Q2 2025 Anheuser-Busch InBev SA/NV Earnings Call

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[music].

Operator: Welcome to AB Inbev's second quarter 2025 earnings conference call and webcast. Hosting the call today from AB Inbev are Mr. Michelle Dikeris, Chief Executive Officer, and Mr. Fernando Tennenbaum, Chief Financial Officer. To access the slides accompanying today's call, please visit AB Inbev's website at www.ab-imbev.com and click on the Investors tab in the Reports and Results Center page. Today's webcast will be available for on-demand playback later today. At this time, all participants have been placed in the listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your touch-tone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. If you should require operator assistance, please press star zero.

Welcome to a B Inbev second quarter 2025 earnings conference call and webcast.

During the call today from a B Inbev are Mr. Michel to Caris, Chief Executive Officer, and Mr. Fernando Tennenbaum, Chief Financial Officer.

To access the slides accompanying today's call. Please visit <unk> website at Www Dot, a b dash and bad Dot com and click on the investors tab and the reports and results Center page.

Today's webcast will be available for on demand playback later today.

At this time, all participants have been placed in a listen only mode and the floor will be opened for your questions. Following the presentation.

If you would like to ask a question at that time. Please press star one on your Touchtone phone.

If at any point. Your question has been answered you may remove yourself from the queue by pressing star two.

If you require operator assistance, please press star zero.

Operator: Some of the information provided during the conference call may contain statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. It is possible that AB Inbev's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect AB Inbev's future results, see risk factors in the company's latest annual report on Form 20-F filed with the Securities and Exchange Commission on March 12th, 2025. AB Inbev assumes no obligation to update or revise any forward-looking information provided during the conference call and shall not be liable for any action and reliance upon such information. It is now my pleasure to turn the floor over to Mr. Michelle Dikeris.

Some of the information provided during the conference call may contain statements of future expectations and other forward looking statements.

These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties.

It is possible the a b embeds actual results and financial condition may differ possibly materially from the anticipated results and financial condition indicated in these forward looking statements.

For a discussion of some of the risks and unimportant factors that could affect a b inbev future results see risk factors in the Companys latest annual report on form 20-F filed with the Securities and Exchange Commission on March 12 2025.

A b Inbev assumes no obligation to update or revise any forward looking information provided during the conference call and shall not be liable for any action in reliance upon such information.

It's now my pleasure to turn the floor over to Mr. Michel to Caris, Sir you may begin.

Operator: Sir, you may begin.

Fernando Tennenbaum: Thank you and welcome, everyone, to our second quarter 2025 earnings call. It is a great pleasure to be speaking with you all today. Today, Fernando and I will take you through our operating highlights and provide you with an update on the progress we have made in executing our strategic priorities this quarter. After that, we'll be happy to answer your questions. Let's start with the key highlights. The consistent execution of our strategy delivered another quarter of solid results, with EBITDA increasing by 6.5% and continued margin expansion. The performance of our premium brand and the strategic choices we made in revenue management drove an acceleration in our revenue per hectoliter growth, increasing by 4.9% versus last year. In the US, our portfolio is continuing to build momentum and gain share of the industry. We are continuing to increase our investments in our brand to fuel growth.

Thank you and welcome everyone to our second quarter 2025 earnings call.

It is a great pleasure to be speaking with you all today.

Today, Fernando and I will take you through our operating highlights and provide you with an update on the progress we have made in executing our strategic priorities this quarter.

After that we will be happy to answer your questions.

Let's start with the key highlights.

The consistent execution of the Horus strategy delivered another quarter of solid results with EBITDA, increasing by six 5% and continued margin expansion.

The performance of our premium brands and the strategic choices. We made the revenue management drove an acceleration in our revenue per hectoliter growth, increasing by four 9% versus last year.

In the U S. Our portfolio is continuing to build momentum and gain share of the industry.

We are continuing to increase our investments in our brands to fuel growth.

Fernando Tennenbaum: Our non-alcohol beer portfolio continued to outperform globally, increasing revenues by 33%. The growth of beer's marketplace accelerated this quarter, increasing GMV by 63% versus last year to reach $785 million. And the ongoing optimization of our business drove an 8.7% increase in underlying US dollar EPS and a half billion dollar increase in free cash flow. Turning to our operating performance, volumes declined by 1.9%, impacted by soft industries and performance in China and Brazil. While overall volumes were below potential, the underlying momentum in markets representing the remaining two thirds of our business continued, with volume growth of 0.7%. Double-clicking on these two markets, first, Brazil. The majority of our volume decline was driven by a soft industry, which was impacted by adverse weather conditions. During the second quarter, we made strategic revenue management choices to position the business well for the second half of the year.

Our non alcohol beer portfolio continued to outperform globally, increasing revenues by 33%.

The growth of beef market place accelerated this quarter, increasing Jamie Z by 63% versus last year to reach $785 million.

And the ongoing optimization of our business drove an eight 7% increase in the underlying U S dollar EPS and the half a billion dollar increase in free cash flow.

Turning to our operating performance.

Volumes declined by one 9% impacted by soft industries ample pharmacy in China and Brazil.

While overall volumes were low potential the underlying momentum in markets, representing the remaining two thirds of our business contented with volume growth of 0.7%.

Double clicking on this two markets first Brazil.

The majority of our volume decline was driven by a soft industry.

Which was impacted by adverse weather conditions.

During the second quarter, we made the strategic revenue management choices to position the business well for the second half of the year.

Fernando Tennenbaum: Second, in China, the quarter two industry volume trends were in line with the first quarter, declining by low single digits versus last year, but our volumes underperformed, with continued weakness in our regions and channels. Moving back to the global results, top line growth accelerated, with revenue increasing by 3% this quarter versus last year. EBITDA increased by 6.5%. And the continued optimization of our business drove operating leverage through the P&L, resulting in EPS growth of 17.4% in constant currency and 8.7% in US dollar terms. Our diversified geographic footprint enables us to deliver consistent results. Revenue increased in 70% of our markets, and we delivered top and bottom line growth across four of our five operating regions. Now, I'll take a few minutes to walk you through the operational highlights for the quarter from our key regions, starting with North America.

Second in China.

The quarter to industry volume trends were in line with the first quarter declined by low single digits versus last year, but our volume is under performance with continued weakness in our regions and channels.

Moving back to the global results top line growth accelerated with revenue increasing by 3% this quarter versus last year.

EBITDA increased by six 5%.

And the continued optimization of our business drove operating leverage through the P&L, resulting EPS growth of 17, 4% in constant currency and eight 7% in U S dollar terms.

Our diversified geographic footprint enables us to deliver consistent results.

Revenue increase it in 70% of our markets and we delivered top and bottom line growth across four of our five operating regions.

Now I'll take a few minutes to walk you through the operational highlights for the quarter put all our key regions, starting with North America.

Fernando Tennenbaum: In the US, the momentum of our portfolio continued, and we are increasing investments in our brands to fuel growth. Led by Mikulov Ultra and Busch Light, the number one and number two volume share gainers in the industry, our market share momentum accelerated, and we delivered both top and bottom line growth. And in the spirits based at this, our portfolio grew volumes by low teens, led by Cut Water and Neutral. Now, moving to Middle Americas. In Mexico, our volumes grew by low single digits, slightly ahead of the industry, which benefited from Easter shipment phasing but was negatively impacted by adverse weather in June. Revenue increased by mid-single digits, with growth led by our above-core beer portfolio. In Colombia, record high volumes drove high single-digit top and bottom line growth, with our portfolio estimated to have gained share of total alcohol.

In the U S.

Momentum of our portfolio continued and we are increasing investments in our brands to fuel growth.

Led by Nicola Volta and Bush like the number one and number two volume share gainers in the industry, our market share momentum accelerated and we delivered both top and bottom line growth.

And in the spirit space that this.

Our portfolio grew volumes by low teens led by cutwater and neutral.

Now moving to me, though Americas.

In Mexico, our volumes grew by low single digits is likely ahead of the industry, which benefited from Easter shipments phasing, but was negatively impacted by adverse weather in June.

Revenue increased by mid single digits with growth led by our above core beer portfolio.

In Colombia record high volumes drove high single digit top and bottom line growth with our portfolio estimated to have gained its share of total alcohol.

Fernando Tennenbaum: In Brazil, our revenue declined by 1.9%, impacted by volume performance. EBITDA increased by 5.3%, with margin expansion of 216 basis points, as productivity initiatives more than offset the top line decline and transactional effects at wins. In South Africa, the underlying momentum of our business continued, gaining share of both beer and beyond beer. Revenue and EBITDA grew by mid-single digits, with our performance driven by premium and super premium brands, which grew volumes by mid-teens. In Europe, an improved industry continued the premiumization of our portfolio and further margin recovery drove top and bottom line growth. Our volumes were flat, outperforming the industry in five of our six key markets, led by our mega brands and our non-alcohol beer portfolio. While we are talking about Europe, I spent a lot of time with our team in the market over the last few months.

In Brazil, our revenue declined by one 9% impacted by volume performance.

EBITDA increased by five 3% with margin expansion of 216 basis points as productivity initiatives more than offset the topline decline in transactional FX headwinds.

In South Africa, the underlying momentum of our business contented, gaining share of both beer and beyond beer.

Revenue and EBITDA grew by mid single digits, we saw per pharmacy, driven by premium and Super premium brands, which grew volumes by mid teens.

In Europe and improve the industry continued to personalization of our portfolio and further margin recovery drove top and bottom line growth.

Our volumes were flat outperforming the industry in five of our six key markets led by our Mega brands and our non alcohol beer portfolio.

While we are talking about Europe, I spent a lot of time with our team in the market over the last few months.

Fernando Tennenbaum: And looking at the industry performance this quarter, we can see an interesting example of the resilience, momentum, and relevance of the beer category. With more normalized weather, the industry delivered flattish volumes and revenue growth, with beer gaining share of total alcohol. In our developed markets, we have the opportunity to innovate, premiumize, increase category participation, and be present in more occasions to deliver profitable growth. To mention just a few examples from Europe, consumers are enjoying the taste of life with meals in France and Italy, the perfect serve of Stella Artois during Roland Garros and Wimbledon, celebrating 100 years of the refreshing taste of Corona during the summer, the perfect draft experience at home in the UK, and our non-alcohol beer portfolio in more occasions. With the right portfolio, innovation, and focus on consumers and occasions, the category has attractive growth opportunities across our footprint.

And looking at the industry performance. This quarter, we can see an interesting example of the resilience momentum and the relevance of the beer category.

With more normalized weather the industry delivered flattish volumes and revenue growth with be it gaining share of total alcohol.

In our developed markets, we have the opportunity to innovate putting real nice increase category participation and be present in more occasions to deliver profitable growth.

To mention just a few examples from Europe consumers are enjoying the taste of languished meals in France and Italy.

The perfect serve of Stella Artois during Roland Garros, and Wimbledon celebrating 100 years of the refreshing taste of Corona during this summer.

Perfect draft experience at home in the U K and our non alcohol beer portfolio in more occasions.

With the right portfolio innovation and focus on consumers and occasions, the category has attractive growth opportunities across our footprint.

Fernando Tennenbaum: Now, moving to APAC. In China, revenue declined by 6.2%, with our volumes underperforming the industry. We are committed to our strategy and are taking action to strengthen our execution by increasing discipline and excellence in our road to market, increasing investments in our mega brands, accelerating our expansion in the in-home channel, and scaling up key innovations such as Harbin Zero Sugar. Now, let's look at the key highlights of our three strategic pillars, starting with leading and growing the category. We continue to invest in our mega brands and mega platforms. In the first half of the year, we invested $3.6 billion in sales and marketing and have averaged more than $7 billion on an annualized basis over the last six years. Focused portfolio management, increasing market investments, and improved effectiveness drove an increase in brand power of our portfolio, led by our mega brands.

Now moving to APAC.

In China revenue declined by six 2%, we forward volumes underperforming games.

We are committed to our strategy and are taking action to strengthen our execution by increasing discipline and excellence in our route to market increase.

Increasing investments in our Mega brands accelerating our expansion in the in home channel.

Scaling up chemo ratios, such as Harvey zero sugar.

Now, let's look at the key highlights of our three strategic pillars is starting with leading and growing the category.

We continue to invest in our Mega brands and Mega platforms.

In the first half of the year, we invested $3 $6 billion in sales and marketing and have averaged more than $7 billion on an annualized basis over the last six years.

Focused portfolio management, increasing marketing investments in improving the effectiveness drove an increase in brand power of our portfolio.

By our Mega brands.

Fernando Tennenbaum: This consistent investment in our brands is reinforcing the strength of our portfolio. According to Kantar Brand Z, we own eight of the top 10 most valuable beer brands in the world. Mikulov Ultra and Stella Artois, two of our global mega brands, moved up in the rankings by one position to reach number five and number nine, respectively. And Corona Budweiser continued to lead at the top two brands globally. We have evolved our portfolio management approach to focus our investments in our mega brands to drive efficient, profitable growth. We have around 50 mega brands globally, typically five per market. And these brands continue to lead our growth, with net revenue increasing by 5.6%. Our global mega brand, Corona, continued to drive premiumization across our markets, growing revenue by 7.7% outside of Mexico and growing volumes by double digits in more than 30 markets.

This consistent investments in our brands are reinforcing the strength of our portfolio.

According to Kantar Brinci, we own eight of the top 10, most valuable beer brands in the world.

<unk> in Stella Artois.

<unk> of our global Mega brands move it up in the rankings by one position to reach number five.

Number nine respectively, and Corona and Budweiser continued to lead at the top two brands globally.

We have evolved our portfolio management approach to focus our investments in our Mega brands to drive efficient profitable growth. We have around 50 Mega brands globally typically five per market and these brands continued to lead our growth.

With net revenue increasing by five 6%.

Our global Mega brand Corona continued to drive premium amortization across our markets growing revenue by seven 7% outside of Mexico, and growing volumes by double digits in more than 30 markets.

Fernando Tennenbaum: Through the consistent execution of our category expansion levers, we are increasing category participation across our markets by offering superior core brands, innovating in balanced choices to provide consumers with no and low alcohol, low carb, zero sugar, and gluten-free options. And we are expanding our premium and beyond beer portfolios. As a result, on a rolling 12-month basis, participation of legal drinking age consumers with our portfolio increased across our markets. In non-alcohol beer, our portfolio momentum continued, with net revenue growing by 33%, led by the growth of Corona Cero! We are now leaders in seven of our top 13 non-alcohol beer markets and estimated to have gained share in 70% of them. With 65% of the volume coming from new consumers and new occasions, we believe non-alcohol beer is a key opportunity to develop the category and drive incremental volume growth.

Through the consistent execution of our category expansion levers, we are increasing category participation across our markets by offering superior car brands.

Innovating in balanced choices to provide consumers with no and low alcohol low carb zero sugar and gluten free options and.

And we are expanding our premium and beyond beer portfolios.

As a result on a rolling 12 months basis participation of legal drinking age consumers, we fall portfolio increases across our markets.

In non alcohol beer our portfolio momentum continued.

With net revenue growing by 33% led by the growth of Corona Ferro.

We are now lead this in seven of our top 13, non alcohol beer markets and estimate to have a gain in share in 70% of them.

We have 65% of the volume coming from new consumers and new occasions, we believe non alcohol beer is a key opportunity to develop the category and drive incremental volume growth.

Fernando Tennenbaum: Innovation is a key component of our ambition to drive increased participation and develop new occasions. Two good examples of our innovation capabilities this year are both from our US business, where we are leading the industry in innovation year to date. Busch Light Apple is a seasonal offering that provides consumers with a crisp, refreshing taste and was brought back to the market by popular demand after a three-year absence. Since launch in May, the brand is now the number one innovation in the industry, driven primarily by 21 to 24-year-old consumers who had a six times higher rate of purchase for Busch Light Apple versus the industry average. Mikulov Ultra Zero, with only 29 calories, is brewed for those consumers looking for a great tasting, zero alcohol, low-calorie beer.

Innovation is a key component of our ambition to drive increased its participation and develop new occasions.

Two good examples of our innovation capability. This year are both from our U S business, where we are leading the industry innovation year to date.

Bush like Apple is a seasonal offering that provides consumers with a crisp refreshing taste and was brought back to the market by popular demand after a three year absence.

Since launching made the brand is now the number one innovation in the industry.

Driven primarily by 21 to 2040 year old consumers, who have the six times higher rate of purchase for bush like the Apple versus the industry average.

Michelob Ultra saddled.

We fully 2009 calories is brute for those consumers looking for a great tasting zero alcohol low calorie beer.

Fernando Tennenbaum: Since launch early this year, the brand is the number two innovation in the industry and is the number six volume share gainer in the overall beer category year to date. Let's turn to our second strategic pillar: digitize and monetize our ecosystem. In the second quarter, beers captured $12.2 billion in gross merchandising value, a 10% increase versus last year. The growth of beer's marketplace accelerated, with GMV increasing by 63% versus last year to reach $785 million. And in DTC, our digital platforms continue to enable a one-to-one connection with our consumers and help us in developing new consumption occasions. Our digital platforms generated $134 million in revenue, an increase of 6%. With that, I would like to hand it over to Fernando to discuss the third pillar of our strategy: optimize our business. Thank you, Michelle. Good morning. Good afternoon, everyone.

Since the launch of <unk>. The brand is the number two innovation in the industry.

And is the number six volume share gainer in the overall beer category year to date.

Let's turn to our second strategic pillar digitize and monetize our ecosystem in.

In the second quarter Bis captured 12 $2 billion in gross merchandising value, a 10% increase versus last year.

The growth of this market place accelerated we see Jim Z, increasing by 63% versus last year to reach $785 million.

And indeed to see our digital platforms continue to enable our one to one connection with local summers and help us in developing new consumption occasions.

Our digital platforms generated $134 million in revenue an increase of 6%.

With that I will.

I'd like to hand, it over to Fernando to discuss the third pillar of our strategy optimize our business.

Thank you Michelle.

Good morning, good afternoon, everyone.

Fernando Tennenbaum: I'll take a few minutes to discuss the progress we have made in optimizing our business. Our EBITDA margins improved by 116 basis points this quarter, with expansion in four of our five operating regions. We know that each quarter will be different, but we are confident that the combination of our leadership advantages, disciplined revenue management, continued premiumization, and efficient operating model creates an opportunity for further margin expansion over time. Moving on to EPS, we delivered underlying EPS of 98 cents per share, an 8.7% increase in US dollars, and a 17.4% increase in constant currency versus last year. EBITDA growth accounted for a 16 cents per share increase, with translational effects and 8 cents per share headwind. Lower net interest expense and the optimization of other below EBITDA line items drove the balance of our EPS growth.

I'll take a few minutes to discuss the progress we have made in optimizing our business.

Our EBITDA margins improve it by 116 basis points this quarter.

With expansion in four of our five operating regions.

We know that each quarter will be different but we are confident that the combination of our.

Leadership advantages.

Disciplined revenue management continued premium position.

And efficient operating model create.

Create an opportunity for further margin expansion overtime.

Moving on to EPS.

Delivered underlying EPS of <unk> 98 per share.

Eight 7% increase in U S dollars.

And the 17, 4% increase in constant currency versus last year.

EBITDA growth accounted for a 16 <unk> per share increase with translation of effects of <unk> <unk> per share headwind.

Lower net interest expense and the optimization of further below EBIDTA line items drove the balance of our EPS growth.

Fernando Tennenbaum: As we continue to focus on optimizing our business, in the first six months of this year, we increased our free cash flow by half a billion dollars versus last year through a combination of driving organic EBITDA growth, reducing our net interest expense through deleveraging, optimizing our networking capital, and improving the efficiency of our CAPEX through disciplined resource allocation. With this increase in cash generation, we continue to make progress on our deleveraging journey. Our net debt to EBITDA ratio reached 3.27 times, an improvement from 3.42 times year over year. As is typical, the ratio increased versus the full year given the seasonality of our cash generation and increased cash outflow from our full year dividend and completion of our share buyback program.

As we continue to focus on optimizing our business.

In the first six months of this year, we increased our free cash flow by half a billion dollars versus last year through a combination of.

Driving organic EBITDA growth.

Reducing our net interest expense through deleveraging.

Optimizing our net working capital.

And improving the efficiency of our capex through disciplined resource allocation.

With this increase in cash generation, we continue to make progress on our deleveraging journey.

Our net debt to EBITDA ratio reached 327 times, an improvement from 342 times year over year.

As is typical the ratio increase of the vessels the full year, given the seasonality of our cash generation.

An increase in cash outflow from our full year dividend and complex completion of our share buyback program.

Fernando Tennenbaum: In the first half, we continued to strengthen our debt maturity profile by executing a bond redemption and issuance, allowing us to extend our average maturity while maintaining our weighted average coupon. Our bond portfolio remains well distributed, with no relevant near and medium-term refinancing needs. We have approximately $3 billion worth of bonds maturing through 2026 and no financial covenants. Our results in the first half of the year, the resilience of our strategy, and the strength of our mega brands all reinforce our confidence in our ability to deliver on our 2025 outlook of 4 to 8% EBITDA growth. With that, I would like to hand it back to Michelle for some final comments. Thanks, Fernando.

In the first half we continued to strengthen our debt maturity profile by executing a bond redemption and issues.

Allowing us to extend our average maturity, while maintaining our weighted average coupon.

Our bond portfolio remains well distributed with no relevant near and medium term refinancing needs.

We have approximately $3 billion worth of bonds maturing through 2026 and no financial covenants.

Our results in the first half of the year the resilience of our strategy.

And the strength of our Mega brands, all reinforce our confidence in our ability to deliver on our 2025 outlook of 4% to 8% EBITDA growth.

With that I would like to hand, it back to Michele for some final comments.

Thanks Fernando.

Fernando Tennenbaum: Before opening for Q&A, I would like to take a moment to recap on the first half of the year and look ahead at the opportunities our brands have to activate the category. We are encouraged by our first half results as we delivered EBITDA growth at the upper end of our outlook. Underlying EPS increased by high single digits in US dollars and by 19% in constant currence. The performance of our premium brands and our revenue management decisions drove an acceleration in our revenue per hectoliter growth. Our diversified footprint is proving to be a strength, as our developed markets across the US, Canada, and Europe showed a resilient performance, growing top and bottom line in the second quarter of 2025. And as Fernando just mentioned, our first half performance and the strategic choices we have made position us well to deliver on our outlook for the year.

Before opening for Q&A I would like to take a moment to recap on the first half of the year and look ahead and the opportunities our brands have to activate the category.

We are encouraged by our first half results as we delivered EBITDA growth and they will put in a forward outlook.

Underlying EPS increased by high single digits in U S dollars and by 19% in constant currency.

The performance of our premium brands and our revenue management decisions drove an acceleration in our revenue per hectoliter growth.

Our diversified footprint is proving to be a strength.

As our developed markets across the U S, Canada, and Europe showed a resilient performance growing top and bottom line in the second quarter of 2025.

And as Fernando just mentioned, our first half performance and the strategic choices, we have made position us well to deliver on our outlook for the year.

Fernando Tennenbaum: In the first half of this year, our brands met consumers in some of the most iconic events in sports and culture, developing new occasions and creating moments of celebration and cheers. Looking ahead to the second half, we are uniquely positioned to activate the category, from the NBA and NFL to celebrating 100 years of Corona around the world. To the build-up of the Winter Olympics, we will be focused on connecting with consumers and bringing to life our purpose of creating a future with more cheers. With that, I'll hand it back to the operator for the Q&A.

In the first half of this year, our brands met consumers in some of the most iconic advancing sports and culture.

Developing new occasions, and creating moments of celebration and cheers.

Looking ahead to the second half, we had uniquely position to activate the category.

From the NBA and NFL to celebrating 100 years of Corona around the world to.

So the buildup of the Winter Olympics, we will be focused on connecting with consumers and bringing them to lie for purpose of creating a future with more tears.

With that I'll hand, it back to the operator for the Q&A.

Operator: Thank you. The floor is now open for questions. In the interest of time, we will limit participants to one question and one follow-up question. Again, if you have a question or comment, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. We do ask that while you pose your question, you pick up your handset to provide optimal sound quality. One moment, please, while we poll for your question. Our first questions come from the line of Mitch Collette with Deutsche Bank. Please proceed with your questions.

Thank you the floor is now open for questions and the interest of time, we will limit participants to one question and one follow up question.

Again, if you have a question or comment please press star one on your telephone keypad.

Any point. Your question has been answered you may remove yourself from the queue by pressing star two.

We do ask that while you pose your question you pick up your handset to provide optimal sound quality.

One moment, please while we poll for your questions.

Our first questions come from the line of Mitch collect with Deutsche Bank. Please proceed with your questions.

Mitchell Collett: Hi, Michelle. Hi, Fernando. I've got two questions, please. So firstly, given the volume decline in the first half and some of the headwinds you've seen that might persist into the second half, I guess it looks unlikely that you'll achieve volume growth in fiscal 25. But how comfortable are you without not achieving volume growth this year? And how do you think about volume growth longer term? I appreciate you won't guide on fiscal 26 today, but how confident do you feel about volume growth going into fiscal 26 based on what you know today? And then the second question, I guess, is linked. You know, given those temporary headwinds to volume this quarter, you've actually had a pretty decent organic EBITDA growth delivery, and you're in the top half of your range. So to what extent is that margin improvement permanent?

Hi, Michelle Hudson Ando.

I've got two questions. Please so firstly given the volume decline in the first half and some of the headwinds you've seen that might persist into the second half I guess, it looks unlikely that youll achieve volume growth in fiscal 'twenty five.

How comfortable are you without with not achieving volume growth. This year and how do you think about volume growth longer term I. Appreciate you won't guide on fiscal 'twenty six today, but how confident do you feel about volume growth.

Going into fiscal 'twenty six based on what you know today and then the second question I guess is linked given those temporary headwinds to volume this quarter, you've actually had a pretty decent organic EBITA growth delivery and youre in the top half of your range. So to what extent is that margin improvement permanent.

Mitchell Collett: And how should we think about organic EBITDA growth in a better volume context? Thank you.

How should we think about organic EBITDA growth in.

In the better volume context, thank you.

Michel Doukeris: Hi, Mitch. Good morning. Thanks for the question. So I think that to start answering this question and talking about volume, it's always good to remember the business that we have, which is a large one globally, with operations in over 50 countries, selling beer in over 100 countries. And as we always say, this is a great footprint because it allows us to navigate different environments and continue to deliver on a consolidated basis. But of course, this can also, time to time, expose us for different countries' specific challenges. We are all aware of the slowdown in China, the reset in Argentina, just to mention a few of them. In a business that is as large as this one, it's difficult to draw conclusions on a quarter or just taking one KPI, volume, for example.

I am each good morning.

Thanks for the question.

So I think that.

To start answering this question and talking about volume.

It's always good to remember the business that we have which is a large one globally with operations in over 50 countries.

Selling beer.

Over 100 countries and as we always say this is a great footprint because it allows us to navigate different environments and continued to deliver on a consolidated basis.

Of course this can also plan to time exposes.

Different countries specific challenge.

We are all aware of the slowdown in China, the reset in Argentina, just to mention a few of them.

And the business that is as large as this one.

Difficult to draw conclusions on a quarter.

Or just taking one API volume for example, you can look at the volume this quarter can look the volume evolution over the last five years since <unk>.

Michel Doukeris: You can look at the volume this quarter or can look at the volume evolution over the last five years since pre-COVID. Our volumes have been growing 0.5% on average. And this quarter specifically, driven by especially Brazilian industry, where both countries had tough industries, but also our performance in China and in Brazil were below our expectation. This volume was not where we would like to be. But if you go to other KPIs and you look at what we delivered, of course, revenue, all-time high, EBITDA has been growing over and over in each quarter within the range that we have for the market. This is a year outlook, and we've been delivering EPS growth very consistent in constant currence, but also in dollars, growing 8% this quarter, 7% since 2021. And we continue to make progress on our cash flow that continues to improve year on year.

Our volumes have been growing 5% on average.

And this quarter, specifically the reason by specially Brazil in the industry and where both countries had tough industries, but also for pharmacy in China and in Brazil were below our expectation. This volume was not where we would like to be but if you go to other kpis.

When you look at what we delivered.

Of course revenue.

Hi.

It has been growing.

Over and over in each quarter within the range that we have for the market. This is a year outlook and we've been delivering.

EPS growth very consistent in constant currency, but also in dollars growing 8% this quarter, 7% since 2021, and we continue to make progress on our cash flow that continues to improve year on year, I think that all of that to say.

Michel Doukeris: I think that all of that to say we remain confident on the footprint that we have and the advantages of this footprint globally. The forecasts for the industry in the long run do not change. This industry will continue to grow, is gaining share of growth, and we are confident on the business and the strategy that we are executing. I will leave Fernando with the second part of your question. Thank you.

We remain confident.

On the footprint that we have and the advantages of this footprint globally.

The forecast for the industry in the long run does not change. This industry will continue to grow is gaining share of throat and we are confident on the business and the strategy that we had executing I'll leave Fernando which was the second part of your question. Thank you.

Fernando Tennenbaum: Hi, Mitch. Fernando here. So when you ask about margins, if you look like in the second quarter, the margin expanded by 116 base points, and we expanded in four of our five operating regions. We don't provide margin outlook, but we said several times before that 2025 looks to be more like a normal year of cost inflation, somewhat in line with inflation that causes our markets for the year. But then when you double-click and you said that several times, when you look at the effects curves, we always had one year out, so we have a very good visibility on what is happening. We expect the, specifically Mexican pesos and Brazilian real, the phasing of cost inflation to be weighted from Q2 onwards.

Image Fernando here. So when you ask about margins if you looked like in the second quarter. The margin expanded by 116 basis points and we expanded in four of our five operating regions.

We don't provide margin outlook, but we said several times before that the 2025 looks to be more like a normal year of cost inflation.

I'm walking line of inflation, our cortisol markets for the year.

But then when you double click and who said that several times when you look at the effects curves, we always hedge one year out. So we have a very good visibility on what is happening we expect the specialty specifically Mexican pesos and Brazilian about the phasing of cost inflation to be weighted from Q2 onwards.

Sure.

Fernando Tennenbaum: And then taking like one step back and a broader picture, we also said several times that the EBITDA performance that we have, especially during the COVID years, has been driven by transaction effects and record high commodity prices. But none of these headwinds were structural. So the fundamental drivers of our industry-leading margins remain intact. So that's to say that we are controlling what we can control. And when we look forward, not specifically quarter by quarter, and we look forward, we still see a lot of opportunities to improve margins.

And and then taking like that one.

I want to step back and a broader picture. We also said several times that the.

Did the performance that we have especially during the Covid two years has been driven by transaction effects and record high commodity prices.

But none of these headwinds where the structural so the fundamental drivers of our industry leading margins the remaining debt.

So that's to say that.

We're controlling what we can control and then we look forward not specifically quarter by quarter and look forward with you see a lot of opportunities to improve margins.

Mitchell Collett: Understood. Thank you both.

Understood. Thank you both.

Operator: Thank you. Our next questions come from the line of Rob Eisenstein with Evercore ISI. Please proceed with your questions.

Thank you our next questions come from the line of Rob <unk> with Evercore ISI. Please proceed with your questions.

Robert Ottenstein: Great. Thank you very much. Michelle, the results in the US are really impressive. And it's really, it's an incredible turnaround story and quite a success. As you kind of stand back and reflect on what you've accomplished in the US, what are the key learnings? And are there things from the US that you can transport, learnings that you can transport to other regions to help improve performance in those areas as well? Thank you.

Great. Thank you very much Michelle.

The results in the U S are really impressive.

And it's really it's an incredible turnaround story and quite a success.

As you kind of stand back and reflect on what you've accomplished in the U S.

What are the key learnings and are there things from the U S that you can transport learnings that you can transport to other regions.

To help improve performance in those those areas as well thank you.

Okay.

Michel Doukeris: Morning, Robert. Thanks for the question. So the US has been a topic in our calls and conversations over the last several years. And I think that we always need to start with the idea that we proposed back then in 2017 this rebalance on our portfolio. And we have been since investing on the brands that we thought had potential for acceleration and that were in line with what we saw as emerging and consolidating consumer trends. And our share momentum on this quarter two improved. So we are, any cut you take from SIRCANA to BIR, on the 60 to 70 bips. This growth so far has been led by Mikulov Ultra and Busch Light.

Good morning, Robert Thanks for the question. So U S has been a topic in our calls and conversations over the last several years and I think that we we always need to start as they did that.

<unk> proposal back there in 2017 this rebalancing our portfolio.

We have been since investing on the brands that we thought had potential for acceleration.

And that were in line with what we saw is emerging and consolidating consumer trends and our share momentum on this quarter to improved.

So we are any cut you'll take from <unk> to <unk>.

On the 60 to 70 bps.

This growth so far has been led by Michelob ultra.

And Bush light.

Michel Doukeris: And because the intentionality of the innovations that we had during the year, so less innovations, but more meaningful innovations, you get a boost on this share, especially on the quarter two, because we launched Mikulov Ultra Zero on the quarter one, but really hit the steps on the quarter two. And Busch Light Apple came into as a seasonal in the quarter two. The learnings from this are consistency. We've been talking a lot about this. So a long-term plan, a very consistent view on the category, on our portfolio choices, and the investments we made for the long term. We called somehow last year this inflection point because we've been following a lot this percentage of brands on our portfolio growing and where the industry is going.

And because the intention knowledge of the innovations that we had during the year, so less innovations, but more meaningful innovations youll get a boost.

This share, especially on the quarter too because we launch it michelob ultra zero on the quarter, one, but really hit the SaaS on the quarter, two and Bush light Apple came into as a seasonal in the quarter to.

The learning strong from this is consistency we've been talking a lot about this so our long term plan.

Very consistent view on the category on our portfolio choices and the investments we made for the long term.

We called somehow left here at this inflection point because we've been following a lock this percentage off brands on our portfolio growing and where the industry is growing.

Michel Doukeris: We see now a further acceleration that you don't capture on this share on the beyond beer space because a lot of our choices were in the ready-to-drink cocktails and the vodka seltzer, but both Cut Water and Neutral, very consistent growth. And some of those things, of course, they are embedded in our plans globally when you think about the 10-year plan that we have the company, the mega brands' choices, and the consistence on the investment behind these choices, but also for innovation and expansion of tools to increase penetration, such as the non-alcohol, the gluten-free, the zero sugar, and the beyond beer choices that we have. So I think that there's more for us to see in the US. There is much more for us to do. But so far, we are pleased with the current momentum and especially with the demand for the brands.

We see now a further acceleration that you don't capture on this chair on the beyond beer space, because a lot of our choices wedding the ready to drink.

Cocktails and if once the seltzer, but both cutwater and neutral very consistent growth.

And some of those things of course, they are embedded in our plans globally. When you think about the 10 year plan that we have the company the Mega brands choices and the consistency on the investments behind these choices, but also for innovation and the expansion of tools to ing.

<unk> penetration such as the non alcohol the gluten free the zero sugar and the beyond beer choices that we have so I think that there's more for us to seen the U S that is much more for us to do but so far we are pleased with the current momentum and especially.

With the demand for the brands. So ultra continue to structure the right Bush light very well position and innovations are working hard.

Michel Doukeris: So Ultra continues to accelerate. Busch Light, very well positioned. And the innovations are working hard to help and to support this growth.

To help them to support this growth.

Operator: Thank you. Our next questions come from the line of Olivier Nicolai with Goldman Sachs. Please proceed with your questions.

Thank you. Our next question is come from the line of Olivier Nicolai with Goldman Sachs. Please proceed with your questions.

Mitchell Collett: Hi, good morning, Michelle. First of all, I've got a follow-up on Mexico. I think in the press release, your comments that Mexico grew in the quarter, but in June, it was weak, blaming the weather. Is there any consumer slowdown in Mexico that you're seeing at the end of the quarter, which could have an impact in H2? And then the question is going back to the breaded beer volumes decline. So beyond the weather, could you perhaps break down the key elements to explain the underperformance? Have you been increasing prices perhaps a bit too much or more than what you want? Way more than the rest of the markets. And would you believe that volumes could bounce in H2 when it comes to mainstream beer, or is there something a bit more structural there? Thank you.

Hi, Good morning, Michelle Sean first of all I've got a follow up on Mexico I think in the press release, you will commence at the.

Mexico grew in the quarter.

In June it was week blaming the weather is there any.

Consumer slowdown in Mexico about Youre seeing.

At the end of the quarter, which could have an impact in each two and then the question is going back to two.

Brazil beer volumes declined so beyond the weather could you, perhaps breakdowns of key elements to explain agenda performance.

Have you been in creating prices, perhaps a bit too much or move on to what you said.

The rest are way more about the rest of the markets and.

Would you believe volumes could bounce in H two when it comes to mainstream beer or is that something a bit more structural there. Thank you.

Michel Doukeris: Morning, Olivier. Michelle here. I'll take, I think, the two questions. They are one more specific, one more broad. Feel free to follow up if I didn't cover both of them. So I think that in Mexico, again, great industry, great business that we have in Mexico. Volumes during the quarter increased at low single digits, outperformed the industry. Results were good, top to bottom. We had different components during the quarter. So I think we can remember several of them. So Easter shifting from quarter one to quarter two, comparables, because last year was a very strong quarter in Mexico. I think we all remember that the government, because of the elections, had more spending on the first half of the year. And this helped the quarter two. It was a great quarter last year in terms of weather, as a matter of fact.

Good morning Olivia.

Michelle here I'll take I think that the two questions. They are one more specific one more broad to free.

To follow up if I, if I didn't cover both of them. So I think that in Mexico.

Again, great team industry, great business that we have in Mexico volumes during the quarter.

Increase at low single digits.

Outperform the industry.

Results were good top to bottom.

We had different components during the quarter. So I think we can remember several of them. So Easter shifting from quarter. One two parter two comparable because last year was a very strong quarter in Mexico, I think we all remember that the government because of the elections.

<unk> had more spending on the first half of the year and these help at the quarter two was a great quarter last year in terms of weather as a matter of fact.

Michel Doukeris: I'm not sure if I captured it well, but it said something like blaming the industry. We actually just state the fact. We're not blaming the weather, right? So we are just saying it was cold, it was rainy. There were some storms in Mexico this quarter. So the back end of the quarter was rather slow versus the beginning of the quarter because of Easter. But all in all, we delivered a great quarter, outperforming the industry. Underlying demand for our brands remains very strong. As in many markets, and I think that this somehow connects the first part of the question with the second, what we see is that the economy continues to progress. But across the board, we see consumer confidence not at the high levels that we saw back then in '22, for example.

I'm not sure if I captured it well, but he said something like blaming the industry. We actually just stayed the fact, we're not blaming the weather right. So I was just saying was cold was rainy there was some storms in Mexico. This quarter. So the backend of the quarter was rather is low versus the beginning.

You have the quarter because of Easter, but all in all we delivered a great quarter outperforming the industry underlying demand for our brands remains very strong.

As in many markets and I think that this somehow connect the first part of the question with the second what we see is that the economy continues to progress.

But across the board, we see consumer confidence not at the high levels that we saw back that in 'twenty. Two for example.

Michel Doukeris: And one would expect that at one point, as the economy continues to progress, consumer confidence will converge. But we are not there yet. And more specifically, if you look at the different consumer cohorts by socioeconomic level, the more value-seeking consumers, because of inflation, we see are under pressure in some specific markets. And when we look at the baskets, I'll give an example of the US. The consumer basket, different consumer cohorts and economic socioeconomic levels are being somehow stable. Like they are buying on average the same dollars that they usually buy. But we all know that the same dollars with inflation will mean less units being bought in the basket. And this is a point that we all need to be carefully monitoring and following. And beer and alcohol so far have been keeping the share of these baskets stable.

And one would expect that at one point as economy continues to progress.

Consumer confidence will converge, but we're not there yet and more specifically if you look at the different consumer cohorts by social economic level, the more value seeking consumers because of inflation.

We see are under pressure in some specific markets.

And when we look at the basket. So given an example of the U S. The consumer basket different.

Consumer cohorts in the economic social economic levels are being somehow stable like they are buying on average the same $1 that they usually buy.

But we all know that the same dollars with inflation will mean less units being blocked in the basket.

And this.

As a point that we all need to be carefully monitoring and following.

And be it alcohol, so far has been keeping the share of just baskets stable.

Michel Doukeris: And in markets where the purchase power is already rebuilding, you take Europe, for example, that suffered more after COVID because of the cost of electricity and fuel and energy. Because of these costs, these are normalizing. Purchase power is recovering. Then you see the industry recovering in line, not only on the euros that people are spending, but also in quantity. So I think that the situation globally for the consumer is the economy continues to progress, consumer confidence below historical levels. At one point, we all expect that this will converge. Baskets somehow stable in dollars, euros, but where there is more inflation, consumers, of course, are more choiceful in their quantities.

Any markets, where the port Chase power is already rebuilding you'll take Europe for example that suffered more.

After COVID-19 because of the cost stuff.

<unk>, Tim sphere, when energy because of this cost is a normalized purchase power as a recovery Dan you'll see the industry recovery in line not only on the yields that people are expanding but also in quantity. So I think that situation globally for the consumer is.

<unk> continues to progress consumer confidence below historical levels at one point, we all expect that these will converge baskets somehow is stable in dollars.

But where there is more inflation consumers of course are much choice in their quantities. So we need to continue to monitor economy, Duke our job on the parts that we can control and then we will see as we move forward those things converge like purchased power consumer confidence.

Michel Doukeris: So we need to continue to monitor the economy, do our job on the parts that we can control, and then we will see as we move forward those things converging, like purchase power, consumer confidence, and volumes. Thank you.

And volumes.

Thank you.

Mitchell Collett: Thank you.

Thank you.

Operator: Thank you. Our next questions come from the line of Sanjay Ajla with UBS. Please proceed with your questions.

Thank you our next questions come from the line of Sanjay <unk> with UBS. Please proceed with your questions.

Mitchell Collett: Hey, Michelle, Fernando. A couple from my side, please. Firstly, on China, can you talk us through how you've seen the on-premise channel progress through the quarter? On the one hand, you're cycling some of the macro headwinds from last year. However, it feels like the government has really stepped up the anti-extravaganza campaign. And maybe talk us through how you're thinking about that into the second half of the year. So the first question on China. Second question on Brazil. I think one of your peers confirmed they had taken a price increase in July. Have you noticed an improvement in your market share trends as you've gone into Q3 on the back of that? Thank you.

Hey, Michelle Fernando a couple from my side, please firstly on China.

Can you talk us through how you've seen the on premise channel progressed through the quarter on the one hand, youll cycling some of the macro headwinds from last year.

However, it feels like the <unk>.

Government has really stepped up the ante extravaganza campaign.

Maybe talk us through how you're thinking about that into the second half of the year. So the first question on China second question on Brazil.

I think one of your peers confirmed.

They had taken a price increase in July.

You noted an improvement in your market share trends going into Q3 on the back of that thank you.

Michel Doukeris: Hey, Sanjay. Good morning. Michelle here again. So two points on the question there. First, China. I think that is not new on our conversations that the industry had a big slowdown. And as we look at quarter one, quarter two this year, as anticipated, comps not easy for the industry, and the industry continued to perform slightly negative. So that was the picture on the first quarter of the year. It remained the picture on the second quarter. Of course, the size of the underperformance now is much smaller relative to what we saw last year. And we continue to think that as we move through the quarters, we will see this impact reducing, the comps becoming more in favor of the industry. And at one point, this industry should start a fire on the right direction, but not there yet in quarter two.

Hey, Sanjay good morning, Mitch.

Michelle here again so.

Two points on the question there first China I think that is not new.

Our conversations that the industry had a big slowdown and as we look at quarter one quarter two this year as anticipated comps.

Comps not easy for the industry and the industry continued to perform is likely negative.

So that was the picture on first quarter of the year remained the picture on the second quarter of course there.

<unk> of the Underperformers now is much smaller relative to what we saw last year and we continue to think that as we move through the quarters, we will see this impact reducing debt.

The comps, becoming more in favor of the industry and at one point <unk> should start.

<unk> year on the right direction, but not that he asked on quarter to.

Michel Doukeris: The on-trade channel, which is an important component of that, stubbornly continues to be very weak. So the on-trade is not rebounding. The growth that we see in the industry is more in the off-premise. So a big portion of our plans in China now are improving the road to market, improving the propositions that we have for the off-premise. The good part is that we're under-indexing share in the off-premise. So there is a lot of space for us to capture and to grow, but it demands adjustments on the execution. I can't tell a lot about any new measures from the government on the on-trade because it's new. I was in China a couple of weeks ago, and I heard a lot about that. And you could see that there was less traffic in the on-trade, especially Chinese restaurants.

The old trade channel, which is an important component of that.

Stubbornly continues to be very weak.

The on trade is not rebounding the growth that we've seen the industry is more in the off premise. So a big portion of our plants in China now are improving the route to market improving the propositions that we have towards the off premise the good part.

Is that we under index in sharing the off premise. So there is a lot of space for <unk>.

To capture and to grow but in demands adjustments on the execution.

I can't tell a lot about any new measures from the government on the on the on trade because his new I was in China couple of weeks ago, and I heard a lot about that and you could see that there was less traffic in the on trade, especially Chinese restaurants.

Michel Doukeris: But I think that we need some more time to see where this will land. While, on the other hand, we all see growth on the off-premise. The off-premise looks to be already beyond the decline of the industry, already turned into growth. And it's a big opportunity for us given the fact that we under-indexed there. Second, Brazil. I think that we commented a little bit on the press release and during the call now. But in Brazil, the industry was soft in quarter two. So the same weather conditions that we saw in the US, in Mexico, they extended throughout the Americas. To be honest, Brazil, Argentina, but because of the nature, the size of Brazil, that's a tropical country. So you had tough winters in the south, but mild weather in the southeast.

But I think that we need some more time to see where this will land.

While on the other hand, we all see grow from the off premise nerf premise looks to be already beyond the declining of the industry already turned it into growth.

And it's a big opportunity for us given the fact that we under indexed there.

Second, Brazil, I think that we commented a little bit on the on the press release and during the call now, but in Brazil industry was soft in quarter. Two so the same weather conditions that we saw in the U S. In Mexico, they extended throughout the Americas to be on.

Brazil, Argentina, but because theyre.

The nature and the size of Brazil, Thats, a tropical country. So you had.

Tough winters in the south but mild weather in the southeast when the weather is too bad across the whole country. Then this has a big impact that was the main.

Michel Doukeris: When the weather is too bad across the whole country, then this has a big impact. That was the main adverse impact that we saw in the industry in Brazil on the quarter two. But we also have our revenue management calendar. We discussed this, the second half of last year, hedges that we have, transactional effects have a component on cost that are big for Brazil this year. And the revenue management had to follow our plans. So we had prices, as we have every year, in our calendar. Relativity in terms of price was rather tough during the first half of the year for the Brazil team. And we see the market somehow adjusting throughout the year. Prices are moving, and we expect to have better relativity as we move forward. But of course, we only control our own agenda, our own revenue management.

A diverse impact that we signed the industry in Brazil on the quarter two but we also have our revenue management calendar.

We discussed that day as the second half of last year.

<unk> that we have transactional effects have a component of cost that are big for Brazil. This year and their revenue management had to follow our plans. So we had prices as we have every year in our calendar.

Relativity in terms of price was rather.

During the first half of the year for Brazil, Tim and we see the market somehow adjusting throughout the year prices are moving and we expect to have better relativity as we move forward, but of course, we only control our own agenda, our own revenue management. So we are modeling.

Michel Doukeris: So we are monitoring, executing, preparing the business for a good second half of the year.

Three executing preparing the business for a good second half of the year.

Operator: Thank you. Thank you. Our next questions come from the line of Andrea Pistacchi with Bank of America. Please proceed with your questions.

Thank you.

Thank you. Our next question is come from the line of Andrea <unk> with Bank of America. Please proceed with your questions.

Mitchell Collett: Yes, thank you. Hi, Michelle and Fernando. Two questions, please. The first one on the US. You had a very solid performance, particularly on profit in the US. But the industry, the rate of decline of the industry in the last couple of months seems to have got a bit worse. Clearly, weather impact, pressure on the low-income consumer, which we know. But should the industry continue to decline at a greater pace than it has done historically, that historic 1-2%, do you think you have enough levers to continue to at least hold profit flat or maybe grow it a bit in the US? And what are these levers? And then the follow-up will be, I think, for Fernando, I wanted to ask about share buybacks. You completed the $2 billion, finished that in June. Pre-cash flow in H1 was very solid.

Yes, Thank you, Hi, Hi, Michelle and turnarounds and two questions. Please.

Just one on the U S.

You had a very solid performance, particularly on profit in the U S, but the industry.

The rates of decline in the industry in the last couple of months. It seems like both of the quarters clearly weather impact pressure on the low income consumer.

Which we know but should the industry continued to decline at a greater pace than it has done historically that historic one 2%.

Thank you have enough levers to continue to at least hold profit falafel may be growing a bit in the U S and what are the reasons.

And then the follow up will be I think for several months ago I wanted to ask about.

Buybacks, we've completed the $2 billion.

Finished back in June when the cash flow and each one was very solid.

Mitchell Collett: Yes, most of the cash is generated in H2, but H1 is very solid. EM currency is relatively stable. So what held you back from increasing the buyback already at this point? I know the past couple of years you announced a buyback in October, but particularly given the attractive level of the share price, why not increase the buyback earlier? Thank you.

Most of the functions generating an HD, but a very solid yen currencies relatively stable. So what held you back from from increasing the buyback already at this point I know in the past couple of years, you announced the buyback in October, but particularly given the attractive levels of <unk> why not.

Increase the buyback.

Thank you.

Michel Doukeris: Andrea and Michelle, I'll take the first one here and hand it over to Fernando to follow up on your second question, okay? So I think that the US industry and our own performance, we discussed it a little bit on the question before from Robert, but we see this good momentum on our portfolio. Good brands for us leading this. So Mikulov Ultra is a premium brand on our portfolio. So it's one of the levers for us not only to continue to grow share, but to improve our financials. Busch Light and Innovation continue to fire, and this is very positive. When you look into the industry, you were right, like remain below the long-term trend. And as you mentioned, we mentioned this before as well. So very strange weather with many, many different events over the first half of the year impacting the industry.

And Ryan Michelle I'll take the first one here then hand it over to Fernando to follow up on your second question again.

I think that the U S industry and our own performance, we will discuss it a little bit on the question before from Robert but we see this good momentum on our portfolio.

Good brands what is leading this so mitchell of both raise a premium brand in our portfolio. So it is one of the levers for us not only to continue to grow share but to improve our financials.

Bush light and innovation continue to to fire and this is very positive when you're looking to the industry Youre right like remain below the long term trend.

And as you mentioned, we mentioned this before as well so.

Very strange weather with many many different events over the first half of the year impacting the industry. So mathematically we see this in the states where it has advanced and the weather was worse versus the other states. So a big portion of what makes the difference between startup called <unk>.

Michel Doukeris: So mathematically, we see this in the states where these events and the weather were worse versus the other states. So a big portion of what makes the difference between historical trends and what we see today. The second topic, pockets of consumer constraint. As we said, baskets are pretty much stable in consumption. But because of the food inflation, inflation, of course, quantities are impacted. The share of alcohol, beer on these baskets remains stable. Therefore, as the economy continues to progress, as purchase power rebuilds for these consumers, one can only expect normalization. And we keep working hard on productivity, as we always do. So we are managing costs, improving productivity. Those are very important levers together with mix and the growth of the beyond beer to continue to yield for us the top and the bottom line that we have seen on this quarter two.

Trends in what we see today this.

The second topic pockets.

Off consumer core strength as a SaaS basket pretty.

Much stable in consumption, but because of the food inflation inflation.

Of course quantitative and impacted.

The share of alcohol beer on this basket remained stable. Therefore S economy continues to progress.

As purchase power rebuilds for consumers one camera, all expect normalization and we keep working hard on productivity.

As we always do so we are managing costs improving productivity. Those are very important levers together is mix and the growth of the beyond beer to continue to yield for us the top and the bottom line that we have seen on this quarter too, but let me take your <unk>.

Michel Doukeris: But let me take your question and use a little bit of the call that we have now, the material, just to give you one example, which I think that could be very useful for everybody. That's why I brought it, which is Europe. So you don't take a market that's more developed than Europe in the beer industry. You don't take a more diverse and dynamic economic environment than we see across Europe. And we talked a lot last year, was a little bit of the reverse of this America's weather that we are seeing, how complicated the weather was last year in Europe. So this year, we are having a very good summer, sunny, a little bit dry than average. We monitor consumer purchase power, which has been restoring in Europe to what was before 2021.

<unk> and use a little bit of the call that we have now the material just to give you. One example, which I think that could be very useful for everybody. That's why abroad, which is Europe.

So you don't take a market thats more developed than Europe in the beer industry.

You don't take a more diverse.

And dynamic economic environment than we see across Europe.

And we've talked a lot last year was a little bit of the reverse of this Americas web that we have seen how complicated the weather was last year in Europe. So this year, we are having a very good summer sunny a little bit dry than the average.

We monitor consumer purchasing power, which has been restoring in Europe to what was.

Before 2021.

Michel Doukeris: And the industry is in growth in dollars, pretty much stable in volume. And our portfolio is outperforming the industry. So you get all the components that we discuss in every call about all the trends and headwinds to the industry. Good weather, consumers in good shape, and then the industry is growing dollars, euros in this case in Europe, and our portfolio is performing. So I think that the long-term trends in the industry will not change. What we need to cycle is this more dynamic environment and getting to see consumers in a better place. So the industry will continue to grow as Euromonitor, IWSR forecast for the years to come. So every quarter will be different, but the long-term trends, I don't think that are too different. And Andrea, Fernando here.

And down the industry is seeing growth in dollars pretty much stable in volume and now our portfolio is outperforming the industry. So you'll get all the components that we are discussing every call about all the trends and headwinds to the industry.

Good weather concerns.

Consumers in good shape and then the industry is growing.

Dollars euros in this case in Europe, and our portfolio is performing so I think that the long term trends the industry will not change what we need to cycle is this more dynamic environment and getting to see consumers in a better place. So the industry will continue to grow.

As Euromonitor AWS Saar forecast for the years to come so every quarter will be different but the long term trends I don't think that are too different.

And then Fernando here. So on your question, but I can tell is that our capital allocation plans I didn't change it.

Michel Doukeris: So on your question, what I can tell you is that our capital allocation plans are unchanged. We are always very disciplined how we use our cash. But what is fair to say, and you made this point, is that with the increased cash generation and the lower leverage, we have increased flexibility in our capital allocation choices. The main goal of our capital allocation policy, we stated several times, is creating value for our shareholders. And as you said, well, cash flow is weighted towards the second half of the year. Although the first quarter was strong, it was half a billion dollars better than the previous year. So we have, of course, nothing to announce at this time.

We are always very disciplined how user of cash but.

What is fair to say and you made this point is that with the increased cash generation.

And the lower leverage we have increasing flexibility in our capital allocation choices.

The main goal of our capital allocation policy. We stated several times is creating value for our shareholders.

And as you said well cash flow is weighted towards the second half of the year. Although first quarter was strong was half a billion dollars better than in the previous year. So we have.

Of course, nothing to announce at this time, but.

Michel Doukeris: But if there is one key takeaway, it's that the plans are unchanged and we have increased flexibility as we continue to progress on our stronger balance sheet and very good cash flow generation.

If there is one key takeaway is that the plans are unchanged and we have increased the flexibility as we continue to progress on our stronger balance sheet and very good cash flow generation.

Mitchell Collett: Okay, clear. Thank you.

Okay clear thank you.

Operator: Thank you. Our next questions come from the line of Edward Bundy with Jefferies. Please proceed with your questions.

Thank you. Our next question is coming from the line of Edward Mundy with Jefferies. Please proceed with your questions.

Mitchell Collett: Morning, Michelle, Fernando. So our first question is coming back to the concept of volume growth, where you're growing probably below your potential. I think historically, from the developed markets, it's probably held you back a little bit, but you're sounding much more assured on Europe. And we've seen that performance for a couple of quarters now in the US. Does this give you more reassurance in your ability to grow group volumes over the medium term as you get through some of these short-term issues in Brazil and China? And then the second question is on your plans to activate the category. I think slide 31 shows some of the sports properties against which you would activate.

Good morning, Michelle Fernando. So first question is coming back to the concept of volume growth. While you are growing probably below your potential.

Shortly some of the developed markets is probably held you back a little bit but you are finding much more short on Europe, and we've seen outperformance for a couple of quarters now in the U S.

I'll give you more reassurance and your ability to grow group volumes over the medium term as you get through some of these short term issues in Brazil and China.

And then the second question is on your plans to activate the category I think slide 31 shows some of the sports properties against which you reactivate.

Mitchell Collett: Thinking about FIFA 2026 and probably some of your learnings from the FIFA Club World Cup this year, I think relative to three or four years ago, it's fair to say that you're getting sharp on marketing. Do you see this as a bigger opportunity for the business in the category as you look out to next year?

Thinking about for 2026, and probably some of your learning from the FIFA Club World Cup this year.

Relative to three or four years ago, It's fair to say that you're getting sharper marketing do you see this as a bigger opportunity for the business and the category as you look out to next year.

Michel Doukeris: Morning, Ed. Good afternoon. Thank you for the question. So twofold, I talked a little bit about this before. That is the gift of our global footprint and then the idiosyncratic issues that we face in challenging environments in some countries time to time. And we keep the focus on the things that we can control. So you look at our EBITDA growth, EBIT growth with leverage, and then EPS while we manage the specific conditions on volumes here and there. The long-term perspective is that we continue to focus on this optimized portfolio. We continue to focus on the advantages of our footprint for the long term, the growth that the developing and emerging countries can add to the category.

Good morning, Ed Good afternoon. Thank.

Thank you for the question. So two fold I talk a little bit about this before that is.

The gift of our global footprint.

And then the idiosyncratic issues that we face in challenging environments in some countries time to time.

And we keep the full crews on the things that we can control. So you look at our EBITDA growth abbott's growth with leverage and down EPS, while we manage the specific conditions on volumes here and there.

The long term perspective is that we continue to focus on deals optimize the portfolio.

We continue to focus on the advantages of our footprint for the long term the growth that the developing and emerging countries can add to the category and we are very pleased to see this quarter that our developed markets you can cut from.

Michel Doukeris: And we are very pleased to see this quarter that our developed markets, you can cut from Canada, US, Europe, the share gains in South Korea, they are all building on our full potential. So we will continue to see specific events in each and every market, differences in the quarters, but we continue to believe that the long-term category opportunity in our business because of our footprint remains in place for us to deliver growth in the long term. 2026, this question is an interesting one. So FIFA and the event in itself is always a great opportunity for the category. So our models show that in the years that we have the World Cup, there is a bump in volume, both in the month of the World Cup as well as for the whole year, given the magnitude of the event.

Canada.

S Europe the share gains in South Korea, they are all.

Building on our full potential.

No.

We continue to see specific events in each and every market differences in the quarters, but we continue to believe that the long term category opportunity in our business because of our footprint.

Remains in place for us to deliver growth in the long term 2026. This question is an interesting one so FIFA and <unk>.

They are advancing itself is always a great opportunity for the category. So our models show that in the years that we have the World Cup. There is a bump in volume both in the months of the World Cup as well as for the whole year given there.

Magnitude of the event.

Michel Doukeris: Curious to see what's going to happen next year is a larger event. So there will be more countries, more excitement, more weeks on air. And this will, of course, be part of the build-up for the category for our business next year. In our case, the location, meaning US, and the fact that this will span across the Americas could not be better, is where most of our footprint sits. So it's going to be very welcome to see the time of the games, the participation of the countries from the continent, and what's going to happen here. And if you take the momentum that we built with Mikulov Ultra this year as a sponsor of the FIFA Clubs World Cup, there is a lot of excitement building for next year.

Curious to see what's going to happen next year is.

Larger event, so there'll be more countries more excitement more weeks on there and these were wharf course be part of the buildup for the category for our business next year.

In our case.

The location, meaning U S and the fact that this we spun across the Americas.

Cannot be bad there is where most of our footprint seats. So there's going to be very welcome to see the time of the gains the participation of the countries from the continent, and what's going to happen here and if you take.

The momentum that we built with michelob ultra this year as the sponsor of the FIFA Club World Cup.

There's a lot of excitement building for next year and just as a reminder, in between now and there. We also have winter Olympics that will be very interesting because it's going to cut from the backend of this year into the first quarter of next year and we have now more.

Michel Doukeris: And just as a reminder, in between now and there, we also have Winter Olympics that will be very interesting because we're going to cut from the back end of this year into the first quarter of next year. And we have now more experience, more knowledge on how to activate the Olympics. So we'll continue to invest on these mega platforms. They have very good ROI for us and very helpful for the momentum of our brands.

Experience more knowledge on how to activate the Olympics. So we will continue to invest on this manga platforms. They have very good ROI for them very helpful for the momentum of our brands.

Yeah.

Mitchell Collett: Great. Thank you.

Michel Doukeris: Thank you.

Great. Thank you. Thank you.

Operator: Thank you. Our next questions come from the line of Lawrence Wyatt with Barclays. Please proceed with your questions.

Thank you our next questions come from the line of Florence Wai with Barclays. Please proceed with your questions.

Mitchell Collett: Morning, Michelle. Morning, Fernando. Thanks very much for the questions. A couple from me, if that's okay. Firstly, on the US business, you hopefully showed the slide showing the very strong brands that you have across the world and included in there, Bud and Bud Light. I think over the recent years, those brands have struggled, as you pointed out, that mainstream beer has been outperformed by some of the premium brands and imports. But of course, recently, you've shown the success with Busch Light, which sort of holds a similar category. Do you think there's any opportunity to reinvigorate those two brands, or do you think there's simply the potential for other brands to take your marketing spend and make better use of it with better returns? And then secondly, on Europe, you've highlighted almost the perfect conditions across that market, excellent weather.

Good morning, Michel Good morning, Fernando and thanks, very much for the questions. A couple a couple from me if that's okay.

On the U S business you hopefully showed the slide showing the very strong brands you have across the world and included in the Bud and Bud light I think over the recent years. Those brands has struggled as you pointed out that mainstream bids.

<unk> outperformed by some of the premium brands in imports, but of course recently showing the success with Bush lights, which sort of hold the similar category do you think there is any opportunity to reinvigorate those two brands or do you think there is.

Simply the potential for other brands to take your marketing spend and make better use of it were better returns.

And then secondly on Europe.

Highlights, it's almost a perfect conditions across that market excellent whether youre taking share in a number of five out of six of your markets.

Mitchell Collett: You've taken share in a number of five out of six of your markets. But of course, volume growth, you said, was flat. Sort of going back to a couple of the earlier questions, are you surprised by that? Do you think there's better opportunity to grow volumes in Europe, or is it just going to be a very difficult market to be able to get volume growth in the future? Thank you very much.

But of course volume growth you said was flat.

Going back to a couple of the earlier questions.

Are you surprised by that do you think there's better opportunity to grow volumes in Europe or is it just can be a very difficult market to be able to get volume growth and future. Thank you very much.

Michel Doukeris: Thank you, Lawrence. So US, on the portfolio, again, the key for us is to continue to rebalance this portfolio and making sure that the offers we have are aligned with the main consumer trends. So Mikulov Ultra, very well positioned there, gaining both scale and momentum. And it's a brand that is just sitting on a very important place with many opportunities to continue to grow. Like just to give you a couple of numbers there for you to reflect upon. So Mikulov Ultra is growing this year in all 50 states in the US. All 50 states. I don't think that there are many brands in the industry or outside the industry that are having growth across all states. When you think of the brand, in some states, the brand is as big as 11% share.

Thank you Lawrence.

So you asked on the portfolio again, the key for US is to continue to rebalance this portfolio.

And making sure that the offers we have an alignment.

The main consumer trends, so michelob ultra very well position theyre, gaining both scale and momentum and is a brand that is just sitting on that very important place.

With many opportunities to continue to grow like just forgive you.

Couple of numbers there for you to reflect the bonds. So michelob ultra is growing this year.

All 50 states in the U S. All 50 States I don't think that there is many brands in the industry or outside the industry that are having growth across all these states.

When you think of it at the brand in some states the brand is big gas.

11% share.

Michel Doukeris: If you take the entire West Coast or the Northeast of the US, the brand is only 6% share. So it's half the size in the Northeast and West Coast that it is in the leading states for the brand in the US. So there is much more that we can invest and continue to expand Ultra there. The case is similar to Busch Light. So in the Busch Light strongholds, the brand is very big. So the brand is the leading brand in the mainstream and has share above 10% in some of the strongholds. It's the second fastest growing brand now in the US, but the distribution is still very limited. So the brand can continue to find growth areas across most of the US because it's very concentrated in the inland and is now expanding south, west, north, and northeast from there. So we continue to increase.

If you take the entire west coast.

The northeast of the rash.

The brand is only 6% share.

So it's half the size in the northeast and West coast that it is in their leading states for the brand in the U S. So there is much more that we can invest and continue to expand ultra theyre. The cases similar to bush light. So in the Bush light strong hopes there.

<unk> is very big so the brand is the leading brand in the mainstream.

Hess share above 10% in some of these strongholds.

Is the second fastest growing brand now in the U S. But the distribution is still very limited. So the brand can continue to find growth ferrous across most of the U S. Because it's very concentrated in the England and is now expanding.

<unk> West North and northeast from there so we continue to increase.

Michel Doukeris: And same statistic for Busch Light, leading states, 11% share of the industry. In the rest of the US, as I was mentioning, it's less than 3%. So a lot of headroom there. And when you think about Bud Light, Budweiser, the other brands, the answer for our question is yes, but we have choices, priorities, and work to be done across all these brands. We are more advanced with Ultra, more advanced with Busch Light, while we continue to work on the other brands and make, of course, the right choices in terms of allocation of capital and investments for these brands. Thinking about Europe, the question is also very interesting. So conditions were good. Industry was flat, growing in dollars. We know that the underlying trend of the industry in the last few years was not that.

Same statistic for Bush light, leading states, 11% share of the industry in the rest of <unk> as I was mentioning is less than 3%. So a lot of headroom there.

And when you think about Bud light Budweiser the other brands. The answer for your question is yes, but we have choices priorities and work to be done across all these brands were more advanced with ultra more advance it with Bush light, while we continue to work on the other.

Brands and make of course, the right choices in terms of Colocation of capstone investments towards those brands.

Thinking about Europe.

The question is also very interesting. So conditions were good industry was flat grow in dollars, we know that the underlying trend of nameless in the last few years was not that so that is an improvement that we can see under the good.

Michel Doukeris: So there is an improvement there that we can see under the good conditions. And because the industry is a much bigger thing, of course, the improvements are never overnight. But it's good to see the industry, but also the share of growth. So part of the trip that I had in Europe, I went to countries like Italy, France, and beer is gaining share of growth in these countries. You see beer growing a lot in new occasions in Italy, for example, led by Lef. You see the positioning of our brands, plus the portfolio that we have in France, working very well from south to north of France, different occasions, different brands, but all of them increasing penetration and gaining more occasions in the country. So markets move, consumers move. The innovation that we have, the portfolio that we have is working for consumers across the continent.

Good condition and because the industry is a much bigger.

Of course, the improvements are never overnight, but it is good to see.

They induce the industry, but also the sheriff throat, so part of that trip that I had in Europe.

In two countries like.

Italy.

And B it is gaining share of throat on these countries.

Youll see beer growing a lot in new occasions in Italy for example, led by Lash.

Youll see.

The positioning of our brands.

The portfolio that we have in France.

Working very well from south to north of France different occasions different brands, but all of them, increasing penetration and gaining more occasions in the country. So markets move consumers move the innovation that we have the portfolio that we have is.

Working for consumers across the continent, and I think that will continue to see under the right conditions. This industry to progress in Europe, but also as we've seen other markets. Thank you.

Michel Doukeris: And I think that we continue to see, under the right conditions, this industry to progress in Europe, but also as we see in other markets. Thank you.

Mitchell Collett: Appreciate it.

I appreciate it.

Operator: Thank you. Our final questions will come from the line of Chris Pitcher with Rothschild, the company. Please proceed with your questions.

Thank you our final question will come from the line of Chris pitcher with Rothschild. The company. Please proceed with your questions.

Mitchell Collett: Thank you very much, Michelle, Fernando. Just a couple of quick questions. Just following up on the China question. There's a lot of talk about it being a cyclical shift by category. But do you think, given how long it's been going on now, that there may be a more fundamental change in the way beer is being consumed? And have you had to reweight your sales force to target that off-trade opportunity? Or do you still genuinely believe the economy comes back, people go back to nightclubs, it'll return to normal? And then secondly, it looks like you're sort of stabilizing and growing share in India, which is encouraging. How much are you investing in that market for the next sort of 10, 20-year story? Thanks.

Thank you very much Michelle.

Just a couple of quick questions just following up on the China question.

There's a lot of talk about it being a cyclical shift by category.

But do you think given how long it's been going on now, but maybe in a more fundamental change in the white base being consumed in the do you have.

Re weight your sales force.

To target of triangle contingency Ot. So generally we believe the economy comes back we go back to my company will return to normal and then secondly.

It looks like you are.

Stabilizing and growing share in India, which is which.

As encouraging how much are you investing in that market for the next 10 20 years story.

Michel Doukeris: Hi, Chris. Thank you. So on China, as we said before in addressing in a very straight way your question, I think it's both. So we need to continue to protect the strength that we have on the on-trade, the share that we have, and look for the bounce back of the channel, while with no doubt rewiring the whole business, not only the sales force, for the off-premises key. And what I mean by that, the SKUs that we sell in the on-trade are different from the SKUs that we sell on the off-trade. And we need to improve our portfolio assortment. We are doing that in our offers and our distribution in the off-premise. The execution of the off-premise is very different than the execution of the on-trade.

Hi, Chris Thank you.

So on China, as we said before in addressing in a very straight where your question I think is both.

So we need to continue to protect the strength that we have on the on trade the share that we have.

And look for the bounce back of the channel.

While we have no doubts re.

Rewiring, the whole business not only the sales force for the off premises, Keith and what I mean by that Theyre Skus that we sell in the on trade are different from the Skus that we sell on the off trade and we need to improve our portfolio Assortments we are doing.

That and our offers and our distribution in the off brands. The execution of the off premise is very different than the execution of the on trade we need to have the right people the right supply chain the right wholesalers the right merchandising soda brands can harvest.

Michel Doukeris: We need to have the right people, the right supply chain, the right wholesalers, the right merchandising so the brands can harvest the high equity that we have on average of consumers by being present and executed in the right channels. And of course, because our business was overskilled in the East, in the on-trade channel, making these adjustments in China takes time. But we are working very hard on that. The team there is pretty focused on rebalancing our presence on these channels and building the distribution. As I said before, the exciting part of that is that we under-index buy a lot in the off-premise. So the headroom for growth is very good. We did just need to realize that. And then part of the feedback in the...

The high accurate that we have on average consumers by being present and executed in the right channels and of course, because our business was overly skilled in the east in the on trade channel, making these adjustments in China takes time, but we are working very hard on.

That the team that is pretty focused on rebalancing our presence on these channels and building the distribution as I said before the exciting part of that is that we under index by a lot in the off brands. So the headroom for growth is very good we did.

Just need to realize that.

And then.

Jack.

Mitchell Collett: Sorry. Sorry. Just to clarify, because the margin's holding up in China quite well despite the volume declines. That's happening at the same time as you're doing this investment. It's not being delayed. That's quite encouraging. Thank you.

Alright.

Sorry, just to clarify the margins held up in China quite well despite the volume declines.

At the same time as we're doing this investment is not being delighted.

Thank you.

Michel Doukeris: Oh, yes. And the premium products are premium regardless of the channel. We sell more premium products and we have a very efficient business in China. So we have space to invest as we are investing now and we will continue to invest. And in India, the story of India is a story of vitality in the growth of the industry because the industry is really growing, but it's also a little bit of volatility.Right?

Oh, yes, and the premium products, our premium regardless of the channel we sell more premium products and we have a very efficient business in China. So we have space to invest as we are investing now and we will continue to invest any media distort athene.

As I sort of like Vitol, Lady and the growth of the industry because the industry is really.

Growing.

It is also a little bit of volatility right. So our business is a national business, but it's not the same across all the states the states have their own rules.

Michel Doukeris: So our business is a national business, but it's not the same across all states. The states have their own rules, the idiosyncratic issues that you deal with time to time. But what is really important for us there is the size of our premium business. So we lead in premium and super premium with a very high share. We broke into double-digit share now with Budweiser as a brand in India overall. And of course, in the premium, the share is very high. The growth there is good. We keep improving our business from systems, footprint, brand accuracy, and capabilities. And this is a market that has, for sure, a very long-term growth prospect because the beer industry is still very underdeveloped.

It looks and crafted issues that you deal with time to time, but what is really important for us that is the size of our premium business. So we lead in premium and Super premium with a very high share.

We broke into.

Double digit share now with Budweiser as a brand in India overall and of course in the premium. This share is very high the growth that is good we keep improving our business strong systems footprint brand that could and capabilities and this is a.

A market that has portion of <unk>.

Long term growth prospect, because the beer industry still very underdeveloped and as more states and.

Michel Doukeris: And as more states improve flexibility in distribution, adjust the structure of the market in taxes and access, we will continue to have many opportunities to grow in India. So we are pleased so far with the quarter two and the momentum we have there. But that's a story that's just at the beginning. So there is much more to come. Thank you.

Improved flexibility in distribution or just the structure of the marketing faxes and access we will continue to have many opportunities to grow in India. So we are pleased so far as the quarter two and the momentum we have there, but thats a started versus just at the beginning so that it's much more to come. Thank you.

Operator: Thank you. This was the final question. If your question has not been answered, please feel free to contact the Investor Relations team. I will now turn the floor back over to Mr. Michel DeCaris for closing remarks.

Thank you. This was the final question. If your question has not been answered please feel free to contact the Investor Relations team I will now turn the floor back over to Mr. Mr. Michel to Paris for closing remarks.

Michel Doukeris: Thank you. And thank you all for your time today and for your ongoing partnership and support of the business. So tomorrow, Friday, International Beer Day. So I hope that you have the time to grab friends, drink some beer, and celebrate. So cheers. Thank you and stay well.

Thank you and thank you all for your time today and for your ongoing partnership in support of the business. So tomorrow.

Friday International Beer day, so I hope that your highest the time to grab France drink some beer and celebrate so cheers, thank you and stay well.

Operator: Thank you. This does conclude today's earnings conference call and webcast. Please disconnect your lines at this time and have a wonderful day.

Thank you. This does conclude today's earnings conference call and webcast. Please disconnect. Your lines at this time and have a wonderful day.