Cementos Argos S.A. (CEMARGOS) Earnings Call Transcript & Summary

Good morning, everyone. Thank you for being here with us today to discuss our third quarter results. My name is Carolina Velásquez. I am Cementos Argos' Investor Relations Officer, and I will be hosting today's call. On the call today are Juan Esteban Calle, our CEO; Felipe Aristizabal, our CFO; Maria Isabel Echeverri, the VP of Legal Affairs; Carlos Yusty, the VP of the Colombia Division; and Gustavo Uribe, the leader of Central America. First, I would like to ask you to carefully read the legal disclaimer that is currently being projected on the screen, which is also available on the presentation that is posted on our website. Please consider that all the discussions of the financial and operational results held during the call will be based on the adjusted figures, excluding nonrecurring and noncore operations. For a detailed reconciliation of the adjustments, please refer to the annexes of our presentation. Today, after the initial remarks, there will be a Q&A session. [Operator Instructions] We will record this session and upload it to our web page. It is now my pleasure to turn the call over to Juan Esteban.

Thank you, Carolina, and welcome to everyone joining us today. I would like to begin by highlighting 3 important developments during the quarter. First, -- we delivered strong operating results with volume growth across all of our operations, thanks to improved market dynamics, especially in Colombia and broad-based EBITDA and EBITDA margin expansion driven by the disciplined execution of our pricing strategy and efficiency programs. This position us on track to achieve our 25% margin target 1 year ahead of schedule. Second, we made significant progress in our growth strategy to reenter the U.S. market with key achievements, including operational readiness for the initiation of aggregates shipments starting in November and the securement of 2 additional port positions on the U.S. Southeastern Coast, strengthening our logistic capabilities for this strategic market. Third, on September 30, we held an extraordinary shareholders' meeting where a $230 million share buyback proposal at fixed price was approved. The funding for this distribution primarily comes from the interest income generated by the proceeds obtained from the divestment in Summit Materials completed earlier this year without compromising our growth strategy. These accomplishments underscore our commitment to sustainable growth and long-term value creation. Now I would like to invite Felipe to discuss further the execution of our SPRINT program.

Thank you, Juan, and good morning, everyone. Before diving into the execution of our flagship SPRINT program, I'd like to highlight some of the key metrics that reflect the strength of our share price performance. This year has marked a historic high in shareholder distributions, combining dividends, Grupo SURA shares spin-off and buybacks to deliver a total return of 25%. The implied share price today stands at over COP 14,000 per share or 5x our starting point in 2023, underscoring the value we've created over this period. Also, our annualized 3-month average trading value ratio increased from 10% to 27%, reinforcing the liquidity and attractiveness of our stock. We are highly focused on committed to value creation for our shareholders with significant progress on each pillar of the SPRINT 3.0 program as follows. With respect to our first pillar in terms of financial results, we are encouraged to share that we are on a solid path to achieving our guidance of 25% EBITDA margin 1 year ahead of time as we are already at 24% on a year-to-date basis. This was possible, thanks to disciplined pricing execution and the implementation of efficiency initiatives across all our geographies that included, among others, the resizing of operations and overhead. Furthermore, our LTM return on capital employed reached 15.7%, which surpasses our end of year guidance range of 14% to 15% . As part of the second, third and fifth pillars aimed at boosting the TSR via distributions to our shareholders, and as Juan just mentioned, to date, we have formalized total distributions for 2025 totaling COP 3.5 trillion, representing a 25% yield. These distributions include COP 1 trillion of ordinary and extraordinary dividends, COP 1.5 trillion represented by the Grupo SURA shares spin-off and close to COP 1 trillion represented by our ongoing share buyback program and recent extraordinary buyback. Regarding our ongoing share buyback program, we have executed 74% of the COP 500 billion authorized under the current phase, equivalent to approximately COP 370 billion. Beyond the scope of SPRINT 3.0 and as part of our broader shareholder distribution strategy, we are successfully completing this week a $230 million share buyback, funded by the proceeds from the divestment of our U.S. operations. This transaction is being executed at a fixed price of COP 13,659 per share through an independent offer mechanism. Importantly, this distribution represents less than 10% of our cash reserves and does not compromise our robust financial position or the strategic redeployment plan outlined in our growth road map. Regarding our fourth pillar, we remain highly optimistic about the inclusion in the MSCI Emerging Market Index in the near future. Notably, our 30-day average trading volume has increased tenfold over the past 2 years, a clear reflection of growing investor interest and market visibility. Finally, under the sixth pillar for our strategy, focus on growth, we've made substantial progress in strengthening our aggregates platform with a clear emphasis on product quality and logistics, as previously mentioned by Juan Restrepo. We have successfully initiated commercial operations and have made relevant progress on building the production and logistical capabilities needed to support the business plan. As part of our reentry strategy to the U.S., we reiterate our goal of organically generating approximately $200 million in EBITDA by 2030 with an investment of less than $500 million. In parallel, our inorganic growth strategy includes a series of bolt-on acquisitions aimed at reinforcing our local presence in the U.S. and unlocking synergies through the integration of the aggs platform. It is also important to add that we are temporarily investing the proceeds of the divestment through a number of global asset managers in low-risk liquid investments. We expect to generate close to $100 million of interest income by the end of 2025. To conclude, I'd like to reinforce that we are executing our strategy with discipline and remain firmly on track to achieving the objectives of each pillar of the program.

Thank you, Felipe, for your intervention. I would like now to comment on our consolidated results for the third quarter and year-to-date 2025, and then we will move into the regions for further details. In contrast to the last 2 quarters, this quarter, we experienced higher cement volumes across the 3 divisions, achieving a 7.5% growth on the back of improved dynamics of local markets, especially Colombia. Our ready-mix business, on the other hand, experienced a 7.9% decrease in volume, driven by our decision in Panama to operate with allies rather than directly. During the period, we reached revenues of COP 1.37 trillion and an EBITDA of COP 374 billion. This represented a 27% EBITDA margin, an expansion of 370 basis points in comparison to 2024, mainly explained by a consistent pricing strategy and efficiency initiatives execution. Net profit accounted for COP 278 billion, representing a 20% margin. The accumulated results for the year totalized COP 3.9 trillion in revenues and COP 928 billion in EBITDA with a margin of 24%, reflecting consistency in our efficiency focus and approaching in advance our guidance of 25%. Net profit reached COP 659 billion, representing a 17% margin, which is more than 3x the margin reached in 2024 on a comparable adjusted basis. As we move into the regions, we find overall very positive results. We have seen a clear recovery of the industry in Colombia and still strong demand in Puerto Rico and the Dominican Republic and a sold-out market in Guatemala. In Honduras and Panama, although climate and market challenges have been negatively impacting revenues, transformational initiatives to reduce costs are being successfully implemented. Now I would like to invite Carlos to discuss further on the performance of Colombia and our market strategic perspective.

Thank you, Juan, and good morning, everyone. The Colombian grey cement industry exhibited clear signs of recovery in the third quarter with approximately 9.4 million tons sold year-to-date, representing nearly 4% growth versus last year and making a reversal of the downward trend observed in previous quarters. This recovery was mainly driven by a strong retail segment that had 10.5% year-to-date growth, primarily fueled by self-construction. Moreover, the residential sales continue to present positive momentum, up 25% year-over-year, anticipating the continuation of this positive trend in the local market in the midterm. Our volumes exhibited similar dynamics to the local market with improvements in cement dispatches boosted mainly by the retail segment and on the other hand, a contraction in the ready-mix dispatches in line also with the performance of the industrial segment. Quarterly revenues reached COP 776 billion with EBITDA totaling COP 238 billion, resulting in a 30.7% margin. The volume expansion allowed us to lever on the cost efficiencies achieved in the previous quarters by the mine to the market program. enabling greater improvements in EBITDA with 12.3% growth and EBITDA margin that has increased by 217 basis points. Year-to-date, we have generated COP 2.1 trillion in revenue and COP 586 billion in EBITDA, an increase of 1.6% compared to 2024 with a margin expansion of 176 basis points, reaching 27.6%. This result reflect our consistent efforts to improve profitability despite market headwinds and laid the foundation to fully leverage the anticipated market recovery. Our last 12 months free cash flow conversion ratio continues to outperform industry benchmarks, exceeding 80% of our EBITDA and 22% of revenues. Given the current market conditions, another key milestone was securing long-term energy supply at competitive prices beyond 2030, ensuring operational stability and cost efficiency. We believe that cement market will continue to exhibit mild improvements in the short term, supported by cities like Bogotá with projects such as the metro and other infrastructure developments and by smaller cities such as Santa Marta that continues to progress steadily, driven mainly by tourism-related real estate construction. Our ready-mix business remains a key growth engine with continuous innovation to improve performance and on-site efficiency for customers. We have a strong pipeline, including Túnel de Oriente in Antioquia that will demand approximately 180,000 cubic meters over the next 3 years. In the midterm, we remain optimistic and confident in our ability to capitalize our market upside, further strengthen our results and most importantly, enhance profitability driven by positive operating leverage and potential pricing traction. With our current market share level of profitability of over 30% EBITDA margin in a scenario in which the market recovers and gets back to '22 volumes, our overall EBITDA could increase by $60 million in the next 3 to 5 years.

Thank you, Carlos. Now I would like to invite Gustavo to comment on the results of Central America and the Caribbean.

Thank you, Juan, and good morning to everyone. Our cement volumes in the region grew substantially in the last quarter, reaching 1.1 million tons, a 13.7% increase, mainly driven by trading, which had a 40% growth rate compared to the same quarter of 2024. On a year-to-date basis, volumes totaled 3.2 million tons, reflecting a 7.3% growth rate. In ready-mix, we had a positive quarter with approximately 5% growth, selling 37,000 cubic meters. However, year-to-date comparisons show negative results due to the strategic decisions to significantly reduce operations in Central America. Quarterly revenues reached $144 million, with year-to-date revenues totaling $421 million. EBITDA margin stood at 27.9% for the quarter and 25.3% year-to-date. The 336 basis point margin expansion this quarter was driven by the ongoing implementation of efficiency initiatives across all geographies, focused on reducing clinker costs, SG&A and fixed expenses. Let me walk you through the performance by region. In Central America, cement volumes reached 462,000 tons during the third quarter, a 10.5% increase driven by strong Guatemalan market that we have successfully capitalized on. Regional revenues for the quarter totaled $64 million with EBITDA of $22 million, resulting in a robust 34.7% margin. This 430 basis point expansion compared to the same quarter in 2024 is largely attributed to Guatemala, where we recorded our first positive EBITDA in over a year. Explaining further by country. In Honduras, despite the recent floods negatively impacting the overall market, we maintained volumes and achieved a modest 1% year-over-year growth. The industry continues to face pricing pressures due to increased imports. We remain focused on [ profitable ] operations and our new pozzolan dryer set to be operational next month will be instrumental in this effort. In Guatemala, our Rio Blanquito plant, which supplies this market is operating at full capacity. The market experienced a 14% growth rate, fueled by strong consumption supported by historically high remittances, which reached $19 billion in 2025. In Panama, the industry continues to face declining volumes and prices with limited signs of short-term recovery. Our resilient business model has allowed us to adapt effectively by reducing SG&A and fixed cost and diversifying into new business lines such as aggregates. This strategy has led to an EBITDA margin improvement of approximately 200 basis points for the quarter. Moving on to the Caribbean region. We sold 394,000 tons of cement, a 6.2% volume increase for the quarter. This growth was primarily driven by strong industry performance in the Dominican Republic and Puerto Rico, both of which continue to benefit from solid infrastructure fundamentals. Quarterly revenues in the region totaled $70 million, up 0.7% compared to 2024. EBITDA reached $15 million with a margin of 21.4%, representing a 260 basis point expansion. This improvement was achieved through efficiencies across the entire value chain from product composition to logistics. For the countries, the results are as follows. In the Dominican Republic, the construction industry grew by nearly 4%, supported by strong fundamentals, including 12 million tourists and $11 billion in annual remittances. These factors have sustained one of the highest per capita cement consumption rates in the region at approximately 500 kilograms. However, increased competition is putting pressure on prices and volume growth is beginning to slow, a trend we are monitoring closely. In Puerto Rico, the positive momentum continues with 7.5% year-to-date market growth despite a slower quarter due to adverse weather conditions. Growth is primarily driven by ongoing reconstruction efforts following hurricanes Irma and Maria, supported by a $90 billion budget. In summary, despite ongoing challenges in specific geographies, it was a quarter of solid performance of our Central American and Caribbean operations. Our strategic business model adjustments and efficiency initiatives are clearly reflected in the financial operational results, positioning us well for continued success in these regions.

Thank you, Gustavo. Regarding our balance statement, our total gross debt stands at $820 million, 95% is denominated in Colombian pesos. Our net debt to EBITDA stands at minus 6.7x, given our strong cash position derived from the Summit transaction. Looking ahead, we remain highly optimistic about the future and reaffirm our strong commitment to achieving our midterm guidance. This confidence is grounded in the continued improvement of market dynamics, the solid execution of our optimization initiatives and our disciplined focus on sustainable high-return investments that will drive long-term growth. Carolina, we can proceed now with the Q&A section.

Thank you, Juan. We will proceed now with the Q&A session. [Operator Instructions] First question comes from Marcelo Furlan from Itau.

Congrats on the results. So guys, I have 2 questions here. The first is regarding the time line of this $200 million in EBITDA to be achieved in the Argos materials. So if you could explain a little bit regarding what EBITDA could we expect for this segment maybe for next year, then 2 years from now. So I'd like to understand this time line until you reach this $200 million in EBITDA. And also regarding the expansion that you guys are mentioning about 9.5 million short terms for cement from 2026 to 2030. I would like to understand if this would be supported by only the organic investments that you guys are providing the CCA or also could expect M&A activities in the U.S. specifically? And my second question is related to the sustainable margins. So you guys are likely 1 year ahead, right, to reach these margins above 25%. So I'd like to understand what could we expect for sustainable margins for the combination of Central America and the Colombia divisions for the medium term. So could we expect margins hovering around this 25% or slightly above that? Or do you guys believe it is fair to assume maybe these margins consolidated reaching 30% level? So these are my questions.

Thank you very much, Marcelo, for your questions. We are fully confident that we can reach the $200 million in EBITDA that Felipe mentioned before in our aggregates import platform into the U.S. Our time line is a 5-year time line. We are foreseeing to increase export from Central America and the Caribbean to the U.S. from basically 0 in 2025 to 10 million short tons in 5 years. 2026 is going to be like the first year of commercial operations in the aggregate platform in the U.S., and we are expecting to exceed at least 1 million short tons of exports into the market. The good thing is that we already secured the sources. We have like an extremely interesting sources in Central American and the Caribbean, specifically in the Dominican Republic and Panama. With unlimited reserves in the Dominican Republic. So the reality is that it is going to be a matter of just ramping up the operations in the quarries, building the port infrastructure in the origin and destination, but we are like fully confident that we have a high-quality aggregates and that we will be extremely successful in the market. The reality is that there is a need for aggregates in those coastal markets. The potential that we see that it is underserved in those markets is close to 125 million short tons. So the reality is that we are seeing a significant opportunity to hit that target of $200 million of EBITDA by year 5. In terms of our strategy to reenter the U.S., Phase 1 is going to be organic, which is basically that [ aggs ] import platform. And then we plan to supplement or complement that platform with additional bolt-ons so far just in the aggregate spectrum. Your second question, I mean, in terms of the sustainability of our margins, we are extremely happy seeing the results of Colombia, Central America and the Caribbean. We have been doing a significant effort in terms of questing for operational and commercial excellence across all of our operations. And you see what happened when we just have a little bit of a tailwind in terms of the market in Colombia with just a small pickup in volume, we were able to expand our EBITDA margin in a significant way in Colombia, hitting 31% in the quarter. So the reality is that we foresee sustainable margins between 25% and 30% going forward because the reality is that with a little bit of help from the market, which we are very optimistic that starting in 2026, I mean, demand is going to continue improving in Colombia. The reality is that we see further opportunity to continue expanding our margins.

Okay. And just a follow-up here. Regarding the EBITDA for the Argos material, this $200 million, how much of that would translate into margins? I mean what is the expected EBITDA margins for this business?

Yes, Marcelo, once the operation is stable, we foresee margins in excess of 30% in that line of business as well.

Next question comes from Mario Simplicio from Morgan Stanley.

Congrats on the results. I have just 2 questions. The first one is also regarding your capital allocation strategy. I just want to understand if after the share buyback announced a couple of months ago, if there is any more opportunities are you guys seeing on continuing this shareholder remuneration strategy? And also if -- how you guys are seeing in terms of timing to use the proceeds of the divestments? And also just to confirm, you guys mentioned that you're going to put the money on liquid investments and now expect $100 million financial income. I just wanted to confirm when should we start to see the impact from this strategy? And then my second question is on Colombia. You mentioned that there was the pickup on cement demand this quarter. I want to know what you guys thoughts on the sustainability of these trends and how fourth quarter is shaping up to be and your expectations for 2026?

Thank you, Mario. I mean the reality is that, as Felipe mentioned, I mean, distribution to our shareholders totaled COP 3.5 trillion, including the and Grupo SURA shares. This first phase of the expansion into the U.S. will require more or less $0.5 billion, and we foresee to deploying another portion of that proceeds from the sale of Summit in bolt-ons of aggregates operation to complement our platform. At the end of the day, we will be looking for opportunities to generate value for our shareholders and distributions to shareholders are going to be contemplated in the future as well. But we are fully confident that there are enough opportunities in the U.S. to make a good deployment of the proceeds from -- or a good portion of the proceeds from Summit in the future. Regarding our outlook for Colombia, I mean the reality is that November is looking even better than October. So the reality is that the trend that started last May of growing demand in Colombia due to improvement in consumption in our opinion, will continue going into '26 and beyond. We are extremely optimistic about the future of Colombia. So the reality is that with a more constructive government in 2026, I mean, the reality is that we foresee that the market is going to continue growing. So fairly positive about the outlook of Colombia and November and the end of the year is looking extremely constructive.

Next question comes from Victoria [ Andrade ] and from [ Citibank ].

Congratulations on the results. My question is about margin improvement. What are being the key measurements behind it? And what are your guidance for 2026 full year? And if I may add another question about the USA aggregated platform. When will you see the contribution start to be in disclosure on the earnings release?

Thank you. Victoria, extremely happy with the margin expansion in Colombia. Main driver is more constructive volumes and on top of that, a continuation of our focus on efficiency in our operations. I would like Carlos Horacio to give you a little bit more color about all the important actions that the company is taking in Colombia to improve profitability. So go ahead, Carlos.

Okay. Juan Victoria, like Juan mentioned before in the last question, I think that we are expecting that the market in Colombia continues not just this quarter, but we are expecting the same for the 2026 and beyond because there is a very good pipeline in the terms of formal constructions and as well in the retail segment as well, like we have explained before in other quarters, we started with a very strong or robust plan like we call the mine to the market -- that we are addressing many different efficiencies, so many different opportunities in a lot of lines of the P&L, like the fixed cost, the logistic cost, the reliability of our plants. We have invested very good amount of money in CapEx during the last years. And as well, we are structuring our organization in the Colombian region. And -- all these things really are the results that we are seeing in this case in this quarter. But we are very optimistic that these results will improve or will be more wider in the next coming quarters.

Thank you, Victoria. Now I would like Felipe to give you more color about when are we going to start reflecting the aggregates operation into our financial statements.

So starting next year, we expect to report new business segment in our financials. And as Juan was mentioning, the first year, we expect to deliver north of 1 million short tons of product to the U.S. initially, margins are going to be low given that the whole infrastructure is not going to be optimized -- fully optimized. So costs are not going to be as low as they can reach once all the infrastructure is more mature. But starting next year, we expect to reflect the results of the Ag business as a separate segment in our quarterly results.

Next question comes from Gabriel Pérez from Credicorp Capital.

Congrats on the results. I have a couple of questions. The first one, why did revenues in the Central America and Caribbean segment increase only 1.8% year-over-year despite the 13.7% growth in cement dispatches. Also, could you provide more details on the FX gain of this quarter? And the Argos -- finally, the Argos Materials platform should generate $200 million in EBITDA, while the sixth pillar of the SPRINT program expects reaching the $300 million in EBITDA in the U.S. platform. Could you explain where should the remaining $100 million will come from? Do you expect any downward revision in this case?

Thank you, Gabriel. The main driver of volume growth in Central America and the Caribbean was trading, which was basically more shipments of cement from trading to QUIKRETE in the U.S. So that is why you see significantly higher growth in volume than in revenues because prices of that cement are lower than the average FOB prices in our local and domestic operations. Second question, I mean, the reality is that organically, we are sure that we will exceed the $200 million in EBITDA from our import platform into the U.S. of aggregates. The reality is that the additional EBITDA to reach $300 million will come from bolt-ons to complement that aggregates platform. The timing is 5 to 7 years. I mean the reality is that Phase 1 is organic, and then we will complement that platform with bolt-ons. So that is basically what explains going from $200 million to $300 million of EBITDA by year 7.

Okay. And regarding the FX gains?

Sure, Felipe. Felipe will give you more color on the FX gains. Go ahead, Felipe.

Of course. As part of the repatriation or partial repatriation of the proceeds of the Summit sale in order to fund the share buyback program, we have entered into some intercompany transactions between our vehicles offshore and the holding company in Colombia. So there's -- at the holdco level, there's a liability against a wholly owned subsidiary abroad. So this FX gain is a nonrealized FX gain associated to this intercompany financing transaction.

Okay. So we are not expecting this will be a one-off for this quarter?

Absolutely. Absolutely will be a one-off, and it's totally -- I mean it's -- first of all, it's nonrealized FX gain. And the path of this account is going to be fully dependent on the evolution of the FX. So if the FX goes up, then we can see that amount diminishing in the future. If the peso keeps appreciating, this amount might go up. But again, this is something that is neither a positive or negative result is going to affect cash flow going forward.

Okay. One other question regarding the financial income. We saw a 25% decrease -- 24% decrease this quarter. Could you explain also that?

So I mean we are -- we currently, as you know, we have COP 12 trillion of liquidity. That liquidity is generating around -- yes, it's generating so far $80 million in interest revenue. By the end of the year, we expect that number to reach $100 million. Regarding our gross debt, we have COP 3.1 trillion of gross liabilities. The cost of those liabilities is close to 10.5%, and that cost has been decreasing consistently over the past few quarters. So I mean, we've been getting a lot of tailwinds from the cash liquidity and also the cost of our gross debt is also diminishing. So the overall result is that -- I mean, we expect that the net interest expense for the year is going to even out. The income is going to offset all of the cost, and that is the result of these forces taking place.

Next question comes from Simon Londono from [indiscernible].

I just have 2 questions. In the first one, I would like to ask about the next steps in consolidating the aggregates platform. And second question is related with the local market. Could this strong performance in the quarter be seen in the coming periods?

Yes, Simon thank you so much for your questions. I mean next steps is the ramp-up of our operations in the Dominican Republic and Panama. As we mentioned, 2026 is going to be our first year of full year commercial operations into the U.S. We don't have enough capacity to exceed 1 million short tons with the current configuration of our quarries in the Dominican Republic and Panama, even though we have unlimited reserves. So next steps will be to ramp up operations, especially in the Dominican Republic and to start building the port infrastructure needed to reach the volumes that we plan to reach by year 5, both domestically in the Dominican Republic and Panama in our 3 terminals for imports into the U.S. in the Gulf and the Southeastern coastal markets in the U.S. So those are going to be our next milestones in the aggregates platform going forward. And yes, the reality is that we see the positive momentum going into 2026. As Carlos mentioned, we see a more constructive outlook in Colombia, not only in the consumer segment of the market, but we are seeing important infrastructure projects in the major cities and the permits going on as well into 2026. So our outlook for Colombia in 2026 continues to be very constructive.

Next question comes from Santiago Villanueva from Davivienda Corredores.

Okay. I just have one question, and this relates to the construction and infrastructure sectors in Colombia. You mentioned projects such as the metro and the Túnel of The East. But could you give us a little more detail about your outlook for the sector in 2026? Will there be new projects from which Cementos Argos can benefit?

Thank you very much, Santiago, and I would like Carlos to give you more color on the outlook of infrastructure in Colombia for 2026.

Santiago, I think that the Bogotá Metro will continue in 2026. We are starting the delivery of ready-mix concrete for the Túnel de Oriente, the second Túnel de Oriente, right in the next coming days. We are serving as well some projects of TransMilenio in Bogotá. There are other works or civil works in Cartagena, in Cali, as well. And no projects like 4G projects, this is more that are coming from the different cities around Colombia, but there are very good amount projects distributed around Colombia.

Okay, thank you.

For instance, as well, they are completing the final work for Túnel del Toyo. [indiscernible] it will continue as well in 2026. Remember that they are completing the final or the other 4 generators. Like I mentioned, not a big, big project starting in, but there are a lot of different projects distributed in Colombia.

Simon Londono from Grupo [indiscernible] has a follow-up question.

I have another question regarding the trading dynamics. Will this trend of lower prices continue in the coming periods?

Simon, we see prices at least increasing with inflation. I mean the reality is that when you look at FOB prices in Colombia, they have increased in a significant way during the last 3 to 4 years. I mean they are already exceeding $110. So we still consider that it is room to continue increasing prices, but most likely into 2026, price increases will be in line with inflation across all of our markets.

Thanks, Simon, and thank you all. Juan, there are no more questions.

Okay. Thank you so much to all for joining our third quarter conference call. Looking forward to see you at the fourth quarter conference call. Have a great day, and thank you so much.