Welcome to the Chedraui conference for the results of the first quarter of 2021. With us are Mr. Antonio Chedraui Eguía, CEO of Grupo Chedraui, Mr. Carlos Smith Matas, CEO of Bodega Latina, Mr. Humberto Tafolla Núñez, CFO of Grupo Chedraui, and Mr. Arturo Velazquez, head of investor relations of Grupo Chedraui. As a reminder, all forward-looking statements on this call are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions discussed today. This may be due to a variety of factors, including the risks outlined in Grupo Chedraui's most recent annual report. At this time, I will now turn the conference over to Mr. Antonio Chedraui Eguía. Please go ahead. Thank you. Good morning, everyone. It is my pleasure to be with you today on this conference call regarding Grupo Chedraui first quarter 2021 results. After a year of unprecedented circumstances, we continue to face challenges in 2021. We do so with high confidence in our business model. If there is something that I want to highlight with today's results, it is the resilience that Grupo Chedraui has shown. We continue to fulfill our mission of offering our customers the product they want at the lowest possible price, while we continue to guarantee the safety of our customers, suppliers, and employees. Based on our operational strength and financial discipline, we reaffirm our commitment to creating great value for our shareholders. If you allow me, we will review the results of the first quarter 2021, starting with the relevant facts. Same-store sales growth of 0.6% in Mexico, almost 500 basis points higher than the - 4.3% reported by ANTAD. 7.5% consolidated EBITDA margin, an improvement of 22 basis points year-over-year. Consolidated net income growth of 36%. Net debt/EBITDA ratio of 0.5 times. CAPEX invested in 2021 of MXN 638 million. I will continue with the financial results, starting with the top line. Q1 consolidated revenues amounted to MXN 35,196 million, which is a 0.9% contraction year-over-year. This is mainly explained by the fact that in March 2020, both the U.S. and Mexico experienced a sales surge due to the COVID pandemic. Also, this quarter contained one day less compared to the prior quarter due to the leap year effect. Consolidated EBITDA grew 2.1% in the first quarter of 2021 to MXN 2,638 million. This represented a margin over sales of 7.5% and an expansion of 22 basis points year-on-year. In Mexico, we achieved 4.4% EBITDA growth to MXN 1,538 million. EBITDA as a% of sales was 7.3% and represents an improvement of 13 basis points. This result is due to the improvement in gross margin and efficient management of operating expenses. In the real estate division, the contraction in revenues affected the generation of EBITDA, which showed a reduction of 37.4% to MXN 117 million and a margin on sales of 56.8%. On the financial expense side, during the first quarter of 2021, financial expenses decreased 20% to the prior comparative quarter to MXN 691 million. This is the result of the extraordinary generation of cash flow during the last 12 months, which reduced outstanding debt. Net income. Consolidated net income for the quarter grew 36% compared to that achieved in the same period of 2020, reaching an amount of MXN 736 million with a margin over sales of 2.1%. Now, Carlos is going to comment the results obtained in our retail business unit in the U.S. Please, Carlos. Yes. Thank you, Antonio. Good morning, everyone. As Antonio mentioned, for the U.S., we faced a high comparative base due to the sales surge registered a year ago. As a result, total store sales decreased 5.3% to MXN 13,992 million. On a same-store sales basis, the reduction was 4.6%, as two stores were closed in the last 12 months. Total sales of El Super decreased 3.9% in the first quarter, while comp store sales at Fiesta fell 5.4%, both in dollar terms. For gross profit, we continued to make improvements in our purchasing processes, which drove gross margin gains at both El Super and Fiesta. The sustained expansion of our gross profit at Fiesta is consistent with our strategic plan. Regarding EBITDA, despite the contraction in sales, the result was 6.4% higher than comparative quarter and reached MXN 983 million. This result was driven by continued strong performance at El Super and the ongoing improvements in the Fiesta business. At El Super, EBITDA decreased 2.6%, although as a percent of sales, it increased 10 basis points to 8%. At Fiesta, the EBITDA obtained was MXN 330 million, which is significantly higher than the MXN 254 million obtained in the prior comparative quarter. Similarly, EBITDA as a percent of sales increased 164 basis points to 5.7%. That would be all regarding the US business. Thank you. Thank you, Carlos. Financing, CapEx. Regarding financing, the outstanding cash flow generation achieved by the company allowed the net debt to EBITDA ratio to be reduced from 1.2 x in the first quarter of 2020 to 0.5 x this quarter. CapEx invested in the quarter amounted to MXN 638 million, equivalent to 1.8% of consolidated sales. If you allow me, we will move to the Q&A section, please. We will now start the Q&A session. If you have a question, please enter star eight on your telephone. In case your question has been answered, you may cancel it by pressing star eight again. Our first question is from Antonio Hernandez from Barclays. Please go ahead. Hi. Good morning. Thanks for taking my question and congrats on the results. Question is regarding same-store sales. You're going to be facing some tough comps. Maybe if you could give us some information on what are your expectations ahead. A follow-up would be regarding the US competitive market. How are you seeing the opportunity also for growth there? How are you seeing competition? If you could guide us a little bit more of the consumer environment there also as reopening is taking place a little bit faster than in Mexico. Thanks. Thank you, Antonio. Well, same-store sales in Mexico were better than what we expected. We were able to beat our competition. We were able to be positive with a very difficult base, because we grew extremely well last year. Actually, just March, we were able to grow over 21% last year. With those difficult comps, we were able to grow same-store sales again in the quarter. We project we would be even a little higher than what we predicted in the beginning in our guidance, probably closer to 4% same-store sales, which is higher than the 3.3% that we projected in the beginning. About the US competitive market, I would ask Carlos to please answer that question. Sure. Good morning, and thanks, Antonio. The US market from a competitive standpoint has remained relatively stable, I would say, going into the pandemic and coming out of it. As you know, from the El Super and Fiesta brand, we're the largest Hispanic food retailer in the United States. We have great market share in very competitive geographies such as Los Angeles, Southern California, et cetera. We still believe that there are opportunities for organic growth as well as opportunistic acquisitions that may come up down the road. Nothing really has changed, I would say, over the last 12-18 months in terms of the market setup. Perfect. Thanks. A follow-up would be, with more reopening in the U.S. and of course prepared food being an important piece of strategy in these supermarkets, are you seeing an uptick in prepared food sales or just staying relatively low versus pre-pandemic levels? Well, our prepared foods business is performing extremely well. We have beefed up our resources in that area. On the Super side, both sides really have grown fantastically. We're very excited about that. As we continue to make improvements to the fleet at Fiesta with remodeling, et cetera, that is one of the departments that we are really focused on to improve the consumer experience. The results that we're seeing are phenomenal. As you know, we've got a five-year plan to remodel that fleet. We're on pace as we had designed to do. Prepared food is a huge component of what we're trying to improve on. Perfect. Thanks a lot, Carlos matas. Thank you very much. Our next question is from Mr. Luis Rueda from GBM. Please go ahead. Hi, good morning, Antonio, Carlos, and team. Congrats on the results, and thanks for taking the question. The first, I think it's for Carlos. It was impressive to see both the U.S. operations preserving margins despite the contraction in same-store sales. Do you still see room for margin improvement at Fiesta carrying into the year and then maybe long term? Also in Super, this 8% margin, do you see this as a sustainable level ahead? That would be my first. Well, yeah. Thank you, Luis. As you can see, it's been several quarters now. We've noticed the Super brand performing at a very, very high level. We're very encouraged with the operation there. We've got great market share. Operations are very, very steady, and we've been able to continue to grow. The two-year stacks are impressive as well. We're hoping that we can maintain and believe we can maintain the types of margins that we're seeing today. On the Fiesta side, look, this is what we're supposed to be doing. This is part of our design. We told everybody early on as we made the acquisition that this is the curve that we expected to be on. As I spoke briefly earlier, we continue with our remodeling plan. That is a super important component of continuing to improve the top line and improving our margins. We believe that there's more room to grow in Fiesta, and we're excited about continuing our strategic plan that gets us there by year five. We're still 24 months away of getting there, but we're on track, and we're excited about that. Thank you, Carlos. That was wonderful. If I may, Antonio, regarding Mexico, we have consumers face difficult environments or at least a little bit of uncertainties there still. Can you tell us a bit more on the competitive environment that you're seeing in Mexico, especially regarding promotions on the behavior of the rest of the competitors? Thank you, Luis. We've been, I think, very successful understanding what the consumer is looking for in the different formats that we operate in Mexico. All of them were able to grow on a difficult base. We are seeing that the higher-end consumer keeps growing and spending more through e-commerce. Our omni-channel platforms are working really, really well. We are seeing a very strong growth in that part. On the other hand, the low-end consumer, we have been connecting with them through our pricing strategy. We are very strong in what we do, and we feel that we are able to meet their demands more than a promotional activity because I think they don't have the buying power or capacity to buy a larger quantity of the same products. We are working on our pricing strategy, which is very aggressive towards each product, and it has been functioning really, really well. We're also seeing a recovery in certain areas that were affected last year, more on the tourist side, both in the South as well as in the Northwest. That has been helping Chedraui as well. Great, Antonio. Thank you. Thank you very much for your question. Our next question is from Mrs. Nora Sebejan from Bank of America. Please go ahead. Hi, this is Melissa Byun from Bank of America. I had a few sort of follow-up questions for Carlos. I just wanted to get your thoughts on the normalization of traffic in the U.S., sort of when and how the curve there, and then remittances to Mexico have been very strong. Are you seeing this dynamism, and consumption in the Mexican communities that you serve? Just lastly, on Fiesta, in terms of remodeling, how far along are you in that process? You touched on that as one of your bigger opportunities, as you execute on the strategic plan, what are some of the other sort of remaining sources of upside that you see? Thank you. Yes. Thanks, Melissa. The first question was about traffic. I missed your second question. Let me address that, and then I'm going to jump into the second one. On the traffic side, yeah, we're beginning to see positive traffic versus 2020. That was our expectation. That has been met. However, we're very diligent right now about monitoring our results versus 2019, right? Traffic has not yet come back, versus our 2019 levels. We believe firmly that as folks get vaccinated, and get a little bit more comfortable about going on about their normal lives and going outside. We've recently received CDC mandates about being able to eliminate masks outside. I think as we get back into our normal day-to-day, we're going to start seeing normalized traffic patterns again. As you know, we have our Wednesday specials for produce, at both brands. Those promotions, were very effective because there were a lot of people in our stores on Wednesdays. We had to spread those out in 2020 to Wednesdays and Thursdays. We're back to Wednesdays now and beginning to see good results there. I'm encouraged about the trend, but we're not where we want to be in terms of 2019. The second question you had was about our consumer. Could you repeat the question, please? Sure. When you look at the remittances to Mexico from the U.S., they've been quite strong, and I'm just wondering if this is something as well that is reflected in spending among the Mexican community that you're serving? Right. Well, the stimulus money that came in had a different pattern, in terms of its behavior. At the beginning, the first set of stimulus dollars that came in in 2020 were very direct. They just went into the supermarket trade. People were building up their pantry. There was certainly a lot of unknowns about how much longer they were going to be holed up. As folks lost their employment, credit card debt shot up. What we're seeing with the second and third stimulus checks is that folks are using that to catch up on credit card bills, on back rent, et cetera. Those funds and included in that are remittances to Mexico that they didn't do before. That's a trend that we anticipated. Now, I think that's going to get normalized, and the excess funds, we believe, will start shifting back into normal day-to-day habits such as supermarkets, and that's going to benefit us. We have a view into the remittances because we are a very important originator through our relationships with Ria at our stores, and they've been very strong, as you mentioned. Anyway, that's about that. The third question I think you had was in terms of our CapEx at Fiesta. Yes, we had a plan to invest an additional $10 million per year on incremental CapEx. Our results, as you can see, have been very strong lately. In conjunction with Antonio and the leadership at Chedraui, we are deciding to accelerate some of that CapEx so that we can move as fast as we can in getting the fleet up to date. Remember, this is a fleet that originated in 1972. Fiesta has had very little CAPEX into the buildings over time, so we're trying to do it as fast as we can. The results have been very positive, in terms of once the remodels are complete, we're seeing great traffic at some of these remodeled stores and very positive results, so we're encouraged, and we want to do it faster. How much of the store base is left to be remodeled? Oh, let's see. I would say probably 35%. Okay, great. Thank you. Thank you very much for your question. As a reminder, if you have a question, please enter star eight on your telephone. Our next question is from Mr. Carlos Mendoza from Mexico Value Partners. Please go ahead. Hello, good morning. Thank you for taking my question. Regarding capital allocation, last call you mentioned that with net debt levels getting close to zero by the end of the year, you were looking at further potential opportunities for consolidation. Could you further comment on what kind of opportunities are you looking for, and if you're seeing more opportunities in the U.S. or in Mexico? Thank you, Carlos, for your question. Well, as I've mentioned before, we're always open to consolidation opportunities in Mexico as well as in the U.S. First of all, the opportunities that come to the table should be targets that can adjust to the type of business that we operate, where we can really add value, and they should come at the right price. We don't overpay any consolidation opportunities. We have not done it in the past, and we will not do it now. Those would be the two factors that will allow us to decide whether we invest into a new company or not. We are very open for that. We have the talent to do it, and we think opportunities will come to the table in the near future. Thank you very much. Thank you very much for your question. As a reminder, if you have a question, please enter star eight on your telephone keypad. That was the last question. I will now hand over to Mr. Antonio Chedraui Eguía for final comments. Thank you. Well, I just want to thank everyone for joining this conference call. Myself and the Chedraui team will be available for you in the next quarter. We are very enthusiastic about the sales trend that we see in Mexico as well as in the U.S. We hope to be able to bring you good news, even better than we just showed in this past quarter for the 2Q of this 2021 results. Thank you. Stay safe. I'll be talking to you soon. Thank you again. Thank you for participating in today's conference call. You may now disconnect.