Good morning, and thank you for waiting. We would like to welcome everyone to Ambev's first quarter 2021 results conference call. Today with us, we have Mr. Jean Jereissati, CEO for Ambev, and Mr. Lucas Lira, CFO and Investor Relations Officer. As a reminder, a slide presentation is available for downloading on our website, ri.ambev.com.br, as well as through the webcast link of this call. We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the company's presentation. After Ambev's remarks are completed, there will be a question and answer session. At that time, further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Ambev and could cause results to differ materially from those expressed in such forward-looking statements. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during today's call are both organic and normalized in nature. Unless otherwise stated, percentage changes refer to comparisons with first quarter 2021 results. Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of Ambev's normal activities. As normalized figures are non-GAAP measures, the company discloses the consolidated profit, EPS, EBIT, and EBITDA on a fully reported basis in the earnings release. Now I'll turn the conference over to Mr. Jean Jereissati, CEO for Ambev. Mr. Jereissati, you may begin your conference. Very much for joining our call. In February, I mentioned that 2021 would be a challenging year and COVID-19 pandemic was still very real. After that, we saw a steep deterioration of the sanitary conditions in Brazil, coupled with increased mobility restrictions, which impacted our people, customers, suppliers, and consumers. At the same time, we were better prepared this time around. As a result, we delivered a great start of the year. We grew EBITDA by 23.8%, driven by double-digit volume and double-digit net revenue per hL growth in Brazil, CAC, and LAS. Consolidated volumes were 5.4% above Q1 2019, and we were able to get back to flattish EBITDA versus Q1 2019. This was another quarter we saw clear signs that our commercial strategy is working, and that momentum continues. I was very happy to see the strong performance of our international operations, and Brazil continues to show that we are in the right path. We delivered volume growth in eight of our 10 markets and market share gains in seven of these markets. We saw a solid net revenue per hL growth in the quarter, driven by a more flexible and efficient revenue management initiatives, including occasion-based promotional activities. We continue to strengthen our portfolio as we launched innovations across our markets. To name a few, Golden Extra in Panama, Bud Light Seltzer in Canada, and Michelob ULTRA in the premium segment in Brazil. LAS delivered strong volume growth in the core plus and premium segments with a great performance of Corona. In Argentina, we had an outstanding volume performance and improved net revenue per hL, delivering top-line growth of 67%. CAC restrictions were partially lifted during the quarter. That, combined with a good performance of our above core portfolio and effective revenue management initiatives, delivered a top-line growth of 28%, led by Dominican Republic and Guatemala. Canada gained market share and grew volumes despite a tough comp in Q1 2020. Growth was led by hard seltzers and the above core beer portfolio with Michelob ULTRA and Corona. Brazil beer volumes grew 16%, despite carnival cancellation in February and tougher mobility restrictions imposed in March. According to our estimates, we gained market share while growing volumes in all segments, with a special highlight to our global brands that had a solid high teens growth, and Brahma Duplo Malte that continued its growth momentum. Brand health of the portfolio improved once again in all segments this quarter, and our digital initiatives continued to expand. Zé Delivery fulfilled 14 million orders in this quarter, reaching an all-time high in March. Net revenue per hL growth was strong again. This growth was mainly driven by effective revenue management initiatives. BEES also had positive impact, as it helped to standardize and increase efficiency across our portfolio. Today, I would like to further focus on BEES, our super app for our customers. We believe that BEES has been important to deliver a strong commercial performance, as it digitizes our route to market, enables our customers to place an order in three clicks at any time of the day, and offers assortment selections to box using algorithms. On top of that, BEES offer other services such as financial services, scheduled delivery, rewards programs, and other products via marketplace, providing a full e-commerce experience to our customers. Since our decision last year to launch BEES in Brazil, we managed to roll it out to all our DDCs and wholesalers. As a result, we now reach more than 65% of our active customers in Brazil via BEES, accounting for over 550,000 customers, and we generated more than BRL 6.5 billion in GMV. Given these promising early results, and to further boost the platform, in March, we announced that Menu.com, a startup marketplace for bars and restaurants that had been accelerated by Z-Tech for the past two years, will be integrated into this ecosystem. Today in Brazil, we offer more than 100 SKUs from approximately 31 partners in 380 cities already, reaching more than 5% of our net revenue in some of these locations. Our platform's scale will open many new opportunities for us to grow together with our customers and our partners. Our digital platforms will be fully connected throughout our operation, integrating with and leveraging on our existing supply chain, logistics, and sales capabilities. As our digital transformation evolves, we will enhance each step in our supply chain and become more flexible, efficient, and integrated with our partners, customers, and consumers, improving our NPS throughout the ecosystem. As for the rest of 2021, our outlook remains unchanged. We continue to expect a challenging year. COVID-19 is real and around us. Cost pressures will continue mainly in Brazil, not only thanks to FX, but also to commodities prices. With that said, I remain very confident in our people, our capabilities, and plans for 2021. Overall volumes at Ambev continued its performance in April. Net revenue per hL performance will remain a focus, especially in Brazil, given the inflationary scenario we are living. We expect our top line performance should continue to drive our recovery, growing ahead of bottom line, as we work to get back in the full year to the normalized, consolidated EBITDA of pre-pandemic levels. Thank you very much. Thank you for your time and attention, and I will handle this over to Lucas. Thank you, Jean. Hello, everyone. This time last year, our financial performance was marked by declining net revenue, declining EBITDA, declining normalized profit, and declining operational cash flow generation. What's worse, we were still in the early days of the COVID-19 pandemic. What a difference a year makes. In Q1 2021, net revenue grew nearly 28%, EBITDA grew almost 24%, normalized profit grew close to 125%, and operational cash flow grew close to 84%. Brazil beer performance was strong, and the growth of our international operations was even stronger. Just to put things into perspective, all these indicators are either at or above 2019 levels in nominal terms. In terms of outlook, even though COVID-19 is still around, I believe it's fair to say that things are not as gloomy as before. Quite the contrary, we expect recovery to continue as vaccinations pick up. I'm proud to see that not only have we navigated the crisis well so far, but more importantly, that the commercial momentum we started to build in Q3 2020 has continued to translate into consistent improvement in our financial results quarter after quarter. We have two big priorities on the finance side. Number one, continue to protect liquidity given the still volatile environment. Number two, improve our return on invested capital. The team has done a great job since last year in terms of protecting our liquidity position, which remains solid in each of our markets, while still investing about BRL 1.3 billion in CapEx in the quarter. Most of this investment was directed towards increasing our brewing and packaging capacity, particularly in Brazil, to support our innovation pipeline. The second biggest bucket of investment was in technology, such as our ERP integration, designed to, among other things, support our B2B and D2C platforms. In terms of ROIC, there's a lot of work going into improving resource allocation as well as improvements in working capital. There's no doubt that one of our biggest challenges remains the recovery of our profitability. FX headwinds will remain as our biggest hurdle throughout the year, particularly in Q2, whereas one-way package mix and commodity pressures should also be a factor. In addition, cash SG&A was higher in Q1, mainly due to provisions for variable compensation, given the stronger than expected start to the year. Since 2020 was a zero bonus year, should our performance remain on track, provisions for variable compensation should continue to impact our year-over-year SG&A performance going forward. On the other hand, this stronger than expected top line performance should help offset higher SG&A for the remainder of the year. We will keep focusing on our productivity initiatives and typical financial discipline regarding costs and expenses management. Yes, we will continue to work hard on improving our profitability, but we will not lose sight of the long term. The sense of urgency is there, but we have to be disciplined and stick to our commercial plan, which, after all, has been working. For us, the name of the game still is continuous and consistent improvement of our results. We have been on this improvement journey since the second half of 2020, and Q1 was another important step. There's definitely more to come. Finally, a quick word on ESG. In June, we plan to host a webinar to focus specifically on how we have been working to embed ESG into our company model. I hope to see you all there. Thank you. Now let's move to Q&A. Thank you. Now we will begin the Q&A session. If you have a question, please press star one. To remove the question from the list, please press star two. Our first question comes from Marcel Moraes with Santander. Good afternoon. Good morning, everyone. Congrats on the impressive results for first quarter. My question relates to market share trends per segment. You mentioned you gained, especially in Brazil, right? You gained share in all segments. Can you give us a little bit of color on the super premium and the premium plus core value segments? What's going on over there? Thank you. Okay. Thank you for the question. Yes, we feel that our portfolio is much more prepared. We went through a portfolio with a big renovation, launching of new brands, resource allocation, betting on brands that really could drive the future. Our performance of global brands specifically, they were quite double digits. It was close to the 20s. This is what we believe it is above the performance of the premium segment overall performance. That's why we mentioned that. We have been investing for a while in Budweiser and Stella Artois, and more and more, we are seeing Beck's with a very strong performance, and we are seeing Corona doing very well, too, and Colorado. These are our top five brands that we are really investing for the future, and they are really doing well. Specifically, Beck's is going triple digits growth. Corona is going on the 50s. Colorado doing very well on the in-home occasion too. Still suffering a little bit in bars, doing very well on the off-street. On top of market share, something that we are looking at a lot now is really equity of our brand, that we really have to push equity ahead of market share, push to make the pool and to build brand equity. Brand equity of premium brands are really moving much faster than the market share and than our plan. That's an important KPI for us that we are very confident. Thank you, Jean. What about the core segment? Any color on that? The core segment, since the beginning of the pandemic, that was information that I brought to you all, that the core had been very resilient. We've been really reorganizing our portfolio, creating the core plus segment, really launching pack innovation and different packs on the core segment. After years of volume decline, our core segment was really marked by resilience with Brahma, Skol, and Antarctica families growing by high single digits. This is the combination of the RGB 300 ml bottles, that we are really focusing during the pandemic as the pack that moms and pops and bars can do the delivery, can do the takeaway. It's an important part that's really accelerating the core brands. On top of that, the normal price strategy that we have been following. Core brands really bounced back. On top of that, the core plus segment, there's Brahma Duplo Malte, that's Bohemia, they are really on fire. Okay. Thank you very much. The next question comes from Carlos Laboy with HSBC. Yes. Good afternoon, everybody. Congratulations on really strong results. I'm wondering, what have you learned about Brahma Duplo Malte through this period, and how do you drive that brand going forward? What consumer insights have you gleaned as you sit back and reflect on everything you've learned here for what's next here? Okay. Thank you for the question, Laboy. Brahma Duplo Malte, we say that was really the brand that the product that we took one year to develop. It was really tested with all the consumer sides. We had this mindset of really get superiority on all the analysis that we were doing, comparing with the core, and really get inspired by other categories like, for example, whiskey, that has the double malt, the single malt and everything. It was amazing how the Brazilian consumer got steeped with the concept of Duplo Malte, or two malts that they combined. We were able really to develop the liquid that it really calls attention on the mouth and on the eyes because it's really creamy, and has a great mouth taste. All this process has been, for one year, we've been doing that, then we decide really to first to bet on the flagship brand. We are really talking about Brahma, that had Chopp Brahma Duplo Malte, and Brahma under the family umbrella. Brahma is the brand, and Brahma Duplo Malte is the flagship product. We went bold on that. We really get, in terms of resource allocation, we picked the passion point, the Brazilian passion point that's more relevant for Brazil today. We have two, football and the country music, and we get connected Brahma Duplo Malte with the most important passion point that we had. We have been able to work as a family. The good news is that Brahma is peaking back and it's growing together with Brahma Duplo Malte, that at some point in time, we would think about some type of cannibalization. The whole family is really moving up. We are very excited about it. Thank you. The next question comes from Rob Ottenstein with Evercore. It's Robert Ottenstein with Evercore. Thank you very much, and congratulations for a great start of the year. A couple of sort of follow-up housekeeping items. Number one, it looks to us, Lucas, that you didn't reiterate the guidance on the COGS being up 20%. Is that correct or am I missing something? That's number one. Two, just a follow-up on the Brahma Duplo Malte question, and that is, I believe that got launched last year, biggest innovation you've had. Where are the comps toughest for you on that launch? Just kind of two housekeeping items there, and then kind of the bigger picture question is how do you see the beyond beer market and business developing for you? It was a big theme for Brito on the ABI call today. Obviously, a lot of interesting stuff going on that side in Brazil. Love to get a little bit more detail on your thoughts on that as well. Thank you. Okay. Thank you for the question, Robert. Yes, about the cash COGS, our guidance was in low 20s for Brazil beer for the full year. This quarter, we had higher than the full year, but it was already expected given the curve of the hedges that we have in Brazil. For Q2, we will continue to see cash COGS above the full year guidance for the same reason, but we are not making any changes to this guidance. Okay, this is one. The second thing, it is Brahma Duplo Malte. Let me give you a higher view on that. What we are aiming is really to have a pipeline of innovation that really can transform my portfolio in the future and is already been transforming the company. One KPI that I looked big time, it is what is the percentage of my net revenue that come from products that did not exist three years ago? This number was 5% in 2018. It went to 10% in 2019, and we reached 20% in 2021, and we are looking at this number for us to continue this trajectory with a strong view about what are the spaces, what we want really to create. It is not just about any type of innovation. We have a framework with five avenues that we want to launch and maintain this momentum of 20% of our net revenue coming from products that did not exist three years ago. One more information. The tough comps of Brahma Duplo Malte, the peak, it was really the Q3, where it was really the moment that we are trade loading and putting everything on the market. What we see is that this number of innovation, overall, it should not change this 20% that I want to go moving forward. We have a pipeline that they are coming. Brahma Duplo Malte still has some geographical rollout and some new packages, new occasions for us to work on that. There is one important product on the core plus side that we have been piloting, and we are very excited. It is really coming to the rollout phase right now. That is one international brand. Having said that, beyond beer is really something that we are into it. We are very excited about our Beats brand, and the partnership with Anitta. We just launched it. We launched GT under Beats, and then we launched Beats Zodiac, and there is this family of brands that they are very creative, very incremental, doing very well. We have three or four pilots happening right now, for us to learn and decide where to launch. We are testing hard seltzers. We are in the pilot phase. We are testing Mike's Hard Lemonade. That is something that is a little bit with this juicy and natural vodka, and we are testing the fancy cocktails in cans. In beyond beer, we have four avenues that we are on full speed on Beats, and we are on the pilot phasing on the other three. Just to add something here on our international operations, Robert. Beyond beer is already a reality in Canada, for instance, and the quarter showed very good results yet again from our beyond beer portfolio. Not only thanks to Nütrl, which we partnered with last year and showed consistent growth throughout last year, but in the quarter, we launched in Canada, Bud Light Seltzer. Early days, but off to a very good start as well. I think that's one additional benefit that we have to be able to learn from the Canadian operations and roll out these learnings to other Ambev markets. Yeah. To give a little bit more information, Robert, you know that we acquired a winery in Argentina last year to build and have the capabilities of play with grapes, with winery. It's a business that in Argentina now is growing 16%, 16.16%, compared with what we bought. Now we are really building the capabilities of putting wines in cans and really testing this across the board in South America. Terrific. Thank you very much. The next question comes from Thiago Duarte with BTG Pactual. Thank you. Good afternoon, everybody. I have two questions on the revenue per hL in beer Brazil, and then a third question on brand portfolio. The first question is, can you talk a little bit more about how you manage the decision on the discounts in the Brazilian beer division? Since the third quarter last year, we've seen discounts coming down considerably. It's certainly been an important push to revenue per hL growth. Just wondering, what were the conditions that allow you to more aggressively cut back those discounts during the pandemic, when it comes to channel package and the competition changes that the pandemic brought to the business? I think it would be interesting to hear. The second question is, as we look into the net revenue per hL growth in Brazil beer, 12.6% year- over- year, can you help us break it down in terms of some of the main impacts that you had on a year-over-year basis? I'm specifically looking to hear in terms of the impact of the Carnival, or the lack of Carnival this year, and the digital initiatives such as Zé Delivery and BEES, that would be nice as well. The third question, Jean, you mentioned in your opening remarks that the brand health of the portfolio has improved across the whole portfolio. If you can elaborate a little bit more on what sort of metrics you're looking at when you make that statement, and how your brand preferences stack up against market share in each segment, that would be interesting, too. Thank you. Okay. Give me one minute for me to kind of put this on a paper. The second one is breakdown by driver, net revenue per hL breakdown. Third one. The third one is brand portfolio, elaborate power versus share. Okay. By segment. If I miss something, Eduardo, we go over again. Okay? Yes. For a while, I've been mentioning previous quarters that over the long run, overall prices should grow in line with inflation. This, we are talking big time here on shelf prices. Plus and minus, you have efficiencies on discounts, you have brand and channel mix, then we have the impact of our portfolio strategy, mainly through innovation. Okay, these are things that we break it down prices like that. We have been much more flexible, nimble, agile in terms of revenue management, to react to market conditions. We are in the middle of a pandemic still, so channels are really changing, different, what's growing. Transformation going on that you have to support. We really went deep on revenue management and specifically this piece of discounts, I think some things happened. First of all, BEES is helping us big time. Okay. It's so granular. We have a big chunk of our volumes already through BEES. You have better algorithms. We have better price trees because everything is really digitized and centralized. It really creates a framework, a easy framework for us to really understand the listing and the discounts and everything. This is one thing. Second thing, we are more linear because of that. Okay. We are kind of more less concentrated and preparing for everybody to have some access to the return in terms of discount. We are trying to get this a little bit with more standards and we were able to make it. We really moved this vision of a lot of discounts to trade in to a much more discounts connected with sellout and connected with occasions. We are really with a strategy where, for example, Brahma Duplo Malte, the promotions should be correlated with barbecue, and it should be the discount in this specific occasion and for all the products. We are really narrowing the brand building and expanding occasions and giving discounts on that direction that is helping us to be much more effective. These three things I would say that they were the drivers for us to really upgrade our discount management and our discount efficiencies. Okay? Talking about brands. The metric that we are really looking into it is really power. It's a combination. It's a proxy of It's more than preference because it's a combination of, it's a proxy for the market share of the future, okay? We have a big portfolio, and we decided to kind of really elect, inside this portfolio, which are the brands that we are really concentrate efforts for the long term for them really to become leaders. We are with this strategy of really concentrating and bet on some brands. We have been able really to drive the brands that we believe that will win in the future, big time. We are very excited that Brahma Duplo Malte is doing very well. It's bringing Brahma together. We are excited that Skol kind of stabilizing at some point. I mentioned this in terms of volumes. We understand this in terms of on the brand side, too. We have the premium business, as I mentioned before. The combination of that five brands that I have, they are really moving ahead of my market share. Really, Beck's is doing very well, Colorado doing very well, Corona. When we put all these things together, total portfolio of ABI is gaining in this metric that we are looking. There is power with the focus brands really gaining even more. The brands that were suffering the best, they are kind of stabilizing. This is the type of equation on the equity that we are seeing in the market. Thiago, this is valid across segments, also if you look at the firm since last year and not only the quarter performance. Brand building takes time. Requires consistency. One of the things that we're seeing is really this gradual improvement in our brand power across segments for the portfolio ever since last year. Perfect. That's very helpful. Jean, just one part of one of my questions. Is it fair to say that Carnival should have had an impact in terms of how you translate net revenue per hL on a year-over-year basis? If I had Carnival, I would have a net revenue per hL that was smaller than that. That's the question? Yes. Let me see. I think if I had Carnival, I would have a mix of packaging that it was worse than what I have today because it's more concentrated on weekends. I don't see an impact on the pricing side. If I had Carnival, I would have something around 1 million hL of cans selling in the market. I think that's how we should approach Carnival. Yeah, that's a good exercise. Thank you. Less about price and more about packaging mix. Thank you. The next question comes from Marcella Recchia with Credit Suisse. Hi, Jean. Hi, Lucas. Thank you for taking my questions. I have two questions. First, it's about pricing. Listening Brito at ABI conference call earlier, he mentioned about price increase for Brazil beer in June. My first question is if you could elaborate a bit on your pricing intentions and the magnitude over the coming quarters in light of recent commodity cost pressure, but also in light of the commodity cost outlook next year. That will be my first question before I will wait before moving to the second one. Did Brito mention that? Marcella, as we have been mentioned in previous quarter, look, over the long run, overall prices should grow in line with inflation. I'm talking pretty much about shelf prices, and then on top of that, you have the discounts, and then you have plus and minus brand and channel. There is this reference of shelves that on the long term should grow with inflation. You know that we have been very flexible, nimble, and agile in a way to react to market conditions, where we can go and move back or it can stick. We are really taking every opportunity that we can, but it's really something that is very fluid. Having said that, I would say that we cannot comment on pricings moving forward. I would just comment that this scenario that we are living in Brazil is a more inflationary scenario that we have to understand that got worse than we had in the past. Here, look, I'm really looking to the consumer. I'm not looking specifically for my costs. My costs, I already my cash COGS, I gave the guidance already. I'm talking really about the basket of the consumer and the inflation that we have over there, and how we get better prepared for that, okay? I cannot comment much further than that. Just that we are in an inflationary scenario, that at end of the year, inflation was smaller than it was right now, and we have to find a way to adjust to it. Got it. Thank you. My second question is about the SG&A. You mentioned on the outlook for this year and also in the call, that you expect higher SG&A because of the bonus provision, right? Just to understand, if you can comment something about the outlook of this increase for this line this year, what can we expect on that? Thank you. Yeah. Hi, Marcelo. This is Lucas. Thanks for the question. For SG&A, in Q1, the biggest impact was indeed the provision for bonus, okay? Based on our stronger than expected performance to start the year. Should we remain on track or ahead of our expectations from a budget perspective, we will continue to accrue bonus provisions throughout the remainder of the year. It's reasonable to expect some additional higher SG&A, as a result. Okay. The second biggest impact that we are seeing so far this year is regarding distribution expenses, and that's mostly a function of volume growth, right? As volumes grow, our variable logistics costs also tend to grow. The good news there is that there's a benefit in the top line and it's a net positive at the end of the day. Okay. The higher SG&A in the distribution side is compensated, is offset by the improvement in net revenues. Finally, the third bucket is sales and marketing Q1. There was lower sales and marketing versus last year, but this was mostly due to phasing, particularly in Brazil as a result of the restrictions that came back in March. We obviously had to adjust our sales and marketing spend given that restrictions were in place. Going forward, as we recover, as cities reopen, and the on-trade recovers, we are going to adjust our sales and marketing spend accordingly. Okay? Okay. Thank you so much for the answers. The next question comes from Lucas Ferreira with JP Morgan. Hi. Good afternoon. Congrats on the strong results. I have two questions. Sorry if they are kind of too technical around your forward-looking statements. The first one, you guys mentioned that you already kind of envision returning to the pre-pandemic EBITDA, right? Assuming that the 2019 number, for instance. I assume that your profitability would still be back. My question is there anything structural that you see in the industry, especially in the cost structure of the industry that, in the company, that would impair you to come back to the pre-pandemic profitability? In 2019, guys had an EBITDA margin of roughly 42%. Is there anything that you guys think that would be impairing you to return to this level? If for some reason, considering the pricing power, considering the reopening that you're seeing right now, you kind of already envision that this could be seen at some point in the foreseeable future. That's my first question. The second question is around the same topic, looking at the second half of the year. If you guys are reiterating the guidance for the COGS per hL, I would assume that your kind of COGS curve is more skewed to the first half of the year, considering your COGS per hL was up at 25% this quarter. In terms of, let's say, margin comps, are you seeing an easier second half than first half? Thank you. Yeah. Let me tackle this one and then if Lucas can help me. We are in the middle of a pandemic. Okay? I think this is what we should talk about. Since the beginning of last year, when we saw the scenario of bar shutting down, bar closed, mobility restrictions at some extent, sometimes more, sometimes less. All these things happening, so we went to this vision of transform the company towards the future, accelerate the things that we have been cooking during the pandemic, but really accelerate towards the future. I've been mentioning that, so I want to really recover top line on V, and I really wanted to recover volumes for the peak volumes that we had in 2014, that we lost 10 million hL from that point on. We are being very consistent on that since looking for new occasions, the consumers. I am now having 100,000 more customers than I had before. We were very happy to develop this relax at home occasion with our brands. That's something really, it's the future now. It's something that's more developed on mature markets. We were really with this mindset of, let's get back in V for the top line that we had at some point in time, and really let's follow the consumer. Okay? What I mentioned today, it is that so we are confident on that. We are very proud about the things that we achieved on the top-line side. We see momentum. I think it's time for us to go back and say, "Look, so for the recovery V of the bottom line. Where, when would we make it? What I mentioned, it is time for us to look at the bottom line that we had before the pandemic and match it. I really don't see nothing structural that will not make us in this journey continue to converge the top-line growth with the bottom-line growth. In terms of with this perspective of the pandemic and with this journey, we really decided to do one thing first and then the other. The next step will really be to talk about margin extensions. The good news is that really, if you look at how we are, one big part that we are suffering with this margin contraction is really the currencies. If you look at, we are in 50% of my costs, they are in dollars with FX related. The currency that I had in 2021, I mentioned that before, it's BRL 5.30. I'm hedged this year. This connects with that guidance that I gave of low 20s in cash COGS. It's BRL 5.29, to be more specific, the effects that I have today. If you look at the market today, this is exactly the effects that we have today. Looks like this problem that I'm having today, it kind of stabilized it on this level of BRL 5.29 that is already in my base. I don't see on the FX side exactly nothing more structural than that. We could decide to hedge everything on that, and then I would not have a problem with that, but not saying that I'm going to do. Then we have the commodities that really picked up in the short term, but we really have to understand how these things are going to evolve moving forward. The other piece is that really, as I mentioned, we understand this inflationary scenario. We have been nimble and agile for us really to get all the opportunities that we have and really guarantee the momentum of our top line, moving forward. Thank you. Sorry, just to the second point, do you see the second half of margin comp side easier, considering the new level of prices and considering the cost guidance kind of more skewed to the first half? Lucas, as I mentioned in my opening remarks, in terms of cash COGS per hL for Brazil beer, which is the guidance, we anticipate that the pressure will be greater in Q2. Followed by kind of less pressure in the second half of the year. If you take a step back and look at the rest of the P&L. If we go back to our performance during 2020, I think you can see that recovery, driven by the top line, was very strong in the second half of 2020, which means that we have a tough comp in terms of top line going into the second half of the year. As I mentioned before, SG&A, we do expect it to be higher, primarily due to the higher provision for variable compensation. Great. Thanks, guys. The next question comes from Isabella Simonato with Bank of America. Thank you very much, Jean, Lucas, for the call and for the question. Can you elaborate of the soft drinks outlook in Brazil? Also, how do you expect cost pressure to come on that line of business this year? If you could give us a little bit of more color about the quarters as you gave for beer, that would be very helpful. Also, on the international part, on LAS, top line performance has also been quite strong. The measures in terms of restrictions and et cetera have been more volatile, right? How you're seeing the beginning of Q2 and the evolution throughout the year. Thank you. Okay. Thank you for the question. Our NAB performance, volume overall, it was an improvement in Q1 2021. We have a 0.8% growth. With a lot of restrictions, an important occasion on the soft drinks is really this on-the-go. Mobility really connects with NAB industry, and we are still limited on that. Even though we were able to get to slightly positive volumes, the brands is really Guaraná Antarctica is coming back, getting performance better than it had before. Sukita is doing good. Energy drinks, they are doing good too, when we talk about the full portfolio. All of this partially offsetted by the occasions. There is an important thing for the profitability of shops being sold, the smaller packs, the channels. The only goal in the end was it's better than we expected, but it's still not there, and we believe that we will get better as the vaccination moves forward and the restrictions go down. Okay? This is NAB. When you talk about CAC. LAS. LAS. When we talk about LAS. LAS was an important quarter for us. It was a great performance. I believe so. We felt the restrictions more in Brazil on March. We are feeling restrictions in Chile now, a little bit on Paraguay, too. When we go to Argentina, talking overall about LAS, it was a solid performance on Argentina, Chile, and Paraguay. Mainly driven by corporates and premium segments, gaining market share in all of these countries, Argentina, Chile, and Paraguay. Bolivia is a place where we feel still under pressure over there, Uruguay too. Argentina, Chile, and Paraguay with a very good performance. Yes, we saw some restrictions moving forward over there. As you see, fluid, like the pandemic, it comes and it goes. We are excited because LAS, we had some important changes over there. Chile, we have a structural change, a new combination of partnership with Coke over there. That's really bringing us some different capabilities and possibilities. It's really something that we are very excited that we are able to gain market share on the own trade segment. That's something that we have been struggling in the past to do. Volumes very strong. We are very excited. Argentina, too. We see the portfolio is really stronger. This year, we were able to be, the government and all these things, we have been more flexible with more freedom for us to work on the revenue management side, on discounts, and on everything. Structurally, I'm really excited about LAS. Pandemic, yes, we saw some restrictions, but it's something that it comes and goes. It's fluid. Sure. Thank you. The next question comes from João Soares with Citibank. Hi. Good afternoon, everybody. Thanks for taking the questions. I have two quick questions. The first one, you had a very interesting discussion on the discounts. It's interesting to see that you're using your online channels to enhance your intelligence, right? I imagine that, especially through the B2C, you've been gaining a lot of intelligence on the consumer. If there's anything, Jean, that you could share with us regarding consumer behavior trends, possibly capacity to absorb further price increases, and how that connects to the recent trends that you've been seeing. Like the fact that brands that suffered in the past are now stabilizing. Anything that connects with this consumer behavior that you can share with us would be very interesting. That's my first point. The second point, you already talked about the commodity cost pressure. We're already almost halfway through the year. Aluminum prices have been going up. If you can talk about any initiatives ongoing, apart from the revenue management that you have been doing, to maybe mitigate this potential cost pressure going to next year, would be very interesting as well. Thanks. Let's talk about consumer behavior and revenue management first. Consumer trends. We are seeing this thing about the in-home consumption. The whole pandemic was really about how to win in the in-home occasion and consumption. That was the most important thing for us, too. I think we reacted very fast, and we had a lot of learnings on that. We know that the occasion in-home is more about relaxation, is more about Mondays and Tuesdays, and frequency, much better than before. That was very concentrated. Now people is more willing to watching TV, live stream, relaxing. This is important that for us to win, you have to connect brands and out in route to market and be profitable on this occasion. We are working a lot on that. We know that consumers are convenience. It's convenience beats everything, isn't it? Consumers are really looking for convenience. They are buying locally. They are buying in moms and pops close to their home, in e-commerce, in Zé Delivery. They are moms and pops and bars. They are transforming really to become small takeaway supermarkets of some things. There is this thing that, for example, for you know. We are betting on the RGB 300 ml bottles as the pack that's leading the takeaway occasion for all the bars and moms and pops that they are transforming. If they cannot deliver it, they have to have a takeaway strategy. This strategy is really working very fine because we designed it. The pack is a good pack for us to do that. The price point is designed for that. We are doing most of the places, six bottles for BRL 12. It's a good price point for six units that people can take. The customers are really adopting because they need this takeaway, because this pandemic, it's really, they open and close, they need something for people to take away. This is something that is really working from our side. Zé Delivery, I don't have to mention again, we have been talking a lot about it. It's really about convenience, is something bet on that. We know that there are two occasions that we are developing to. There is this thing about signature beer. We have another strategy that is the Sempre Casa, where we have signatures for the whole year. That same price, that number of beers every month, in your home. This is, we have been testing in Brazil. This is exploding in Argentina, is really something really gaining traction there. Zé Delivery is stronger here. Sempre Casa is stronger in Argentina. We have to find the value proposition, the prices for that. We are developing apps for pantry loading parties. That is not about the Zé Delivery, is about big parties that you want a discount for big. We are really working on these missions and occasions that are enabled by technology for us really to be ahead of the time on that. All these learnings and all the technology that we have, we are betting big time to be ahead of the game. In talking about offset costs of commodities headwinds. Yeah, are we still here? Yes. As anticipated, this year was a year that we faced transactional effects, headwinds, given the depreciation of real. 50% of our COGS is dollarized. Now we are seeing these commodities that is something that is coming to the table. The things that we are doing are very consistent, and it's really about this, to not lose this momentum. The volume growth continuity is really something that help us big time, sweat the assets and have a better VLC logistic cost, and have a better operational leverage when the volumes go up. We are really excited about more towards the end of the year. About the vaccination, that is really something that we believe that, RGB 600 ml bottles and the socializing out of home occasion is really something that it will pick back. We are preparing for that. We think some euphoria we're going to have around that. We are with a much broader base of clients. The prices are well set. We are prepared for when this moment happen. This innovation strategy that we have that is really driving mix and prices through new products. This Core Plus, the premium portfolio, all these adjacencies. Duarte asked here about the Carnival. In Carnival, I sell a lot of that, product that we have that is Beats. That is so accretive for the company. That product is really designed for parties, isn't it? This occasion, big parties, outside events is depressing, and we believe that if it doesn't come in Q4, it will come in Q1 of next year. This innovation vision of occasions and missions will help us big time. We will not lower the guard. Financial discipline, it's still there around costs, around expenses. The CapEx is really about strategic investment. We are really concentrating CapEx on the technology piece, on the footprint for us to really have the better service possible for customer and consumer. This part here, there is a lot of learning because consumers are really paying for convenience, so they pay in the Zé Delivery. Our customers are beginning to pay for more days of delivery as a service. Understanding these missions and these demands, we are really being able to have some additional revenue on services too. That was pretty much it that I could mention on the commodities mitigation. Great. Great, Jean. Thanks for the call. I think that was the last one. We have no more. That was the last one. I really want to thank, first of all, my team that is here working on that, working for Ambev. Team is working very hard to have this quarter for one year inside a pandemic to achieve these results, to have this great start in a very challenging environment. I also want to thank you all, the analysts, everyone who joined the call for the time and attention. To wrap up, I'm really confident about the future for some reason. We are on the path of a very good commercial momentum. I think this has been confirmed quarter by quarter here with you all, not only Brazil, but we are really picking up international operations, like Argentina did very well. Chile, we are so excited about Chile CAC, we are beginning to see that once the vaccination in the U.S. is really moving forward, this summer in CAC, the hotels are already booked and everything. We are really seeing this momentum, not just in Brazil, but international operations. Although transformations, that big bet on technology that we are doing takes time and the environment remains challenging. We can see contributions of our digital efforts. This is bringing a lot of possibilities for us. Zé Delivery is doing great, we have another efforts on that side. This portfolio is stronger. Our portfolio is much better than it was two years ago. High-end brands are really gaining equity. Beck's is there. Corona is doing very well. Colorado doing very well. Budweiser is a brand very important for us. That's growing too. We see brand power. The core plus segment, it was something that we get it right and we're going to continue to bring new news on that with innovation pipeline. One thing that we don't talk that much, but cash generation, it is really something that is really structurally solid at Ambev because we have been prepared for that. These channels, somehow, they help us on this core working capital. My cash generation is really solid when you look last three years and this year, and we remain committed to transform the company and invest ahead. That's it. Thank you very much. Thank you all. Anything you need, just get in touch with Lucas and the team and we can continue the conversation. Ambev first quarter 2021 results conference call is concluded. You may disconnect your lines from now on. Have a nice day.