Arca Continental, S.A.B. de C.V.

Hi everyone and welcome to the ARCA Continental first quarter 2026 conference call. At this time all participants are in a listen only mode. Later you will have the opportunity to ask questions during the question and answer session. You may register to ask questions at any time by pressing the star and one on your telephone keypad. You may withdraw yourself from the queue by pressing star two. In the interest of time, we ask you please limit yourself to one question. Please note this call is being recorded. I will be standing by. Should you need any assistance? It is now my pleasure to turn the conference over to Melanie Carpenter of IDL Advisors. Please go ahead.

Thank you, Operator. Good morning, everyone. Thank you for joining the Senior Management Team of Arca Continental. to review their results for the first quarter of 2026. Their earnings release went out this morning and it's available on the company website at arcacontares.com in the investor relations section. It's now my pleasure to introduce our speakers. Joining us from Monterey is the CEO, Mr. Arturo Gutierrez, the CFO, Mr. Emilio Marcos, the Chief Planning and Strategic Capabilities Officer, Mr. Jesus Garcia, and the Chief Operating Officer, Mr. Jean-Claude Tissot. They're going to be making some forward-looking statements, and we just ask that you refer to the disclaimer and the conditions surrounding those statements in the earnings release for guidance. And with that, I'm going to go ahead and turn the call over to the CEO, Mr. Arturo Gutierrez, who is going to begin the presentation. So please go ahead, Arturo.

Thank you, Melanie. Good morning, and thank you for joining us to discuss our first quarter results. We are encouraged by a start to the year with sequential improvements in operating performance, better volumes, and value share gains across most of our markets. As we move through 2026, we're navigating a complex environment shaped by geopolitical tensions, input cost volatility, and persistent inflation. Against this backdrop, we remain focused on managing the business with a prudent, long-term approach, staying aligned with our playbook, and prioritizing the fundamentals within our control. With that, let's turn to our consolidated results. Total consolidated volume in the quarter increased 2.9%, driven primarily by stronger performance in the United States, Peru, and Ecuador. Our Silveridge category grew 3.5%, cycling a 2.4% increase in the same period last year and underscoring the strength of our portfolio as we capture evolving consumption trends. Total consolidated revenue and EBITDA remain stable year-over-year, resulting in a margin of 18.6%. Overall, these results reflect consistent execution and solid operational discipline across the business. supported by effective revenue management and active hedging, while maintaining a clear focus on protecting profitability. Let me expand on the results across our geographies. Our beverage operations in Mexico delivered a better-than-expected performance during the quarter. Unit case volume, excluding jug water, increased 1.6%, driven by stills and water categories, which grew 3% and 11% respectively. Within stills, growth remained strong across tea, up 15.7%, energy drinks, up 26.3%, and dairy, up 16.2%. Coca-Cola Zero delivered another strong quarter, growing 28.5%, supported by expanded coverage, innovation, and targeted pricing. We began executing our plan to mitigate the impact of the excise tax on volumes, with affordability as a key priority. This included reinforcing our price pack architecture and expanding the mix of returnable packages. Performance was solid across channels, with both traditional and modern trade delivering sequential growth. Targeted promotions supported increased adoption of key formats, including the 500 ml returnable glass and the 1.5 liter returnable PET. Net sales increased 7.4%, with average price per case, excluding jug water, up 5.8%. EBITDA grew 7.1%, with the stable margin remaining at 20.8%, reflecting disciplined execution and cost efficiencies that help offset input cost volatility. Finally, adoption of our B2B platform, Twali, continued to expand, with active usage reaching 64.7% of our customer base. Moving now to South America, total volume increased 3.7%, driven by strong results in Peru and Ecuador, partially offset by a softer performance in Argentina. Revenues declined 7.2%, primarily reflecting the unfavorable FX translation. Along the same lines, EBITDA decreased 11.4%, with a margin of 19%, as currency headwinds continue to weigh on results. The region is progressing Through a gradual and uneven recovery, our focus on execution, affordability, and revenue management remains critical as conditions evolve. Peru delivered an exceptional quarter with volume growth of 8.2%. This is the strongest first quarter performance since entering this market in 2015. Growth was broad-based, led by colas of 9% and stills up 8.4%. Coca-Cola and Inca-Cola grew 9.3% and 3.7% respectively. In stills, outstanding results were driven by energy drinks with additional contributions from sports drinks and juices. Momentum remained strong across channels, led by moderate trade up 29.9%, alongside a favorable performance in traditional trade. This reflects the effectiveness of our price pack architecture on targeted market investments. During the quarter, we doubled down on our efforts to increase our share of visible inventory. We installed nearly 11,000 cold ring units, reaching our highest traditional trade coverage. Additionally, we entered an exclusive distribution agreement with Heineken this quarter, expanding our presence in Lima's traditional channel and reinforcing customer relevance. In Ecuador, our beverage business delivered solid performance with volumes growing 5.3%, reflecting steady progress in this market. Growth was driven by strong results in both sparkling and stills categories of 4.5% and 7% respectively. Coca-Cola Zero continued to outperform, growing 20.4%, driven by targeted pricing and expanded availability. This performance was reinforced by positive momentum in modern and traditional trade channels, as we focused on driving immediate consumption and promoting returnable packages. During the quarter, we launched Schweppes, our new sparkling water brand in Ecuador, aimed at capturing share in the high-value segment of the category. In the first month, we achieved over 40% coverage in the traditional channel and established a strong presence among moderate trade customers. In our value-added dairy business, Tony Corp. delivered low single-digit sales growth and margin expansion in the first quarter. We gained share in core categories, including yogurt, flavored milk, and ice cream, supported by a strong brand equity and ongoing innovation. In Argentina, volume declined 8.5%. cycling a strong growth of 19.8% in the same prior year period. While early signs of stabilization are beginning to emerge, these have yet to translate into a recovery in consumer behavior. Against this backdrop, our commercial initiatives remain a key lever to navigate this environment. We achieve value share gains across NARTD categories, supported by affordability initiatives and continued focus on returnable packages. The energy category delivers solid momentum with Monster growing 14% and a quarter, reflecting sustained sequential growth. We are also seeing gradual mix improvement with single serve formats gaining relevance, driven in part by the rollout of the 220 ml minicam. Finally, Our digital agenda continues to advance, with digital sales reaching 79.1% of total volume. This is the highest mix across our Latin American operations. Let's now turn to our beverage operation in the United States. As we mark our ninth anniversary in this territory, our business delivered another quarter of solid top and bottom line growth, along with record profitability. Net revenues for the quarter rose 8.3%, reflecting a 3.5% increase in average price per case, driven by improved promotional efficiency and continued deployment of our trade promotion optimization tool. Volume grew 4.7%, with transactions up 6%. These positive results were widespread across categories, with sparkling increasing by 3.5%, led by an outstanding growth of 11.2% in our low-calorie portfolio. Flavors grew 2.1%, supported by Fanta, Sprite Zero, and Fresca. Stills volume grew 4.5%, with solid performances across our energy and sports drinks categories, including Monster at 15.7% and Body Armor Light at 19.3%. Our market leadership position remains strong as we increase value share in NARTD beverages across both sparkling and stilts categories. During the quarter, we introduced over 95 BUSKUs, including Coca-Cola Cherry Float, Diet Coke Cherry, and Flirt by Monster. EBITDA grew 9.9%, reaching a margin of 16.4%, marking the most profitable first quarter since acquiring the U.S. operation. This is the second consecutive year achieving this milestone, highlighting the structural improvements we have embedded in the business over time. During the quarter, we further advanced the rollout of our upgraded suggested order application, incorporating enhanced value capture capabilities to drive incremental growth and strengthen execution across channels. To close our operations review, our food and snacks businesses delivered a resilient start to the year, while remaining focused on disciplined execution and profitability. Net sales declined in the low single digits in the quarter, cycling double-digit growth in the same period of 2025. At the operating level, Vocados in Mexico and Inalexa in Ecuador delivered EBITDA margin expansion, supported by optimized price management, continued portfolio optimization, and sustained progress on productivity initiatives. In the area of sustainability, our business model continues to be recognized as a benchmark within our industry, reflected in our inclusion in the Dow Jones Sustainability Best-in-Class World Index and for the fourth consecutive year in the S&P Global Sustainability Yearbook. In closing, I'd like to highlight the recent release of our annual Corporate Integrated Responsibility Report, which outlines our progress against key commitments and reinforces our focus on environmental stewardship and generating a positive social impact. And with that, I'll turn it over to Emilio who will walk us through our financial results for the quarter. Please, Emilio.