Kimberly-Clark de México

Hello and welcome everyone, joining today's Kimberly Clark de Mexico fourth quarter 2025 earnings 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. To register to ask a question at any time, please press star and one on your telephone keypad. Please note this call is being recorded We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to CEO, Pablo Gonzalez. Please go ahead.

Thanks so much. Hello, everyone. Thanks for participating on the call. We wish you and your families a terrific 2026. We'll go straight to results and then make some brief comments about the quarter and our expectations going forward. So I'll pass it on to Javier.

Thank you, Pablo. Good morning, everyone. Our sales reached 14.1 billion pesos in the fourth quarter, an increase of 2.1% versus the same period of 2024. Total volume was flat and price mix improved 2%. Growth was driven by consumer products, which expanded 5.5%, supported by healthy year-over-year growth of 1.4% and price mix of 4.1%. Export hardware sales continued to decline as we converted more tissue toward higher value domestic products. Sequentially, results continued to improve from Q3 to Q4 as sales increased 4.8%, with consumer products up 8.5%, primarily volume-led, reflecting strong commercial execution, the planned innovations to products, and improved market dynamics. Cost of goods sold was flat, and as a percentage of sales improved by 130 basis points. Compared to last year, virgin fibers, recycled fibers, sand, and resins were favorable, partly offset by higher fluff costs. The peso remained supportive with an average appreciation of roughly 8%. Our cost reduction program once again delivered solid results, generating approximately 500 million pesos in savings during the quarter, mostly within cost of goods sold. These efficiencies came from sourcing, materials optimization, and ongoing process improvements across our operations. As a result, gross profit increased 5.4%, and our margin reached 40.4%, reflecting both disciplined revenue management and cost tailings. SG&A expenses increased 0.8% year over year, and as a percentage of sales decreased 22 basis points, as we continue to carefully prioritize brand investment and overhead efficiency. Operating profit grew 9.2%, and our operating margin expanded to 22.9%. We generated 3.7 billion pesos of EBITDA, an increase of 6%, with an EBITDA margin of 26.4%, a 140 basis point sequential improvement, and 100 basis point expansion versus the fourth quarter of 2024. Financing cost was 398 million pesos compared to 350 million last year, driven mainly by lower returns on cash balances. Net income reached 2.2 billion pesos with EPS of 73 cents, a 23% increase year over year. For the full year, sorry, sales reached an all-time record of 55.4 billion pesos, up 1.1%. EBITDA was 14.1 billion pesos, representing 25.5% of sales, while margins declined 170 basis points due to the cost pressures we faced, particularly during the first half of the year. Net income was 7.6 billion pesos or 13.7% of sales. Throughout 2025, our cost reduction initiatives delivered 1.95 billion pesos in savings, driven by sourcing, operating efficiencies, and product design optimization. We invested 1.8 billion pesos in CapEx, consistent with our plan, focused on technology upgrades cost reductions, efficiencies, and strategic capacity additions. We also repaid 3.7 billion pesos of debt, paid 6.2 billion pesos in dividends, and repurchased nearly 43 million shares, equivalent to 1.4% of shares outstanding. We closed the year with a strong and healthy balance sheet. Total cash stood at 9.7 billion pesos Net debt to EBITDA was 1.0 times, and EBITDA to net interest coverage remained very solid at 10 times. Thank you very much. I return it to Pablo.