basis points to margin expansion, despite increased investments on IT and organizational capabilities. Net income for the quarter was 1.5 billion pesos, benefiting from a retroactive full-year effective tax rate reduction to 24%, which was booked in Q4. This was offset by a 707 million peso year-over-year swing in foreign exchange within our financing results, from the depreciation of the Mexican peso, which negatively impacted our net U.S. cash exposure. Excluding this effect, net income for the quarter would have resulted in a 19.1% increase. Cash flow generation for the quarter remained robust at 3.5 billion pesos, with a strong cash conversion rate of 96%, reflecting our continued focus on optimizing working capital investments. As of December 31st of 2024, cash and cash equivalents reached 10.7 billion pesos, an increase of 4.3 billion pesos compared to the previous year, while total debt amounted to 26.5 billion pesos. In 2024, the company generated 11 billion pesos in net cash from operating activities, a 10.1 billion peso improvement compared to the 921 million pesos generated in the same period of the previous year. These results were driven by inventory optimization efforts and sustainable extensions of supplier payment terms, all of which significantly improved the company's free cash flow. Over the past year, we've also made significant progress in reducing our least adjusted net debt ratio from 2.8 to 2.1 times, bringing us slightly below industry standards. This enhanced financial condition and flexibility will allow us to reduce further debt and increase funding capability for strategic investments going forward. Overall, and despite industry challenges, our full-year financial results were top tier within the industry. While NSP declined by 0.9% in the year, we achieved a 280 basis points expansion in gross margin to 53.5%. We delivered 21.7% EBITDA growth for the year. and improved our EBITDA margin by 370 basis points to 20.2% from 16.5%, triggering a notable 90 basis points improvement in ROIC versus last year. Plus, we delivered an improved cash conversion rate that enhanced our liquidity and debt to EBITDA ratios. Before providing our guidance for 2025, I want to briefly address the possible impact of upcoming tariffs, which have been put on pause until at least until March 4th and remain uncertain. Assuming tariffs are implemented in March, we would be on a favorable position as we have proactively increased inventories in the U.S. through anticipated intercompany shipments from Mexico and Canada. All else equal, we estimate the impact of these tariffs to be approximately $80 million in 2025, assuming no mitigating actions through pricing, operational efficiencies, or currency effects. Now moving onto 2025 guidance and subject to FX fluctuations, we expect to deliver full year net sales value growth of mid single digit versus 2024. And AMP as a percentage of net sales value to be in the range of 20 to 22%. On the CapEx front, we expect 2025 CapEx to be in the range of 110 and $130 million for the year. And it is important to note that this guidance does not factor in any potential tariff impacts. While we expect gross margin to be enhanced in 2025, we will maintain a cautious approach as we navigate through uncertainties. By adhering to this comprehensive framework, we remain committed to effectively navigating market challenges while driving sustained growth and value creation for our stakeholders. We are confident in our ability to deliver both short-term results while staying focused on our long-term strategic priorities and sustainable improvements. I will now turn the call back to the operator for questions and answers session. Thank you.

We will now begin a Q&A session. If you would like to ask a question, please press the raise your hand button located at the bottom of the screen. If you are connected via telephone, please dial star nine. Remember that you must unmute yourself once you are given permission to speak. We will now pause for questions. Our first question comes from the line of Lucas Moussi. Please state your company name and ask your question.

Good morning, everyone. Lucas from Morgan Stanley. I have two quick questions. The first one is on gross margins and costs, if you will. So I just wanted to see if you could provide us with more color on the drivers behind the gross margin performance in the fourth quarter. I recall that on, I think it was on the second quarter, on the third quarter conference call, You stated that about 100 plus of gross margin improvement came from weaker effects. And you also had 100 plus coming from lower agave, which was an evolving tailwind for Cuervo. Since you delivered a 54% gross margin in the fourth quarter, which was about 100 bps better than the third quarter... How do you see, how do you define the drivers, you know, especially on a quarter-over-quarter basis or on an over-year basis that helps as well in the context of better agave tailwind, effects tailwinds, but at the same time that you had a more unfavorable geographical mix, especially in the context of declining volumes in the U.S.? So that's my first question. Sorry for the long explanation. And the second one is in the US. I just wanted to hear more about competition. I understand that you guys resorted to a little bit of more discount activity in the last couple of months, both on the Jose Cuervo Special line and also on 1800 products. So just wanted to get your sense if you now feel comfortable with the level of pricing that you have implemented, how sales, how customers have been responding to your new pricing activity and how competition has responded as well. So just wanted to see if you could share more color on competition. Thank you very much.

Yes, thank you, Lucas. This is Rodrigo. Regarding your first question, I think you captured the components quite well. We're clearly still benefiting from lower agave costs overall, and we do have the benefits of effects within that. But as you well mentioned, there's a also the component of unfavorable mix, mostly related to the lower contribution the US had this quarter for us, as well as some product mix as well, which includes a little bit of the price adjustments that you referred to. So overall, I mean, the margin expansion was pretty solid. you know, potentially it could have been better if you go back to, let's say the normalized regional mix we have. And so those are the key components and we feel pretty good about the result in terms of gross margin improvements so far.

Thank you, Lucas. In the case of your second question in terms of more about competition and what we're doing in Cuervo Especial in 1800. We believe that the actions, we took some tactical actions in both brands in specific markets. And what we're seeing is that it is having a positive impact. And that is basically from what we saw in Nielsen in the last Nielsen data. We grew dollar sales by 1.8% while the total category in the industry was basically flat. We are seeing I also more aggressive environment in terms of pricing. In a 52-week basis, Nielsen ended. The total industry is declining 1.9% in prices and eroding further in the 13 weeks to 2.2%. So we believe that the pressure in pricing will continue, but we also believe that both brands are reacting positive to the tactical adjustments that we implemented.

Thank you guys very much.

Our next question comes from the line of Ben Toro. Please state your company name and ask your question.

Hi. Hi, everyone. This is Rahi on for Ben from Barclays. So our first question would be about remarks that you made for the US. You said destocking could persist in the first half. What gives you confidence that this will not continue into 3Q and on? And also maybe if you have any tidbits of color on how 4Q went in terms of destocking in the US and recent examples and how 1Q is coming through. Thank you so much.

Thank you, Rami. Yes, in the case of the US, let me try to explain. what happened in Q4. So we started the year and we were optimistic after the first half of the year, our depletions for tequila were up 2.3% and our shipments were up 11%. That's on the first half and then starting In June, we started to see experience significant headwinds driven by a combination of microeconomic headwinds in inflationary pressures, and also the normalization of the post-pandemic world that continued. So we started to see in Q3 some deceleration in depletions. In Q3, depletions in tequila decelerated by 5.2%, and our shipments grew 4%. So what we face in Q4 is we have higher inventories in our distributors, and depletions continue to increase. underperformed. So we took deliberate action to try to normalize the depletions to our shipments. And in the month of December, we adjusted. We shipped 900,000 cases. We depleted 1.4 million. So we adjusted almost 500,000 cases to get to a level of inventory with distributors, which is more now on our or normal ways. The depletions in the fourth quarter, we experienced some headwinks in two of our biggest brands in terms of depletions decelerating double digit. But when you look at the other five brands that we have in Tequila, in aggregate, those five brands grew 13%. in depletions compared to the previous year. So we, yeah, we're seeing some negative effect, but we basically, we took more an approach to try to not mortgage the 2025 year and adjust it in the fourth quarter.

And Rahi, this is Brian. If I may very quickly, remember that shipments and depletions are normally misaligned throughout the year. And we try to align them on a full year period. So if you see historically since 2019, the quarters normally have mismatch. So we don't see a straight line between shipments and depletions. And then try to balance that out in a full year period. And also remember that shipments are forward looking. So we work with distributors to try to understand what demand will be. And that basically ends up being what we ship to distributors. If that's not the case, we try to adjust throughout the year to get to a more normalized number of inventory at a distributor level. So that's what we're expecting into 2025.

OK, thank you so much.

Our next question comes from the line of Tiago Hadwim. Please state your company name and ask your question.

Hello. Hello. Good morning. Juan, Rodrigo, and all the team. Thank you for taking my questions. I would like to touch point here on a couple of things. So the first one on the guidance, if you could give us some additional information on the assumptions, that would be very interesting for us. So first, I understand that naturally the effects is very important for you guys. So I would like to understand if you can open to us what level of effects you're assuming 2025. And also on the sales comments, just wondering whatever additional information you can give us on like geographies and performance of sales versus pricing, what you're thinking ahead for 2025. And the other thing, you guys made a very interesting comment on the, if I'm not mistaken, ready to drink in the U.S., and how consumers are shifting more towards smaller formats, right? And that you might need some innovation to try and work with that. So just wondering if you can give us any additional information on like changes in mix, pricing, margins, investments, just for us to try and understand the impact this can have on financials for 2025. That's it from my side, thank you.

Yes, thank you, Thiago. And so regarding guidance, we're not comfortable at this point in time, given all the fluctuation that there is and could be going forward, in particular with the FX to disclose that. But what I can tell you is we plan conservatively from an FX perspective, in other words, You know, there's not too much of FX benefits embedded into the guidance, but again, we remain cautious, and given the level of uncertainty we have in the market right now, uncertainties not only from the market perspective, but from tariff perspective, and we'll know shortly how that moves. And so we'll be ready to provide more clear, let's say, guidance going forward as soon as some of these uncertainties are eliminated. And so regarding your second question in terms of geographic improvements, well, we continue to obviously pursue growth as a company. So regarding guidance again, just to reinforce what I mentioned previously, guidance for the year at this point in time and given the uncertainties that I've already mentioned, we remain committed to meet single-digit NSV growth. And so that's the basis for at this point in time that we can share. In terms of geographic opportunities, we see sort of a balanced approach. But of course, some growth markets within the MENA and APAC region are providing also some some good tailwinds in terms of growth opportunities relative to the US and Mexico regions, okay? So regarding RTD, you?

Yes. In the case of RTDs, basically we're doing a couple of things. In the ready-to-serve business that we have, which is the largest part of our RTD business, in ready-to-serve, we're working on innovation and new flavors. We're also working in increasing AMP spending. because we know that tasting in liquid tulips, it helps a lot. So we're increasing the spending to improve there. And on the ready to drink in the small formats, we do have sparkling margaritas and some products in cans. So we're basically addressing pricing in that SKU. We're also including more activities in national accounts. and implementing additional like a new four pack for sparkling. So yes, we're taking, we basically want to stop the declines that we have in the ready to serve and being more active and ready to drink.

This is fantastic. Thank you very much.

Our next question comes from the line of Antonio Hernandez. Please state your company name and ask your question.

Hi, good morning. This is Antonio Hernandez from Actimbera. Good for taking my question. Overall, what are the trends that you're seeing in 2025 so far, especially in the US and Mexico? I mean, you already mentioned some of those, but if you could provide a little bit more color as well on the solid sales growth of non-alcoholic, if that's a trend that you're seeing and maybe you're reacting and in terms of innovation as well. Any color that you can provide on that would be very helpful. Thanks.

Thank you, Antonio. We believe that 2025 will continue to be a challenging year. um just the the projections that we got from um steep source which is a very credible uh source of information the projections that they have is a is a negative uh performance for the industry however when you look at tequila they're projecting to grow uh tequila industry by 1.7 so i think with the size of our tequila business and the weight that tequila has on our on our portfolio we're confident that we we have some opportunities to to improve. However, we continue to, I think the head wings will continue to be. And of course, if tariffs are implemented, then a lot of things will change. But it's going to be an interesting challenge in 2025.

Hi, as for Mexico, as we've said before, tequila is outperforming the industry. So we continue to think this will happen. And we will focus our efforts on maintaining our market position with a conservative growth outlook. And we are seeing a less confident and more cautious consumer. So we will be assessing the market on a brand per brand basis and our portfolio as well. Thank you.

Okay, thanks. And does this include maybe some opportunities in non-alcoholic, for example, I mean, even the solid sales roles? Is there anything else that you could provide on that?

Not really. It's too soon to tell. I think there's a lot of volatility in the market. And I think that our core business is performing better than the industry. So we'll continue to focus on that.

Yeah, Antonio, this is Brian, just very quickly. Non-alcoholic isn't the main priority within the company. I mean, it moves volumes a lot, but it's not really too large in terms of net sales. So we're focused on net sales here within the company. So our priorities continue to remain within premium tequila, premiumization within the company. So I wouldn't focus too much on non-alcoholic.

Okay, perfect. Thanks, Ricardo. Have a good day.

Our next question comes from the line of Fernando Olvera. Please state your company name and ask your question.

Hi, good morning. Thanks for taking my question, Fernando Olvera of Bank of America. I have two questions. The first one is on the EBITDA. If you can comment more about the one-time contractual benefit related to the former brand ambassador. agreement and what would have been the growth of EBITDA if you exclude such one time. And my second question is on taxes. If you can explain the 17% tax rate of this quarter and what tax rate should we expect this year, it would be great. Thank you.

Hi, Fernando. This is Rodrigo. Regarding your EBITDA question, I don't have the exact number to share, but if you look at AMP, it provided some relief for the quarter. And that's, you know, within the year that should not take effect. In other words, this is simply a reversal of some A&P that we were reserving for throughout the year. it doesn't really move too much the needle from a full year perspective. And on a tax basis, it's simply the adjustments that we do, final calculations on a tax perspective, on an effective tax rate as we close the year. So taking advantage of some of the inflationary adjustments that are done at the end of the year.

Okay. And for this year, Rodrigo, what tax rates should be in which tax rate should we think? Given that you have registered 24 tax rate in the last couple of years versus the 27, 28% before.

We should expect the tax rate closer to 26%. So that's sort of our planning base at this point in time.

Great. Thank you so much for the call. Thank you.

Our next question comes from the line of Felipe Ugros. Please state your company name and ask your question. Our next question comes from the line of Lucas Mussi. Please state your company name and ask your question.

Hi, guys. Thanks for taking my question again. It's a quick one this time. Just wanted to hear more about what are you thinking in terms of how to potentially offset an eventual case that tariffs end up being implemented. I know that you guys disclosed how much you are calculating in terms of potential impact on a standalone basis, but just wanted to hear more on how are you planning to potentially mitigate if that ends up taking place the next couple of days? Thank you very much.

Thank you. Of course, Lucas. You know, we've been working, we continue working on our plans. And as I mentioned before, I mean, it won't be different than what I said before, which is there's mostly three components and we'll have to see what, you know, competitors are also doing in this sense. And the good news is that we've gained a little bit of time as we've shipped some product, incremental product into the US. So, but it'll be a combination of, you know, perhaps, you know, P&L efficiencies, some pricings that would perhaps have to be transferred into consumers. But the big question again is, is what will happen to FX? And so, you know, which could potentially be an important component of that offset. So those are, you know, current thinking and potentially the ways in which we will manage to mitigate and try to offset most of that impact.

That's clear. Thank you.

You're welcome. Our next question comes from the line of Felipe Ucros. Please tell your company name and ask your question.

Hi, operator. This is Felipe Ucros from Scotiabank. Good morning, everyone, and thanks for taking my question. Two questions on my side. So the first one, I was wondering if you guys could talk in a little bit more detail about the lower pricing that you're seeing in the US. I know it's been relatively selective and only a small percentage thus far, but I'm wondering if you could kind of discuss what trends you're seeing in sort of the discipline of industry participants. And if discipline is breaking with the big players or if it is with, the smaller players in the industry. Just wondering if you can kind of give us a little detail about how that discipline is breaking. And then my second question, I'm wondering if you view what's happening with the industry as a little bit of an opportunity. Obviously your leverage is down quite a bit in the last few quarters. um and i know we've we've discussed how most of the land that you have in mexico is leased for the production of agave in your verticalization is this an opportunity that gives you a chance to reassess whether you might want to purchase land if there's distress in the agave factor um and also on m a right when you guys did the ipo um In the beginning, the idea was to kind of take advantage of M&A, and we really haven't seen a lot in the last few years. Price or valuations have been very high in the industry. Not sure if this is a moment where you're seeing those valuations starting to get more reasonable and perhaps a moment where you can pull the trigger. Thank you.

As it relates to the pricing question, we are seeing this across the market in the U.S. Whether it be small, medium, or large-sized suppliers, we have seen consistent price reductions through not only FOBs, but also promotional pricing within the syndicated channels. We have taken a very measured approach in H2 to be a lot more selective in key markets and DMAs to ensure that we are within the pricing of the competitors that we deem across our competitive landscape. We think this is going to be a structural change as it relates to the way that large, medium and small suppliers look at pricing long-term. but we also believe that we need to be a pricing leader. We have been taking less price reductions and promotions consistently across our entire price pack architecture, and those trends will continue in 2025.

Regarding agave, we don't plan to buy land. It's better to lease land. It's cheaper. So that's the way of going forward, and that's the way we have been doing administrating our agave business. And regarding M&A, we always analyze brands. And if there's anything interested, we will see if we can buy it. But as of today, we haven't seen anything that makes sense.

Understood. Thanks a lot for the call.

We have not received any more questions at this point. You may now disconnect. Thank you.