Q1 2026 Grupo Bimbo SAB de CV Earnings Call

April 29, 2026

Operator 2: Good day and welcome to Grupo Bimbo's First Quarter 2026 Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Alejandro Rodríguez Bas, CEO. Please go ahead.

Operator: Good day and Welcome to Grupo Bimbo's First Quarter 2026 Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Alejandro Rodríguez Bas, CEO. Please go ahead.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one, on your telephone keypad.

Speaker #1: To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Alejandro Rodríguez Vaz, CEO.

Speaker #1: Please go ahead.

Speaker #2: Good afternoon. Everyone and thank you for joining us today. Connected on the line, today are our CFO Diego Guardiola, BBU President Derek Person, along with several members of our finance team.

Alejandro Rodríguez Bas: Good afternoon, everyone, thank you for joining us today. Connected on the line today are our CFO, Diego Gaxiola, BBU President Greg Koehrsen, along with several members of our finance team. I would like to begin by sincerely thanking our teams and more than 152,000 associates around the world for their dedication and hard work in delivering these outstanding results. At Grupo Bimbo, we operate with one mindset, all for one and one for all, and that one is Grupo Bimbo. We kicked off 2026 on a very strong note, delivering record net sales and achieving the highest Q1 EBITDA margin in our history. Importantly, despite the complex environment, we're beginning to see favorable shift in both price mix and volumes, signaling a recovery in underlying demand across our portfolio.

Speaker #2: I would like to begin by sincerely thanking our teams and more than 152,000 associates around the world for their dedication and hard work in delivering this outstanding results.

Speaker #2: At Grupo Bimbo, we operate with one mindset: all for one, and one for all, and that one is Grupo Bimbo. We kicked off 2026 on a very strong note.

Speaker #2: Delivering record net sales and achieving the highest first-quarter EBITDA margin in our history. Importantly, despite the complex environment, we're beginning to see favorable shifts in both price mix and volumes, signaling a recovery in underlying demand across our portfolio.

Speaker #2: In addition, our recent acquisitions are contributing, supporting both top-line growth and margin expansion. All four of our regions deliver contributions from North America, Mexico, and our two largest markets, as well as EAA.

Alejandro Rodríguez Bas: In addition, our recent acquisitions are contributing, supporting both top-line growth and margin expansion. All four of our regions deliver growth, with particularly strong contributions from North America and Mexico and our two largest markets as well as EAA. In North America, we reached an important milestone, delivering positive sales growth for the first time since Q3 2023. This return to year-over-year growth reflects early signs of stabilization, supported by improved execution and enhanced commercial discipline. Volumes improved sequentially across nearly all segments, and we gained market share in key categories, including mainstream bread, buns, salty snacks, and breakfast. These results underscore the continued progress of our transformation initiatives, which are delivering tangible productivity benefits. Notably, this marks our 3rd consecutive quarter of margin expansion in the region. Mexico delivered outstanding results, achieving the highest net sales level in its history for any quarter.

Speaker #2: In North America, we reached an important milestone: delivering positive sales growth for the first time since the third quarter of 2023. This return to year-over-year growth reflects early signs of stabilization, supported by improved execution and enhanced commercial discipline.

Speaker #2: Volumes improved sequentially across nearly all segments, and we gained market share in key categories, including mainstream bread, buns, salty snacks, and breakfast. These results underscore the continued progress of our transformation initiatives, which are delivering tangible productivity benefits.

Speaker #2: Notably, this marks our third consecutive quarter of margin expansion in the region. Mexico delivered outstanding results, achieving the highest net sales level in its history for any quarter.

Speaker #2: This performance highlights our ability to grow even in a softer consumer environment, with broad-based strength across categories and channels, supported by high-quality service disciplined execution and the continued strength of our brands.

Alejandro Rodríguez Bas: This performance highlights our ability to grow, even in a softer consumer environment with broad-based strength across categories and channels, supported by high-quality service, disciplined execution, and the continued strength of our brands. In EAA, performance remains exceptional with another quarter of record results despite a strong comparison base. Importantly, growth is becoming increasingly diversified with Iberia, our largest market in the region, now contributing to overall momentum. Latin America also delivered a very strong performance, achieving record sales levels. Profitability was solid across nearly all countries, with the exception of Brazil. As expected, Brazil results reflect the temporary impact of the Wickbold integration, with cost efficiencies and synergies expected to be realized over time. We continue to strengthen our portfolio through discipline and strategic capital allocations. In April, we acquired Moulin d'Or in Tunisia, the market leader in single-serve croissants.

Speaker #2: Exceptional, with another quarter of record results despite a strong comparison base. Importantly, growth is becoming Iberia, our largest market in the region, now contributing to overall momentum.

Speaker #2: Latin America also delivered a very strong performance, achieving record sales levels. Profitability was solid across nearly all countries, with the exception of Brazil. As expected, Brazil results reflect the temporary impact of the Wickbold bond integration, with cost efficiencies and synergies expected to be realized over time.

Speaker #2: We continue to strengthen our portfolio through discipline and strategic capital allocation. In April, we acquired Bonelli Tunisia, the market leader in single-serve croissants. The acquisition complements our existing operations and reinforces our strategy of pursuing targeted opportunities and our capabilities, and expanding our presence in attractive categories and geographies.

Alejandro Rodríguez Bas: The acquisition complements our existing operations and reinforces our strategy of pursuing targeted opportunities that enhance our capabilities and expand our presence in attractive categories and geographies. Additionally, through our venture capital arm, Bimbo Ventures, we divested a small minority stake in Mexico. On ESG, we received a total of 18 recognitions during the quarter, including being named as one of the world's most ethical companies for the 10th consecutive year. These distinctions underscore our continued commitment to the highest standards of governance, as well as our ongoing focus on environmental stewardship and social impact. Looking ahead, we remain mindful of the uncertainty and volatility in the global environment, including geopolitical tensions. However, we're confident in the strength of our business, the resilience of our teams, and the effectiveness of our strategy. We believe we're well-positioned to navigate this environment and continue delivering strong, consistent performance.

Speaker #2: Additionally, through our venture capital arm, Bimbo Ventures, we divested a small minority stake in Mexico. On ESG, we received a total of 18 recognitions during the quarter, including being named as one of the world's most ethical companies for the 10th consecutive year.

Speaker #2: This distinction underscored our continued commitment to the highest standards of governance, as well as our ongoing focus on environmental stewardship and social impact. Looking ahead, we remain mindful of the uncertainty and volatility in the global environment, including geopolitical tensions.

Speaker #2: However, we're confident in the strength of our business, the resilience of our teams, and the effectiveness of our strategy. We believe we're well positioned to navigate this environment and continue delivering strong, consistent performance.

Speaker #2: With that, we now turn the call over to Diego, who will walk you through our financial results. Diego, please go ahead.

Alejandro Rodríguez Bas: With that, we now turn the call over to Diego, who will walk you through our financial results. Diego, please go ahead.

Speaker #3: Thank you, Alejandro. And good afternoon, everyone. Thank you for joining us today. This was an exceptional first quarter, reflecting a strong execution of our strategy across the organization.

Diego Gaxiola: Thank you, Alejandro. Good afternoon, everyone. Thank you for joining us today. This was an exceptional Q1, reflecting the strong execution of our strategy across the organization, the resilience of our business model, the operating efficiencies we have been able to implement in several of our organizations, and our strong diversification. We are particularly pleased with these results, especially considering the complex operating environment in certain regions, and the geopolitical challenges that we are facing. In this context, we deliver record performance across several key metrics, supported by solid organic growth in local currencies and continued margin expansion. Excluding the FX translation effect, we delivered mid-single-digit top-line growth, a level not seen in over 2 years. Two consecutive quarters of double-digit EBITDA growth also not seen in 3 years.

Speaker #3: The resilience of our business model, the operating efficiencies we have been able to implement in several of our organizations, and our strong diversification. We are particularly pleased with these results, especially considering the complex operating environment in certain regions and the geopolitical challenges that we are facing.

Speaker #3: Even in this context, we deliver record performance across several key metrics, supported by solid organic growth in local currencies and continued margin expansion. Excluding the FX translation effect, we deliver mid-single-digit top-line growth.

Speaker #3: A level not seen in over two years. Two consecutive quarters of double-digit EBITDA growth—also not seen in three years. We also achieved more than 150 basis points of EBITDA margin expansion for two consecutive quarters.

Diego Gaxiola: We also achieved more than 150 basis points of EBITDA margin expansion for two consecutive quarters, making our strongest quarterly expansion since 2021. Underscoring the strength of our execution and the operating leverage generated by our long-term strategic investments, including the ongoing transformation in North America, as well as continued supply chain efficiencies and reductions in general and administrative expenses. Turning to the balance sheet. Earlier in the year, we completed a MXN 12 billion dual tranche local bond issuance primarily used to refinance the BIMBO 16 notes. As a result, total debt increased during the period. On another side, net debt decreased by MXN 7 billion versus the year-end of 2025, supported by strong cash flow generation, improved working capital, and lower CapEx deployment.

Speaker #3: Making our strongest quarterly expansion since 2021, underscoring the strength of our execution and the operating leverage generated by our long-term strategic investments, including the ongoing transformation in North America, as well as continued supply chain efficiencies and reductions in general and administrative expenses.

Speaker #3: Turning to the balance sheet, earlier in the year, we completed a $12 billion dual-tranche local bond issuance, primarily used to refinance the Bimbo 16 notes.

Speaker #3: As a result, total debt increased during the period. On the other hand, net debt decreased by $7 billion versus the year-end of 2025, supported by strong cash flow generation, improved working capital, and lower capex deployment.

Speaker #3: Combined with higher EBITDA, this resulted in a net debt-to-adjusted EBITDA ratio of 2.5 times, representing an improvement of 0.2 times compared to December and reflecting our continued and consistent deleverage trend.

Diego Gaxiola: Combined with higher EBITDA, this resulted in a net debt to adjusted EBITDA ratio of 2.5x, representing an improvement of 0.2x compared to December and reflecting our continued and consistent deleverage trend. Geopolitical tensions, particularly those arising from the conflict in Iran, have reintroduced inflationary pressures across global markets, primarily in energy, logistics, and packaging costs. That said, we enter this period from a position of strength. Thanks to our disciplined hedging strategy, which we execute consistently year after year, we have reduced our exposure to commodity volatility. This has allowed us to mitigate much of the near-term impact and protect our margins despite the current environment. Certain inputs and operational components remain exposed to market dynamics. As these pressures persist, we do expect a portion of the inflationary impact to flow through our cost and expenses structure.

Speaker #3: Geopolitical tensions, particularly those arising from the conflict in Iran, have reintroduced inflationary pressures across global markets—primarily in energy, logistics, and packaging costs. That said, we entered this period from a position of strength.

Speaker #3: Thanks to our discipline, heading strategy, which we execute consistently year after year, we have reduced our exposure to commodities volatility. This has allowed us to mitigate much of the near-term impact and protect our margins despite the current environment.

Speaker #3: However, certain inputs and operational components remain exposed to market dynamics. And as these pressures persist, we do expect a portion of the inflationary impact to flow through our cost and expense structure.

Speaker #3: While 2026 remains relatively protected, we prudently included in our guidance a potential impact. We remain focused and are actively managing this environment through disciplined pricing, operational efficiencies, and supply chain optimization to mitigate the impact and sustain value creation.

Diego Gaxiola: While 2026 remains relatively protected, we previously included in our guidance a potential impact. We remain focused on actively managing this environment through disciplined pricing, operational efficiencies, and supply chain optimization to mitigate the impact and sustain value creation. Turning to our guidance. We are making a few important updates relative to what we shared a couple of months ago. First, we are revising our FX assumption to MXN 17.60 per dollar. This is MXN 0.15 stronger than our previous estimate. This alone represents an impact of approximately 50 basis points on top line and EBITDA growth. Reflecting a pre-prudent approach given the current environment, we are also incorporating a potential impact of 20 basis points in EBITDA margin from the war.

Speaker #3: Now, turning to our guidance, we are making a few important updates relative to what we shared a couple of months ago. First, we are revising our FX assumption to 17 pesos and 60 cents per dollar.

Speaker #3: This is 15 cents stronger than our previous estimate. This alone represents an impact of approximately 50 basis points on top-line and EBITDA growth. In addition, and reflecting a prudent approach given the current environment, we are also incorporating a potential impact of 20 basis points in EBITDA margin from the war.

Speaker #3: That said, when we consider these external factors, alongside the strong results delivered in the first quarter, as well as the continuous elevation in operational efficiencies and productivity initiatives, we are increasing our top-line output in local currency.

Diego Gaxiola: That said, when we consider these external factors alongside the strong results delivered in Q1, as well as the continued acceleration in operational efficiencies and productivity initiatives, we are increasing our top-line outlook in local currency. We now expect net sales to grow at a mid-single digit rate. While in peso terms, because of the FX effect, we now expect from flat to a low single-digit decline. On profitability, while we previously guided a slight EBITDA margin expansion, today we are raising that outlook. Even after incorporating the external impacts, we now expect a higher EBITDA margin expansion in the range of 60 to 110 basis points, resulting in a full year EBITDA margin of 14.5% to 15%.

Speaker #3: We now expect net sales to grow at a mid-single-digit rate, while in peso terms, because of the FX effect, we now expect from flat to a low single-digit decline.

Speaker #3: On profitability, while we previously guided a slight EBITDA margin expansion, today we are raising that outlook. Even after incorporating the external impacts, we now expect a higher EBITDA margin expansion, in the range of 60 to 110 basis points.

Speaker #3: Resulting in a full-year EBITDA margin of 14.5% to 15%. This increased confidence reflects the strength of our first quarter performance, the resilience of our business model, and the growing contribution from productivity and efficiency initiatives.

Diego Gaxiola: This increased confidence reflects the strength of our Q1 performance, the resilience of our business model, and the growing contribution from productivity and efficiency initiatives. Regarding capital allocation, we are maintaining our full-year CapEx guidance of $1.2 to 1.4 billion. Although we now expect to trend towards the lower end of the range.

Speaker #3: Regarding capital allocation, we are maintaining our full-year capex guidance of $1.2 to $1.4 billion. Although, we now expect to trend towards the lower end of the range.

Speaker #3: The first quarter reflects a lower start in our capex program, primarily due to an accelerated investment in the fourth quarter of last year, which has shifted the timing of certain projects.

Diego Gaxiola: The Q1 reflects a lower start in our CapEx program, primarily due to an accelerated investment in the Q4 of last year, which has shifted the timing of certain projects. We expect to catch up as the year progresses. Finally, from a leverage perspective, with a combination of strong cash generation, disciplined capital allocation, and profitability improvements, we are maintaining our expectation of a slight deleverage by year-end versus the end of 2025. Overall, despite a more challenging external environment, we remain confident in our ability to continue strengthening both our operating performance and financial position. Thank you for your time. We can now proceed with the Q&A session. Please go ahead.

Speaker #3: We expect to catch up as the year progresses. Finally, from a leverage perspective, with the combination of strong cash generation, disciplined capital allocation, and profitability improvements, we are maintaining our expectation of a slight deleveraging by year-end versus the end of 2025.

Speaker #3: Overall, despite a more challenging external environment, we remain confident in our ability to continue strengthening both our operating performance and financial position. Thank you for your time; we can now proceed with the Q&A session.

Speaker #3: So please go ahead.

Speaker #1: Thank you. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys.

Operator 2: Thank you. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. The first question comes from Fernando Olvera with Bank of America. Please go ahead.

Operator: Thank you. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. The first question comes from Fernando Olvera with Bank of America. Please go ahead.

Speaker #1: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. The first question comes from Fernando Olvera with Bank of America.

Speaker #1: Please go ahead.

Speaker #2: Hi, good afternoon, and thanks for taking my question. Diego, maybe starting with the updated guidance, maybe you can give us some color on what changed—I mean, regarding the margin expansion—what changed with the guidance shared a couple of months ago, and what do you expect will be the drivers for this?

Fernando Olvera: Hi. Good afternoon, and thanks for taking my question. Diego, maybe starting with the updated guidance, maybe you can give us some color of what changed. I mean, regarding the margin expansion, what changed with the guidance share a couple of months ago, and what do you expect will be the drivers for this margin expansion?

Speaker #1: Sorry, Fernando, can you repeat the question, please? Can you repeat the question? We weren't able to listen to you very well.

Operator 2: Sorry, Fernando, can you repeat the question, please? Can you repeat the question? We weren't able to listen to you very well.

Operator: Sorry, Fernando, can you repeat the question, please? Can you repeat the question? We weren't able to listen to you very well.

Fernando Olvera: Okay. Can you hear me? Hi. Hello? Can you hear me?

Speaker #3: Okay. Can you go ahead?

Speaker #2: Hi? Hello?

Speaker #3: Okay. Can you hear me?

Speaker #1: Yes, we can hear you. Can you repeat the question, please? Fernando, we can hear you now. We're not able to hear you now.

Operator 2: Yes, we can hear you. Can you repeat the question, please?

Operator: Yes, we can hear you. Can you repeat the question, please?

Rachel Smith: Fernando, we can hear you now. We were not able to hear you.

Operator: Fernando, we can hear you now. We were not able to hear you.

Speaker #3: Can you hear me better?

Fernando Olvera: Now can you hear?

Speaker #1: Yes, but it's a little far off. Before, it was better.

Operator 2: Yes, it's a little far off. Before was better.

Operator: Yes, it's a little far off. Before was better.

Speaker #2: Okay, let me repeat the question. Based on the current guidance and the updated guidance, if you can share, Diego, what has changed versus two months ago, and what will be the drivers of this margin expansion?

Fernando Olvera: Okay. Let me repeat the question. Based on the, on the current guidance or the updated guidance, if you can share, Diego, what changed versus two months ago, you know, and what will be the drivers of this margin expansion? That's the first question.

Speaker #2: That's the first question.

Diego Gaxiola: Yes, Fernando. As I explained, we have considered a couple of negative effects. A little bit of reconsidering the expectation of a stronger peso for the year, which is putting some pressure to our top-line growth in Mexican pesos, as well as for the EBITDA growth of approximately half of a percentage point. We also included the impact of unexpected inflation, which is very volatile and hard to know exactly what's gonna happen. We are being conservative, and we did include it at 20 basis point impact on the EBITDA line for the full year. Now, why even considering these couple of negative effects we are improving our expectation for the year has to do first with the strong results of Q1 that completely exceeded our expectations in most of the regions, as Alejandro mentioned.

Speaker #4: Yes, Fernando, as I explained, we have considered a couple of negative effects—a little bit of reconsidering the expectation of a stronger peso for the year, which is putting some pressure on our top-line growth in Mexican pesos, as well as on the EBITDA growth of approximately half a percentage point.

Speaker #4: We also included the impact of expected inflation, which is very volatile and hard to know exactly what's going to happen, but we are being conservative, and we did include it at a 20 basis points impact on the EBITDA line.

Speaker #4: For the full year. Now, why, even considering this couple of negative effects, we are improving our expectation for the year has to do, first, with the strong results of the first quarter.

Speaker #4: That completely exceeded our expectations. In most of the regions, as Alejandro mentioned, as you clearly can see, North America improved much more than what we expected. Mexico was stable, also with the extraordinary positive impact of selling the minority stake that we had in a subsidiary, which had a positive impact on our results.

Diego Gaxiola: As you clearly can see, North America improved much more than what we expected. Mexico was stable, also with the extraordinary positive impact of selling the minority stake that we had in a subsidiary that had a positive impact on our results. That was not considered in the initial guidance, so that is also helping. Lastly, the confidence that we have that we're gonna be able to continue to implement, even in a challenging environment, the operating efficiencies and the productivity initiatives across the different segments of the company.

Speaker #4: So, that was not considered in the initial guidance, so that is also helping. And lastly, the confidence that we have—that we're going to be able to continue to implement, even in a challenging environment—the operating efficiencies and the productivity initiatives across the different segments of the company.

Speaker #2: Okay. And these efficiencies are expected, I mean, across the board, or is there any region that might stand out?

Fernando Olvera: Okay. These efficiencies are expected, I mean, across the board, or is there any region that might stand out?

Diego Gaxiola: Probably the one that has surprised us more on the positive side, it's North America. We are running ahead the initial program in terms of the operating efficiencies and the productivity initiatives. We're seeing an improvement in top line, but it's still with a small decline in Q1, but better than what we expected, and we feel confident for the coming quarters. I would probably say North America is the one that is pushing more than the other segments, the expectations for Grupo Bimbo. Mexico has been very stable. Of course, in Mexico, we have the positive impact again from the profits that we had from the sale of the minority stake in the subsidiary that is reflected on the under the segment of Mexico. I think that LatAm is behaving as expected.

Speaker #4: Probably the one that has surprised us more on the positive side is North America. We are running ahead of the initial program in terms of operating efficiencies and the productivity initiatives.

Speaker #4: We're seeing an improvement in top line, but still with a small decline in the first quarter. But it's better than what we expected, and we feel confident for the coming quarters.

Speaker #4: So, I would probably say North America is the one that is pushing more than the other segments the expectations for Grupo Bimbo. Mexico has been very stable. Of course, in Mexico we have the positive impact again from the profits that we had from the sale of the minority stake in the subsidiary.

Speaker #4: That is reflected under the segment for Mexico. I think that LATAM is behaving as expected. As Alejandro mentioned, we had, in the quarter, some expenses related to the integration of Wigbold in Brazil.

Diego Gaxiola: As Alejandro mentioned, we had in the quarter some expenses related to the integration of Wickbold in Brazil. It is not going to be only one quarter, it is something that will continue to happen in 2026, as we considered a couple of months ago. So that is why even though it's not gonna be the strongest year for LatAm, it's quite in line with the initial expectation. Europe, Asia, Africa, it's also performing slightly better than expected, Fernando.

Speaker #4: It is not going to be only one quarter. It is something that will continue to happen in 2026, as we considered a couple of months ago.

Speaker #4: So that is why, even though it's not going to be the strongest year for LATAM, it's quite in line with the initial expectation. And Europe, Asia, Africa—it's also performing slightly better than expected, Fernando.

Speaker #2: Okay. And just a second quick question. Considering that the sale of this minority stake in Mexico is considered, can you share more details on this and what was the amount of the gain recognized, and what would have been the EBITDA performance with such gains this quarter?

Fernando Olvera: Okay. Just a second quick question. Concerning that the sale of this minority stake in Mexico always consider, can you share more details on this? What was the amount of the gain recognized?

Diego Gaxiola: Sure.

Fernando Olvera: What would have been the EBITDA performance using such gains this quarter?

Speaker #4: Yeah, sure. I mean, we do not disclose the specific information in terms of the amount. It was a 4% minority stake that we had in Grupo La Moderna and Pasta For All, which was a related company to Grupo La Moderna.

Diego Gaxiola: Yeah, sure. I mean, we do not disclose the specific information in terms of the amount. It was a 4% minority stake that we had in Grupo La Moderna and Pasta For All, which was a related company to Grupo La Moderna. The profit or the positive impact on the EBITDA at the Grupo Bimbo level represented approximately 50 basis points.

Speaker #4: The profit, or the positive impact on the EBITDA at the Grupo Bimbo level, represented approximately 50 basis points.

Fernando Olvera: 50?

Speaker #2: 50?

Speaker #4: 50. Yeah, 50 basis in the quarter.

Diego Gaxiola: 50? Yeah, 50 basis in the quarter.

Speaker #2: Okay.

Fernando Olvera: Okay.

Diego Gaxiola: At Grupo Bimbo level.

Speaker #4: At Grupo Bimbo level. So for the year, it's going to be more like between 10 to 13 basis points in the full year. Okay?

Diego Gaxiola: At Grupo Bimbo level.

Fernando Olvera: Great.

Diego Gaxiola: for the year.

Fernando Olvera: Yes

Diego Gaxiola: it's gonna be more like between 10 to 13 basis points.

Fernando Olvera: Okay.

Diego Gaxiola: In the full year. Okay?

Speaker #2: Yeah, got it. Perfect. Thank you, Diego.

Fernando Olvera: Yeah, got it. Perfect. Thank you, Diego.

Speaker #4: Thank you, Fernando.

Diego Gaxiola: Thank you, Fernando.

Speaker #5: The next question comes from Alejandro Hughes with Etau. Please go ahead.

Operator 2: The next question comes from Alejandro Fuchs with Itaú. Please go ahead.

Operator: The next question comes from Alejandro Fuchs with Itaú. Please go ahead.

Speaker #2: Thank you, operator. Hola, Alejandro, Diego, and Tim. Thank you for the questions. I have just one very quick one, maybe for Alejandro. I want to see if you could elaborate a little bit on the US business—with the growth of 1%, let's say, in dollars in top line.

Alejandro Fuchs: Thank you, operator. Hola Alejandro, Diego, and team, thank you for the questions. I have just one very quick one maybe for Alejandro. Wanted to see if you could elaborate a little bit on the US business, like, with the growth of 1%, let's say, in dollars in top line. You commented that you are seeing better sequential volumes. Wanted to see if you can elaborate a little bit more into which channels in the US, where is the growth coming from, or the improvement coming from, and how are you seeing the consumer overall in the US? If you could also tell us a little bit of your expectations, let's say, going forward for this consumer environment in the country. Thank you.

Speaker #2: You commented that you are seeing better sequential volumes. What do you see if you can elaborate a little bit more into which channels in the US.

Speaker #2: Where is the growth coming from, or the improvement coming from, and how are you seeing the consumer overall in the US? And maybe could you also tell us a little bit of your expectations, let's say, going forward for this consumption environment in the country?

Speaker #2: Thank you.

Diego Gaxiola: Alejandro, thank you for the question. As you know, we don't reveal information in all the channels. What we are seeing, despite all the trends, is that we have been able to adapt to these new trends. We're starting to see recovery pretty much across most of our channels and our different lines. Let me pass you to Greg, so he can put a little bit more color to it.

Alejandro Rodríguez Bas: Alejandro, thank you for the question. As you know, we don't reveal information in all the channels. What we are seeing, despite all the trends, is that we have been able to adapt to these new trends. We're starting to see recovery pretty much across most of our channels and our different lines. Let me pass you to Greg, so he can put a little bit more color to it.

Speaker #4: Alejandro, thank you for the question. As you know, we don't reveal information in all the channels. What we are seeing, despite all the trends, is that we have been able to adapt to these new trends.

Speaker #4: And we're starting to see recovery pretty much across most of our channels and our different lines. But let me ask you to, Greg, so he can put a little bit more color to it.

Speaker #6: Thank you, Alejandro. From a consumer perspective, the US consumer continues to be under some amount of pressure, as they have been over the last number of quarters, and even the last number of years.

Greg Koehrsen: Thank you, Alejandro. From a consumer perspective, the US consumer continues to be under some amount of pressure, as they have been over the last number of quarters and even the last number of years. However, as part of our transformational effort, we are seeing increased performance through our executional disciplines with our frontline associates in our sales execution, and we are seeing benefit period by period and quarter by quarter, which gives us some positivity about the future.

Speaker #6: However, as part of our transformational effort, we are seeing increased performance through our executional disciplines with our frontline associates in our sales execution, and we are seeing benefit period by period and quarter by quarter, which gives us some positivity about the future.

Speaker #2: I'll agree to your thinking, Alejandro and Greg.

Alejandro Fuchs: I agree with you. Thank you, Alejandro and Greg.

Speaker #5: The next question comes from Ben Turrer with Barclays. Please go ahead.

Operator 2: The next question comes from Benjamin Theurer with Barclays. Please go ahead.

Operator: The next question comes from Benjamin Theurer with Barclays. Please go ahead.

Speaker #7: Yeah, good afternoon. Thanks for taking my question. Congrats on a good start. Diego, maybe one for you. You've touched on it, obviously—the implications from the Middle East conflict as it relates to certain things such as packaging, etc.

Benjamin Theurer: Yeah, good afternoon. Thanks for taking my question. Congrats on a good start. Diego, maybe one for you. You've touched on it, obviously, the implications from the Middle East conflict as it relates to certain things such as packaging, et cetera, transportation. You haven't talked much about the raw material input in terms of like just the commodities that you need. Could you give us an update as it relates to where you stand roughly on hedging for the next couple of months, quarters or whatever you want to call out, and how you would think this could potentially be a headwind at some point? What are the effects what you can do to mitigate some of that pressure? Just like the raw material commodity piece. Thank you.

Ben Theurer: Yeah, good afternoon. Thanks for taking my question. Congrats on a good start. Diego, maybe one for you. You've touched on it, obviously, the implications from the Middle East conflict as it relates to certain things such as packaging, et cetera, transportation. You haven't talked much about the raw material input in terms of like just the commodities that you need. Could you give us an update as it relates to where you stand roughly on hedging for the next couple of months, quarters or whatever you want to call out, and how you would think this could potentially be a headwind at some point? What are the effects what you can do to mitigate some of that pressure? Just like the raw material commodity piece. Thank you.

Speaker #7: Transportation. But you haven't talked much about the raw material import in terms of just the commodities that you need. Could you give us an update as it relates to where you stand, roughly, on hedging for the next couple of months, quarters, or whatever you want to call out?

Speaker #7: And how you would think this could potentially be a headwind at some point, or what are the effects, or what you can do to mitigate some of that pressure?

Speaker #7: So just the raw material commodity piece. Thank you.

Speaker #4: Yes. Well, at this point, we haven't seen any material impact in our operations. We started the year with an important portion of the commodity needs of 2026 already hedged.

Diego Gaxiola: Yes. Well, at this point, we haven't seen any material impact in our operations. We started the year with an important portion of the commodity needs of 2026 already hedged. Today we have the vast majority of our needs also hedged for 2026. As you know, we have a rolling methodology, so we have just started to take some positions for 2027, which considering existing prices might probably have some pressure, slight pressure for 2027. If things were to stay as what we're seeing today with the spot rates, the impact wouldn't be very big. Although again, what we have seen is a lot of volatility.

Speaker #4: Today, we have the vast majority of our needs also hedged for 2026. As you know, we have a rolling methodology, so we have just started to take some positions for 2027.

Speaker #4: Which, considering existing prices, might probably have some pressure—slight pressure—for 2027. If things were to stay as what we're seeing today with the spot rates, the impact wouldn't be very big.

Speaker #4: Although, again, what we have seen is a lot of volatility, so we did assume that this is going to impact our profits in 2026, not from the commodities but even in some of the raw materials. The commodities are hedged, but not the accessories and transporting, kind of the flour, the wheat flour to our facilities.

Diego Gaxiola: We did assume that this is gonna impact our profits in 2026, not from the commodities, but even in some of the raw materials, the commodities hedged, but not the accessories and transporting, kind of the flour, the wheat flour, to our facilities, and that is having an incremental cost. That is why we're putting this assumption, and I want to highlight that it's an assumption based on what we know today, but we're not 100% certain in terms of the magnitude and how long it's gonna last. I think it will be irresponsible not to consider something. What we did was an assumption of 20 basis for the year.

Speaker #4: And that is having an incremental cost. So that is why we're putting this assumption, and I want to highlight that it's an assumption based on what we know today, but we're not 100% certain of the magnitude and how long it's going to last.

Speaker #4: But I think it would be irresponsible not to consider something. So what we did was an assumption of 20 basis points for the year.

Speaker #7: Okay, got it. And then just one quick follow-up. We saw, obviously, good gross margin expansion in North America, but then an even better operating margin expansion.

Benjamin Theurer: Okay, got it. Just 1 quick follow-up. We saw obviously a good gross margin expansion in North America, an even better operating margin expansion. Can you help us bridge what was the main driver first on the gross side and then maybe on the operating side to see like where that leverage is coming from as it relates to the North American business?

Ben Theurer: Okay, got it. Just 1 quick follow-up. We saw obviously a good gross margin expansion in North America, an even better operating margin expansion. Can you help us bridge what was the main driver first on the gross side and then maybe on the operating side to see like where that leverage is coming from as it relates to the North American business?

Speaker #7: Can you help us bridge what was the main driver—first on the gross side, and then maybe on the operating side—to see where that leverage is coming from as it relates to the North American business?

Speaker #4: Yeah. I mean, on one hand, we had a positive raw material cost, okay? And that is helping the gross margin, say, and a little bit also with the top-line effect.

Diego Gaxiola: Yeah. I mean, in one hand, we had a positive raw material costs, okay? That is helping the gross margin, say, and a little bit also with the top line effect. Now, where we're seeing the margin upside is in SG&A. We delivered record productivity gains. We also had lower restructuring expenses, that's helping the EBITDA margin. Again, as I said, we are considering that these operating efficiencies and productivity initiatives will continue to be there for the year, but also the additional ones that we're working on as we speak, that will start to kick in in the coming quarters and will also create a positive effect in 2026.

Speaker #4: Now, what we're seeing, the margin upside is in SG&A. We delivered record productivity gains; we also had lower restructuring expenses, and so that's helping the EBITDA margin.

Speaker #4: And again, as I said, we are considering that these operating efficiencies and productivity initiatives will continue to be there for the year, but also the additional ones that we're working on as we speak that will start to kick in in the coming quarters and will also create a positive effect in 2026.

Speaker #7: Perfect. Thank you very much, Diego.

Benjamin Theurer: Perfect. Thank you very much, Diego.

Ben Theurer: Perfect. Thank you very much, Diego.

Speaker #4: You're welcome, Ben.

Diego Gaxiola: You're welcome, Ben.

Speaker #5: The next question comes from Renata Cabral with Citigroup. Please go ahead.

Operator 2: The next question comes from Renata Cabral with Citigroup. Please go ahead.

Operator: The next question comes from Renata Cabral with Citigroup. Please go ahead.

Renata Cabral: Hi. Thank you so much for this space for questions here. My first one is a follow-up on the US. As we think about the US recovery, what are the key indicators or milestones that you believe would help us to gain confidence in the sustainability of the improvements? As you are expanding further in sweet and salty snacks in the US, how that is already contributing to the overall growth and margins? The second question is related to Latin. We saw margins impacted by the integration of Wickbold in Brazil. Could you share how you see this evolving over the next few quarters and when margins might normalize in the region? Thank you.

Speaker #8: Hi. Thank you so much for the space for questions here. My first one is a follow-up on the US. As we think about the US recovery, what are the key indicators or milestones that you believe would help us to gain confidence in the sustainability of the improvements?

Speaker #8: And as you are expanding further in Sweden and South SNACs in the US, how has that already contributed to the overall growth and margins?

Speaker #8: And the second question is related to Latin. We saw margins impacted by the integration of VicBolt in Brazil. Could you share how you see this evolving over the next few quarters, and when margins might normalize in the region?

Speaker #8: Thank you.

Speaker #7: Thanks, Renata, for the question. I'll take the first question, as it relates to the US and some of the markers that we've been seeing that measure our progress.

Greg Koehrsen: Thanks, Renata, for the question. I'll take the first question as it relates to the US and some of the markers that we've been seeing that measures our progress. First of all, as we talked about last time, with our transformational effort, we're looking at how to become a much more efficient and productive organization through all areas and all functions. What I would tell you is that we're seeing the results of that come through.

Speaker #7: First of all, as we talked about last time, with our transformational effort, we're looking at how to become a much more efficient and productive organization through all areas and all functions.

Speaker #7: And what I would tell you is that we're seeing the results of that come through, Renata. Thanks for the question, and apologies if I'm repeating some of this.

Alejandro Rodríguez Bas: Welcome to Chorus Call.

Operator: Welcome to Chorus Call.

Greg Koehrsen: Renata, thanks for the question, and apologies if I'm repeating some of this. You asked about sort of markers of progress within North America. I would say that we have looked at every area of our operational engine to become more efficient and productive within that operating engine. We're looking at procurement, we're looking at logistics, manufacturing, and of course, overall G&A. What I would tell you is that we're making progress on all of those. We measure the team and have clear KPIs around all of those different efforts.

Speaker #7: You asked about, sort of, markers of progress within North America. I would say that we have looked at every area of our operational engine to become more efficient.

Speaker #7: And productive within that operating engine. We're looking at procurement, we're looking at logistics, manufacturing, and, of course, overall G&A. And what I would tell you is that we're making progress on all of those.

Speaker #7: We measure the team and have clear KPIs around all of those different efforts. The other thing I would offer, too, is that we have, over the last couple of quarters, taken a very rational and disciplined approach related to pricing and promotion.

Greg Koehrsen: The other thing I would offer too is that we have over the last couple of quarters, taken a very rational and disciplined approach related to pricing and promotion, and that clearly is a metric that we are following and we see progress on. That will hopefully answer the first question. I'll turn over to Diego for the next two.

Speaker #7: And that clearly is a metric that we are following, and we see progress on. So that will hopefully answer the first question, and I'll turn it over to Diego for the next two.

Speaker #4: Yeah, it's Renata's fault. First, let me remind you all that the acquisition of VicBolt is an acquisition where the value is based on the synergies that we have from merging and putting together the operations of VicBolt and Bimbo Brazil.

Diego Gaxiola: Yes, Renata. First, let me remind you all that the acquisition of Wickbold, it's an acquisition that the value is based on the synergies that we have on merging and putting together the operations of Wickbold and in Brazil, all across the P&L, top line costs, logistics, G&A. Being a big business for Brazil, the integration is gonna take time. What we saw during the quarter, and I probably maintain case for the coming 3 quarters, and we will continue to see some pressure in our profitability for the Latin region being within the biggest operation in Latin for us, in all 2026. As I mentioned, this is not a surprise. As I said, this is something that we previously consider in our expectation.

Speaker #4: All across the P&F, top line costs, logistics, and G&A. So, being a big business for Brazil, the integration is going to take time. So, what we saw during the quarter, my primary design case for the coming three quarters, and we will continue to see some pressure in our profitability for the LATAM region, with Brazil being the biggest operation in LATAM for us.

Speaker #4: In all, 2026. Now, as I mentioned, this is not a surprise. As I said, this is something that we previously considered in our expectation.

Diego Gaxiola: Of course, we knew that this is gonna take a lot of time, effort, and money, and it's gonna hit us with profitability this year. We feel very optimistic. We feel very positive about the potential, and we will see this once we end the integration of the business.

Speaker #4: Of course, we knew that this is going to take a lot of time, effort, and money. And it's going to hit our profitability this year.

Speaker #4: But we feel very optimistic. We feel very positive about the potential. And we will see this once we end the integration of the business.

Speaker #8: Thank you so much for the call. Very helpful.

Renata Cabral: Thank you so much for the call. Very helpful.

Operator 2: The next question comes from Antonio Hernandez with Actinver. Please go ahead.

Operator: The next question comes from Antonio Hernandez with Actinver. Please go ahead.

Speaker #5: The next question comes from Antonio Hernandez with Activer. Please go ahead.

Speaker #4: Hi. Good morning. Congrats on those very solid results. Just a question regarding—I mean, you've been mentioning for several conference calls the K-shaped economy signs in the US.

Antonio Hernandez: Hi, good morning. Congrats on those very solid results. Just a question regarding. I mean, you've been mentioning for several conference calls the K-shaped economy signs in the US. If I listened correctly, I think Julian mentioned that this time, I don't know if you continue to see those signs as well and also if you see those signs?

Speaker #4: And if I listened correctly, I think you didn't mention that this time. I don't know if you continue to see those signs as well.

Speaker #4: And also, if you see—sorry, Antonio. It makes sense. Antonio, sorry to interrupt. I don't know if it's our line or the other side of the line.

Diego Gaxiola: Sorry, Antonio. Antonio, sorry to interrupt. I don't know if it's our line or the other side of the line, but it was very hard to hear you, so I don't know if you can repeat the question a little bit more slowly and louder, please.

Speaker #4: But it was very hard to hear you, so I don't know if you can repeat the question a little bit more slowly and louder, please?

Speaker #9: Sure, sure, of course. My question is regarding the K-shaped economy signs that you've been mentioning in previous conference calls. In the US—I don't know if I listened correctly, but I think that you didn't mention that this time.

Antonio Hernandez: Sure. Sure. Of course. My question is regarding the K-shaped economy signs that you've been mentioning in previous conference calls in the US. I don't know if I listened to correctly, but I think that Julian mentioned that this time. Wanted to know if you continue to see these signs in the US and if in any case, if you're seeing any signs of this as well in Mexico. Thanks.

Speaker #9: So I wanted to know if you continue to see these signs in the US, and if, in any case, you're seeing any signs of this as well in Mexico.

Speaker #9: Thanks.

Speaker #4: All right. Antonio, let me capture this. Are you talking about the K-consumer, this impact? Of having exactly. So let me build a little bit on it.

Diego Gaxiola: Sorry. Antonio, let me capture this. Are you talking about the K consumer, this impact that we're having?

Antonio Hernandez: Exactly.

Diego Gaxiola: Let me build a little bit on it. Yes. As you know, the polarization of the economies are, in a way, dividing our markets within the countries, and we are developing solutions and new products for these two occasions. On the one hand, we wanna be where consumers are going, whether it's in lower segments or in communication. We are launching around the world, and Mexico is not an exception, protein-based products. We're launching and enhancing more attributes to our products, so we can cater to all the audiences that we have around the world. Mexico, like I said, it's not an exception. You can see that we're offering more value-added products as well as products that are also supporting affordability. Okay, thanks for the call.

Speaker #4: Yes. So, as you know, the polarization of the economies is, in a way, dividing our markets within the countries. And we are developing solutions and new products for these two occasions.

Speaker #4: On the one hand, we want to be where consumers are going, whether it's in lower segments or in pre-renunciation. So we are launching around the world, and Mexico is not an exception.

Speaker #4: We’re launching protein-based products and enhancing more attributes in our products so we can cater to all the audiences that we have around the world.

Speaker #4: And Mexico, like I said, is not an exception. You can see that we're offering more value-added products, as well as products that are also supporting affordability.

Speaker #9: Okay. Thanks for the call.

Speaker #5: The next question comes from Alvaro Garcia with BTG. Please go ahead.

Operator 2: The next question comes from Alvaro Garcia with BTG. Please go ahead.

Operator: The next question comes from Alvaro Garcia with BTG. Please go ahead.

Speaker #10: Hey, Alejandro. Diego, hope you're well. My question's for Alejandro. I'm Marcel. Specifically, I know it's a business you know well. Just my question's on the chips brand.

Alvaro Garcia: Hey, Alejandro. Diego, hope you're well. My question is for Alejandro on Barcel specifically. I know it's a business you know well. Just my question is on the Chips brand. The Chips brand has obviously done quite well in Mexico. Just given the relative size of your snacks business in the US, the success of Takis, I was wondering just from a strategy angle, if it would make sense to eventually roll out the Chips brand in the US. Any thoughts on that would be greatly appreciated.

Speaker #10: So, the chips brand has obviously done quite well in Mexico. Just given the relative size of your snacks business in the U.S., and the success of Takis, I was wondering, just from a strategy angle, if it would make sense to eventually roll out the chips brand in the U.S.

Speaker #10: Any thoughts on that would be greatly appreciated.

Speaker #4: Sorry. As much as we don't disclose our specific plans, you're right. That product that you mentioned, our chips brand, is very strong. And yes, we would like to see it all around the world.

Diego Gaxiola: Sorry. As much as we don't disclose our specific plans, you're right. That product that you mentioned, our Chips brand, is very strong, and yes, we would like to see it all around the world, including the US one day.

Speaker #4: Including the US one day.

Speaker #9: Me too. Great. I'll follow up with a second one on the Mexican consumer. I was wondering if you can maybe give some detail on—there's obviously a lot of questions on the degree of weakness in the Mexican consumer that we've seen.

Alvaro Garcia: Me too. Great. I'll follow up with a second one on the Mexican consumer. I was wondering if you can maybe give some detail on, there's obviously a lot of questions on the degree of weakness in the Mexican consumer that we've seen.

Alvaro Garcia: You know, is there anything you can mention maybe from a geographic standpoint, that you're seeing in your business or from a channel standpoint that you're seeing in your business as to the sort of state of the Mexican consumer? Thank you.

Speaker #9: Is there anything you can mention, maybe from a geographic standpoint, that you're seeing in your business, or from a channel standpoint, that you're seeing in your business, as to the sort of state of the Mexican consumer?

Speaker #9: Thank you.

Speaker #4: I think what I can talk about Mexico and Mexican performance by its own is that we're seeing a very strong acceptance in the central and southeast part of Mexico.

Alejandro Rodríguez Bas: I think what I can talk about Mexico and Mexican performance by its own is that we're seeing a very strong acceptance in the central and south, southeast part of Mexico. As you have seen, we're gaining share, and we're gaining the preference of new and existing consumers. We will continue to bring innovation in most of our segments. Despite that it's a difficult space and the economy not necessarily growing, we are finding the same as in the US, with a good execution, we are able to service customers and clients that are waiting for us.

Speaker #4: As you have seen, we're gaining share, and we're gaining the preference of new and existing consumers. So we will continue to bring innovation in most of our segments. Despite that it's a difficult space and the economy not necessarily growing, we are finding the same as in the US: with good execution, we are able to service customers and clients that are waiting for us.

Speaker #9: Wonderful. Thank you.

Alvaro Garcia: Wonderful. Thank you.

Speaker #5: The next question comes from Diego Cerrano with HSBC. Please go ahead.

Operator 2: The next question comes from Diego Serrano with HSBC. Please go ahead.

Operator: The next question comes from Diego Serrano with HSBC. Please go ahead.

Speaker #11: Hi, good afternoon. Thank you for the opportunity. I just wanted to ask another one on margins. You had really strong expansion this quarter, which was supported by productivity gains and some other factors.

Diego Serrano: Hi, good afternoon. Thank you for the opportunity. Just wanted to ask another one on margins. You had a really strong expansion this quarter, which was supported by productivity gains and some other factors. In that sense, I wanted to ask, how should we think about the sustainability of these margins going forward, especially as the transformation in North America advances and you continue with the integration of your recent acquisitions? Thank you.

Speaker #11: So in that sense, I wanted to ask, how should we think about the sustainability of these margins going forward? Especially as the transformation in North America advances and you continue with the integration of your recent acquisitions.

Speaker #11: Thank

Diego Gaxiola: Yes, hi, Diego. I mean, as you can imagine, we are not expecting a margin expansion as big as the one that we had during Q1, which was 160 basis points. As I mentioned, we are expecting an expansion for the full year in the range of 60 to 110 basis points. At the group level, we feel confident that we will see improvements in our margins, but again, not with the size of the improvement that we had during this Q1. Also, you have to keep in mind that in Q1 of 2025, we had a 30 basis points decrease. We had a slight easier comparison than the ones that we will start to face in the coming quarters.

Speaker #4: Yes. Hi, Diego. So, I mean, as you can imagine, we are not expecting a margin expansion as big as the one that we had during the first quarter.

Speaker #4: Which was 160 basis points. As I mentioned, we are expecting an expansion for the full year in the range of 60 to 110 basis points. So, at Grupo Bimbo, we feel confident that we will see improvements in our margins.

Speaker #4: But again, not with the size of the improvement that we have during this first quarter. Also, you have to keep in mind that in the first quarter of 2025, we had a 30 basis point decrease.

Speaker #4: So, we had a slight ECO comparison than the ones that we will start to face in the coming quarters. And we will also not have the 50 basis points that came from the sale of the minority stake in Grupo La Moderna.

Diego Gaxiola: We will also not have the 50 basis points that came from the sale of the minority stake in Grupo La Moderna. If we were to adjust just this extraordinary positive transaction, our margin expansion was more in the range of 110 basis. I hope that answers your question of the group level. Now, in the retail segments, only the one, as we already mentioned, that is gonna struggle a little bit in the coming quarters is LatAm because of, again, the integration expenses of Wickbold.

Speaker #4: So, if we were to adjust just these extraordinary positive transactions, our margin expansion was more in the range of 110 basis points. So, I hope that answers your question of the group of Bimbo 11.

Speaker #4: Now, in the different segments, probably the one, as we already mentioned, that is going to struggle a little bit during the coming quarters is LATAM.

Speaker #4: Because of, again, the international expenses of workforce.

Speaker #11: Great. Thank you.

Diego Serrano: Great. Thank you.

Diego Gaxiola: You're welcome.

Speaker #5: The next question comes from Proven Mendez. It's J.P. Morgan. Please go ahead.

Operator 2: The next question comes from Fernando Olvera Espinosa de los Monteros with JP Morgan. Please go ahead.

Operator: The next question comes from Fernando Olvera Espinosa de los Monteros with JP Morgan. Please go ahead.

Speaker #12: Hello, gentlemen. Can you hear me well?

Fernando Olvera Espinosa de los Monteros: Hello, gentlemen. Can you hear me well?

Froylan Mendez: Hello, gentlemen. Can you hear me well?

Speaker #4: Yes.

Diego Gaxiola: Yes, yes.

Speaker #12: Hello. Perfect. Sorry, Diego, can you repeat just the guidance on top line? My line got a little bit cut off when you said it.

Fernando Olvera Espinosa de los Monteros: Hello. Perfect. Sorry, Diego, can you repeat just the guidance on top line? My line got a little bit cut off when you said it, the new guidance on top line. My real question would be, how far are we from the margin run rate in the US? Or in other words, how much of the efficiency benefits are yet to be reflected in results? Thank you so much.

Froylan Mendez: Hello. Perfect. Sorry, Diego, can you repeat just the guidance on top line? My line got a little bit cut off when you said it, the new guidance on top line. My real question would be, how far are we from the margin run rate in the US? Or in other words, how much of the efficiency benefits are yet to be reflected in results? Thank you so much.

Speaker #12: The new guidance on top line. And my real question would be, how far are we from the margin run rate in the US? Or, in other words, how much of the efficiency benefits are yet to be reflected in results?

Speaker #12: Thank you so much.

Speaker #4: Yes, so again, let me try to be very clear. Our expectation in top line in Mexican pesos is year flat to a low single-digit decline.

Diego Gaxiola: Yes. Again, let me try to be very clear. Our expectation in top line in Mexican pesos is to end the year flat to a low single-digit decline, okay? In Mexican pesos. Of course, in local currencies, we're expecting a mid-single digit growth, okay? We are assuming a strong peso for the average of the year, and this is putting that pressure into our top-line growth. In terms of EBITDA, we are expecting a margin expansion for the full year between 60 to 110 basis points. Regarding your questions on the specifics of the potential of North America, we do not disclose that information.

Speaker #4: Okay? In Mexican pesos, of course, in local currencies we're expecting mid-single-digit growth. Okay? So we are assuming a strong peso for the average of the year.

Speaker #4: And this is putting that pressure into our top-line growth. Now, in terms of EBITDA, we are expecting a margin expansion for the full year of between 60 to 110 basis points.

Speaker #4: Now, regarding your questions on the specifics of the potential of North America, we do not disclose that information. What we can share with you is that we feel happy with what we have been able to achieve.

Diego Gaxiola: What we can share with you is that we feel happy with what we have been able to achieve, and we feel confident about the future and a positive future performance for North America in the coming quarters and the coming years.

Speaker #4: And we feel confident about the future and a positive future performance for North America in the coming quarters and the coming years.

Speaker #12: Fair enough. Thank you very much.

Fernando Olvera Espinosa de los Monteros: Fair enough. Thank you very much.

Froylan Mendez: Fair enough. Thank you very much.

Speaker #5: The next question comes from Lucas Musi with Morgan Stanley. Please go ahead.

Operator 2: The next question comes from Lucas Ferreira with Morgan Stanley. Please go ahead.

Operator: The next question comes from Lucas Ferreira with Morgan Stanley. Please go ahead.

Lucas Ferreira: Hi, everyone. Thanks for taking my question. Congratulations on the results reported tonight. I wanted to ask a bit about what you guys talked about the hedging situation, especially as it pertains perhaps to the late part of 2026 and as we look even a bit forward into 2027. I know we are still living in a very volatile environment, but I wanted to explore your early thoughts at least on what do you think could happen if next year, you know, futures curves indeed materialize, we see higher material costs, distribution costs. How do you see being able, perhaps, especially in the US, positioned to face the higher cost structure? Do you think there's still room, given the consumer environment for maybe additional pass-through to prices?

Speaker #11: Hi, everyone. Thanks for taking my question. Congratulations on the results reported tonight. I think I wanted to ask a bit about what you guys talked about—the hedging situation.

Lucas Mussi: Hi, everyone. Thanks for taking my question. Congratulations on the results reported tonight. I wanted to ask a bit about what you guys talked about the hedging situation, especially as it pertains perhaps to the late part of 2026 and as we look even a bit forward into 2027. I know we are still living in a very volatile environment, but I wanted to explore your early thoughts at least on what do you think could happen if next year, you know, futures curves indeed materialize, we see higher material costs, distribution costs. How do you see being able, perhaps, especially in the US, positioned to face the higher cost structure? Do you think there's still room, given the consumer environment for maybe additional pass-through to prices?

Speaker #11: Especially as it pertains, perhaps, to the latter part of 2026. And as we look even a bit forward into 2027, I know we are still living in a very volatile environment.

Speaker #11: But I wanted to explore your early thoughts at least on what you think could happen if next year in futures curves indeed materialize?

Speaker #11: We see higher material costs, distribution costs. How do you see Bimbo, perhaps especially in the US, positioned to face the higher cost structure? Do you think there is still room, given the consumer environment, for maybe additional pass-through to prices?

Lucas Ferreira: Competitively speaking, do you think that based at least on the recent past, that you could gain share, given your competitors will probably be worse positioned than you are, given your scale, the quality of your brands? I wanted to explore a bit more thoughts, maybe a bit early, but still useful, as we go into the later part of 2026 and 2027, which is when we'll probably see a worse cost inflation for the whole industry. Thank you very much.

Speaker #11: Competitively speaking, do you think that—based at least on the recent past—you could gain share, given that your competitors would probably be worse positioned than you are, given your scale and the quality of your brands?

Lucas Mussi: Competitively speaking, do you think that based at least on the recent past, that you could gain share, given your competitors will probably be worse positioned than you are, given your scale, the quality of your brands? I wanted to explore a bit more thoughts, maybe a bit early, but still useful, as we go into the later part of 2026 and 2027, which is when we'll probably see a worse cost inflation for the whole industry. Thank you very much.

Speaker #11: So I wanted to explore a bit more thoughts—maybe a bit early, but still useful as we go into the later part of 2026 and 2027.

Speaker #11: Which is when we'll probably see worse cost inflation for the whole industry. Thank you very much.

Alejandro Rodríguez Bas: As you said, there are a lot of unforeseen events that could or could not happen. What we will do is we will continue to focus inward. How do we serve in a better way? How do we serve in a cheaper way? How do we produce in a way that we can be prepared for whatever that is happening on the outside? This transformation started a year ago. I think it's gonna take two or three years. This central transformation can start happening around the world. I guess our obligation is to look inward and see how it is that we can serve our clients and consumers better. Now, what's gonna happen? As you said, we don't know. We do forecast sometimes how bad could it get, but we cannot control it.

Speaker #4: As you said, there are a lot of unforeseen events that could or could not happen. What we will do is we will continue to focus inward.

Speaker #4: How do we serve in a better way? How do we serve in a cheaper way? How do we produce in a way that we can be prepared for whatever is happening on the outside?

Speaker #4: So, this transformation started a year ago. I think it's going to take two or three years. This same transformation can start happening around the world.

Speaker #4: So, I guess our obligation is to look inward and see how it is that we can serve our clients and consumers better. Now, what's going to happen?

Speaker #4: As you said, we don't know. We do forecast sometimes how bad it could get, but we cannot control it. So we will continue to work inward to be in a better position to service clients and customers.

Alejandro Rodríguez Bas: We will continue to work inward to be in a better position to service clients and customers.

Speaker #11: Thank you very much.

Lucas Ferreira: Thank you very much.

Lucas Mussi: Thank you very much.

Operator 2: This concludes the question and answer session. I would like to turn the conference back over to Alejandro Rodríguez Bas for any closing remarks. Please go ahead.

Operator: This concludes the question and answer session. I would like to turn the conference back over to Alejandro Rodríguez Bas for any closing remarks. Please go ahead.

Speaker #5: This concludes the question-and-answer session. I would like to turn the conference back over to Alejandro Rodriguez-Bass for any closing remarks. Please go ahead.

Speaker #4: Thank you all for your time today. Please do not hesitate to contact our Investor Relations team with any further comments or questions you might have.

Alejandro Rodríguez Bas: Thank you all for your time today. Please do not hesitate to contact our investor relations team with any further comments or questions you might have. I hope you have a great night. Thank you all.

Speaker #4: I hope you all have a great night. Thank you.

Operator 2: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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