Grupo Bimbo, S.A.B. de C.V.

and welcome to Group Women's First Quarter 2026 Results Conference Call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Alejandro Rodriguez-Var, CEO. Please go ahead.

Good afternoon, everyone, and thank you for joining us today. Connected on the line today are our CFO, Diego Gaciola, BDU President Derek Pearson, along with several members of our finance team. I would like to begin by sincerely thanking our teams and more than 152,000 associates around the world for their dedication and hard work in delivering big outstanding results. At Grupo Bimbo, we operate with one mindset, all for one and one for all, and that one is Grupo Bimbo. We picked up 2026 on a very strong note, delivering record net sales and achieving the highest first quarter EBITDA margin in our history. Importantly, despite the complex environment, we're beginning to see favorable shift in both price mix and volumes, signaling a recovery in underlying demand across our portfolio. In addition, our recent acquisitions are contributing, supporting both top-line growth and margin expansion. All four of our regions deliver growth, with particularly strong contributions from North America and Mexico, and our two largest markets, as well as In North America, we reached an important milestone, delivering positive sales growth for the first time since the third quarter of 2022. This return to year-over-year growth reflects early signs of stabilization, supported by improved execution and enhanced commercial discipline. Volumes improved sequentially across nearly all segments, and we gained market share in two categories, including mainstream bread, buns, salty snacks, and breakfast. These results underscore the continued progress of our transformation initiatives, which are delivering tangible productivity benefits. Notably, this marks our third consecutive quarter of margin expansion in the region. Mexico delivered outstanding results, achieving the highest net sales level in its history for any quarter, This performance highlights our ability to grow, even in a softer consumer environment, with growth-based strength across categories and channels, supported by high-quality service, difficult execution, and the continued strength of our guns. In EAA, performance remains exceptional, with another quarter of record results, despite a strong comparison base. Importantly, growth is becoming increasingly diversified. with Iberia, our largest market in the region, now contributing to overall momentum. Latin America also delivered a very strong performance, achieving record sales levels. Profitability was solid across nearly all countries, with the exception of Brazil. As expected, Brazil's results reflect the temporary impact of the rigid-bolt integration, with cost efficiencies and synergies expected to be realized over time. We continue to strengthen our portfolio through discipline and strategic capital allocations. In April, we acquired Bonnell in Tunisia, the market leader in single-serve croissants. The acquisition complements our existing operations and reinforces our strategy of pursuing targeted opportunities that enhance our capabilities and expand our presence in attractive categories and geographies. Additionally, through our we divested a small minority state in Mexico. On ESG, we received a total of 18 recognitions during the quarter, including being named as one of the world's most ethical companies for the 10th consecutive year. These restrictions underscored our continued commitment to the highest standards of governance, as well as our ongoing focus on environmental stewardship and social impact. Looking ahead, we remain mindful of the uncertainty and volatility in the global environment, including geopolitical tensions. However, we're confident in the strength of our business, the resilience of our teams, and the effectiveness of our strategy. We believe we're well positioned to navigate this environment and continue delivering strong, consistent performance. With that, we now turn the call over to Diego, who will walk you through our financial results. Diego, please go ahead. Thank you, Alejandro, and good afternoon, everyone. Thank you for joining us today. This was an exceptional first quarter, reflecting the strong execution of our strategy across the organization. The resilience of our business model, the operating efficiencies we have been able to implement in several of our organizations, and our strong diversification. We are particularly pleased with these results, especially considering the complex operating environment in certain regions and the geopolitical challenges that we are facing. Even in this context, we deliver record performance across several key metrics, supported by solid organic growth in local communities and continued margin expansion. Excluding the FX translation effect, we deliver new single-digit top-line growth, a level not seen in over two years. Two consecutive quarters of double-digit EBITDA growth, also not seen in three years. We also achieved more than 150 basis points of EBITDA margin expansion for two consecutive quarters. making our strongest quarterly expansion since 2021, underscoring the strength of our execution and the operating leverage generated by our long-term strategic investments, including the ongoing transformation in North America, as well as continuous supply chain efficiencies and reductions in general and administrative expenses. Turning to the balance sheet, Earlier in the year, we completed a 12 billion peso dual-trans local bond issuance, primarily used to refinance the BIMBO 16 loans. As a result, total debt increased during the previous. On another side, net debt decreased by 7 billion pesos versus the year end of 2025. Supported by strong cash flow generation, improved working capital, and lower capital deployment. Combined with higher EBITDA, this resulted in a net debt to adjusted typical ratio of 2.5 times, representing an improvement of 0.2 times compared to December, and reflecting our continued and consistent deliverance trend. Geopolitical tensions, particularly those arising from the conflict in Iran, heavily introduced inflationary pressures across global markets, primarily in energy, logistics, and packaging costs. That said, we entered this period from a position of strength, thanks to our discipline-headed strategy, which we execute consistently year after year. We have reduced our exposure to commodities volatilities, This has allowed us to mitigate much of the near-term impact and protect our margins despite the current environment. However, certain inputs and operational components remain exposed to market dynamics. And as these pressures persist, we do expect a portion of the inflationary impact to flow through our cost and expenses structure. While Product 26 remains relatively protected, we currently included in our guidance a potential impact. We remain focused and actively managing this environment through discipline pricing, operational efficiencies, and supply chain optimization to mitigate the impact and sustain value creation. Now, Turning to our guidance, we are making a few important updates relative to what we shared a couple of months ago. First, we are revising our FX assumption to $17.60 per dollar. This is 15 cents stronger than our previous estimate. This alone represents an impact of approximately 50 basis points on top-line and area growth. In addition, and reflecting a prudent approach given the current environment, we are also incorporating a potential impact of 20 basis points in area margin from the war. That said, When we consider these external factors alongside the strong results delivered in the first quarter, as well as the continuous innovation in operational efficiencies and productivity initiatives, we are increasing our top-line output in local currency. We now expect net sales to grow at a mid-single-digit rate. while in special terms, because of the FX effect, we now expect from flat to a low single-digit decline. On profitability, while we previously guided a slight period of margin expansion, today we are raising that outlook. Even after incorporating the external impact We now expect a higher EVGA margin expansion in the range of 60 to 110 basis points, resulting in a full year EVGA margin of 14.5 to 15%. This increased confidence reflects the strength of our first quarter performance the resilience of our business model, and the growing contribution from productivity and efficiency initiatives. Regarding capital allocation, we are maintaining our full-year capex guidance of $1.2 to $1.4 billion, although we now expect to trend towards the lower end of the range. The first quarter reflects a lower start in our capital store, primarily due to an accelerated investment in the fourth quarter of last year, which has shifted the timing of certain projects. We expect to catch up as the year progresses. Finally, from a leveraged perspective, with a combination of strong cash generations, disciplined capital allocation, and profitability improvements, we are maintaining our expectation of a slight deleverage by year-end versus the end of 2025. Overall, despite a more challenging external environment, we remain confident in our ability to continue strengthening both our operating performance and financial position. Thank you for your time. We cannot proceed with the Q&A session, so please go ahead.

Thank you. To ask a question, you may press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. The first question comes from Fernando Oliveira with Bank of America. Please go ahead.