Genomma Lab Intl Sab Ord

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Genova Lab first quarter 2022 results conference call. At this time, all participants are in listen-only mode. Following today's discussion, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. A replay will also be available shortly after the conclusion of the call. I'll now turn the call over to Barbara Cano of the Inspire Group. Please go ahead.

Thank you and good morning. We'll begin today's discussion with remarks from Jorge Brick, Canoma Labs Chief Executive Officer, followed by Antonio Zamora, Chief Financial Officer. Our call will include projections and other forward-looking statements, and it's important to note that actual results could differ materially from those projected. Canoma undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or other factors. Investors are urged to carefully review various disclosures made by the company, including the risk and other information disclosed within the company's filings with the Mexican Stock Exchange. With that, I'll now turn the call over to Mr. Jorge Reyk.

Thank you, Barbara, and thank you to everyone joining today. Coming into this quarter, our objectives for the year were clear, led by continuous to strong execution of our strategy's pillars. As first quarter's results show, we are delivering on these objectives with net sales and EBITDA at net sales of 4 billion pesos and EBITDA of 826 million pesos respectively for the first quarter of 2022. a more than 13% and 11% year-on-year increase, which represented a record quarterly sales and profit, high for our company with continuous sequential growth throughout Latin America. In particular, I would like to highlight our results for the U.S. market, where genomic net sales increased by 22% compared to a year ago to 412 million pesos. The investments we have made, the capabilities we have built, and the power of our new team within this market resonated in the first quarter's performance as we benefited from prior interventions and strategies which positioned us to continue our growth momentum. We delivered solid results across all three business segments, OTC, personal care, and beverages, throughout all key U.S. geographies. with particularly strong performance in Puerto Rico and California, and within all key retail pharma chain customers such as Walgreens, CVS, and Walmart. Tuerox, our healthy, zero-calorie, and sugar-free hydration beverage, showed outstanding growth during the quarter, reflecting record sellout behind increased consumer trials via in-store demos and tastings, increased point-of-sale, enhanced displays, and distribution gained by direct store delivery partnerships across all chains and channels. Strong sales were also a reflection of our e-commerce efforts. That is now 10% of our business in the U.S., predominantly within Amazon, with whom we doubled the business versus previous year. Further, it's important to note that Suerox is outpacing competitors in the mainstream U.S. consumer market beyond the Hispanic demographic. Turning to new product innovation, this continues to be an important competitive advantage for our companies to differentiate and diversify our brands and stressing our relevance with consumers. We began the year with robust performance and innovation initiatives, particularly line extensions in several products and with new category performance supported by aggressive external media campaigns and in-store marketing. Along these lines, Genoma saw exceptional overall e-commerce sales for the quarter through online retailers, including Amazon. During the quarter, we also stressed our in-store media performance with a strong commercial strategy execution, reflecting increased distribution within the traditional channel. To touch upon highlights by region, in Mexico, first quarter sales increased 3% year-on-year, despite of the industry's global commodity sourcing and supply chain challenges, which hampered Genoma's ability to take full advantage of the co-found cold and infant formula demand surge during the quarter. However, our differentiated strategies and new marketing campaigns, such as for Tio Nacho and Goodman, as well as the category goal list introduction into the serum segments, successfully mitigated some of these headwinds. Our Mexican industrial cluster progressed nicely during the quarter, too. The NOMAS personal care manufacturing plant shampoo anointment line began production during the first quarter. reaching approximately 500,000 bottles of shampoo and 400,000 units of ointment produced per month, in addition to the 7 million bottles produced within the plant isotonic beverage manufacturing line, which achieved an 85% efficiency level during the first quarter of 2022. Genomas Pharma Semi-Solids Manufacturing Line achieved an 85% efficiency also during the quarter, running at a more than 5,000 tooks per hour rate of production. Genomas Latin America's first quarter 2020 net sales grew 20% on year-on-year with a 23% EBITDA margin. We saw solid top-line growth and margin growth in Argentina, Colombia, Chile, Brazil, and Peru. driven by successful product launches and line extensions in these markets, with a strong e-commerce channel performance, as I have described previously. With that, let me turn our call over to Antonio, who will review first quarter financials with a related discussion.