Aboitiz Equity Ventures, Inc. (AEV) Earnings Call Transcript & Summary

Good afternoon. Welcome to the Full Year 2024 Earnings Results Briefing for Aboitiz Equity Ventures. My name is Jacqui De Jesus, and I will be your moderator for today's call. [Operator Instructions] This briefing will be recorded. [Operator Instructions] For today's call, the CEO of Aboitiz Food, Tristan Aboitiz will kick us off. He will be followed by Rafa Fernandez de Mesa, President and CEO of Aboitiz Land. After him, Cosette Canilao, the President of Aboitiz InfraCapital will update us with the results. And then finally, Toto Hilado, the CFO of Aboitiz Equity Ventures will close us out with the full year results of Coca-Cola Europacific Aboitiz Philippines or CCEAP and the group's consolidated financial performance. After the presentations, we will open the floor for Q&A.. For questions on the earnings results of Union Bank in Aboitiz Power, which were already discussed in separate sessions, we will be addressing those offline after this briefing. So with that, I'd like to turn over the floor to Tristan.

Thanks, Jacqui, and good afternoon, everyone. Thanks for being here today. Let's dive into the financial highlights of Aboitiz Foods for the recently concluded 2024 fiscal year. So we're pleased to report an improved performance for the group versus 2023 with a net income after tax reaching PHP 3.46 billion, which is approximately 4x higher than last year. Our EBITDA grew 78% year-on-year to PHP 7.8 billion, driving a 396 basis point improvement in EBITDA margins. The growth was fueled by the better performance of our commodity-based businesses, particularly our flour milling operations in the Philippines and our regional agribusiness unit. Key factors behind the success include stronger margins from lower commodity prices and strategic initiatives designed to strengthen and expand our market presence across the various markets that we participate in. . On the revenue front, Aboitiz Foods posted PHP 88 billion, reflecting a slight 2% drop year-on-year. Now this drop was mainly due to a strategic shift in our trading division's business model which led to a reduction in sales volume, along with a downtrend on selling prices across our feed and flour milling businesses. So zooming in now on revenue. Aboitiz Foods closed 2024 with PHP 88 billion in revenue, again reflecting a 2% decline year-on-year. This was primarily driven by a slowdown in our Food & Nutrition business unit, which includes our flour milling business, our livestock farming business and our meat production and distribution businesses as well as our commodity trading business, all of which are located in the Philippines. In contrast, our regional agribusiness unit remained resilient, posting a 1% growth to PHP 70.9 billion as increased sales volumes helped offset lower selling prices. Looking at the breakdown of our Food & Nutrition business, revenue came in at PHP 16.4 billion, which was down 10% year-on-year, and this was mainly due to the weaker performance of our Trading and Meats divisions. Our Trading division saw a 52% drop in revenue as we deliberately scaled down sales volume as part of an effort to tighten operations in the period of declining input costs and volatile demand. Meanwhile, our Meats division posted a 15% decline as we prioritized live hog sales, which at the time was a more profitable option over carcass and processing given relevant market conditions. This shift, along with our decision to stop sourcing higher-cost hogs from the open market led to lower overall sales through Tarlac Meat Masters under the brand, The Good Meat. Our Flour division meanwhile, saw modest growth with revenue increasing by 1%, supported by a 13% rise in sales volume across the Philippines. Margins remained more or less steady despite adjustments to lower selling prices. While revenue saw a slight decline, these strategic shifts position us for long-term profitability, operational efficiency and sustainable growth moving forward. Turning now to Aboitiz Foods' EBITDA. For the full year of 2024, Aboitiz Foods' EBITDA grew 1.8x, reaching PHP 7.8 billion. This improvement in performance was driven primarily by our regional agri business and Philippine-based flour division. which benefited from favorable commodity prices and volume growth in key markets. The flour division was a key driver of growth more than doubling its EBITDA year-on-year. This was driven by decline in wheat prices, improved sales volumes and disciplined cost management, allowing us to strengthen profitability despite a very competitive market. . Our regional agribusiness unit saw EBITDA growth of 53%, also supported by lower commodity costs and increased volume in key markets such as Vietnam, Indonesia and the Philippines. This, along with operational efficiencies really help to sustain our margins. Our farms division likewise reported a substantial increase in EBITDA, driven by higher live hog prices and a strategic pivot towards pushing more volume towards live hog sales. Additionally, the repopulation of our breeder 2 facility in Tarlac, which began in March of 2024, helped to reduce idle farm costs, contributing to the division's profitability. Meanwhile, the meats division remained a challenge, even though we made meaningful progress in reducing losses by 44% year-on-year. The first half of the year was tough due to higher input costs that primarily relied on externally sourced live hogs but through ongoing streamlining efforts, we lowered monthly losses from about a PHP 37 million loss in the first half to a PHP 14 million loss in the second half of the year. . And lastly, turning to Aboitiz Foods net income after tax. We closed the 2024 calendar year with a net income of PHP 3.46 billion. With all segments contributing to this positive performance -- sorry, while all segments contributed to this positive performance, the most significant growth drivers were our flour and agri business livestock units, as highlighted earlier. Now lastly, on project updates from across the group. Here's an update on our newest facility in China. We launched our fifth facility in China, the Gold Coin Yunnan feedmill in Yuxi Yunnan province in December of 2024. This $24 million facility sits on 4.4 hectares and expands our production capacity in a significant market and reinforces Gold Coin's leadership in animal nutrition and feed production in the region. With an initial annual capacity of about 300,000 metric tons and scalable to 500,000 metric tons, the state-of-the-art facility is set to boost output, create jobs, enhance food security and support local communities. This investment is a key milestone in our strategic vision to expand production in our key markets, and deliver premium feed solutions across the swine, poultry, aqua, ruminant and premix categories. Strategically located in a major agricultural hub, the new mill enables us to provide high-quality feed directly to local farmers, helping improve productivity and strengthen the region's livestock industry. Backed by a dedicated R&D team, this facility meets international feed quality and safety standards with formulations continuously refined through scientific research to maintain optimal nutritional integrity. We are excited to see what our team in China is able to deliver with this new mill in their production system. That concludes our update this afternoon. Again, thanks for listening.

Thank you so much, Tristan. And now to present for our Land division, I would like to call on Rafa.

Good afternoon. For the full year 2024, Aboitiz Land's net income from core operations increased by 29% year-on-year. However, overall, [indiscernible] declined by 25%, primarily due to the absence of PHP 661 million in asset monetization gains realized in 2023. Revenues reached PHP 4.3 billion, reflecting a 14% increase from the previous year, driven by recognized sales and construction activity. Meanwhile, EBITDA from core operations increased by 14% year-over-year. However, overall EBITDA declined by 27% due to the absence of the previously mentioned asset monetization gains realized in the previous year. In terms of capital expenditures, we deployed PHP 1.9 billion in 2024, strategically investing in project expansion across 9 projects and operational enhancements to support long-term growth. Top line growth of 14%, driven by recognized sales and construction activity was fueled by our high-end projects, particularly in Cebu. Residential sales remained resilient, growing by 15% year-over-year with a well-balanced contribution across 4 key market segments; high-end, integrated communities, leisure and mid-market projects. Our portfolio is strategically positioned in key growth areas nationwide, benefiting from strong economic expansion beyond Metro Manila. South Luzon remains a key driver of performance, contributing 48% of total sales from 2 major projects, while VisMin and Central Luzon accounted for 30% and 22%, respectively. Our land holdings are well positioned to unlock potential driven by increased infrastructure investments and the rise of new business hubs. Our 9 ongoing projects will provide inventory for the next 5 to 10 years, and we have proactively secured key assets to further strengthen our land bank in these prime locations. Looking ahead, we also see a significant opportunity in further aligning with our -- further aligning our strategy with Aboitiz InfraCapital's economic estates, spanning 2,000 hectares across 4 locations where Aboitiz Land is already present. These estate service driving hubs for nearly 250 companies who directly employ over 100,000 people. The strength of Aboitiz InfraCapital's economic estate lies in its fully integrated ecosystem, leveraging the Aboitiz Group's expertise in energy, water construction and financial services to create a seamless and highly competitive investment environment. To further enhance this model, economic estates has expanded into recurring income ventures, including malls, offices and dormitories, transforming its estates into dynamic live-work communities and unlocking new growth opportunities in residential development. With the Aboitiz Land's residential expertise, these economic estates now broaden their offerings, they include a range of housing solutions tailored to the needs of manufacturing and IT-BPM employees, executives and students. This aligns with the increasing demand from the market for integrated communities in high-growth areas outside Metro Manila, where businesses and residents seek well-planned environments with access to essential amenities. The success of the Villages at LIMA Estate serves as a strong proof of concept, providing a replicable model that will be expanded within LIMA and across other existing and future economic estates. The biz hubs within these economic states also represent significant opportunities. By developing central business districts within these industrial estates, self-sustaining ecosystems are being created that attract the diverse mix of locators including BPOs, corporate centers and hotels, while expanding the employee base with higher income professionals. This in turn drives demand for F&B, retail, service-oriented businesses strengthening the state's appeal as a thriving business and lifestyle destination. With this evolving landscape, we see potential -- we see substantial potential from higher-density developments, catering to the growing needs for residential and rental spaces within these business hubs. One such product is Point Blue, a pioneer in single occupancy micro-studio category within the rental market. It offers well-designed affordable living spaces tailored for young urban professionals strategically located near BGC and Makati CBD. Unlike traditional bed space rentals, Point Blue's single occupancy format provides superior privacy and a more exclusive living experience, an offering that proved resilient even during the pandemic. The company launched its first building in 2017 with Aboitiz Land investing in 2019 to accelerate its expansion. In 2023, Aboitiz Land acquired 100% ownership of the company. And today, we have 9 buildings with 997 rooms in operation with an additional 8 properties secured with the potential to add over 1,100 more rooms to the portfolio. Thank you for your time, and good afternoon.

Thank you so much for the updates, Rafa. Now for Aboitiz InfraCapital, we would like to call on Cosette.

Good afternoon, everyone, and thank you for joining us today. So 2024 has been a strong -- has been a year of strong revenue and EBITDA growth driven by our strategic expansion and operational momentum. Our businesses delivered PHP 10.3 billion in revenue, reflecting a 26% year-on-year increase fueled by strong demand and ongoing expansion efforts. EBITDA rose 7% to PHP 4 billion as we scaled operations and improved efficiency. However, net income after tax came in at PHP 600 million, reflecting increased borrowing to efficiently fund strategic investments, investments that will position AIC for sustained growth in 2025 and beyond. To support these efforts, we deployed PHP 8.1 billion in capital expenditures, reinforcing our commitment to scaling up and unlocking new opportunities. Meanwhile, our total assets grew by 6% to PHP 105 billion, demonstrating our strong standing and capacity for future expansion. Now let's take a closer look at the performance of our business units. Our economic estates business continues to gain momentum. Revenue grew 14% year-on-year, reaching PHP 6.5 billion, primarily driven by the expansion of LIMA estate and the newly launched TARI Estate. EBITDA saw a modest decline of 8% as we strategically adjusted margins to secure key anchor tenants at TARI Estate, a move that strengthens its long-term positioning as a premier industrial hub in the Nordic. Meanwhile, NIAT declined 36%, reflecting higher borrowing to efficiently fund our expanded footprint and additional products -- product offerings at LIMA Estate, including our LIMA Tower 1 or our BPO building. These investments are designed to drive sustained growth and value creation in the coming years. For our airports, we continue to strengthen our position, passenger growth remains a key driver of our airport business. revenue surged 17% year-on-year to PHP 4.2 billion, reflecting increased domestic and international travel at Mactan-Cebu International Airport. EBITDA jumped 25% to PHP 2.5 billion, highlighting improved operational efficiencies. However, NIAT declined 73%, mainly due to the absence of a onetime refinancing gain recorded in 2023. Excluding this onetime impact, MCIA's core NIAT grew fivefold to -- 200 to PHP 400 million from last year's net loss of PHP 100 million, reflecting strong underlying performance. For our water business, the full commercial operations of the Davao City Bulk Water Supply Project through Apo Agua in early 2024 was a major milestone for our water business. As operations commenced, the project recorded a net loss in its first year due to the gradual ramp-up of volume delivery and a transition from capitalizing costs to recognizing depreciation and other operating expenses. Despite this, Apo Agua ended the year at nearly 300 MLD in delivered volume and is already making a significant impact, enhancing water security for Davao City and positioning itself for long-term financial and operational stability. Meanwhile, our estate water business continues to grow, supporting both economic estate's expansion and airport operations, ensuring sustainable and reliable water supply as these sectors scale up. For digital infrastructure, the continued growth of our tower portfolio and increased co-location momentum resulted in higher revenues and EBITDA. While NIAT showed a slight dip due to financing costs related to expansion. The long-term outlook remains strong with increased demand for digital infrastructure. Water, one of our most significant milestones this year was the full operation of the Davao City Bulk Water Supply Project, now the largest bulk water treatment facility in the country. This project remains a cornerstone of our long-term growth strategy. And like what I mentioned, is already enhancing water security for Davao City. At the same time, our estate water business is expanding alongside our economic estates and airports, ensuring we can meet the rising demand for sustainable water solutions. For our economic estates, we successfully launched TARI Estate, a 384-hectare development in Central Luzon, positioning it as a future industrial hub. Meanwhile, the 40 hectares Biz Hub expansion at LIMA estate is shipping Batangas first master planned business district. Beyond the expansion, our estates also earn prestigious industry recognition, becoming the first developer in the Philippines to achieve 5-star BERDE District Certification across all operating assets. 2024 was also a defining year for AIC in the airport sector. In October, we assumed 100% ownership of MCIA, a significant milestone in our infrastructure portfolio. Shortly after we secured the concessions for Laguindingan International Airport and Bohol-Panglao International Airport, with operations set to begin -- with handover of operations set to start in second quarter of this year. Passenger traffic at MCIA continues to soar, welcoming 8.5 million domestic travelers and 2.8 million international passengers already surfacing prepandemic levels. Our digital business continues to scale with over 2,000 points of service now in operation. This expansion, combined with our 1.2x tower tenancy ratio reinforces Unity Digital's role in enhancing connectivity nationwide. AIC success is not only measured by financial performance, but also by the impact we create in communities. The Davao City Bulk Water Supply Project, our partnership with the Davao City Water District, was named Best PPP project in the Philippines by the International Finance Awards, a testament to our commitment to innovation and water security. The new STAR Tollway exit near Biz hub will enhance mobility and trade. AIC economic assets contributed to this project by donating land, reinforcing our commitment to enabling critical infrastructure that benefits both our locators and the broader community. Cebu Connect at MCIA is streamlining passenger transfer times while our bridge mounted equipment is helping airlines cut carbon emissions and reduce costs by up to 60%. We are also proud to be recognized globally for sustainability and operational excellence across our business sectors. We received the Platinum Green Airport award last year for MCIA. Also, the Skytrax 4-star rating for our MCIA terminal 2. And for our economic estates, for the fourth consecutive year, our economic estates was named Asia's Best industrial developer. And just recently, MCIA, won the Coveted Best Airport award from Airports Council International in the 5 million to 15 million passengers per year category, a validation of our continued commitment to passenger experience and operational excellence. Now looking ahead, as we enter our tenth year, AIC remains focused on scaling our business and delivering long-term value. In our EE, we will continue expanding TARI Estate and further developing LIMA and West Cebu Estates to accommodate industrial growth. In airports, we will fully take over the Laguindingan and Bohol-Panglao International Airports starting second quarter of this year, leveraging the same operational improvements that have driven MCIA's success. In water, Apo Agua will ramp up production and efficiency, while we explore desalination and expansion opportunities in Visayas and Mindanao. In digital infrastructure, Unity Digital will complete the transfer of towers acquired via sale and leaseback and we'll continue expanding its footprint with new macro towers and enhanced co-location efforts. So lastly, AIC remains committed to building transformative infrastructure ecosystems, leveraging synergies across the Aboitiz Group and creating lasting impact. Thank you, and good afternoon again.

Thank you so much, Cossette. Finally, for CCEAP and AEV. We'd like to call on Toto, please.

Thank you, Jacqui. Good afternoon, everyone. Thank you for joining us this afternoon. By this time, you have heard from all our SBUs. So now let me end this briefing with AEV's consolidated financial performance for 2024. 2024 has been a productive year for AEV. Years of groundwork turned into tangible progress in the form of new investments. In February, we completed the acquisition of a 40% stake in Coca-Cola Bottlers Philippines, which has been recently named Coca-Cola Europacific Aboitiz Philippines. In the same month, we commercially started operating Apo Agua, our bulk water business in Davao. In March, our power subsidiary, Aboitiz Power entered the LNG space by announcing its 40% stake in Chromite Gas Holdings, which took a 67% stake in San Miguel Global Power. This was, by the way, completed in January 2025. We closed another part of 2024 by getting awarded the concessions to expand, operate and maintain both the Laguindingan and Bohol Airports in September and November, respectively. Next slide, please. As for our financial results, full year 2024 beneficial EBITDA grew by 32% to PHP 64.5 billion as a result of higher contributions from our Food Group and Coca-Cola and the continued growth of our Power business. This translated to a 15% growth in our core net income to PHP 25.5 billion. However, we took an impairment in our investment in Republic Cement amounting to PHP 7.4 billion. This brought our net income to PHP 18.1 billion compared to PHP 23.5 billion in 2023. Next slide, please. As mentioned earlier, EBITDA grew by 32% with Power still accounting for 60% of total beneficial EBITDA. The combined performance of our Food Group and Coke accounted for 22% of EBITDA and the bank accounted for 9% of the group's EBITDA.. This is a snapshot of the performance of our various businesses. So you've already seen -- heard from the various SBUs, so I will just point out some major points here in the businesses of our SBUs. So as for Aboitiz Power, while net income reached PHP 18 billion contribution to AEV and it's only 4% higher, what is noteworthy there is that its core income has increased substantially or has shown decent growth of 13% year-on-year based on its EBITDA. As for Union Bank net income contribution to AEV reached PHP 6 billion or 32% year-on-year as margins increased and as they have started to benefit from the acquisition of the consumer portfolio of Citibank. As for Aboitiz Foods, income contribution doubled to PHP 4.4 billion as they were able to take advantage of stabilizing commodity prices. As for our investment in Coke, it contributed to PHP 1.6 billion in income. For Aboitiz Infra, income contribution reached PHP 644 million. As for AEV, we registered a loss, and our share was PHP 1.1 billion in 2024. And as I presented earlier, we took an impairment on our investment in RCBM amounting to PHP 7.5 billion. RCBM was a net loss in 2022, '23 and '24. And that is the reason why we thought it was about time for us to take an impairment given the current condition of the industry. Aboitiz Land net income contribution was lower by 9% and that's primarily because there were one-off gains registered for -- from asset sales in 2023. Next slide, please. Coca-Cola Philippines continues to show strong growth momentum even as we saw the year-end in the last quarter of 2024, revenue rose by 9% year-on-year in the last quarter, resulting in a 14% year-on-year revenue growth for 2024. Continuing on the strong domestic demand story, revenue growth was mainly propelled by the double-digit growth in both the general and modern trade channels. Approximately 3/4 of sales were generated by the general channel, which delivered 11% year-on-year growth as almost all commercial units in Luzon, Visayas, and Mindanao in the Greater Manila area showed double-digit growth. Modern trade sales, which grew 15% year-on-year was mainly driven by strong sales for at-home consumption. By brand, Coca-Cola Classic products continue to lead growth, but Royal and Sprite showing signs of recovery versus a weak performance in 2023. We are pleased to report continued market share gains in the sparkling soft drink category. In 2024, market share reached 75%. Coke's better-than-expected performance reaffirms our diversification strategy towards the consumer sector. So the growth in our beneficial EBITDA translated to a 15% year-on-year growth in our core NIAT to PHP 25.5 billion and as mentioned earlier, we took a hit of 7.5% impairment on our 45% stake in RCBM plus net income performance of PHP 18.1 billion. Next slide, please. Our balance sheet remains well positioned for opportunistic expansion. Total cash levels declined to EUR 81 billion from EUR 113 billion, following a settlement of our 40% stake in Coke in February 2024. And our participation in the SRO of Union Bank in May 2024. The decline in cash was offset by growth in investments and PPE such that our consolidated asset base still grew to PHP 893 billion from PHP 834 billion in 2023. Total liabilities increased by 8% due to our higher debt availments to fund our ongoing expansion in Power and Infra. Nevertheless, net debt-to-equity and debt-to-equity ratios remain stable at 0.82x and 1.02x, respectively. Similar parent-level balance sheet remains under leverage with a net debt-to-equity ratio of 0.28%. Our parent debt profile remains well managed as it is predominantly Philippine peso based, long term in nature and have fixed interest rates. So you see our maturity profile here and a substantial part of our borrowings would mature to account, 2023. And most of that is accounted for by a dollar bond -- a $400 million bond that will mature in 2030. In 2024, the group deployed a total of PHP 76.5 billion in CapEx. Of this amount, the parent company accounted for PHP 34 billion, primarily for the acquisition of Coke and participation in new BP's SRO. The Power segment spent PHP 27 billion, mostly on this renewable energy pipeline, while the Infra segment spent PHP 10 billion, mainly for economic estate's expansion and tower acquisitions. Looking ahead, the Aboitiz Group, together with our partners, has earmarked PHP 105 billion for CapEx in 2025, 37% higher than in 2024. Of this, PHP 78 billion is going to be deployed by our Power segment. The next biggest chunk will be from our Infra segment, which has budgeted PHP 16 billion for its infra projects including economic estate's expansion and ongoing power acquisitions. The remainder of the budget will support enhancements to Union Bank's digital infrastructure, refurbishment of swine farms, development of greenfield R&D farms for the Food segment and business maintenance. Finally, we remain committed to our dividend policy of paying out 1/3 of our in previous year's net income, which for 2024, was based on net income prior to impairment. On March 10, 2025, AEV approved regular cash dividends of PHP 1.54 per share to all stockholders as of March 21, 2025. This is payable on March 28, 2025. Based on the closing price of [ PHP 33.20 ] on a day, our dividend was announced, this translates to a dividend yield of 4.64%. Overall, we are happy with the solid performance of our businesses in 2024. We are on track with our diversification strategy, and we are excited for our growing footprint in the domestic consumer sector through the sustained growth of Coke Philippines, the expanding synergies from Citibank's consumer banking portfolio and our recent acquisition of Laguindingan and Bohol Airports. For 2025, we are confident that we can sustain growth in our core businesses; in power, banking, food, real estate, infra and fast-moving consumer goods segments. And with our planned CapEx program, we are confident of maintaining our positive trajectory in the years to come. That concludes our earnings briefing today. Thank you for joining us, and we look forward to seeing you in the full year briefing next year. Thank you, and have a nice day.

Thank you for that, Toto. Now on to our Q&A. So we will start off with a question we have received in advance. [Operator Instructions] So the first question would be for Tristan. So I have 2 questions for you, Tristan. The first one is what is your margin outlook for Aboitiz Foods? Do you expect more expansions this year? Or have you reached a stable -- steady state already?

So overall, I'd say we're pretty much a steady state, right? I think we could see margins in some areas of the group continue to decline. And in other areas, improve over time. But overall, I think group wide, if you look at it group wide, I'd say we're probably at close to steady state, right? I think what we're really looking at in terms of driving improvements to the bottom line moving forward is volume growth across our livestock feed and flour businesses, right, as well as better volume and more consistent margins across our aqua feed -- regional aqua feed business as well as our meats business.

Speaking of your meats business -- of Aboitiz Foods meats business, can you elaborate more on the strategic shift in the trading and meat segment that caused a drag in overall performance? What is the strategy moving forward? And when do you expect the turnaround?

Yes. So I mean, just to clarify it, right, I think the strategic shifts that we made halfway through last year, more or less, I think, actually led to better performance of the meats business, right? So the drug in the meats business was more significant, I think, in the first half of last year. As we continue to push volume into the general trade as a main kind of like home, let's say, for our volume, right? And we sourced hubs from external third parties to be able to do so. What that basically did was lead to an erosion in our margins, right? So starting in July of last year, we made the decision to prioritize more profitable channels and significantly slow our sales volume into the general trade or wet markets, right? . Now overall, it meant lower sales volume for our meats business and more sales volume for our farms business. But while volume dropped in our meats business, we were able to improve our overall margins per kilo, right, and prioritize the focus of our sales teams to grow the channels that we believe are kind of the key to success moving forward, right? And as mentioned earlier, we saw the average losses per month declined significantly over the second half of the year as a result of this, right? So this is a strategy that we're continuing to push today, right? So when we talk about a turnaround, I think we've already begun to see a turnaround in the business, right? As we saw the losses per month reduced quite significantly in the second half of last year. And overall, we saw the losses decline from 2023 to 2024. And I think we're hopeful to begin posting positive monthly contributions from the meats business in the second half of this year, right? And that, overall, we will continue to lessen the losses or the loss contribution from the meats business in 2025 versus 2024.

Thank you. That's very clear. So we look forward to Aboitiz Foods results for 2025 onwards. Thank you, Tristan. Shifting gears a little bit. We have a few questions for Rafa. So the first one is, as the new President of Aboitiz Land, could you talk about your key priorities and overall strategic direction that you envisioned for the organization? Are there any notable changes or initiatives that we should be aware of moving forward?

Yes. So we probably will look to sustain our current initiatives, which will be to really to strengthen our position in the key markets. We're already present in Central Luzon and South Luzon as well as in VisMin. But we also -- we aim to leverage the growth of Aboitiz InfraCapital's economic estates and drive synergy within the Aboitiz group by establishing Aboitiz Land really as a primary housing provider for these expanding ecosystems.

There's also another question on reservation sales. So although reservation sales rose by 15% in 2024, there seems to be a slowdown in the second half of the year. Can you provide more insight on why this is?

Yes. So the slowdown in reservation sales during the second half of the year, it varies project to project. So for example, with our leadership development such as Seafront, sales are generally seasonal, driven by demand that usually comes in the summertime when we have our events. And then for our integrated communities as well as our high-end communities, this is inventory driven. So towards the second half of the year, the lack of inventory affected that.