Q4 2024 Genomma Lab Internacional SAB de CV Earnings Call
In New York.
Isotonic beverage infant nutrition and all the OTC categories are driving the portfolio's growth.
And the same chart, but now showing country performance youll purely a full year 2020 for Mexico, The U S and Brazil exceeded expectations with other Latam markets such as Argentina.
Hello, India in Central America performed well.
We also faced headwinds in Peru, and Chile.
Regarding our skincare turnaround project, we have taken a bold new approach with <unk> launching a new formula with a fresh execution to drive sales growth.
In terms of growth, we aim at increasing usage frequency by expanding from pesos to full body yields and shifting from augment treatment to daily care with a new formula combines and <unk>.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
This slide shows the excellent execution and strong promotion of our asset sales, we lounge in the Mexican market I am confident that our relaunch plan will drive a shift a swift turnaround in skincare sales.
Overall annual sales have grown steadily at an 8% CAGR over the past five years, while EBITDA has outpaced this growth at our core percent CAGR over the same period.
With EBITDA margin growing strong hikes over the past couple of years.
This long strides in profitability start at the gross margin level, which has grown an impressive last six one points, we improved our gross margin from 57%.
So 63% since.
In the past couple of years, a testament of the impact that our broker dealer initiatives and manufacturing capabilities are having in the business.
With firmly believed that this improvement in gross margin is sustainable.
Let's now zoom into EBITDA margin improvements.
In the chart you can see how we grew four two points of EBITDA margin over the same two years period.
More than half of the gross margin gains have been translated into EBITDA growth and the balance was reinvested in the business to continue accelerating top line growth in the core categories.
Looking forward, we will continue to strengthen core brands by reinvesting savings from future productivity gains, while maintaining a stable EBITDA margin.
The following chart highlights our accelerating momentum down the P&L with EPS significantly outpacing sales and EBITDA growth, achieving a 25% Asia over the past five years.
Yeah.
The company is delivering on Capex efficiency, you can appreciate our margins expanding with Lex less capex needs.
This is resulting in a higher free cash flow, where we have reached a historical high at 77% CAGR over the past five years, while returning a healthy dividend to our shareholders.
All the efficiency has resulted in a much better ROIC a variable that is becoming a central focus for our leadership team in the chart you can see the evolution of lapsed rois over.
Over the past four years.
<unk> business model is delivering 1414 times more value for every investor peso down four years ago.
We will continue to seek a ROIC growth through further efficiency projects.
Our cash conversion cycle has improved over the past few quarters and we expect further gains by optimizing inventory dates in preparations for the high season, we have been building swirls inventories.
<unk> limited production capacity.
The new <unk> production line set for commissioning in mid 2025 will have manufacturing efficiency and help reduce inventory base.
We continued to make progress on the use of $1 8 billion peso in our accumulated productivity savings starting in 2024, we completed 57% of the target and looking forward we will.
We needed to strengthen core brands by of reinvesting savings from future productivity gains, while maintaining a stable EBITDA margin.
Our latest broke this initiative has generated $207 7 million vessels nano savings of optimizing media spending enhancing point of sales marketing and streamlining head count to increase automation.
<unk> operations.
Before handing the call over to Danielle I want to take a moment to express my deep appreciation for our team.
Danielle: Their dedication resilience and commitment have not only surpass expectations, but also driven us to achieve our goals.
Have no doubt that we have best in class team capable of taking genomics to the next level I also want to sincerely. Thank our investors for your continued trust and support.
Danielle: We remain committed to delivering lasting value for all our stakeholders and we look forward to the opportunities ahead.
Danielle: <unk> go ahead.
Danielle: Okay.
Danielle: Thank you Marco and thank you everyone for joining us today.
And Omar closed a very strong 2024, having delivered sustained progress relative to our strategic targets.
Speaker Change: Ross all of our key markets and brands.
Speaker Change: They don't want deliver 18.607 billion pesos in consolidated net sales for the year.
Speaker Change: A 13% increase with 85%.
Speaker Change: Of our sales.
Speaker Change: Outpacing inflation, and 68% maintaining or increasing market share year on year.
Speaker Change: Net sales for the fourth quarter reached 4.666 billion pesos and.
Speaker Change: An increase of 32% year on year.
Speaker Change: During the quarter.
Speaker Change: We saw continued sales growth in Mexico, and the U S as well as in Brazil, Colombia and Central America.
Speaker Change: We closed the full year 2024, with a 23, 3% EBITDA margin.
Speaker Change: The enormous fourth quarter EBITDA.
Speaker Change: Increased a substantial 55% year on year in absolute terms.
Speaker Change: Reached a margin of 24%.
We had a significant 350 basis points year on year increase.
Speaker Change: Our company's continued success in this regard underscores meaningful productivity gains.
Speaker Change: Overall optimization throughout our business.
Speaker Change: We delivered full year 2024, net income of 2.137 billion vessels with 290 <unk>.
Speaker Change: 7% year on year increase.
Speaker Change: Resulting from higher operating income a favorable FX environment and the reclassification of the associated affiliate.
Speaker Change: Noncore asset available for sale.
Speaker Change: Fourth quarter net income reached $473 5 million pesos.
Speaker Change: Significant increase when compared to the same quarter of it.
Speaker Change: The previous year.
Speaker Change: It was negatively impacted by the <unk>.
Speaker Change: Hyperinflationary accounting.
Speaker Change: Effect and the Argentine peso depreciation that year.
Speaker Change: Full year 2024, EPS double to two vessels and 14 Mexican cents.
Speaker Change: Due to the higher income and a 20 million share cancellation that we executed last April.
Speaker Change: As Michael mentioned earlier, our fourth quarter cash conversion cycle was 110 days as days inventory outstanding increased by 33, sorry by 13 base year on year.
Speaker Change: Even though we made a strategic decision to increase our sweater inventory as it's known in the beverage industry is in Tampa.
Speaker Change: Temporary inventory buildup.
Speaker Change: To anticipate the peak season.
Speaker Change: Where we have higher demand for this product and we are also mitigating the production capacity constrained for a product that is growing significantly.
Speaker Change: As we all know the inventories held serves will level off by the close of the high demand periods.
Speaker Change: Our cash conversion cycle vessels were impacted by a 10 day year on year increase in days payable outstanding as we opted to leverage the considerable strength of our wireless ship.
Speaker Change: And we decided to pre purchase certain raw materials in the fourth quarter.
Speaker Change: Hearing of potential cost increases due to changes in Forex.
Speaker Change: Finally free cash flow increased by 35% year on year.
Speaker Change: Thoughtful record high of 2.793 billion pesos or 2034.
Speaker Change: We converted 15% of full year 2024 net sales into cash.
Speaker Change: Moving to our for brief overview of our results by region full year net sales for Mexico's operations increased double digit.
Speaker Change: 10, 3% year on year on year, and 8% for the fourth quarter 2024.
By category and market share gains and further expansion within the traditional channel as Mexico described earlier.
Speaker Change: Mexico's EBITDA margin increased to 23 720.
Speaker Change: 23, 9% for the full year and 25, 8% for the full four quarter 2024, representing 54 M 215 basis points respectively.
Speaker Change: So productivity gains and without the Mexican peso exchange related headwinds that we experienced in 2023 in early 2024.
Speaker Change: During the quarter FX is no longer a hip.
Speaker Change: Heavily as we have experienced the negative effects of what it was called a Mexican super peso in the previous quarters.
Speaker Change: Moving to the U S.
Speaker Change: U S net sales for the full year 2024 increased by eight 9%.
Speaker Change: Benefiting from favorable FX and a five 4% increase in us dollar terms.
Speaker Change: Fourth quarter net sales increased by 18, 8% again, a favorable FX effects and.
Speaker Change: One, 8% net service increasing U S dollar terms.
Speaker Change: Fourth quarter strength was led by expanded beverage category distribution and strategic marketing campaigns, which drove e-commerce traffic.
Speaker Change: That resulted in sales growth.
Speaker Change: Like for like growth was partially offset by a weaker <unk>.
Speaker Change: <unk> 30 for flu season.
Speaker Change: The U S experience at the end of 'twenty 'twenty four.
Speaker Change: Moving to Latin America.
Speaker Change: Our operations net sales in that region for the full year 2024 increased by 17, 2%.
Speaker Change: And by a considerable 87, 1% for the fourth quarter.
Speaker Change: This was a result of particularly strong sales in Brazil, Colombia, and Central America willing to fourth quarter.
Speaker Change: Also favorable FX and sales recovery in Argentina.
Speaker Change: In that country.
Speaker Change: <unk> unit sales increased by 48%.
Speaker Change: In units.
Speaker Change: And sweat of unit sales increased by 68% or 2024.
Speaker Change: <unk> ended the fourth quarter of 'twenty 'twenty, four with a leverage ratio of less than one times.
Speaker Change: Net debt to EBITDA.
Speaker Change: Another historical financial leverage low for the normal level.
Speaker Change: Our strong balance sheet and.
Speaker Change: Beverage rage ratio of below one times enables increased capital allocation flexibility for the company.
Speaker Change: Also worth mentioning is that during the quarter HR ratings reaffirmed our <unk> rating with a stable outlook for our long term ambitions.
Speaker Change: HR, one close for our short term issuances.
Speaker Change: In their report HR ratings noted that enormous strong balance sheet and leverage decrease revenue growth robust performance in the key regions, where we operate diver.
Speaker Change: Diversified market share with continued new ramp penetration throughout Latin America.
Speaker Change: And increased market share in the U S were the highlights of the positives of Evercore.
Speaker Change: Likewise Fitch ratings reaffirmed its a F one plus rating or short term issuances with stable outlook.
Speaker Change: And double a plus.
Speaker Change: <unk> long term issuances as well.
Speaker Change: These rating also reflects a normal strong business profile supported by a diversified portfolio of OTC and tissue products personal care products.
And <unk> expect ginormous profitability to continue improving due to efficiency strategies and increased productivity.
Speaker Change: Our manufacturing plant.
Speaker Change: We'll have to think both rating agencies and most importantly to our fixed income investors who have supported us.
Speaker Change: Throughout the years.
Speaker Change: We also made our 10th consecutive dividend payment at the end of Q4 of 'twenty Mexican cents.
Speaker Change: <unk> per share totaling 200 million vessels.
Speaker Change: During the year, we distributed a total cost of 80 Mexican cents per share.
Speaker Change: Totaling 800 million pesos.
Speaker Change: And as we all know we have demonstrated our commitment to deliver value to our shareholders also noting marcos' comment earlier on the substantial appreciation of share normalized share price over the past 12 months.
Speaker Change: We intend to continue quarterly dividend demonstrating our confidence in our company's strong future ahead.
Geno: In closing Geno My love.
Speaker Change: Closed a very successful year.
Geno: We had extremely good progress across business in all regions.
Geno: This was driven by our consistent execution of our strategy.
Geno: We deliver high quality financial results in 2024, which were reflected in net sales.
Geno: Every da margin strength.
Geno: And the continued success of productivity programs that we have implemented during the year.
Geno: And all of these resulted in a full year EPS, which almost doubled to two peso 2014.
Geno: And where we achieved a record $2 8 billion pesos in free cash flow, which is a 36% increase compared to 2023.
Geno: Our geographical footprint leadership positions on portfolio of core.
Geno: For rents.
Geno: Help us to capture future growth.
Geno: In the coming years.
Geno: While the operating environment has been dynamic over the last few years, we're encouraged by the consistent performance of our business and we believe today.
Geno: We are on a particularly strong footing with an optimized business to drive further improvements in the years ahead.
Geno: With that I will hand, it back to the operator for Q&A.
Speaker Change: Thank you Antonio we will now begin the question and answer session.
Speaker Change: To ask a question you may raise your hand, using the icon for raising your hand located at the bottom of your screen to withdraw your question press the same icon added anytime this.
Speaker Change: This will be required in order to allow you to turn on your microphone and ask your questions.
Speaker Change: One moment, please while we hold for questions.
Antonio Hernandez: Thank you our first question will come from Antonio Hernandez Swift Activewear. Please.
Speaker Change: I'll turn on your microphone and proceed with your question.
Antonio Hernandez: Hi, Good morning, Thanks for taking my question and congrats on your results.
Antonio Hernandez: Just wanted to ask regarding cash generation is strong.
Antonio Hernandez: Not as much Capex is being planned so that's going to be relatively stable.
Antonio Hernandez: <unk> stable.
Antonio Hernandez: And so forth.
Antonio Hernandez: M&A of course remains opportunistic so are you targeting maybe for the reducing your leverage ratio, even though it's already at a healthy and a record slate will just escalation or what what uses of cash are you planning going forward. Thanks.
Antonio Hernandez: Yes.
Speaker Change: Thank you Antonio.
Antonio Hernandez: Okay.
Antonio Hernandez: Okay.
Antonio Hernandez: Yes.
Antonio Hernandez: Okay.
Antonio Hernandez: Okay.
Antonio Hernandez: Okay.
Antonio Hernandez: Okay.
Antonio Hernandez: And obviously the <unk>, we expect that to continue.
Antonio Hernandez: Theres no not significant capex that we're gonna be needing whenever a build a new plant that we have enough capacity, but they are a very interesting projects coming there is a couple of our capex.
Antonio Hernandez: Capex for innovation.
Antonio Hernandez: For productivity.
Antonio Hernandez: Warehouse.
Antonio Hernandez: We need to look into the future and that business is growing so there's going to be some capex.
Antonio Hernandez: But we will announce later not significant okay.
Antonio Hernandez: Hey.
Antonio Hernandez: As we all know part of the cash flow that is generated.
Antonio Hernandez: At this moment in Argentina, So we cannot touch it so we want to be prudent in terms of the dividend.
Antonio Hernandez: Payments for the future right now.
Antonio Hernandez: We don't intend to lower the.
Antonio Hernandez: Financial leverage.
Antonio Hernandez: Much further, but the truth of the malaise.
Antonio Hernandez: The business is very successful and is very profitable and we generate a significant amount of cash and that resulted in the.
Antonio Hernandez: In the financial leverage that we mentioned, but it's not our intention to go much lower.
Antonio Hernandez: We want to be efficient and as we all know.
From the capital asset pricing model.
Antonio Hernandez: This.
Antonio Hernandez: Our level of care.
Antonio Hernandez: You need to be efficient, especially for.
Antonio Hernandez: Taking into consideration the tax shield, but.
Antonio Hernandez: It's a good question. It's a good question about what to do with the cash flow and I think that the most important use of the cash flow.
Antonio Hernandez: We can mention at this moment is reinvesting in the responses, we see a lot of opportunities for growth.
Antonio Hernandez: Marco has implemented a number of strategic initiatives to accelerate growth in different categories.
Antonio Hernandez: And our organic growth and that's going to required.
Antonio Hernandez: Some investment from the business so I.
Antonio Hernandez: Again, the main news would be reinvesting in the business to accelerate our growth.
Antonio Hernandez: I don't know if I answered your question Okay.
Speaker Change: Yes, Thanks I appreciate it.
Speaker Change: Have a great day.
Speaker Change: Okay.
Speaker Change: Thank you. Our next question will come from Alvaro Garcia with BTG Pactual.
Speaker Change: Please turn on your microphone and proceed with your question.
Alvaro Garcia: Alright, thanks for the space for your questions.
Speaker Change: Two questions one on dividends from Argentina, I was wondering what sort of the medium term plan was I'm guessing.
Alvaro Garcia: Probably wait for <unk> to be up.
Alvaro Garcia: And proceed with potentially taking some some money out of the countries that way. That's my first question.
Alvaro Garcia: And my my second question is on on margins are in the past you spoke about this 25% margin target.
Alvaro Garcia: <unk>.
Alvaro Garcia: I was wondering if that's still in place and when you talk about sort of reinvesting in the business more maybe a bit more color on what you mean exactly in the context of that margin. Thank you.
Alvaro Garcia: Hi.
Michael: Thank you I've got all of this is Michael here.
Alvaro Garcia:
Speaker Change: On Argentina, Yes of course as soon as we can we.
Alvaro Garcia: We will boost mining outcome the country.
Alvaro Garcia: So that's basically a straight answer.
Alvaro Garcia: The cash in Argentina.
Alvaro Garcia: Comparing to the amount of cash that the company holds right now is not.
Alvaro Garcia: Really significant but yes, we will pull it out of the country as soon as we can.
Alvaro Garcia: On margins.
Alvaro Garcia: What we have repeatedly.
Alvaro Garcia:
Alvaro Garcia: Said is that.
Alvaro Garcia: We expect our company to sustain.
Alvaro Garcia: Thank you.
Alvaro Garcia: Okay.
Alvaro Garcia: Yes.
Alvaro Garcia: Alright.
Alvaro Garcia: Yes.
Alvaro Garcia: Sure.
Alvaro Garcia: Got it.
Alvaro Garcia: Okay.
Alvaro Garcia: Yes.
Alvaro Garcia: Alright.
Alvaro Garcia: Okay.
Alvaro Garcia: Okay.
Alvaro Garcia: Yeah.
Alvaro Garcia: I think.
Alvaro Garcia: Yes.
Alvaro Garcia: Okay.
Alvaro Garcia: Okay.
Alvaro Garcia: Yes.
Alvaro Garcia: Capex additions clear I think that Ah.
Having at 24% average that's the kind of like the right thing.
Alvaro Garcia: And right now.
Alvaro Garcia: And.
Alvaro Garcia: The cash that we will be reinvesting in the business will not affect.
Alvaro Garcia: The targets that we have set for our margins.
Alvaro Garcia: Because we are putting that money out from our productivity initiatives that.
Alvaro Garcia:
Alvaro Garcia: We will generate excess cash on top of the margins that we are targeting I don't know if that answers the three questions.
Speaker Change: Yes, that's helpful. Maybe just a.
Speaker Change: One last one on the capacity of the runway for for.
Speaker Change: For growth that SWEATBOX, specifically, how are you are sort.
Speaker Change: Sort of envisioning or preparing for a high season or the summer season in 2025. Thank you.
Speaker Change: One thing that we did differently this year versus last year is that we started building the inventories and Thats why we closed the year with a little bit higher inventories.
Speaker Change: We started building inventories for the season in November.
Speaker Change: Of 2024.
So we think that we'll have enough broke.
Speaker Change: You know to have a very successful high.
Speaker Change: High season in 2025 last year.
Speaker Change: We started building the inventories in February of 2024.
Speaker Change: So we are we are prepared for a very large volume for this year.
Marcos: And adding to marcos' comment.
Speaker Change: Separate question.
Marcos: Okay.
Marcos: Alright, thank you.
Marcos: Alright.
Marcos: Yes.
Marcos: Okay.
Marcos: Okay.
Marcos: Yes.
Marcos: Yes.
Marcos: Okay.
Marcos: Okay.
Marcos: Thanks.
Marcos: Okay.
Marcos: Okay.
Marcos: Thanks.
Marcos: Got it.
Marcos: Okay.
Marcos: Thank you Dave.
Marcos: Okay.
Marcos: Okay.
Marcos: Sure.
Marcos: Thanks.
Marcos: Yes.
Marcos: Dave.
Marcos: Okay.
Marcos: Yes.
Marcos: Alright.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Yes.
Marcos: I gotcha.
Marcos: Alright.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Sure.
Marcos: Okay.
Marcos: Thank you.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Yeah.
Marcos: Excellent.
Marcos: Okay.
Marcos: Yes.
Marcos: Thank you.
Marcos: Okay.
Marcos: Alright.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Yes.
Marcos: Okay.
Marcos: Yes.
Marcos: Yes.
Marcos: Yes.
Marcos: Okay Alright.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay got it.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Thank you.
Marcos: Yeah.
Marcos: Great.
Marcos:
Marcos: Yeah go ahead yeah.
Marcos: Thank you James on the Capex question, we need to look.
Marcos: I had a head you know this is a long term planning process as we all know we have significant in enough capacity manufacturing capacity or most of our product lines for the upcoming years.
Marcos: Sort of being the exception, we all know that.
Marcos: We ran out of capacity because that's what the success of that product.
Marcos: Got it.
Marcos: Yeah.
Marcos: Yes.
Marcos: Okay.
Marcos: Okay.
Marcos: Alright.
Marcos: Okay.
Marcos: Okay.
Marcos: Yes.
Marcos: Maybe.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Alright.
Marcos: Okay.
Marcos: Okay.
Marcos: Alright, thank you.
Marcos: Alright.
Marcos: Got it.
Marcos: Okay.
Marcos: That's correct.
Marcos: Okay.
Marcos: Sure.
Marcos: Okay.
Marcos: Our center warehouse is a.
Marcos: Uh huh.
Speaker Change: Optimal in the way it operates with a much more efficient.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Yeah.
Marcos: Okay.
Marcos: Okay.
Alright.
Marcos: Yeah.
Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Right.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Yes.
Marcos: Okay.
Marcos: Thank you.
Marcos: Yes.
Marcos: Okay.
Marcos: Okay.
Marcos: Yes.
Marcos: Okay.
Marcos: Yes.
Marcos: Yes.
Marcos: Okay.
Marcos: Okay.
Marcos: Goodbye.
Marcos: Okay.
Marcos: Okay.
Marcos: Okay.
Marcos: Thank you.
Marcos: That's helpful.
Marcos: From the productivity initiatives and the productivity initiatives are going to be there and the excess margin is going to be there. We're just not going to flow that additional margin through the P&L, we're going to reinvest it back in the business.
Marcos: Salary growth in certain categories.
Marcos: And we are going to need certain infrastructure for the for the central warehouse again, not significant but I think it's good news because we're looking at a bright future.
Marcos: For the.
Marcos: For our business so.
Speaker Change: Yeah, I mean, if we didn't have those projects yeah, we could say why don't you expand the dividends, but at this moment.
Speaker Change: We find that it's much more attractive for our shareholders and remember we are shareholders as well.
Speaker Change: To invest in the business.
Speaker Change: Last thing Iran's to invest in our categories.
Speaker Change: And that tape out going to your other question of how much.
Speaker Change:
Growth, we could accelerate.
Speaker Change: That's.
Speaker Change: That's something that at this moment.
Speaker Change: Unfortunately, our competitors are listening to this call as well. So we don't we don't want to highlight any specific initiative within a specific brand.
Speaker Change: But.
Speaker Change: But you know it's coming.
Speaker Change: I don't know if you want no I'd say I think I think that.
Speaker Change: We don't want to reveal too much information.
Speaker Change: On this but yes, we are investing in some of our core brands.
Speaker Change: To accelerate growth and our expectation is to grow faster 90, or do we have been growing in the past.
Speaker Change: Okay, great. Thank you.
James: Thank you James.
James: Thank you.
Speaker Change: Our next question will be from Fatima Benitez with Compass group. So Fatima. Please turn on your microphone and proceed with your question.
Speaker Change: Pedro in your medical have a deeper voice emphysema Luis here.
Speaker Change: She signed up for me, but anyway.
Speaker Change: We've talked a lot about the margin there has been no margin the margin the margin the margin, but now I think we're rotating.
Speaker Change: To the next phase of the company, which is gross in the whole car has been about your initiatives to grow.
Speaker Change: So.
Speaker Change: You were very helpful of mapping out.
Speaker Change: How we model or should model the margin increase going forward. So how do I think about this growth in my model what revenue number do you see for 2025 2026 to give me an a b.
Speaker Change: What the potential payback for these growth initiatives are.
Speaker Change: I know you can get into retail competition in all of that but kind of get a figure Canada would help us understand.
Speaker Change: How you guys are thinking of this and again congrats on the quarter.
Speaker Change: You guys have delivered on what you said you always had 24 and that's what we are now help me think about the revenue part of via question.
Speaker Change: Yeah, Hi, <unk> how are you.
Speaker Change: I think that.
Speaker Change: We are now.
Speaker Change: Because we are still in the process of designing.
Speaker Change: They need <unk>.
Speaker Change: And in some cases in the early phases of implementation.
Speaker Change: I would rather kind of like remain cautious on providing any guidance for now.
Speaker Change: Doesn't necessarily mean that we will not provide that guidance, but.
Speaker Change: But for now.
Speaker Change: It would be a little bit.
Speaker Change: I'm responsible for my side to to say a number.
Speaker Change: Okay, let's not do the numbers, although we do a range.
Speaker Change: Yes, I mean.
Speaker Change: If you think about it in general terms.
Speaker Change: We are expecting to.
Speaker Change: Accelerate.
Speaker Change: Our growth.
Speaker Change: Faster than what we have been growing in the past.
Speaker Change: It's difficult to you know.
Speaker Change: Right now at this phase to mention a range or a number but the expectation should be that we should be growing faster.
Speaker Change: Okay, I'm going to I'm going to do it for you.
If I modeled this year you had about 19.
Speaker Change: <unk> thousand 1 billion vessels topline, if I model between 2020, one am I crazy or am I okay.
Speaker Change: Yes.
Speaker Change: I think everybody.
Speaker Change: Everybody has their own numbers.
Speaker Change: Hum.
Speaker Change: Morals and as Marcos says it would not be.
Speaker Change: Responsible from our part to provide a number there's a number of initiatives.
Speaker Change: But we're not going to be investing the excess cash and the excess margin.
Speaker Change: But something that is important for everybody to know.
Speaker Change: Metals remind everybody that in certain categories.
Speaker Change: The market is still small so there's plenty of opportunity to grow in those categories, regardless of whatever happens with GDP.
Speaker Change: Regardless, because sometimes people ask us well, you know GDP and that in the archives and decent I mean.
Speaker Change: I mean, if we have <unk>.
Speaker Change: 90% market share and I said, I think that they would've yeah, I understand that but when do you have.
Speaker Change: A lot of opportunities to grow and capture opportunities from competitors.
Speaker Change: There is a lot of growth that can be captured now in order to capture that growth we need.
Speaker Change: Need to do.
Speaker Change: Very strategic and careful investment and or those would have a better payback.
Speaker Change: Accelerated those investments, but at this moment.
Speaker Change: Let us.
Michael: Stay with it with the answer that Michael provided I think that the.
Michael: Company will invest the excess funds generated from the addition of productivity that will be there.
Michael: We are just not going to flow through the P&L, we're going to reinvest in the business to accelerate growth and if we accelerate growth eventually.
Michael: Absolute terms.
Michael: There's going to be more net income on more EPS and everybody's going to be happier.
Michael: But.
Michael: I know how difficult it is when you have to.
Michael: Build your own model.
Michael: A number there, but I think that at this moment.
Michael: I mean, we cannot go any further than this.
Michael: Sorry.
Speaker Change: No I understand Daniela I, just wanted to to too Chris I think it's the right path to go to continue to grow and accelerate growth.
Speaker Change: Just wanted to get a sense of.
Speaker Change: China and trying to land. This next phase of the company in my model, but I understand the.
Speaker Change: Conservative you want to call it that way for now, but once you have it and you feel comfortable with the target.
Speaker Change: It would be good for you guys to go to the market like you did with your margin improvement and you delivered to kind of give us targets to generate that that commitment that we have.
Speaker Change: Hard for a long time, and we continue to have with you guys.
Speaker Change: Absolutely absolutely as soon as we will have a better sense and we have.
Speaker Change: The initial results of some of the investments that we're doing with really in a better position.
Speaker Change: To share with the market and obviously, our products and our initiatives will be on the different channels.
Speaker Change: On television.
Speaker Change: So people will be able to see what we're doing and then we would be in a better position to share with the market and obviously, we want to share this with the market.
Speaker Change: This moment.
Speaker Change: Place BLE with patients for now yes.
Speaker Change: Yes, yes, I think you've gained enough confidence with the success of the margin story for us to wait and see you pledge your pay major dividends. So we're good thank.
Danielle: Thank you Danielle.
Speaker Change: I don't know what types of.
Danielle: And say hey, they're not alone.
Danielle: Matthew.
Danielle: Thank you.
Danielle: One moment, please while we hold for further questions.
Danielle: Okay.
Speaker Change: Okay. Our next question will be from Mizuho. Your from BBVA. Please open your microphone to ask your question.
Speaker Change: And just a quick one regarding tariffs do you foresee any impact from.
Speaker Change: At this stage.
Speaker Change: Can you talk about.
Speaker Change: Thank you very much.
Speaker Change: Uh huh.
Speaker Change: Yeah.
Speaker Change: <unk>.
Speaker Change: 80% of the products that we sell in the us in the U S have really used in the U S.
Speaker Change: So the impact should be very little.
Speaker Change: Great.
Speaker Change: Helpful.
Speaker Change: And then just a quick one regarding growth in the U S is there something different that you're planning to do.
Speaker Change: So was that three year product countries' particular.
Speaker Change: We will continue we see a lot of upside.
Speaker Change: In a few brands.
Speaker Change: And we will continue to.
Speaker Change: To pursue AR.
Speaker Change: Flare ups for example, we think that that.
Speaker Change: Steel has.
Speaker Change: Massive potential to.
Speaker Change: To continue growing in the U S and we will continue to expand distribution.
Speaker Change: And make sure that we reach further amount of consumers in the U S.
Speaker Change: Okay, and finally, if I can.
Speaker Change: Could people regarding and the relaunch of structure as you've got two cured.
Speaker Change: Could you provide us additional color on <unk>.
Speaker Change: Are doing now are planning to do in coming months.
Speaker Change: The assets are re launch is already in place and we showed a few pictures.
Speaker Change: Some of the shelf executions in the presentation.
Speaker Change: And.
Speaker Change: So we expect.
Speaker Change: That has to be a very successful initial.
Speaker Change: Initiative.
Speaker Change: And.
Speaker Change: <unk> just launched.
Speaker Change: <unk> narrowed our sandwiches.
Speaker Change: A new variant.
Speaker Change: Which is performing really well across the war.
Speaker Change: And I mean on a subsea I don't have any data to share because its very recent.
Speaker Change: Hidden the shell the shelves.
Speaker Change: In the last two weeks. So we don't we don't we still don't have data to share.
Speaker Change: Okay. Thank you very much sure.
But by the way we get another you mentioned it.
Speaker Change: Those of you who are in Mexico.
Speaker Change: Of course, our scepter was launched in Mexico, we invite you to to try the product to buy the product we use a product it's a superior ROI.
Speaker Change: So versus what is on the market today.
Speaker Change: It's got the functional benefits, it's a premium product at a premium.
Speaker Change: Packaging.
Speaker Change: We invite you to try it.
Speaker Change: Sure Good question.
Speaker Change: Thank you one moment, please while we hold for any further questions.
Speaker Change: Okay with this we conclude our fourth quarter results conference.
Robert: Thank you Robert.
Speaker Change: Thank you.