Q2 2026 InRetail Peru Corp Earnings Call

August 17, 2026

Speaker #1: After the presentation, we will open the floor for questions. At that time, instructions will be given on the procedure to follow if you would like to ask a question.

Speaker #1: Also, you can submit online questions at any time today using the "Ask a Question" text box on the right side of the webcast platform, and they will be answered after the presentation during the Q&A session.

Speaker #1: Simply type your question in the Ask a Question box and click Submit. Before we begin, I would like to remind you that today's call is for investors and analysts only.

Operator: Before we begin, I would like to remind you that today's call is for investors and analysts only. Therefore, questions from media will not be taken. Joining us today from InRetail Peru are Mr. Juan Carlos Vallejo, Chief Executive Officer, Mr. Marcelo Ramos, Chief Financial Officer, and Mrs. Andrea Fabbri, Investor Relations Officer. They will be discussing the quarterly report distributed by the company on Friday, 14 August. If you have not yet received a copy of the earnings report, please visit www.inretail.pe on the investor section, where there is also a webcast presentation to accompany the discussion during this call. If you need any assistance, please contact the investor relations team of InRetail Peru. Please be advised that forward-looking statements may be made during this conference call, and they do not account for economic circumstances, industry conditions, the company's performance, or financial results.

Speaker #1: Therefore, questions from the media will not be taken. Joining us today from InRetail Peru are Mr. Juan Carlos Riejo, Chief Executive Officer; Mr. Marcelo Ramos, Chief Financial Officer; and Mrs. Andrea Fabbri, Investor Relations Officer.

Speaker #1: They will be discussing the quarterly report distributed by the company on Friday, August 14. If you have not yet received a copy of the earnings report, please visit www.inretail.pe.

Speaker #1: On the investor section, there is also a webcast presentation to accompany the discussion during this call. If you need any assistance, please contact the Investor Relations team of InRetail Peru.

Speaker #1: Please be advised that forward-looking statements may be made during this conference call, and they do not account for economic circumstances, industry conditions, the company's performance, or financial results.

Speaker #1: As such, these forward-looking statements are based on several assumptions and factors that can change, causing actual results to materially differ from current expectations. For a complete note on forward-looking statements, please refer to the quarterly report, which was issued yesterday.

Operator: As such, these forward-looking statements are based on several assumptions and factors that can change, causing actual results to materially differ from the current expectations. For a complete note on forward-looking statements, please refer to the quarterly report, which was issued yesterday. at this point, I would like to turn the call over to Mr. Juan Carlos Vallejo, Chief Executive Officer of InRetail Peru, for his opening remarks. Mr. Vallejo, please go ahead, sir.

Speaker #1: At this point, I would like to turn the call over to Mr. Juan Carlos Riejo, Chief Executive Officer of InRetail Peru, for his opening remarks.

Speaker #1: Mr. Riejo, please go ahead and start.

Speaker #2: Thank you. Good morning, everyone. I'm Juan Carlos Riejo. Thank you for joining InRetail's second quarter earnings call. Today, we will discuss the key highlights of our results for the second quarter of 2026.

Juan Carlos Vallejo: Thank you. Good morning, everyone. I am Juan Carlos Vallejo. Thank you for joining InRetail's Q2 earnings call. Today, we will discuss the key highlights of our results for Q2 2026. Joining me are Marcelo Ramos, our Chief Financial Officer, and Andrea Fabbri, our Investor Relations Officer. I will begin with a brief executive summary, and then Marcelo will walk you through our detailed earnings presentation. During Q2 2026, the Peruvian economy continued on a positive path, extending the momentum we highlighted last quarter. GDP is estimated to have grown around 3.2% during H1 of the year, supported by resilient private consumption, historically high metal prices, and business confidence that reached its highest level in over a decade. on the political front Peru completed its electoral cycle.

Speaker #2: Joining me are Marcelo Ramos, our Chief Financial Officer, and Andrea Fabbri, our Investor Relations Officer. I will begin with a brief executive summary, and then Marcelo will walk you through our detailed earnings presentation.

Speaker #2: During the second quarter of 2026, the Peruvian economy continued on a positive path, extending the momentum highlighted last quarter. GDP is estimated to have grown around 3.2% during the first half of the year.

Speaker #2: Supported by resilient private consumption, historically high metal prices, and business confidence that reached its highest level in over a decade. On the political front, Peru completed its electoral cycle.

Speaker #2: Keiko Fujimori was proclaimed president in a tight runoff, and the new administration was inaugurated on July 28. Despite these political transitions and a few emerging risks—namely, the potential impact of an El Niño phenomenon later this year and the possibility of a higher minimum wage—overall economic conditions during the quarter remained markedly favorable.

Juan Carlos Vallejo: Keiko Fujimori was proclaimed president in a tight runoff, and the new administration was inaugurated on 20 July. Despite this political transition and a few emerging risks, namely the potential impact of an El Niño phenomenon later this year and the possibility of a higher minimum wage, overall economic condition during the quarter remained markedly favorable, continuing to support consumption and investment across the country. InRetail successfully capitalized on this positive momentum, further strengthening our leadership position across the markets in which we operate. We continue to execute our strategic priorities with discipline, advancing our organic expansion plans, reinforcing our value proposition across formats, and further building out our logistics platform. Turning to our financial results, consolidated revenue for Q2 2026 reached approximately PEN 6.1 billion, up 11.5% year over year, while consolidated adjusted EBITDA reached PEN 812 million, a 14% increase.

Speaker #2: Continuing to support consumption and investment across the country. InRetail successfully capitalized on this positive momentum, further strengthening our leadership position across the markets in which we operate.

Speaker #2: We continue to execute our strategic priorities with discipline, advancing our organic expansion plans, reinforcing our value proposition across formats, and further building out our logistics platform.

Speaker #2: Turning to our financial results, consolidated revenue for Q2 2026 reached approximately S/6.1 billion, up 11.5% year over year. Consolidated adjusted EBITDA reached S/812 million, representing a 14% increase.

Speaker #2: Full Retail posted double-digit revenue growth of 15.3%, driven by strong performance across all formats, particularly hard discount and cash & carry. Adjusted EBITDA for the segment grew 8.6%, reflecting continued investment to support our expansion and logistics transformation.

Juan Carlos Vallejo: Food Retail posted double-digit revenue growth of 15.3%, driven by strong performance across all formats, particularly hard discount and cash and carry. Adjusted EBITDA for the segment grew 8.6%, reflecting continued investing to support our expansion and logistics transformation. Pharma delivered solid revenue growth of 4.8%, affected by our planned exit from non-core distribution channels, while our core pharmacy unit grew 9.8%. Adjusted EBITDA for the segment increased 12.1%. Shopping Malls delivered on an outstanding quarter with adjusted EBITDA growing 37.5%, benefiting from a low comparison base related to Real Plaza Trujillo incident record last year. Given this strong performance during the H1 of the year, we are updating our full year 2026 guidance to approximately 10% growth in consolidated revenues, a low double-digit growth in adjusted EBITDA. I would also like to highlight a few key milestones from the quarter.

Speaker #2: Pharma delivered solid revenue growth of 4.8%, affected by our planned exit from non-core distribution channels, while our core pharmacy unit grew 9.8%. Adjusted EBITDA for the segment increased 12.1%.

Speaker #2: Shopping malls delivered an outstanding quarter, with adjusted EBITDA growing 37.5%. The base is related to the Real Plaza Trujillo incident recorded last year. Given this strong performance during the first half of the year, we're updating our full year 2026 guidance to approximately 10% growth in consolidated revenues, allowing double-digit growth in adjusted EBITDA.

Speaker #2: I would also like to highlight a few key milestones from the quarter. First, we completed the acquisition of our 50% stake in Finance Xpay, formerly Financiera O, investing $65 million to finalize this transaction alongside IFS.

Juan Carlos Vallejo: First, we completed the acquisition of our 50% stake in InFinance XP S.A., formerly Financiera Oh!, investing USD 65 million to finalize this transaction alongside IFS. Second, we initiated the execution of our share buyback program, approved by our shareholders earlier this year, reinforcing our commitment to disciplined capital allocation and shareholder valuation. Finally, for the fifth consecutive year, InRetail Peru Corp. was included in the Dow Jones Sustainability Index, MILA Pacific, ranking fifth globally among food and stable retailing companies and first in the region. With that, I will hand the floor over to Marcelo. As always, we look forward to answering your questions at the end of the presentation.

Speaker #2: Second, we initiated the execution of our share buyback program, approved by our shareholders earlier this year, reinforcing our commitment to disciplined capital allocation and shareholder value creation.

Speaker #2: Finally, for the fifth consecutive year, InRetail Peru Corp was included in the Dow Jones Sustainability Index, MILA Pacific, ranking fifth globally among food and staples retailing companies, and first in the region.

Speaker #2: With that, I will hand the floor over to Marcelo, as always. We look forward to answering your questions at the end of the presentation.

Speaker #3: Thank you, Juan Carlos. Good morning, everyone. Thank you for joining us on this call. Today, we will review the key highlights of InRetail's results for the second quarter of 2026.

Marcelo Ramos: Thank you, Juan Carlos. Good morning, everyone. Thank you for joining us on this call. Today, we will review the key highlights of InRetail's results for the Q2 2026. Turning to page 4 of our earnings presentation, we will begin with our consolidated financial results. Building on the strong results observed in the Q1, InRetail delivered another period of solid and consistent growth. This momentum was sustained by a positive consumption environment. Combined with our diligent strategy execution, it enabled us to deliver strong double-digit revenue growth. Consolidated revenues reached approximately PEN 6.1 billion, up 11.5% year over year. This performance was driven by strong growth in Food Retail and Shopping Malls, both up north of 15%, and moderate growth of 4.8% in our Pharma segment, further consolidating our market leadership across sectors.

Speaker #3: Turning to page four of our earnings presentation, we will begin with our consolidated financial results. Building on the strong results observed in the first quarter, InRetail delivered another period of solid and consistent growth.

Speaker #3: This momentum was sustained by a positive consumption environment. Combined with our diligent strategy execution, it enabled us to deliver strong double-digit revenue growth. Consolidated revenues reached approximately S/6.1 billion, up 11.5% year over year.

Speaker #3: This performance was driven by strong growth in food retail and shopping malls, both up north of 15%, and moderate growth of 4.8% in our pharma segment, further consolidating our market leadership across sectors.

Speaker #3: In terms of adjusted EBITDA, we recorded strong growth of 14% compared to Q2 25, with margins expanding to 13.3%. This robust operational performance reflects top-line strength across segments, higher gross margin, and fixed-cost dilution as we continue to scale.

Marcelo Ramos: In terms of adjusted EBITDA, we recorded strong growth of 14% compared to Q2 2025, with margins expanding to 13.3%. This robust operational performance reflects top-line strength across segments, higher gross margin, and fixed cost dilution as we continue to scale, despite incremental operating expenses from the new store openings and logistic costs in our Food Retail and Pharma segments. It is worth noting that part of this quarter's growth in Shopping Malls was still supported by a favorable comparison base related to the incident record last year. Overall, Q2 2026 was another strong quarter for InRetail, with our businesses capitalizing on supportive market dynamics and continuing to outpace other market players. Given the strong performance of the company during the H1 of the year, we are updating our full year 2026 guidance to approximately 10% growth in consolidated revenues and low double-digit growth in adjusted EBITDA.

Speaker #3: Despite incremental operating expenses from the Nustor openings and logistics costs in our Food Retail and Pharma segments, it is worth noting that part of this quarter's growth in Shopping Malls was still supported by a favorable comparison base related to the incident recorded last year.

Speaker #3: Overall, Q2 2026 was another strong quarter for InRetail, with our businesses capitalizing on supportive market dynamics and continuing to outpace other market players. Given the strong performance of the company during the first half of the year, we're updating our full-year 2026 guidance to approximately 10% growth in consolidated revenues and low double-digit growth in adjusted EBITDA.

Speaker #3: Turning to page five, we will review our consolidated net income results. For the second quarter of 2026, InRetail registered consolidated net income of $255 million, representing a 14.7% increase compared to Q2 '25, with net margin expanding to 4.2%.

Marcelo Ramos: Turning to page 5, we will review our consolidated net income results. For Q2 2026, InRetail registered consolidated net income of PEN 255 million, representing a 14.7% increase compared to Q2 2025, with net margin expanding to 4.2%. The increase in net income is mainly due to strong adjusted EBITDA growth, partially offset by a lower net FX gain, a mark-to-market loss from the valuation of investment properties, and a higher effective tax expense in the quarter. The sol appreciated during the quarter, though less than it did in Q2 2025, which explains the smaller net FX gain this year. Excluding FX and mark-to-market effects, which better reflect the profitability of our operations, net income would have increased by 40% in Q2 2026, with margin expanding to 3.8%. Turning to page 6, we will discuss our cash flow breakdown.

Speaker #3: The increase in net income is mainly due to strong adjusted EBITDA growth, partially offset by a lower net effects gain in mark-to-market loss from the valuation of investment properties, and a higher effective tax expense in the quarter.

Speaker #3: The sol appreciated during the quarter, though less than it did in Q2 '25, which explains the smaller net FX gain this year. Excluding FX and mark-to-market effects, which better reflect the profitability of our operations, net income would have increased by 40% in Q2 '26, with margin expanding to 3.8%.

Speaker #3: Turning to page six, we will discuss our cash flow breakdown. In terms of cash balance, we ended the second quarter with S/ 1.6 billion. During the quarter, we recorded two non-recurring cash outflows.

Marcelo Ramos: In terms of cash balance, we ended the second quarter with PEN 1.6 billion. During the quarter, we recorded two non-recurring cash outflows: the initiation of our share buyback program and the $65 million investment to complete the acquisition of the 50% stake in Financiera Oh!, as previously announced. Adjusting for these two extraordinary effects, our cash balance would have been relatively in line with our year-end 2025 level at around PEN 2 billion and higher than Q2 2025, despite the PEN 60 million ordinary dividend distributed in May. Regarding CapEx, we invested PEN 335 million across our three business segments during H1 2026. Food Retail accounted for approximately 40% of total CapEx, with the remaining 60% split relatively evenly between the other two segments. CapEx was mainly directed towards growth initiatives, including new store openings, format renovations, and expansions.

Speaker #3: The initiation of our share buyback program and the $65 million investment to complete the acquisition of the 50% stake in Finance Xpay, as previously announced.

Speaker #3: Adjusting for these two extraordinary effects, our cash balance would have been relatively in line with our year-end 2025 level, at around S/2 billion, and higher than Q2 '25, despite the S/60 million ordinary dividend distributed in May.

Speaker #3: Regarding capex, we invested 335 million soles across our three business segments during the first half of 2026. Food retail accounted for approximately 40% of total capex, with the remaining 60% split relatively evenly between the other two segments.

Speaker #3: CapEx was mainly directed towards growth initiatives, including Nustor openings, format renovations, and expansions. Specifically, during the second quarter, we opened, on a gross basis, 26 hard discount stores and 42 pharmacies.

Marcelo Ramos: Specifically, during the second quarter, we opened on a gross basis 26 hard discount stores and 42 pharmacies and reopened one Vivanda supermarket, completing the two Vivanda reopenings planned for the period. We also renovated 166 hard discount stores with an improved value proposition, bringing our year-to-date total to approximately 362 renovated hard discount stores. In addition, we advanced our shopping malls projects, including the new power center and one expansion of an existing mall, both scheduled to open by year-end. The remaining CapEx was allocated to maintenance and to our logistic platform, including residual investments in our new pharma distribution center. Finally, CapEx for H1 of the year was lower year over year, reflecting a high base of comparison in 2025, which included major investments in the pharma distribution center, as well as landbank purchases early in the year.

Speaker #3: And reopened one Vivanda supermarket, completing the two Vivanda reopenings planned for the period. We also renovated 166 hard discount stores with an approved improved value proposition, bringing our year-to-date total to approximately 362 renovated hard discount stores.

Speaker #3: In addition, we advanced our shopping mall projects, including the new power center and an expansion of an existing mall, both scheduled to open by year-end.

Speaker #3: The remaining capex was allocated to maintenance and to our logistics platform, including residual investments in our new pharma distribution center. Finally, capex for the first half of the year was lower year-over-year, reflecting a high base of comparison in 2025, which included major investments in the pharma distribution center as well as landbank purchases early in the year.

Marcelo Ramos: Turning to page 7, we will discuss our consolidated financial debt. We ended the second quarter with a consolidated net leverage ratio of 1.8, a 0.3 times reduction year over year, and stable leverage quarter over quarter. This improvement was driven by strong performance across our segments, despite seasonal dividend payments and other non-recurring cash outflows temporarily affecting our short-term liquidity position, as explained previously. Additionally, our debt maturity profile remains comfortable, with no significant refinancing needs in the near term, further supporting a resilient balance sheet. InRetail Consumer reported a net leverage ratio of 1.5, remaining relatively stable compared to the last quarter and below Q2 2025 levels. This performance was driven by adjusted EBITDA growth. Meanwhile, InRetail Shopping Malls ended the period at 2.8.

Speaker #3: Turning to page seven, we will discuss our consolidated financial debt. We ended the second quarter with a consolidated net leverage ratio of 1.8, a 0.3 times reduction year over year, and stable leverage quarter over quarter.

Speaker #3: This improvement was driven by strong performance across our segments, despite seasonal dividend payments and other non-recurring cash outflows temporarily affecting our short-term liquidity position, as explained previously.

Speaker #3: Additionally, our debt maturity profile remains comfortable, with no significant refinancing needs in the near term, further supporting a resilient balance sheet. InRetail Consumer reported a net leverage ratio of 1.5, remaining relatively stable compared to the last quarter and below Q2 '25 levels.

Speaker #3: This performance was driven by adjusted EBITDA growth. Meanwhile, InRetail shopping malls ended the period at 2.8. This was supported by strong adjusted EBITDA growth against a low comparison base, which helped offset the increase in total debt following the senior note issuance last October.

Marcelo Ramos: This was supported by strong adjusted EBITDA growth against a low comparison base, which helped offset the increase in total debt following the senior note issuance last October. Both issuers maintain very healthy leverage ratios consistent with respective credit profiles. Looking forward, we expect to continue this deleveraging trend, ending the year with lower net leverage metrics than those reported in 2025. This reflects our continued commitment to a disciplined capital structure, which we believe positions the company well to support our long-term growth strategy. Now, please turn to page 8. On a consolidated basis over the last 12 months, InRetail has generated more than PEN 24 billion in revenues and PEN 3.2 billion in adjusted EBITDA, with a solid EBITDA margin of 13.5%. Turning to our results by segment, let us begin with Food Retail on page 10.

Speaker #3: Both issuers maintained very healthy leverage ratios, consistent with their respective trade profiles. Looking forward, we expect to continue this deleveraging trend, ending the year with lower net leverage metrics than those reported in 2025.

Speaker #3: This reflects our continued commitment to a disciplined capital structure, which we believe positions the company well to support our long-term growth strategy. Now, please turn to page eight.

Speaker #3: On a consolidated basis, over the last 12 months, InRetail has generated more than S/24 billion in revenues and S/3.2 billion in adjusted EBITDA, with a solid EBITDA margin of 13.5%.

Speaker #3: Turning to our results by segment, let us begin with Food Retail on page 10. Our Food Retail segment delivered double-digit revenue growth of 15.3% in Q2 '26, fueled by growth across all formats, supported by strong demand in both food and non-food categories.

Marcelo Ramos: Our Food Retail segment delivered double-digit revenue growth of 15.3% in Q2 2026, fueled by growth across all formats, supported by strong demand in both food and non-food categories. We registered a same-store sales growth of 11.6%, driven by performance in our hard discount and cash & carry formats, which now represent 51% of our total Food Retail revenues. Same-store sales in our hard discount and cash & carry formats grew above 15%. Cash & carry was favored by the low comparison base and market momentum, which particularly benefit HORECA and food commerce clients. Additionally, supermarkets posted a strong same-store sales growth of 8.2%, supported by broad-based growth across categories, particularly fresh food and non-food. We recorded a gross margin of 23.5%, relatively stable compared to Q2 2026, despite the higher participation of our emerging formats in the revenue mix.

Speaker #3: We registered same-store sales growth of 11.6%, driven by performance in our hard discount and cash and carry formats, which now represent 51% of our total food retail revenues.

Speaker #3: Same-store sales in our hard discount and cash and carry formats grew above 15%. Cash and carry was favored by the low comparison base and market momentum, which particularly benefited ORECA and Food Commerce clients.

Speaker #3: Additionally, supermarkets posted strong same-store sales growth of 8.2%, supported by broad-based growth across categories, particularly fresh food and non-food. We recorded a gross margin of 23.5%, relatively stable compared to Q2 2026.

Speaker #3: Despite the higher participation of our emerging formats in the revenue mix, gross margin expansion in our hard discount format, supported by a low comparison base, offset the margin compression from the changing format mix and the slight margin decline in Plaza Bea from the changing sales mix given the growth in electro categories.

Marcelo Ramos: Gross margin expansion in our hard discount format, supported by a low comparison base, offset the margin compression from the change in format mix and the slight margin decline in Plaza Vea from the change in sales mix given the growth in electro categories. In terms of adjusted EBITDA, Food Retail grew 8.6%, with margins narrowing slightly to 8.4% from 8.9% in Q2 2025, affected by incremental operational expenses, mainly higher logistic expenses in our Mass format and the new store openings. These effects were partially offset by strong revenue growth and relatively stable gross margin. As discussed during our previous earnings call, we continue to make decisive projects on our hard discount format to reinforce our value proposition. As part of this plan, we are executing disciplined commercial, operational, and supply chain initiatives to optimize our platform and support long-term scalability. These initiatives are expected to pressure near-term operating expenses.

Speaker #3: In terms of adjusted EBITDA, food retail grew 8.6%, with margins narrowing slightly to 8.4% from 8.9% in Q2. Affected by incremental operational expenses, mainly higher logistics expenses in our mass format and new store openings.

Speaker #3: These effects were partially offset by strong revenue growth and a relatively stable gross margin. As discussed during our previous earnings call, we continue to make decisive progress on our hard discount format to reinforce our value proposition.

Speaker #3: As part of this plan, we're executing disciplined commercial, operational, and supply chain initiatives to optimize our platform and support long-term scalability. These initiatives are expected to pressure near-term operating expenses, and we expect that pressure to persist through the second half of the year as stores progressively mature and the new distribution centers are optimized.

Marcelo Ramos: As part of this plan, we are executing disciplined commercial, operational, and supply chain initiatives to optimize our platform and support long-term scalability. These initiatives are expected to pressure near-term operating expenses.

Marcelo Ramos: We expect that pressure to persist through the second half of the year as stores progressively mature and the new distribution centers are optimized. Still, we are very confident they will strengthen our long-term competitive position. On the digital front, Food Retail continued to make decisive progress in consolidating its omnichannel ecosystem, growing our digital sales over 36% compared to Q2 2025. In line with our multi-format digital strategy, the e-commerce platform we launched for our cash and carry format in early 2025 delivered outstanding results with digital sales almost doubling year over year as we capture a new segment of high volume household and professional customers. This performance was completed by strong double-digit growth at Plaza Vea. Growth was further reinforced by the continued build-out of our last mile operations through Agora Shop.

Speaker #3: Still, we're very confident they will strengthen our long-term competitive position. On the digital front, Food Retail continued to make decisive progress in consolidating its omnichannel ecosystem.

Speaker #3: Growing our digital sales over 36% compared to Q2 2025. In line with our multi-format digital strategy, the e-commerce platform we launched for our cash and carry format in early 2025 delivered outstanding results, with digital sales almost doubling year over year as we capture a new segment of high-volume household and professional customers.

Speaker #3: This performance was complemented by strong double-digit growth at Plaza Bea. Growth was further reinforced by the continued build-out of our last-mile operations through Agora Shop.

Speaker #3: Importantly, this growth has come alongside meaningful improvements in service quality and profitability, underscoring the increasing operational and logistical efficiencies in our digital ecosystem. Overall, Q2 2026 was another strong quarter for our food retail segment.

Marcelo Ramos: Importantly, this growth has come alongside meaningful improvements in service quality and profitability, underscoring the increasing operational and logistical efficiencies in our digital ecosystem. Overall, Q2 2026 was another strong quarter for our Food Retail segment. The solid competitive positioning and value propositions of our multi-format platform enable us to capitalize on the current positive market momentum. Turning to page 11, we will review our Pharma segment. Our Pharma segment posted a 4.8% revenue growth hindered by our planned exit from non-core channels in our distribution unit in Peru. As mentioned before, we expect this decline in B2B revenues to continue throughout the year given the 2025 comparison base. On the other hand, our core pharmacies unit posted 9.8% revenue growth and same-store sales growth of 7.7%, supported by resilient consumer demand.

Speaker #3: The solid competitive positioning and value propositions of our multi-format platform enabled us to capitalize on the current positive market momentum. Turning to page 11, we will review our Pharma segment.

Speaker #3: Our pharma segment posted a 4.8% revenue growth, hindered by our plant exit from non-core channels in our distribution unit in Peru. As mentioned before, we expect this decline in B2B revenues to continue throughout the year, given the 2025 comparison base.

Speaker #3: On the other hand, our core pharmacies unit posted 9.8% revenue growth and same-store sales growth of 7.7%, supported by resilient consumer demand.

Speaker #3: Pharma categories faced a high comparison base due to last year's strong winter campaign, which contrasts with a milder winter this year. This also impacted diabetics and weight loss medications.

Marcelo Ramos: Pharma categories faced a high comparison base due to last year's strong winter campaign, which contrasts with a milder winter this year. This was offset by increased demand from antidiabetics and weight loss medications. Additionally, non-pharma categories were supported by ongoing initiatives, including the broad store renovations mentioned in prior calls, aimed to develop new categories such as beauty and personal care to meet evolving customer needs. Consolidated gross margin increased to 33.8% due to a higher participation of our pharmacies unit in the revenue mix. In our pharmacies unit, margins remained relatively stable. In terms of adjusted EBITDA, our Pharma segment posted 12.1% growth, expanding margins to 18%, reflecting gross margin improvement and fixed cost dilution. These factors successfully offset incremental expenses from the new store openings and the gradual implementation of the new distribution center.

Speaker #3: Additionally, non-pharma categories were supported by ongoing initiatives, including the broad store renovations mentioned in prior calls, aimed at developing new categories such as beauty and personal care to meet evolving customer needs.

Speaker #3: Consolidated gross margin increased to 33.8% due to a higher participation of our Pharmacies unit in the revenue mix. In our Pharmacies unit, margins remained relatively stable.

Speaker #3: In terms of adjusted EBITDA, our Pharma segment posted 12.1% growth, expanding margins to 18%, reflecting gross margin improvements and fixed cost dilution. These factors successfully offset incremental expenses from the new store openings and the gradual implementation of the new distribution center.

Speaker #3: Notably, while our distribution unit continues to experience a decline in revenues, EBITDA performance for the unit improved due to the efficiency initiatives executed last year, aligned with the strategic decision to exit non-core, costly channels.

Marcelo Ramos: Notably, while our distribution unit continues to experience a decline in revenues, EBITDA performance for the unit improved due to the efficiency initiatives executed last year, aligned with the strategic decision to exit non-core costly channels. On the digital front, we continue to consolidate our position as the leading omnichannel pharmacy platform in the country. In Q2 2026, our pharmacies' digital sales grew 25.3%, driven by increased demand for antidiabetics and weight loss medications. To sustain this momentum, we scaled our capabilities. Key milestones include the deployment of two dedicated in-store delivery centers, which continue to enhance our product assortment and optimize order processing efficiency. Furthermore, we continue to advance the integration of our omnichannel ecosystem. Our click and collect service has achieved exceptional scale, now representing over 70% of our total digital channels revenues.

Speaker #3: On the digital front, we continue to consolidate our position as the leading omnichannel pharmacy platform in the country. In Q2 '26, our pharmacies' digital sales grew 25.3%, driven by increased demand for anti-diabetics and weight loss medications.

Speaker #3: To sustain this momentum, we scaled our capabilities. Key milestones include the deployment of two dedicated in-store delivery centers, which continue to enhance our product assortment and optimize order processing efficiencies.

Speaker #3: Furthermore, we continue to advance the integration of our omnichannel ecosystem. Our exceptional scale now represents over 70% of our total digital channels revenues. Similar to our food retail segment, our digital channels in our pharma segment are operating with strong profitability on a consolidated basis.

Marcelo Ramos: Similar to our Food Retail segment, our digital channels in our Pharma segment are creating with strong profitability on a consolidated basis, underscoring our objective to construct a leading omnichannel ecosystem with sustainable economics. Turning to page 12, we will review the second quarter results for our Shopping Mall segment. Our Shopping Mall segment grew 15.3% in revenues. This robust expansion was driven by approximately 20,000 square meters of new GLA, as well as higher rents from strong tenant sales and increased advertising income. Tenant same-store sales grew 12%, with positive growth across most categories, supported by sustained positive consumption environment. However, during the quarter, we began to observe softer demand trends in apparel and fast fashion categories, reflecting the impact of a milder than expected winter season. We also maintain a high occupancy rate of 95.5%, highlighting the continued stability of our portfolio.

Speaker #3: Underscoring our objective to construct a leading omnichannel ecosystem with sustainable economics. Turning to page 12, we will review the second quarter results for our shopping mall segment.

Speaker #3: Our shopping mall segment grew 15.3% in revenues. This robust expansion was driven by approximately 28,000 square meters of new GLA, as well as higher rents from strong tenant sales and increased advertising income.

Speaker #3: Tenants and store sales grew 12%, with positive growth across most categories, supported by a sustained positive consumption environment. However, during the quarter, we began to observe softer demand trends in the apparel and fast fashion categories, reflecting the impact of a milder-than-expected winter season.

Speaker #3: We also maintained a high occupancy rate of 95.5%, highlighting the continued stability of our portfolio. Adjusted EBITDA for the segment grew 37.5%, expanding our net rental margin to 81.2%, and reflecting strong revenue growth against a low comparison basis in Q2 25.

Marcelo Ramos: Adjusted EBITDA for the segment grew 37.5%, expanding our net rental margin to 81.2. This is reflecting strong revenue growth against a low comparison basis in Q2 2025. As a reminder, during the H1 of last year, we recognized the majority of the extraordinary impact associated with the. As such, these comparative effects are expected to dissipate as the year progresses. Adjusted EBITDA growth was also supported by improved performance across other malls in the portfolio. Now please turn to page 13. During the Q2, we continued executing our strategic priorities. Our focus remained on advancing our organic expansion, reinforcing our value proposition, and augmenting our logistic network. Regarding our physical footprint, we continued our expansion by reopening one Vivanda store, 20 net new hard discount stores, and 27 net new pharmacies during the quarter.

Speaker #3: As a reminder, during the first half of the year, we recognized—during the first half of last year—we recognized the majority of the extraordinary impacts associated with this. As such, these comparative effects are expected to dissipate as the year progresses.

Speaker #3: Adjusted EBITDA growth was also supported by improved performance across other models in the portfolio. Now, please turn to page 13. During the second quarter, we continued executing our strategic priorities.

Speaker #3: Our focus remained on advancing our organic expansion, reinforcing our value proposition, and augmenting our logistics network. Regarding our physical footprint, we continued our expansion by reopening one Vivanda store, 20 net new hard discount stores, and 27 net new pharmacies during the quarter.

Speaker #3: We also began developing our new power center outside of Lima, expected to open by year-end. Turning to page 15, we would like to comment on our ESG highlights for the first half of the year.

Marcelo Ramos: We also began developing our new power center outside of Lima, expected to open by year-end. Turning to page 15, we would like to comment on our ESG highlights for the H1 of the year. First of all, we are extremely proud that InRetail Peru was included in the Dow Jones Best-in-Class MILA Pacific Alliance Index and Yearbook member for the fifth consecutive year. We rank fifth among the best companies in the food and staples retailing industry globally, and first in the region. Furthermore, our commitment to environmental stewardship, gender equality, and equal opportunity was recently recognized by the European Union. Specifically, Food Retail was recognized in environmental management and in gender equality and equal opportunities, while InRetail Pharma S.A. was recognized in gender equality and equal opportunities. These endorsements validate our ongoing efforts to integrate environmental and social pillars into our core business strategy.

Speaker #3: First of all, we are extremely proud that InRetail Peru was included in the Dow Jones Best in Class Index, Mila Pacific, and Yearbook Member for the fifth consecutive year.

Speaker #3: We ranked fifth among the best companies in the food and staples retailing industry globally, and first in the region. Furthermore, our commitment to environmental stewardship, gender equality, and equal opportunity was recently recognized by the European Union.

Speaker #3: Specifically, food retail was recognized in environmental management and in gender equality and equal opportunities, while in retail pharma, it was recognized in gender equality and equal opportunities.

Speaker #3: This endowment validates our ongoing efforts to integrate environmental and social pillars into our core business strategy. In addition, our businesses achieved top positions in several rankings.

Marcelo Ramos: In addition, our businesses achieved top positions in several rankings. Supermercados Peruanos ranked first in the self-service category. Real Plaza ranked first in the shopping center categories, in the Merco Talento ranking for the best companies to attract and retain talent in Peru. We also made progress in executing our main sustainability programs. On the social front, our flagship program, Bueno por Dentro, continued to grow. In the H1 of the year, we donated more than 8 million food rations, benefiting close to 100,000 people. Through our Perú Pasión program, we supported more than 300 entrepreneurs, generating around PEN 20 million in SME sales. In summary, Q2 2026 was another strong quarter for InRetail, with solid performance across our all segments, extending the positive trends observed in the first quarter of the year.

Speaker #3: Supermercados Peruanos ranked first in the self-service category. Real Plaza ranked first in the shopping center category. Indomerco Talento ranked best for attracting and retaining talent in Peru.

Speaker #3: We also made progress in executing our May sustainability programs. On the social front, our flagship program, Bueno por Dentro, continued to grow. In the first half of the year, we donated more than 8 million food rations, benefiting close to 100,000 people.

Speaker #3: Through our Peru Passion program, we supported more than 300 entrepreneurs, generating around $20 million in SME sales. In summary, Q2 2026 was another strong quarter for InRetail.

Speaker #3: With solid performance across all our segments, extending the positive trends observed in the first quarter of the year, our results during the first half of the year were supported by a favorable economic and consumption cycle in Peru.

Marcelo Ramos: Our results during the H1 of the year were supported by a favorable economic and consumption cycle in Peru. While the magnitude and timing of the upcoming El Niño phenomenon remain uncertain, there could be some potential headwinds for the broader economy in 2027. This, combined with a potential increase in the minimum wage, could present some additional expense pressures in our businesses. Nevertheless, we remain well positioned to face these challenges. We operate a multi-format platform, we participate mostly in essential categories that are more resilient, and we have an unparalleled nationally distributed logistics platform. We have navigated events like this before, and if necessary, we will take the appropriate preventive measures to mitigate any material impact and ensure the operational continuity of our businesses.

Speaker #3: While the magnitude and timing of the upcoming El Niño phenomenon remain uncertain, there could be some potential headwinds for the broader economy in 2027.

Speaker #3: This, combined with a potential increase in the minimum wage, could present some additional expense pressures in our businesses. Nevertheless, we remain well positioned to face these challenges.

Speaker #3: We operate a multi-format platform. We participate mostly in essential categories that are more resilient, and we have an unparalleled, nationally distributed logistic platform. We have navigated events like this before, and if necessary, we'll take the appropriate preventive measures to mitigate any material impact and ensure the operational continuity of our businesses.

Speaker #3: The competitive advantages we have built over time in each of our segments position us ideally to continue benefiting from this new, positive economic cycle in the country.

Marcelo Ramos: The competitive advantages we have built over time in each of our segments position us ideally to continue benefiting from this new positive economic cycle in the country, despite the possible near-term temporary headwinds mentioned before. This concludes our prepared remarks, and we would be pleased to take your questions.

Speaker #3: Despite the possible near-term, temporary headwinds mentioned before, this concludes our prepared remarks. We would be pleased to take your questions.

Speaker #1: Thank you. At this time, we will open the floor for your questions. First, we will take questions from the conference call, and then the webcast questions.

Operator: Thank you. At this time, we will open the floor for your questions. First, we will take questions from the conference call, and then the webcast questions. If you would like to ask a question, please press star one on your touchtone phone now. Questions will be taken in the order in which they are received. If at any time you would like to remove yourself from the questioning queue, just press star two. Again, to ask a question, please press star one. For the webcast viewers, simply use the Ask a Question text box on the right side of the webcast platform, type your question in the box, and click Submit. We will pause momentarily to compile a list of questions. Our first question has come from the line of Nicolás Larrain with J.P. Morgan. Please proceed with your questions.

Speaker #1: If you would like to ask a question, please press star one on your touch-tone phone now. Questions will be taken in the order in which they are received.

Speaker #1: If at any time you would like to remove yourself from the questioning queue, just press star two. Again, to ask a question, please press star one.

Speaker #1: For the webcast viewer, simply use the 'Ask a Question' text box on the right side of the webcast platform, type your question in the box, and click Submit.

Speaker #1: We will pause momentarily to compile a list of questions. Our first question comes from the line of Nicholas Lorraine with JP Morgan. Please proceed with your question.

Speaker #2: Hi, good morning. Thank you very much for the call and for taking my question. I had two. The first one, please, is on the Pharma Division.

Nicolás Larrain: Hi. Good morning. Thank you very much for the call and for taking my question. I had two. The first one, please, is on the Pharma division. You commented how, if I understood correctly, good margin trends in both the distribution and the drug retail business. I wanted to see if you could maybe give us some color on how much of the margin improvement in terms of EBITDA was because of drug retail, how much was because of the better profitability in distribution? That is my first question. Also regarding the minimum wage impact, do you have any call or any rule of thumb that could help us to quantify how much of expense pressure this could cause at the end of the day? Specifically in Food Retail, you operate with a lot of manpower, with a broad workforce.

Speaker #2: You commented, if I understood correctly, on good margin trends in both the distribution and the drug retail business. I wanted to see if you could maybe give us some color on how much of the margin improvement, in terms of EBITDA, was because of drug retail and how much was because of the better profitability in distribution.

Speaker #2: That's my first question. And also, regarding the minimum wage impact, do you have any call or any rule of thumb that could help us to quantify how much of the expense—or how much expense pressure—this could cause at the end of the day?

Speaker #2: Specifically in food retail, you operate with a lot of manpower, right? With a broad workforce. So, I wanted to understand how relevant this is for mass and for the cash and carry, specifically.

Nicolás Larrain: I wanted to understand how relevant this is for Mass and for the cash and carry specific. Thank you very much.

Speaker #2: Thank you very much.

Speaker #3: Sure. Thank you, Nicholas, for the question. So, with regards to the first question, the margin improvements that we're seeing in Pharma have to do pretty much with the change in the sales mix.

Marcelo Ramos: Sure. Thank you, Nicolás, for the question. With regards to the first question, the margin improvements that we are seeing in Pharma has to do pretty much given the change in the sales mix where the pharmacist unit is growing much higher than, has much higher growth than distribution unit. That effect is creating the improvement in consolidated margins. If we look at the margins within the pharmacist unit, honestly, they are relatively flat. Pharma categories have a slight decline in margin, which has to do with the growth in weight loss SKUs, as opposed to growth in other pharma SKUs. While in non-pharma categories for the pharma unit, we are actually increasing the margins. But if you look at the pharmacist unit, margins are relatively flat. So the benefit comes pretty much from the change in revenue mix between pharmacies and distribution.

Speaker #3: Where the pharmacies unit is growing much higher, has much higher growth than the distribution unit. And that effect is creating the improvement in consolidated margins.

Speaker #3: If we look at the margins within the Pharmacies unit, honestly, they are relatively flat. Pharma categories have a slight decline in margin, which has to do with the growth in weight loss SKUs, as opposed to growth in other pharma SKUs.

Speaker #3: While in non-pharma categories for the Pharma unit, we're actually increasing the margins. But if you look at the Pharmacies unit, margins are relatively flat.

Speaker #3: So, the benefit comes pretty much from the change in revenue mix between pharmacies and distribution. In terms of the minimum wage, as you guys have seen, the new government announced the intention to increase the minimum wage by 170 soles, up to 1,300 soles.

Marcelo Ramos: In terms of the minimum wage, you guys have seen the new government announced the intention to increase the minimum wage by PEN 170 up to PEN 1,300. They also announced that such increase would be sequential and in steps, as opposed to a one-time increase. The actual details are yet to be announced, to be honest. This is not the first time that we have to operate on minimum wage adjustments. But the estimate that we have, if there is a one-time increase of PEN 170 million, the full year impact for the whole platform in InRetail would be around PEN 60 million, of which the majority would be in the Food Retail segment, around PEN 40 million. As I said, not the first time that we are going to have to go with adjustments like this.

Speaker #3: They also announced that such increase would be sequential and in steps, as opposed to a one-time increase. The actual details are yet to be announced, to be honest.

Speaker #3: This is not the first time that we have to operate on minimum wage adjustments. But the estimate that we have is that, if there is a one-time increase of S/170 million, the full-year impact for the whole platform in retail would be around S/60 million.

Speaker #3: Of which the majority would be in the food retail segment, around 40 million soles. As I said, this is not the first time that we're going to have to go with adjustments like this.

Speaker #3: Historically, we've experienced salary increases, and we have consistently proven our ability to maintain our margins and growth. Rest assured that the teams in all of the segments are constantly executing efforts to find organizational efficiencies, streamline processes, and generate savings across all segments to basically be able to incorporate that impact in the financial results.

Marcelo Ramos: Historically, we have experienced salary increases, and we have consistently proven our ability to maintain our margins and growth. Rest assured that the teams in all of the segments are constantly executing efforts to find organizational efficiencies, streamline processes, and secure savings across all segments to basically be able to incorporate that impact in the financial results without having a material effect.

Speaker #3: We have, without having a material effect.

Speaker #2: No, understood, Gonzalo. And this impact would be like the $60 million you mentioned on an annualized basis, right?

Nicolás Larrain: Understood, Gonzalo. This impact would be like the PEN 60 million you mentioned on an annualized basis, right?

Speaker #3: Yeah, the 170 million soles on a full annual basis, yes. There is no clarity, as I said, on how it's going to be implemented and when.

Marcelo Ramos: Yeah. The PEN 170 million on a full annual basis. Yes. There is no clarity, as I said, on how it is going to be implemented and when, but the numbers that we run are usually based on full year impacts for the whole platform.

Speaker #3: But the numbers that we run are usually based on full-year impact for the whole platform.

Speaker #2: Super clear. Thank you.

Nicolás Larrain: Super clear. Thank you.

Speaker #1: Thank you. Our next question comes from the line of Alonzo Aramburu with PTG Paxwell.

Operator: Thank you. Our next question comes from the line of Alonso Aramburu with BTG Pactual.

Speaker #4: Hi, good morning. Thank you for the call. Two questions from me as well. The first one, again, on pharma. During the quarter, you opened, I believe, 26 out of 27 stores with the beauty and personal care formats.

Alonso Aramburu: Hi. Good morning. Thank you for the call. Two questions from me as well. The first one, again, on Pharma. During the quarter, you opened, I believe, 26 out of 27 stores were the beauty and personal care formats. Just wondering if this will continue to be the main growth driver of stores going forward. If you can compare maybe the profitability of these stores relative to the self-service and traditional formats. My second question is regarding the acquisition of InFinance XP S.A. Does your CapEx guidance change at all with this acquisition? Thank you.

Alonso Aramburú: Hi. Good morning. Thank you for the call. Two questions from me as well. The first one, again, on Pharma. During the quarter, you opened, I believe, 26 out of 27 stores were the beauty and personal care formats. Just wondering if this will continue to be the main growth driver of stores going forward. If you can compare maybe the profitability of these stores relative to the self-service and traditional formats. My second question is regarding the acquisition of InFinance XP S.A. Does your CapEx guidance change at all with this acquisition? Thank you.

Speaker #4: Just wondering if this will continue to be the main growth driver of stores going forward, and if you can compare, maybe, the profitability of these stores relative to the self-service and traditional formats.

Speaker #4: And my second question is regarding the acquisition of Infinance XP. Does your CAPEX guidance change at all with this acquisition? Thank you.

Speaker #3: Thank you, Alonso. So, in terms of pharma, the openings this year have been more skewed towards the beauty and personal care stores. That is true.

Marcelo Ramos: Thank you, Alonso. In terms of pharma, the openness these years have been more skewed towards the beauty and the personal care stores. That is true. I would say that going forward, the openings that we have and the estimate that we have for this year is around 100 net openings. It is going to be balanced between traditional stores and the new formats. It is balanced between the formats, so it is not necessarily skewed towards the personal care and the beauty ones. In terms of profitability, they are pretty much similar. Between pharma and non-pharma categories, we have very similar margins. Of course, the traditional formats, in terms of mix, are more skewed towards pharma, where the personal care and the beauty formats are skewed towards the non-pharma categories. But in terms of margins, they are pretty similar.

Speaker #3: I would say that, going forward, the openings that we have and the estimate that we have for this year is around 100 net openings.

Speaker #3: It's going to be balanced between traditional stores and the new formats. So yes, it's balanced between the formats; it's not necessarily skewed towards the personal care and the beauty ones.

Speaker #3: In terms of profitability, they're pretty much similar. Between pharma and non-pharma categories, we have very similar margins. Of course, the traditional formats, in terms of mix, are more skewed towards pharma, whereas the personal care and the beauty formats are skewed towards the non-pharma categories.

Speaker #3: But in terms of margins, they're pretty similar. I would say that the nice thing about the personal care and the beauty formats is that they sell more, restore.

Marcelo Ramos: I would say that the nice thing about the personal care and the beauty format is that they sell more per store. So it is an issue of productivity, but in terms of profitability, as it relates to gross margins, they are pretty much the same. In terms of EBITDA margins, they do have a slight higher margin than the traditional stores, given the fact that you are putting more sales with a similar amount of rent and the same amount of personnel and whatnot at variable cost. That is for the first question. I will answer the second question as it relates to CapEx guidance. We are expecting CapEx for this year to be around PEN 901 billion for 2026, of which 40% should be Food Retail, 30% should be Shopping Malls, and the remaining between pharma and other investments.

Speaker #3: So it's an issue of productivity. But in terms of profitability, as it relates to gross margins, they're pretty much the same. In terms of even the margins, they do have a slightly higher margin than the traditional stores, given the fact that you're putting more sales with a similar amount of rent and the same amount of personnel.

Speaker #3: A variable cost. That's for the first question. And so, I'll answer the second question as it relates to CAPEX guidance. We're expecting CAPEX for this year to be around S/901 million for 2026, of which 40% should be food retail, 30% should be shopping malls, and the remaining between pharma and other investments.

Marcelo Ramos: As it relates to specific questions to InFinance XP, we do not expect material capital injections. We made a small capital injection in Q2 of PEN 10 million. Remember, we own 50% of the business, so whatever capital injection is required in InFinance XP, our responsibility is only 50%. But we do not necessarily expect major capital injections in that business that should materially change our CapEx estimates.

Speaker #3: As it relates to specific questions about Infinance XP, we don't expect material capital injections. We made a small capital injection in the second quarter of 10 million soles.

Speaker #3: Remember, we own 50% of the business, so whatever capital injection is required in Infinance XP, our responsibility is only 50%. But we don’t necessarily expect major capital injections in that business.

Speaker #3: That should materially change our CapEx estimates.

Speaker #4: Okay. Thank you.

Alonso Aramburu: Okay. Thank you.

Alonso Aramburú: Okay. Thank you.

Speaker #1: Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Thank you. At this time, I'd like to hand the call over to Raphael Borja to take the webcast questions.

Operator: Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Thank you. At this time, I'd like to hand the call over to Rafael Borja to take the webcast questions.

Speaker #5: Thank you, operator. Okay, I'm going to read the first question. If you are simultaneously running a buyback, funding Infinance XP, and paying dividends while holding leverage at 1.8x, if the consumer stays this strong, what is the priority order for incremental capital?

Rafael Borja: Thank you, operator. Okay. I want to read the first question. If you are simultaneously running a buyback, funding InFinance XP, and paying dividends while holding leverage at 1.8x, if the consumer stays this strong, what is the priority order for incremental capital? Organic Mass expansion, buybacks, M&A, or deleveraging?

Speaker #5: Organic mass expansion, buybacks, M&A, or leveraging?

Speaker #3: Sure. Thank you for the question. So, first of all, we feel very, very comfortable with our current leverage ratios, maturity profile, and as well as the cash flow generation of the businesses.

Marcelo Ramos: Sure. Thank you for the question. First of all, we feel very comfortable with our current leverage ratios, maturity profile, as well as the cash flow generation of the businesses. The primary focus still remains in the execution of the growth strategy. Funding expansion projects like the Mass expansion, and also expansions in the other formats, capturing new growth leverage, and enhancing the multi-format value proposition of the business. That's essentially the main priority, while of course, maintaining a healthy leverage and capital structure, and cash flow generation of the businesses. Having secured the funding necessary for these strategic investments, we have identified a competing opportunity to buy our own shares, pay dividends, and execute the InFinance XP acquisition without affecting our profitability or leverage ratios or cash flow generation. As we mentioned before, we view the buyback as an efficient tool for value distribution.

Speaker #3: The primary focus still remains on the execution of the growth strategy, funding expansion projects like the mass expansion, as well as expansions in other formats, capturing new growth leverage, and enhancing the multi-format value proposition of the business.

Speaker #3: So that's essentially the main priority, while of course maintaining a healthy leverage and capital structure, and cash flow generation of the businesses. Having secured the funding necessary for this strategic investment, we have identified a competing opportunity to buy our own shares, pay dividends, and execute the Infinance XP acquisitions without affecting our profitability, leverage ratios, or cash flow generation.

Speaker #3: As we mentioned before, we view the buyback as an efficient tool for value distribution. At the current market valuations, using excess cash to invest in our equity represents an attractive use of excess cash.

Marcelo Ramos: At the current market valuations, investing or using the excess cash to invest in equity, represents an attractive use of excess cash. It also serves as a clear signal of our conviction as management on the company's future growth and our ability to create total shareholder return. From a leverage standpoint, as we mentioned in the call, we should continue with this deleveraging path regardless of these investments and extraordinary investments that I just mentioned.

Speaker #3: It also serves as a clear signal of our conviction as management in the company's future growth and our ability to create total shareholder return.

Speaker #3: And from a leverage standpoint, as we mentioned in the call, we should continue with this deleveraging path, regardless of these investments and extraordinary investments that I just mentioned.

Speaker #5: Thank you. We have another question here. How are you seeing the sales dynamics heading into the second half of the year?

Rafael Borja: Thank you. We have another question here. How are you seeing the sales dynamics heading into the H2 of the year?

Speaker #3: Sure. So far, based on July and the few days of August, I would say that the trends have been pretty similar. In July, for example, food retail posted same-store sales of close to 12%, slightly below 12%, with Plaza Vea again high single-digit, macro and mass with double-digit similar to what we saw in the second quarter.

Marcelo Ramos: Sure. So far, based on July and the few days of August, I would say that the trends have been pretty similar. In July, for example, Food Retail posted same-store sales of close to 12%, slightly below 12%, with Plaza Vea, again, high single digit, Makro and Mass with double digits similar to what we saw in Q2. Also Pharma, we are seeing same-store sales in July of around 7%. August has started pretty much the same, so in line to what we mentioned in the call, we have not seen any major impact in terms of consumption or our financial results from the few headwinds that we are envisioning going forward. So far, no material impact, and the businesses are performing pretty similar to what we have seen in Q2.

Speaker #3: And also, in pharma, we're seeing same-store sales in July of around 7%. August has started pretty much the same, so in line with what we mentioned in the call. We haven't seen any major impact in terms of consumption or our financial results from the few headwinds that we're envisioning going forward.

Speaker #3: So far, no material impact, and the businesses are performing pretty similarly to what we've seen in the second quarter.

Speaker #5: Thank you. At this time, I'm showing no further questions. I would like to turn the call over to the operator.

Rafael Borja: Thank you. At this time, I am showing no further questions. I would like to turn the call over to the operator.

Speaker #1: Thank you. There appear to be no further questions at this time. I would now like to turn the floor back over to Mr. Viejo for any closing remarks.

Operator: Thank you. There appears to be no further questions at this time. I would now like to turn the floor back over to Mr. Vieho for any closing remarks.

Speaker #6: Thank you. Overall, the second quarter of 2026 was another strong quarter for InRetail. The period in the economy remained in a favorable cycle during the first half of the year, supported by record commodity prices, resilient consumption, and improving business confidence.

Juan Carlos Vallejo: Thank you. Overall, Q2 2026 was another strong quarter for InRetail. The Peruvian economy remained in a favorable cycle during H1 of the year, supported by record commodity prices, resilient consumption, and improving business confidence. InRetail continued to capitalize on this environment, delivering solid growth across all four segments and further consolidating our leadership positions. Given the strength of our results in H1 of the year, we are confident in our ability to continue delivering value to our shareholders and remain well-positioned to capture the opportunities ahead. With this, we conclude our Q2 earnings call. Thank you for participating in this call, and as always, please don't hesitate to contact any of us if you have remaining questions. Thank you.

Speaker #6: InRetail continued to capitalize on this environment, delivering solid growth across all four segments and further consolidating our leadership positions. Given the strength of our results in the first half of the year, we are confident in our ability to continue delivering value to our shareholders and remain well positioned to capture the opportunities ahead.

Speaker #6: With this, we conclude our second quarter-ending call. Thank you for participating in this call, and as always, please don't hesitate to contact any of us if you have remaining questions.

Speaker #6: Thank you.

Speaker #1: Thank you, everyone. This now concludes today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Operator: Thank you, everyone. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

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Q2 2026 InRetail Peru Corp Earnings Call

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