Good morning everyone, and welcome to Alsea's first quarter 2023 earnings video conference. My name is Nicolás' Espinoza from Alsea's IR team. Today, our Chief Executive Officer, Armando Torrado, and our Chief Financial Officer, Rafael Contreras, will be presenting the quarter results. Now, I would like to hand it over to Armando for his initial remarks. Please go ahead. Good morning everyone, and thank you for joining our first quarter 2023 earnings video conference. I'm excited to share with you our consolidated results, regional and brand performance. I will also distribute some strategic developments and guidance from our recent Alsea Day. In the first quarter, we posted strong sales across all company's brands. We are pleased to report a year-over-year increase in total sales pre IFRS 16 of 16% to MXN 17.6 billion. Same-store sales for the quarter were up an impressive 23.5% year-over-year, driven significantly by 12% same-store orders. EBITDA pre IFRS 16 was MXN 2.3 billion for the quarter, up 23.6% compared to the same period of last year with a margin of 13.1%. These quarter results demonstrate a strong demand of our brands and the company high profitability, especially in the face of inflation, increase in minimum salary, and elevated energy costs in Europe. An affordable exchange rate that represents 10% points less in sales growth. We served over 11.5 million orders in the delivery channel this quarter. Delivery made up 17% of total sales, the same share as of the fourth quarter of 2022. The steady growth of delivery is in line with our overall sales and emphasis the performance on this trend. In the quarter, we opened 20 new corporate restaurants and eight sub-franchisees across all regions. Of those, 50% were Starbucks and 29% were Domino's Pizza. At the end of the quarter, Alsea has over 4,400 stores and over 1,000 sub-franchisees stores, and more than 75,000 team members. In line with our expansion strategy, last April, we signed an agreement to operate and develop the Starbucks brand in Paraguay, introducing the country's first Starbucks location. This expansion is fully aligned with Alsea's Starbucks role strategy. Currently, we operate over 1,600 Starbucks location across Mexico, Europe, and South America. The total CapEx for the first quarter was MXN 16 million, of which 48% was allocated to maintenance, 29% to store openings and remodels, and 23% for IT and other strategic projects. In line with the company's leverage strategy, I'm pleased to share that we are now below pre-pandemic leverage levels. I like to highlight a few of the important moments along this journey. As you can see in the graph, at the end of 2018, we acquired Grupo Vips in Spain, and our IFRS leverage net debt EBITDA was 3.7 times, which then went up slightly with acquisition of Starbucks in France and Benelux to have the leverage at 3.9 times. During the pandemic with the restaurant closures and increased cost of global level, our leverage ratio increased significantly. As we recover, we've been able to increase sales while maintaining an increased share of delivery and reducing costs and debt. Our pre IFRS 16 leverage ratio is 2.4 times net debt EBITDA, and we will continue to emphasize our deleverage strategy. In line with our digital transformation strategy, our customers with accounts in our loyalty programs have a higher average ticket, visitors us more frequently, and provide us with a valuable data to learn how to improve our service and the consumption habits. Our digital sales that include e-commerce, aggregators, and loyalty represents during the quarter a 30% of share of the total sales. Standing out Domino's Pizza with 40.6 penetration of digital sales. These MXN 5 billion pesos on digital sales at the end of the first quarter of 2023 represents a 23% growth over last year, lead by global Starbucks Rewards growth of 44.5% versus the same period of 2022. We reached 10.4 million of digital customers with activity within 365 days, with a growth of 6% versus last year. In terms of activity, digital customers were actively with 180 days. We reached 6.6 million, with an increase about 3% versus last year. Finally, I would like to give you a quick overview of our main ESG achievements for the quarter. In order to identify our global sustainability strategy priorities, we update our materiality assessment, an exercise that we perform every two years. For this update, we use a double materiality approach for this time. This identifies the most significant external and financial ESG factors that influence our company performance, allowing us to address market demands. We engage in a consultation process with senior management and key stakeholder groups across eight countries in all regions that we operate, including Mexico, South America, and Europe. Our ESG related actions and plans will focus on addressing the material issues identified in this study. Talent attraction and retention, number one, two, food quality and safety, three, health and safety of the customers and employees, four, equity, diversity, and inclusion, and five, energy and emissions and achieving our 2030 targets. We will be delivering yearly progress updates for the priority indicators we track as part of our ESG strategy. The principal findings of the materiality assessment will be incorporated into our 2022 annual report, which will be available in early May on the company's website. Regarding our global sustainability strategy, which consists of three pillars: balance, growth, and development. During the first quarter of 2023, under the balance pillar in Mexico, we recovered over 191,000 liters of used vegetable oil for biodiesel productions. Additionally, we installed solar panels at two of our facilities in Spain. These panels are expected to generate enough clean energy to meet about 30% of the facilities' energy needs. Under the growth pillar, our brand and distribution centers are regularly assessed for quality and safety standards. As of the development pillar, in Mexico, the Va por Mi Cuenta movements provide over 235,000 meals to over 4,000 children through six society organizations. In collaboration with the Mexican Food Bank network, 7 tons of food were donated in the first quarter, benefiting over 32,000 individuals. In Spain, we reaffirm our commitment to the United Nations Global Compact by signing the country-level charter and entering into an agreement with the NGO Down España to support the integration of people with disabilities into our workforce. I will pass it to Rafael, so he can give you a more detailed overview of our brands, regions, results, and balance sheet items. Please Rafael. Regarding our brands, Starbucks reported an impressive year-over-year same-store sales growth of 36% in the first quarter, with a growth in orders of 20%. In Mexico, the Starbucks same-store sales were up over 30% year-over-year, while in Europe, they increased by 27%, and in South America up over 26%, excluding Argentina. Domino's Pizza same-store sales were up in Spain, Mexico, and Colombia by 6.4%, 2.7%, and 1.3%, respectively. This growth came despite a difficult comparison basis versus the first quarter of 2022. Burger King reported another positive quarter, posting increase in Chile, Mexico, and Spain of 12.3%, 8.6%, and 8.3% respectively. After officially recovering to pre-pandemic levels late last year, Vips Mexico continue with a strong first quarter same-store sales, up 13.5% year-over-year, with orders up 10%. The brand continues to be focused on improving its in-store experience and products. In Spain, Vips also reported a strong first quarter same-store sales increase of 21% versus the same period last year. The casual dining segment also had an impressive quarter, with same-store sales up 16% and orders growing by 12% versus the first quarter of 2022. Looking by region, we were pleased with Mexico's performance as quarterly sales increased 22% year-over-year. Costs were in line with last year, and adjusted EBITDA pre-IFRS 16 was up 19.7% to MXN 2 billion. In the quarter, we closed our JV agreement with Europastry, who will be providing bread and pastry products to Alsea stores in Mexico. This transaction added MXN 60 million in EBITDA to Mexico PNL. In Europe, sales were up MXN 7.6 billion-MXN 5.6 billion, and adjusted EBITDA was down 9.2% pre-IFRS 16 to MXN 726 million. However, when excluding the effects of foreign exchange fluctuations, sales grew by 24% and adjusted EBITDA was up 4%, underlying its significant impact on overall results. Despite the ongoing challenges of rising inflation and energy costs, demand was resilient. We remain hopeful about sales heading into the summer months. South America, posted a strong 58% increase in same-store sales for the quarter, with adjusted pre-IFRS 16 EBITDA increasing 32.8% to MXN 504 million. South America's positive results were driven by strong demand, reduced costs, and successful product innovation and digital strategies. Moving on to detailed overview of our result and balance sheet. Despite Alsea's Europe costs rise resulting from not being able to mitigate inflation in important products, the increasing cost of energy in Europe and wage increase across different regions, we were able to offset part of the impact with some strategic initiatives which helped us to mitigate the impact in the consolidated cost as a percentage of sales, only increasing 1.3 percentage points year-over-year, reaching 33.1%. During the quarter, we reached different agreements with our suppliers. One, a benefit in the price of cheese through a decreasing cost of 9% versus that same period of last year. Over stocking our needs until December 2023 in Colombia and September 2023 in Mexico. Our benefit in the cost of some core products that we fixed price for the year, like wheat flour, pork ribs, oil, among others. In our distribution center in Mexico, we have been innovating in order to improve some processes within our supply chain. As an example, we reduced the sugar used in the manufacturing process of different products, and we centralize in our industrial kitchen to produce some dishes to guarantee the quality and consistency in our stores. Despite cost increases, our pre-IFRS 16 EBITDA was MXN 2.3 billion for the quarter, up 23.6% compared to the same period of last year, with a margin of 13.1%. Post IFRS 16, EBITDA was MXN 3.7 billion for the quarter, up 6.6% with a margin of 20.9%. Operating cash generation was healthy at MXN 4.5 billion for the quarter, which allow us to continue to both deleverage and invest in our organic growth. In Europe, energy costs in the first quarter of 2023 will be elevated. Still elevated, up 110% year-over-year, which impacted the region EBITDA compared to a year ago. Energy prices continued to decline on a sequential basis from the third quarter of 2022 peak. You can see on the graph, in the third quarter of 2022, energy costs as a percentage of sales were at a historic high of 6.8%, with electricity at EUR 308 per megawatt hour. Since then, energy share of sales fell to 4.3% in the fourth quarter of 2022, and to 3.2% in the first quarter of 2023. This quarter, we paid an average of EUR 97 per megawatt hour. After a warm winter and with increasing renewable energy projections in Spain and France, Alsea will be able to find new reasonably priced options in the second half of 2023. We continue to work with our team of energy experts in Europe to analyze the possibility of securing long-term contracts. Our net income for IFRS 16 for the first quarter increased 41.1% to MXN 564 million. This result comes despite an increase in cost of products, energy costs, financing costs, and higher tax rates. In the first quarter of the year, we achieved a pre-IFRS 16 earnings per share of MXN 2.48, including IFRS 16. Earnings per share rose to MXN 2.13. In January 2023, the general shareholders' meeting approved the cancellation of 18.5 million ordinary shares that had been repurchased in market transaction during the last year, representing 2.2% of the outstanding total shares, and last week, the general shareholders' meeting approved another cancellation of 4.9 million ordinary shares, representing 0.6% of the outstanding total shares. In the quarter, we paid MXN 86 million of amortizations. Our pre-IFRS gross debt decreased MXN 3.3 billion year-over-year, closing at MXN 26.3 billion at the end of the quarter. This reduction in debt corresponds mainly to the devaluation of the euro against the Mexican peso and debt amortizations during the period. Our pre-IFRS 16 gross debt to EBITDA ratio at the end of the quarter was 2.9 times, and post IFRS 16, 3.3 times. 0.6 times less than last year. Regarding our bank covenants, looking to our pre-IFRS 16 gross debt to EBITDA ratio, we ended the quarter at 2.9 times, and EBITDA to interest paid at 3.4 times. The debt structure at the end of the year was 96% long-term, with 65% in Mexican pesos and 35% in euros. Our target is to still deleverage the company in the coming years. I would like to quickly go over the guidance that we gave in March at Alsea Day. We expect to open between 250 and 280 stores, of which most are corporate stores, with about 70- 90 store franchises. Regarding CapEx, we are expecting MXN 5.5 billion in the year. Same-store sales should come in around 14%-17% and revenue above 13%. We are guiding EBITDA per IFRS 16 to grow over 15% with a margin of over 13%. Our gross debt to EBITDA ratio of about 2.8x and return on equity of 18%-19%. Post IFRS 16 EBITDA should grow over 10% with a margin of over 20%. Our gross debt to EBITDA ratio about 3.3x and return on equity of 21%-23%. These quarter results put us on track to achieve our full-year guidance. I will now pass it back to the operator for the Q&A session. Thank you. We will now start the Q&A session. If you have a question, please press the question button in the browser. Please make sure you are not in full screen mode to see the button. The first question is from Mr. Alan Alanis from Santander. Please go ahead. Thank you so much. Thanks for taking my question. Congratulations on the results, first of all. I have two questions. We're seeing some weak f... A short-term question and a long-term question. The short-term question, we're seeing some weakness in consumption during the month of March. Could you tell us if you're seeing also some weakness in March and April in Mexico specifically? That's the short-term question. In long-term, could you help us reconcile the growth of EBITDA pre and post IFRS? I'll explain where I'm going with the question. We know that you did a lot of renegotiations on the leases during the pandemic, and some of the leases became more variable than fixed and so much. Where are we gonna start seeing a growth in pre and post IFRS? I assume... Maybe that should be the first question. I assume that the difference in the growth in pre and post IFRS has to do with those negotiations of the leases. If that's the case, when do you think we're gonna start normalizing and seeing both growth in terms of post and pre-IFRS, the EBITDA growing at the same pace? Thank you so much. Okay. In terms of pre and post IFRS 16- Yep. This quarter, we opened the line of rents. You can see the benefit that we had last year in terms of rents. Because of the COVID benefits that we had first, and then this fourth quarter and this first quarter that we have more viable rents than fixed rents. You can see the impact in each quarter in terms of the line in rents. What we are projecting is after the third quarter, you're gonna see the same. It will normalize the pre and post IFRS 16. Perfect. That's very useful. I'll look into that, and that's a very clear answer. Just as clear as your- Alan, regarding the sales, in March, we really raised a very small slowdown. Okay. We were, within January and February versus last year, the increase was, as you, as I told you, New York was head big, no. In April, we are also. We just closed the month yesterday, and we are in line with our budget and with guidance. That's very clear. Thank you so much for your answers. Thank you very much for your question. Our next question is from Mr. Alvaro Garcia from BTG Pactual. Please go ahead. Good morning. Good morning, gentlemen. Two questions; One on Vips in Mexico, Vips in Mexico. You mentioned same-store sales growing 13.5 and traffic growing 10, which seems like there's sort of some investment in price there to get traffic back in the store. I guess my question is sort of, do you think that strategy is playing out, and how long should we expect that strategy? What sort of specific initiatives? Is it a breakfast thing? Is it a coffee thing? Is it a lunch thing that's really driving that traffic at Vips? Is it a consumer thing? Sort of more of a top-down thing. I'd love to hear your thoughts on how Vips traffic has rebounded. My second question is on Domino's, so I'll ask some sort of... You mentioned the tough comps, but I'm not sure if there's anything else, you know, in Mexico and Spain that is driving sort of, let's say, results that are below average. Would love to hear your thoughts there. Thank you. How do you feel about that? I mean, I think, in Vips, we are really very happy with our results. I mean, having traffic 10%, that's what we're looking for, you know, especially that family business is driving by traffic. The penetration is high. At the end we did, we went back to basics in regarding price, and actually we briefly touched prices. We did some bundles. We did some, two promotions, when first four, nine weeks and then again another eight weeks. We have very nice results going in TV, going in advertise. I think we are back there. We have also very good results in the costs, the controlling of costs, controlling of labor. EBITDA store level, we are happy with our results, and they're being strong. We have a lot of opportunities still to grow. I mean, breakfast is coming back, breakfast in that, especially in Vips in Mexico, represents a high percentage of our sales. We are growing breakfast in a good manner and also lunch. We also turn around with Coke. Coca-Cola is our new vendor, our new supplier. We are doing some good things with them and driving promotions. Results are good in Vips, you know. Regarding Domino's, I mean, it's been a little bit tougher than in other brands, I can tell, because we were open last year full hands, you know. Last year, probably some restaurants were open or some shopping centers 70% of capacity or 80% of capacity. In Domino's, we've been open since the pandemic. We never closed. There was a little bit less growth. I would be able that Like I told you, in New York, we did a good promotion starting 15 of March for carryout. Pizzas are MXN 1,045, and you will see the results in the next quarter. We are very glad about how is that behaving in carryout. The carryout in Mexico, it's a bigger pie than delivery that we own already the category there. Things are moving in a very well as the north position with good headwinds for us in the pizza category. Great. Just one last follow-up. If you could remind us what sort of what number of Vips in Mexico you've, which we'd be able to classify as new, let's say. What part of the process are we in terms of maintenance CapEx and sort of revamping old Vips in Mexico? Do you have that number by any chance? You wanna say regarding portfolio, how many stores we have remodeled? Remodeled, yeah. Remodeled. We are about 90 stores more to go for remodel out of that 240, Rafa, more or less. Yep. Sorry to interrupt. We are trying to win remodel 100% in three years, so we're gonna remodel more than 20 this year. Okay. Another thing that helps Vips in Mexico is that offices are crowded. That helps because that kind of people is the one that attends Vips, no? Yeah. Yeah. Great. Thank you very much. Thank you Alvaro. Thank you very much for your question. Our next question is from Miss Kamila Mercenario from SURA Investments. Please go ahead. Sorry, I think it's listening. My question is a very fast one. It's only how comfortable do you feel about your debt? In terms of your debt. A ver, Rafa. As you can see, we have a deleverage during the past quarters and the past years. We feel comfortable going lower than 2.5 times. With this trend, we think we're gonna be at two times in a couple of years, and we feel pretty comfortable at that number, two times net debt/EBITDA. Okay. We can expect that at the end of this year or? No, at the end of this year, we're as I put in our guidance. No? Yeah. If you see, the number that I give in our guidance is to be at gross debt EBITDA at 2.8 times gross debt. Okay. Thank you very much. Thank you very much for your question. Our next question is from Mr. Thiago Bortolucci from Goldman Sachs. Please go ahead. Yes, sure. Good morning, everyone. Thanks, Armando, Rafa, for taking the question, and congrats on the results. I would just like to reconcile and hear a little bit more from you on the guidance, right? I think the first quarter you delivered impressive same-store sales of 23%, and you're sticking to your top-line growth guidance of 13%, right? Obviously, we do recognize that there is effects, there is a challenging comp base going forward. Just like to hear from you if there is anything on the consumption background that makes you a little bit more cautious on the forward. That's the question. Thank you very much. No, I think that the guidance went for 14%-17%. That's the guidance for the whole year, no, Rafa? That's the guidance for the full year, but something that helped us in the first quarter was Europe, because last year in Europe, it was Omicron. Europe has this quarter a pretty high same-store sales growth that it can maintain the same pace for the second, third, and fourth quarter. That's why you see a full year of around 14%-17%. It's that it's a tougher number last year for Europe in the coming quarters. Thank you very much, Rafa. Just to make sure we're on the same page, 14%-17% same-store sales, but top line you are still at 13%, right? Exactly right. Awesome. Thank you very much. Thank you very much for your question. Our next question is from Mr. Rodrigo Alcántara from UBS. Please go ahead. Hi. good morning. Can, Raf, Armando, can you hear me? Perfect. Yeah, great. Two questions, actually, if I may. The first one for Armando. On Starbucks, you know, in your opinion or can you share with us what has been, you know, the main driver of the, you know, same-store sales, impressive same-store sales that we have seen in Starbucks? Would you say that is more like, you know, good environment macro driven, or would you attribute to any commercial strategy that you have implemented? Would like to hear. Talking about Mexico. Would like to hear your thoughts about that. The second one would be for Rafa. You know, CapEx at 5.5, it's already kind of like a CapEx pre-pandemic, right? Just curious your thoughts here on the investment cycle of Alsea as you reach to more normalized levels of leverage. You know, in your view, I mean, 2024 going forward, what kind of like normalized levels of CapEx should we expect just to get a sense of the cash flow generation of Alsea going forward? Those would be my two questions. Thank you very much. Oh yeah. Regarding Mexico, I think everything has been involved in operations. We were very constantly in operations. High demand is there, and we are taking that advantage, and we are very focused in have the partners in the stores that we need to in order to fulfill that demand that we're having. If you go to the drive-thru stores right now, we are gaining those lines in two and a half minutes. We have over 220 drive-thrus around Mexico that are being just impressive, growing, and thus just taking advantage of the technology in operations, you know, with tablets outside, in the airports with tablets outside. Everything is just how we fulfill the good labor that we do with the hands of our partners. I think one is operations. Yes, there's other promotions or there's other. We don't promote as in pricing Starbucks, as you know, in Mexico, but we do have new products. There were two nice record weeks in the quarter. We never expected, but were nice two record weeks regarding products that we launched in different digital platforms, new digital platforms that you're using. That is also driven. As you saw also in delivery, we are up to really, we sold same amount of money or same amount of orders from the Q4 of 2022. That's impressive also how we are really pressuring the delivery, and right now we are up from that brand. Also Starbucks Rewards. Starbucks Rewards, it's been great. It's been a great platform that we constantly grew our ticket average. We see customers coming more often. We are just taking that advantage and to fulfill their needs and then to come back if they're happy with the service, product, and image that we provide. Yeah, that's clear. Thanks, Armando. Okay in terms of CapEx going forward, around 7% of sales will be the amount of CapEx that we will have, no? To open 220 new openings is the number that we can maintain for the coming years. Also we have to maintain our stores in a pretty good shape. Around, the number is around 40% of the CapEx will be for new openings, and the rest will be maintenance, remodeling, and all the IT projects that we have. The number, it's gonna be around 7% of sales. Okay, that's good. Thank you very much, Rafa. Oops. Thank you very much for your question. Our next question is from Mr. Antonio Hernandez from Barclays. Please go ahead. Hi good morning Rafael, Armando. A quick follow-up on Europe. Sorry, You mentioned the Omicron comp base, and of course, that's impactful. You also mentioned in terms of costs, how energy costs have been trending downwards sequentially. Overall, how do you see consumption and excluding that comp base from Omicron, how are you seeing consumption trends in the region, especially in the last weeks of the quarter and first weeks of this quarter as well? Second quarter. Actually, Hello Antonio How are you? Actually, I'm here right now in Spain, as you can see, I've been just going out in the market the last six days, and I'm gonna be another five days here. I think we have a better outlook for the second quarter than ever, no? First of all, because as Rafael said, energy prices are way down since our budget were. We don't see any more inflation problems or problems that are affecting. By the way, we have some, two or three good news in cost of goods. You know, we just. I think we're gonna have probably the best quarter here. Summer is approaching. I mean, right now, the city looks just full of people. Tourism is back in France. Tourism is back in Barcelona and in Paris, Barcelona, and Madrid. There, in those three cities, we probably do more than the half of the volume that we do in Europe. We're very confident that we're gonna achieve good results here in Europe. We see strong demands in Vips, for example. I was in Vips this morning, and it's not Labor Day today and yesterday, and stores were well operated. We have people ready. I think we will surprise with a... We have a nice year quarter than we had last one, no? Okay. Perfect. Would you highlight something in terms of formats, maybe Vips or Starbucks, or it's overall a healthy consumption? No I think of course Vips. Vips is very surprising us and, as a casual, but S tarbucks also just in France, Spain, it look strong, good. Our programs in France with Starbucks For Everyone, just a new program that we launched from loyalty, is working well. We just have been increasing frequent customers or customers that come and subscribe to our loyalty programs in a very steady and faster way. That give us a good advantage. I think there is nothing. The wind is up with us, and both concepts are doing well. Dominos is also doing well. I think in the whole concept, all our brands are positive, and still growing same-store sales, but that's what the work that we achieve for now. Just to give you a number. It's same-store sales in Europe for April, it's around low teens. Okay. Perfect. Perfect Rafa, Armando, thanks a lot. Have a great day. Gracias. Thank you. Thank you very much for your question. Our next question is from Ms. Eugenia Cavalheiro from JP Morgan. Please go ahead. Hello everyone, and thank you for taking my question. I hope you can hear me well. The first one is regarding CapEx plan. You have a guidance of MXN 5.5 billion for the year. As per what I see here, you deployed about 11% of this in the first quarter. I wanted to understand better how do you plan to distribute this CapEx across the remaining quarters of the year, and if you see a possibility of lowering this CapEx guidance that you have for 2023. The second question would be on working capital. I understand that seasonally you have a working capital need, usually in the first quarter of the year. If you could explore a bit more, on the trends of the different accounts there, that would be very helpful. Thank you very much. Well, for the first in terms of the breakdown of the CapEx for this year, that we mentioned, it's gonna be around MXN 5.5 billion. Around 30% of that number is gonna be for the new openings, for the corporate stores, that it's between 180-200 new units, then we have maintenance around 28%. Remodeling 17%, and the rest is for the IT and digital projects that we have for the year. Every year, the first quarter it's the investing capital is lower because the openings are mostly in the third and fourth quarter, but we think we're gonna achieve this investment, no? As we mentioned also, we are gonna open mostly in the brands that are more profitable, that it's Starbucks and Domino's. Around 70%-75% of the new openings are gonna be in those brands. In terms for the full year, for the working capital, we expect a positive working capital of around MXN 300 million-MXN 400 million for the full year. Thank you Rafa. If you could just go through the trends and the inventories and payables and receivables lines that you have there, in the first quarter, that will be helpful. In the first quarter, as I mentioned also, we overstocked cheese in Mexico and in Colombia. The amount of this overstocking, it's around 330 million MXN pesos. In terms of inventory, let me give you the number. In terms of days. In terms of days of inventory, without this overstocking, it's around 40 days in March. In terms of accounts payable for supplier, it's around 76 days. Thank you. Yep. Thank you very much for your question. Our next question is from Mr. Andres Ortiz from BTG Pactual. Please go ahead. Hello Armando, Rafa. Thank you for the space for questions. I would like to do a follow-up on IFRS 16 first. Last quarter, we saw two different stories. The 4 Q, we saw 18% drop, now we saw basically a 10% increase. I will just want to understand if during 4 Q, you actually did a provision for what was supposed to be accounted for all 2022. During 4 Q this year, we will actually see an easy comp for in terms of IFRS 16. The second question will be gross margin dynamics in Europe. Over the last two quarters, we saw a sharp decrease in EBITDA margin and gross margin in Europe, basically 400 basis points. Today you the margin dynamics in Europe were super strong. I would like to understand is if you actually saw a better cost dynamics in Europe to offset what we have seen the past. In terms of the first one, that is the IFRS 16. If you see we opened a line of rents this quarter. You see last year that we have a benefit of 0.2% of sales, and this year, it's not a benefit. It's an expense of 1.4% in terms of rents. So that's the impact that we have quarter versus the other quarter. The benefit, you will see the benefit, a big benefit at the end of the fourth quarter, because the result that we have last year, because of all the agreements that we had, all the fixed rent and variable rent that we have in that fourth quarter. You're gonna see a big benefit at the end of the fourth quarter. Second and third quarter, you're gonna see almost the same impact that we have, and less impact than the one that we have in this first quarter, but f ourth quarter is gonna be a pretty huge benefit impact that we're gonna have in post IFRS 16 numbers. Okay Thank you. On gross margins, maybe if you can comment if what level of pressure you saw during this quarter and how things are comparing to what we just saw during the second half of last year? The third quarter was at a pretty high impact, no. In Europe because of the energy. As I mentioned, energy in terms of sales was 6.8%. It went back in the fourth quarter at 4.2 times, 4.2% and 3% this quarter. We expect to maintain in 3%. Also you're gonna see a benefit of 300 basis points in the third quarter and almost 100 basis points because of energy in the fourth quarter. Okay. Understood. Thank you very much. Yeah. Thank you very much for your question. As a reminder, if you have a question, please press the question button in the browser. Please make sure you are not in full screen mode to see the button. Our next question is from Mr. Ulises Argote from JP Morgan. Please go ahead. Mr. Argote, you might be in mute. No. As a reminder, if you have a question, please press the question button in the browser. Please make sure you are not in full screen mode to see the button. That was the last question. I will now hand over to Mr. Armando Torrado for final comments. Okay. Well, thank you very much for attending our quarterly video conference. If you have any further questions, please be in touch with our investor relations team. Thank you very much for connecting this morning, and have a great day, and thank you. Thanks again. Bye-bye. Alsea would like to thank you for participating in today's video conference. You may now disconnect.