Grupo Nutresa S. A. (NUTRESA) Earnings Call Transcript & Summary

Good morning. Welcome to the conference results for the first quarter 2022 for Grupo Nutresa. I am here with Carlos Ignacio Gallego, President of Grupo Nutresa; José Domingo Penagos, Vice President of Corporate Finance; and Diana Bernal, Director of Corporate Finance. My name is Catherine Chacón, and I'm the leader of the Investor Relations office. After the presentation of results for the quarter, we shall have time for questions and answers. The questions can be answered through the audio line or through the webcast chat line. [Operator Instructions] If you want to follow the slides in Spanish, because by default they are in English, you can download them from the screen of the platform. To start the presentation, I'll give the floor to Carlos Ignacio Gallego, President of Grupo Nutresa.

Good morning. Thank you for being with us with our conference. To start with, I will ask you to go to Slide #2 about events of interest for the period. First of all, let me tell you that Grupo Nutresa is a Gold Category in the Standard & Poor's Global 2022 Sustainability Yearbook. This is the second consecutive time that the organization is distinguished with the sustainability award. It's a recognition that is obtained after recording in November '21, the best performance in the food industry in sustainability indices, for which the company has been working in the past 11 years. And Grupo Nutresa was recognized as the second best company, most responsible company in Colombia. Respect, integrity, and corporate citizenship are values that helped build a better society and are part of our corporate philosophy and the actions of Grupo Nutresa. This is why we are very pleased to tell you that for the first year in a row, the company has been the second most responsible company in Colombia, according to the results of the 15th edition of monitor Merco Responsibility ESG, which -- for 2021. This rating includes evaluating general population and by some related groups and includes the opinion of experts on corporate social responsibility, consumers, and over 2,000 managers who selected the 10 best responsible companies in the country such as having ecological behavior, environmental commitment, and labor attraction. These recognitions obviously show the consistent commitment of the organization to sustainable practices that generate value for various stakeholders. These 2 interesting events that I just mentioned, after that, I'll ask you to go to Slide #3 to look at the behavior -- the business behavior during the quarter. The first quarter of 2022 has a positive commercial dynamics. As you can see, we're highlighting growth both domestically and internationally. In Colombia, we reported a growth of 26.5% in sales, which represented COP 2.207,5 billion with a double-digit growth in all our business units and in others as well. We highlight the growth in coffee, pasta, and biscuits with increases higher than 30%. The volumes rate grew 11.2% during the period with positive variations in all business units, and they have a resilient behavior vis-à-vis the price increases that we've had, which represent on average a 14.7%. Going business by business, the Cold Cuts grew 27.6% with volumes, which increased 11.2%, driven by good performance in the Cold Cuts portfolio and highly -- and in large chains in traditional outlets. And Biscuits increased volume by 12.5%. All the channels and all the categories have double-digit growth. Chocolates grew by 17.7%. With highlighted dynamics in Snacks and Cereals in addition to Biscuits, all channels grew by double digits. Coffee grew 42% in sales with volumes that increased by 11.9%. All the categories and channels grew at a double-digit rate. Retail Food grew at 21.2% with good performance in the fiscal, and sales continued through digital sales of our own and through allies. The Ice Cream grew 17.7% (sic) [ 16.7% ] with good growth in all channels. In Pastas, the growth is 34.7% with increases by volume of 11.7% and good balance in sales for the major brands and industrial sales. In Others, which is 23.4% and good performance in double-digit growth in Atlantic Food Service and distributed and enterprises. So it's a very good quarter for sales in Colombia. Going to sales outside of Colombia. We had revenue for $355.4 million, grew at 16.1%. In Colombian pesos, these sales are COP 1.389,9 billion with an increase of 27.7%. During the period, we had a donation of 9.9% vis-à-vis related to same quarter previous year. Organic sales would be $345 million with a growth of 12.7%. And in Colombian pesos, it's COP 1.394,4 billion with an increase of 23.9%. Total exports from Colombia during the quarter was $95.2 million with a good growth, 19.2%. If we look at by business, TMLUC grew at 7.8% in dollars. In functional currency, the growth was 20.4% and had good performance in the main categories as in cold drinks, pastas, and snacks and a double-digit growth in its main geographies. Biscuits, we've had 13% growth with better business activity in the U.S. and with good dynamics in all other markets where we are present. Coffee, we had a growth of 21.7% as a result of the good exports management in Colombia and the performance of operations in the U.S. In the Chocolate, we had 15% growth with good dynamics in geographies that are part of the business, especially in Mexico. The international operations in retail food grew at 19.2% with growth in all fronts. The Cold Cuts decreased 21.5% in dollars as a result of lower exports from meats from Colombia and lower sales in Panama. In Others, the increase was mostly due to the consolidation of the operation with Belina, which -- in the businesses we had. Going to Slide #4, we see that by combining the growth in Colombia of 26%, 25%, and international growth of 27.7%, we reported consolidated sales for the period of COP 3.597,4 billion with an increase of 27%. All our business units and others had a double-digit growth. It's really a very outstanding role, and I didn't want to go by without mentioning the fact those who attended companies to who do we attribute this growth; why, how did we manage this? First of all, the growth is due to the management and the activities of our team, the commitment, the relationships we have achieved with clients in purchases and consumers. When we compare to the first quarter in 2021, we still had a significant portion of our personnel working remotely. We had taken care of ourselves. With the system, we developed traffic lights according to the territories' needs. This works very well. We took care of our lives, and it's our first priority, where we said to face this pandemic. But this year, thanks to the improved conditions, most of our team of workers are out in the street, and we're showing that commitment and that improved performance with clients, buyers, and consumers. Secondly, we believe that our supply chain capabilities are at risk, and we've done better than other competitors. We have many challenges in the logistics chains, in international freight, and the transportation in each territory. We are seeing a difference in the capabilities that we had Vis-à-vis those that some competitors have had, and we've been able to do it very well. It's very important to tell you that the price management we've managed to do with gradual changes. And with the opening -- we have shared with the markets the benefits of some parts of our hedges we had has enabled us to get this price increase without a significant effect on volumes. This is extremely important because we are growing very significantly in terms of volume, and that is key for the future of the company. This is possible also because of the work -- sustained work to strengthen our brands. We believe that another factor that has helped this growth is that we had some impacts on private brands, manufacturers. It had been less powerful during this period of so many challenges in our supply chains. This first quarter also has a high percentage of restaurants opened. Last year, we had many restaurants with limitations. Now, most are open, and this has a positive effect in our Consumer Food business and those channels that deal with food service. So activated the feel-good assumption in this part, products that are sold -- are prepared in the stores, local consumption, it is very similar to what restaurants work like, and we have a greater growth. Universities and schools are more open. This has also had our vending machines in school stores to have greater volumes. We've seen also that we've had good performance in the wholesalers, and we've made -- because we've been able to guarantee better availability of the product and innovation and development is still an engine -- a driver for the growth. So the combination of all these factors has enabled us to have this 27% growth. And innovation sales were 14.6% of total revenue for the group. As I mentioned, this is a significant driver. In the next slide, we can see the sales by region. Sales outside of Colombia were 38.6% of the total. And I would say that the growth in U.S., Mexico, and Central America were higher than the average for the group. All the geographies where we're at, where we operate, grew at double digits. The #1 geography was Colombia this quarter with 61.4% of sales. And the second was the U.S. with 12.4%. The third one was Central America with 10% and in Chile with 6.3%. And these 4 geographies added together represent approximately [ 98.1% ] of the total sales of Grupo Nutresa during the period. As far as the behavior of inputs, going now to the Slide #6, we see that the start of 2022 has volatile geopolitical environment, added to the challenges we've had in our production change in our global logistics. Therefore, the cost of inputs are still increasing and volatile. The commodities index on average for the first quarter has a higher level than what we had during the same period the previous year as a result of higher reference prices in raw materials that we use in our production. Many of them have had double-digit growth as well. We continue to manage this challenge with our coverage strategies, diversifying our supplier base with the proper pricing management and with productivity programs within the organization. To go more deeply in profits, I'll give the floor to our Vice President of Corporate Finance, José Domingo Penagos. Good morning, José Domingo.

Yes, thank you. Good morning to everyone. Those of you who are following the presentation, go to Slide #7 so we can start talking about profits. And before the numbers against a framework of what we call the -- you could describe the profitability, this equation about profits as follows; a sustained pressure on costs, sustained because of several quarters where we've had this pressure. And without using the [indiscernible] structure, pressure of the supply chains in commodities, we don't see that in the short-term this is going to change. So what we need to do is to level this equation out and vis-à-vis this sustained pressure on cost, which we are working with the hedges. We cover about 75% for the year and part of the next year, obviously, at higher prices than we had for the previous year. So this is the first vision, the hedging of the positions, even with the sustained pressure, as I said, not only in commodities, but also in our supply chains. And how do we manage this pressure in the other P&L variables? With good budget dynamic in revenue that Carlos Ignacio has said. One is the volume; when you have increased volumes, you can dilute the cost in fixed expenses, and we see them here. As we grow those volume thresholds, we have these dilutions, and I will talk about more details about prices. So this is directly the EBITDA and the profits. This is the highest part of our P&L. You can also see a consistent discipline on expenses in the entire expense chapter, especially sales and expenses. And as we have these volumes and these price dynamics, we will be able to maintain that because, obviously, every quarter has its challenges, and we will respond to the pressure of cost. So all these variables, you find that the reason for the results that we're going to be presenting. Second, we have to in all the geographies, all the [indiscernible] businesses grow at a double-digit rate, including these pressures that we have mentioned. We have double-digit growths especially in 6 of our businesses and in Others. And now let's go to some numbers. First of all, the global numbers, the EBITDA is COP 468 billion with a growth of 18% and a margin of 13% for this first quarter of 2022. If I do this in my business, what it's going to be, it is many of the arguments are the same because they are very -- across the board in spite of the cost impact and the management of prices. Let's start with the Cold Cuts, which grew 8.6%. It is -- still has some cost pressures. I'll give you some percentage growth, which are very significant and very sustained. For Cold Cuts, we have the [indiscernible] on expenses and intelligent application of prices. This is a category that has some international pressures, especially in Colombia. That's where we had this performance. In the Biscuits, we have good hedges and good business dynamics. At 28%, we were able to manage. This is very well balanced units between -- balance between local and international, and we have this balance to a rate of 11.6% and a growth also with double digits. In Chocolates, I was mentioning that cocoa has grown, but we've had some important windows where we had less volatility, and we've been able to take advantage of these opportunities. This -- the mix -- the sales mix with a good performance in the snacks has given us a margin of almost 17% and a very good growth dynamics to 27%. In coffee, the rate of the raw materials on the cost structure, coffee has 88% of the cost, and we have a 77% pressure -- an increase of 77%. So when you apply this equation, you see why this pressure went back to balance -- to the EBITDA. And thanks for this growth in TMLUC, which is not foreign to pressure of expenses. We have to mention the structure of this new business unit, very diversified in multi-categories and geographies. And that mix gives us a lot of flexibility to face this volatility that we see. So without being foreign to these pressures, the management and that mix, we have a very significant growth of EBITDA of 27% and a double-digit margin. In Retail Food, we hadn't saw that in this business, but how compared to the previous year, we have all our stores almost all open, about 117 in 120 stores we have right now in the quarter. In the previous year, however, we had some major closures, especially in Colombia. And this margin that we're showing here of 20.5% doesn't have the effect of the hyperconsumption. We had some important margin contributions. So the results, I could say that it is very clean and it shows that good business dynamics in restaurants, not only in Colombia, but also in Central America, Caribbean, and we have very good dynamics and with this good opening during the entire period, the first quarter. In Ice Cream, it's still affected by cost. Milk especially is one of the most significant. Inputs has doubled the cost reportedly of fats and sugar and packaging material. But with the good dynamics, the volume that we showed earlier, when we spoke about profitability, it has allowed to dilute the fixed cost in this business and the distribution structure and then brings benefits for the profits. In Pasta, we had a margin of 19%, especially a growth of 60% compared to the previous year is not foreign to cost of pressures, but the coverage, the discipline, the mix that we have between the major brands and its [indiscernible], which have more value will have given these results, which are very structured. It's not only for this quarter, but this in Pasta has had in these results for the past several quarters. So Ice Cream and Pastas, although there are differences in the networks and in the categories, in this case, they have some very similar results, very good dynamics. And in Others, which is the Food Service, all the hybrid entrepreneurs, you mentioned new businesses like pets, we have a margin of close to 10%. Good food service dynamics with the opening of the clients, which we cater to restaurants and all that, this is very sustained, and these businesses related to companies like Atlantic, which have good dynamics. And in Belina, we're still following our business plan. Very good business dynamics, and returns are as we expected. So with that good dynamics with our business units, the profitability explains the practice of the P&L, which is up to half of the table. The table we're going to be seeing next, which is in Slide #8. Then let's start with the operating and commercial part, growth of 27% or total revenues for the period of COP 3.6 billion. This is the highest growth since the third quarter of 2015. This is good. Like I mentioned that, as we see in the results, the price management. This really -- acquisition of Belina, which -- it is not based on that acquisition only. If you do have pro forma calculation without the acquisition, the growth is 25.5%. And this just revalidate the -- all the arguments that we just mentioned. And we highlight the growth, the organic growth, which is the organization's vocation. The price pressure of costs, which I've referred several times, is reflected in the gross margin. See how that has contracted [ 370 ] basis points. The cost of sales is 35%. Gross income is 25%. So that's the same pressure of what we manage vis-à-vis with the -- in the volume and expenses. All expenses, administration, sales, and production, have a growth of -- which is closer to the structure of 13% vis-à-vis an increase in revenue of 27%. So this is totally sustainable. The answer is, again, it depends on the circumstances. Right now, the pressure is on cost and significant decrease in volume. As this dynamic remains, it will be sustainable. As circumstances change, we will again look for this right balance. We have some differences with regional exchange, operating and post-operating. And the operating is derived from the hedging activities. We have revenues of about COP 21 million during the period. And that part of the P&L shows operating growth and operating profits of COP 373 million. In the -- from the middle of the P&L and down, there's a growth in financial revenue. This is basically because of the effect of interest rates on managing the treasury or the cash surpluses. But most important, I think, is the financial expenses, in this case, it has an increase of 25%. But due to the low debt level in the group, this is only a COP 15,000 million. Now, this is basically only because of the structure of our debt system. This part of the next slide. And this is a very valuable part, which is fixed at some good rates, but the central banks are increasing in Colombia. Last week, they increased 100 basis points. We feel that impact throughout the cost of our debt -- and that is the reason for this financial expense. Dividends is an important revenue during the first quarter of every year. We have dividends decrease by Grupo Sura, Grupo Argos, and we received them during the quarter. I said some revenues in different exchanges in the cases of nonoperating difference of rate of exchange in the COP 15 million. This is also due to the hedging activities, but the net effect is positive for places of rate of exchange. We have some revenue from business participations in associates and joint companies, COP 15 million. And before net profits, we can assure you that there's a higher tax levels with an increase, especially in our ordinary income tax and is derived mostly from the growth in profits, profits before taxes, operating profits. And that is where the growth comes in because our deferred income tax we have a decrease, about COP 16,000 million, because of the fiscal benefits, especially from foreign operations. So the tax level is the effective tax rate, which is approximately 23% vis-à-vis 24% from the previous year. Also taxes -- current taxes, in addition to the growth in profits, we have the impact of the tax reform from the previous year. Except with some companies with this ability, we have that impact directly on our effective rate. During the first quarter, it's lower, but in the rest of the year, it will be closer to 29%, 30% for the effective rate for the entire group. All of this shows a net profit, which is increasing, 29%, and with COP 296,000 million with a proportion of revenue, which is also significant of 8.2% in this first quarter. And lastly, in Slide #9, which shows you the structure of the debt. But this debt -- net debt of COP 2.8 billion is a net debt indicator of 1.99x, less than 2x, which are sustained, very controlled, and with a cost of 5.5%. Now, I'll tell you, I was heard saying earlier that it's because of our variable structure of our debt, and although we have some pressure on inflation, we hope that it will be more moderate by the end of the year, and we will have a significant traction in debt. In this section, I tell you about the CapEx. The CapEx in the budget was [COP 413,000 million or COP 414,000 million ] and the execution so far is less seasonal. It's usually in the last quarter of the year. The first part of the year is less intensive in CapEx. But I'd like to tell you that although it's less intensive in CapEx, it's more intensive in working capital, where we have some labor and tax elements. And the second is that you probably saw it in cash, there is usage of cash that we see that as an investment. When already there is no available cash flows, evaluation is in inventory without inventories, which are related to growth. The growth at 27%, inventories at 14%, we show that we are investing efficiently on that cash. We haven't had to use that. We are funding our growth with our internal funds regeneration. And that's why we use that in cash, which is -- should be returning about 80 or 90 days. Also about receivables, which we received, the effect of that growth, and which is 100,000 in inventory and close to 5,000 million in inventory. So when we hear what the return on investment capital, which is 9.99%, which is within the value generation area for this -- for all our shareholders. I give the floor to Carlos Ignacio and the questions.

Thank you, José Domingo. And vis-à-vis the outlook, I don't want to refer, first of all, in general, to the environment, where we see growing inflation in countries where we operate. We have high volatility. We see that the logistics difficulty that we mentioned earlier in the conference have not been resolved. In some cases, they have been even bigger, and in general, higher rates of interest. All of this is going to produce some pressure on people's purchasing power. And we have a rebalancing of consumption, not only rebalancing in the channels that we have mentioned but also in the categories where the consumers will probably will be decreasing some consumption and would focus on others. And I'd like to point out that the food is basic. And when it's one of the last to be affected in a society, we believe that in this more turbulent environment, Grupo Nutresa, we have a portfolio and the ability to compete appropriately. Therefore, we expect that the next quarter will be -- have a positive business dynamics. In fact, during this month that we're almost ending, there's a month of the second quarter. What we saw is that the business dynamics is still pretty well. And I'd like to talk about our vision for the 2020, 2030, where we tend to double the sales as a goal. When you say double sales for the company between 2020 and 2030, that implies a yearly compound growth of at least 7.2%. But because in the previous year we grew at 14.5%, we already grew twice as much. And we now have a good start at growing 27%. I'd like to take advantage to state that we're still hoping to get growth at least 7.2% and through rest of the period until 2030. Maintaining the challenges, we hope that leads us to improve every day to benefit our related stakeholders. In profits, we will still have pressure on costs and expenses, and we'll continue facing this with productivity programs with hedging and proper price management and trying to maintain high returns over the cost of capital. This is then the comments about the outlook, and I'll give the floor to Catherine so we can go to the Q&A.

Thank you, Carlos Ignacio. We'll now start the question-and-answer session with the concerns that you might have on the audio line. I will read 7 questions that we have through the webcast chat. The first questions are by Daniel Guardiola. There are several. I will read the first 2, then we'll answer them, and then we'll continue with the others. I read them. "Good morning, I have a couple of questions. One, during the quarter, the pressure on gross margin was partially offset by an expense structure, which was historically low as a percentage of sales. In that respect, I'd like to know whether you can give some idea about some specific measures that you use to improve the efficiency in expenses, especially in sales, and how sustainable is the current expense level. Two, in spite of the good results, cash generation went negative. Could you tell us what attributed that deterioration of working capital during the quarter? And what are the expectations by management for cash generation for this year? Do you have any free cash flow to sales target?"

About expenses, this is a proportion. Remember that the effect of a dilution on volume is reflected here in this percentage. I'll show you in chapter the sales effect. Also the prices we have on -- the prices in the equation into the top line and dividing the expenses, it represents higher efficiency. However, in all our activities, commercial activities, our sales of the various channels, we have chapters where we are improving retail to become more efficient with that way to market. Another one is the balance of those sales as we have access to some clients or channels where that expense nature is lower, and this is really dynamic. It also helps with that mix. And now you mentioned that this is the part of the equation that we will offer for this cost situation. It doesn't mean that as cost will decrease we will be spending more, no. We're going to be refocusing our investments in the market. With respect to working capital, I think that you mentioned earlier, we invested in that growth. So we're growing at 27%. And if you look at the working capital structure, it's mostly in inventory and in receivables and in inventories due to, first of all, because of the growth, and look at the ratio, 27%, and inventories at 15%. So we managed to gain a certain efficiency. And the other thing is we measure more the growth in terms of days, and we went from 84 to 89 days, our inventory turnover. So that those 5 days are an investment in growth. And in the second, the inventories also act as a hedging or coverage, physical inventories as a tool that help us with the organizations. And what we have is that capital, and this working capital is invested, and it will be returning according to the cash cycle in the organization.

Thank you, José. Thank you. Let's now have another 2 questions -- another 3 questions from Daniel Guardiola. Could you give us more details about the growth of prices? What percentage is the change of mix and what percentage is repricing for products? In the first, can you give us an idea of the search for the strategic partner? And the fifth is during the quarter, we saw an improvement on the ROI. Can you tell us more details about the most and the less profitable categories and if you considered divesting of those businesses that are not so good?

Thank you, Daniel. Once again, thank you. Apologies for the difficulties with the platform. But I will talk about the 3 questions. But first of all, we've mentioned this several -- in conferences how the pricing change for Grupo Nutresa, what it's like. We have had thousands of references in some matrices where we analyze according to the geography, according to the channels. This is an issue, which is not as easy to tell you what percentages change in each. Actually, this is just -- and that is as a possible behaviors in a freely competitive market and where what you can do is fine-tune how sensitive is volume to pricing changes and the differences in the supply chains has made it impossible to get even better results than the models predict. So we are working on this. I'd like to point out that when we speak about that price percentage, we do that comparing quarter-to-quarter. So this is not what has increased the price or the price in Nutresa during the quarter. This is a guidance or a full year, and also mentioned in my comments that the company -- purposely, we're thinking about the business in long term is, I think, to share part of those hedges with certain clients, consumers, and buyers. And that has made the price changes be easier. And some competitors have preferred to have major challenges in the prices, and that's why their volumes have been more impacted. This activity is dynamic. It is ongoing. We have not completed that, but we will continue to do that as prudently as we can in all geographies. It's not just in Colombia. And we're seeing that in markets from the U.S., which is a more sophisticated market to the Central American, Chilean, and in Colombian markets. That I could say that about pricing. I can't take simply that as a great average because, I think, it wouldn't give you any information. About the second question about strategic partners, December 17, 2021, the relevant information the Board of Directors of the group informed the market that we had told the management to study with the support of their financial, legal, and strategic independent advisers. Some proposals have been mentioned for the company to study alternatives as a project like bring in strategic partners to continue helping generate value for the company, for the shareholders and stakeholders and that are aligned with the company's provisions, objectives. That same day, we told them that at the time we didn't have any progress. As I mentioned in the initial letter, any advance will be reported to the market. You know that the company has received several -- we are very respective of the rules facility, and we have nothing further to report on this subject. And about the return on capital invested is, first of all, we have a very good return quarter, improved vis-à-vis the previous quarter and vis-à-vis the previous year. The turnover of the assets is extremely key. We see growth like this that we are showing here. If we don't significantly increase the CapEx or the invested capital, what we can do is improve our returns. We've been having -- advancing very well in the categories and have opportunity to improve. And you don't [indiscernible] leaving or entering categories because there were many, value. We haven't -- foresee in the short-term any divestment that we should tell the market. But we are very happy with that path that we're following to improve. I would say that increasing our sales volumes and improve the rotation or turnover of the assets and the analysis of the investments looking to invest in projects that improve the company, make it a leading-edge company. And as mentioned -- José mentioned, when you grow fast at the beginning, your receivables and inventories increased, but we think that we're doing it well. This is a good growth. Obviously, the challenges, the volatility, and the pressure on the commodities is noticeable. When we see tools to work with, I'd say that the -- those are the comments about your questions, and thank you very much for being with us during this conference.

Thank you very much, Carlos Ignacio. We will now read a question from [indiscernible] from Bancolombia. [ Juan Camilo ] asked about the cash flow that we already answered. So I'll read the additional question. My question is about the Pasta where we had a 38.7% increase in revenue and 59.7% in EBITDA. What shows operating leverage effect? Could you get -- how could you get that result? And what strategies did you use to make this a reality?

I think it's just worth reviewing. First of all, the effect of our hedges, we've had pressures on the commodities. But in this, we advanced both in the commodity itself as well as in the currency. Most of the currency here is local in business activity in the Pasta business, so the commodities and the currency. Pricing in this business unit helps a lot to grow the EBITDA than the pricing has to do to the management of their categories, major categories [indiscernible] so that the mix helps a lot to the -- helps the mix with the results. So it's a set of attributes that being very careful with the sustainability issue, they are set up in these business units and allows us to have good outlooks for their profits and their returns.

Thank you, José. Thank you very much. And the last question that we have on the chat is by Julian Ausique from Davivienda. Good morning, everybody, the divestment issue, as the company thought about any divestments in the short term?

Thank you, Julian, for being with us in the conference. I just mentioned that in a company like -- in a company the analysis of portfolio investment is an ongoing activity. We have now -- in the short-term we have no major decision about any divestments that we should report to the market. As you can see, during the quarter, all the business units had good behaviors, and we feel we are challenged to maybe read the conditions that are in the market, but we have not thought of any divestments so far.

Thank you, Carlos Ignacio. Thank you very much. So far, we have no further questions. So we'll then conclude the conference or results for the first quarter of 2022. Any additional questions if you -- who had difficulties to ask the questions because of those problems in the chat, we ask you to send them in through our Investor Relations office, and we'll be responding to all your concerns. Thank you for being with us, and have a happy week, everyone. [Statements in English on this transcript were spoken by an interpreter present on the live call.]