Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Genomma Lab Q1 2021 Results Conference Call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question- and- answer session. Instructions will be provided at that time for you to queue up for questions. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the call over to Enrique González, IRO of Genomma Lab. Please go ahead, sir. Thank you, operator. Good morning, everyone, and thank you for joining us today. We welcome you to Genomma's Q1 2021 Earnings Conference Call. Joining today are Jorge Brake, Genomma Lab's CEO, and Antonio Zamora, our Chief Financial Officer. Please note that today's discussions could well contain forward-looking statements about the company's future business and financial performance. These are based on management current expectations and are subject to risk and uncertainties. Factors that could cause actual results to differ materially are included in our reports on file with the Mexican Stock Exchange. In particular, there is significant uncertainty about the duration and contemplated impact of the COVID-19 pandemic. This means Genomma's results could change at any time, and the impact of COVID-19 on the company's business results and outlook is a best estimate based on the information available as of today's date. I will now please turn the call over to Mr. Jorge Brake. Jorge, please go ahead. Thank you, Enrique, and welcome, everyone. While it was a challenging quarter with continued COVID-19 related headwinds, Genomma's strong execution helped mitigate these effects, a reflection of our company's resilience and our adaptability. Importantly, we also made progress on our long-term operational goals and objectives. As you have read in yesterday's release, Genomma achieved solid operational results for the Q1 of 2021 despite obstacles, with a 6.4% year-over-year net sales growth and a noteworthy contribution by our Latin America operations reflected in an 11.6% year-over-year increase, with particularly remarkable performance in Chile, Colombia, Peru, and Bolivia. This quarter's results were again driven by new product launches, outstanding point-of-sale execution, and an increased presence and visibility within the region's key trade channels. Further success on Genomma's four-pillar strategy ensured continued strides towards our long-term strategic objectives despite COVID challenges across the different regions. Reduced foot traffic and significantly lower cough, cold, and flu incidents during the Northern Hemisphere winter season led to significant declines in demand for related products, mainly in Mexico and the U.S. The transformation and growth strategy we have successfully implemented has strengthened Genomma's business, and today we benefit from continued demand for our extensive and advantaged personal care products portfolio, which we have been able to seamlessly fulfill through our resilient supply chain with no major COVID-related disruption. Along these lines, let me share a few brief highlights from the quarter and some insight based on what we are seeing. To begin, consumers today remain focused on their hygiene and self-care. These habits accelerated in the current environment, and we believe they will remain post-pandemic. Our ability to deliver related transformational products again resonated during the Q1 of 2021, with important innovation and portfolio optimization projects, as well as new product launches. As a few examples, by quarter's end, we successfully launched a new Fermodyl Keratina, keratin hair growth-promoting shampoo line and the relaunch of Sistema GB brand alopecia hair loss treatment in Mexico. These shampoo line initiatives were complemented by the Tío Nacho line extension in Brazil. Additionally, our Suerox children or Infantil relaunch for the Mexican market reflects our continued focus on the beverage category within this market. We are particularly enthusiastic about the continued success of our Groomen brand disposable razors, which recently has been performing better than expected. You will recall that we have launched Groomen in the Mexican market in retail chains and saw a strong initial response during the last quarter of 2020. In the Q1 of 2021, we launched these disposable razors specifically targeted to the traditional channel while also increasing Groomen's overall presence at the point of sale during the quarter, including club stores, pharma chains, additional retailers such as Walmart, Soriana, and Chedraui in Mexico. Three factors are driving Groomen brand significant success, and also as an excellent example of Genomma's multi-phase model. First, Groomen is truly a superior product to the extent that we are able to offer a 30-day guarantee. Second, we recalibrated Groomen's advertising campaign during the quarter and added customer testimonials, which have truly resonated. Finally, Groomen's success within the traditional channel is a strong testament of the capillarity of and diversity of Genomma's go-to-market network reach. We are currently in Groomen's ramp-up phase, but we are very encouraged by its prospects. We plan to extend this launch above Mexico in the coming quarters. Also in Mexico, you will recall that in September 2019, we signed an exclusive license agreement with UP International to market UPI's full range of Novamil brand infant specialized nutrition products, a significant transition and exciting new frontier for our company. This product showed continued success during the quarter with a double-digit sell-out increase. Turning to other relevant updates related to our growth strategy, as discussed, today, consumers are buying their products and services online wherever possible, affecting most categories with increased consumption, both through e-commerce and the convenience of informal, traditional mom-and-pop channels, a trend that has deepened during the pandemic. In today's age of new commerce, Genomma is ensuring we evolve with a balanced strategy to ensure we successfully address the many channels critical to our continued success. Retail is changing at a staggering speed. Omni-channel consumers require our attention to ensure we win. It therefore became clear that a centralized decision-making system was critical to Genomma's omni-channel success. Based on the success Genomma has had in these diverse channels, order management is now needed for better inventory visibility and order routing logic across the broader supply chain, in addition to basic store fulfillment. To address these challenges, we developed our exciting new GenOrder, primary digital platform, which is currently in its beta phase. Order management has become the new retail paradigm and the key enabler to a holistic commerce strategy, and our new GenOrder platform makes it possible for us to directly connect with client businesses as well as traditional channel points of sale, further commercializing Genomma's core product portfolio based on our new logistics model and enabling us to more quickly and efficiently reach a greater number of points of sale. We are now also able to route a given order to the optimal fulfillment source based on the retailer criteria, such as profitability, proximity, store dynamics, and inventory level. Needless to say, GenOrder is a critical component to our company's continued evolution. We believe this enables us to balance flexibility, modularity, and time to market as a roadmap specifically focused on driving our continued omni-channel retail success in line with the second pillar of our growth and innovation strategy, which is to perfect our best-in-class go-to-market execution. As mentioned, during the quarter, we were challenged by the historically soft cough, cold, and flu season, primarily in the U.S. and Mexico, resulting in decreased sales of related product categories with a challenging 2020 comparison base due to consumers' pandemic-related panic home inventory stocking in the Q1 of 2020. However, we are pleased to note encouraging demand for our personal care and other OTC SKUs in this market in the U.S., particularly in California, Texas, and Puerto Rico, as well as in key local Mexican markets. During the quarter, U.S. sales of Suerox further strengthened within the traditional channel in those states, and Genomma's terrific sales team has gradually been expanding the brand within key retail channels or chains such as Walmart, which helped offset the challenging quarter. It's important to note that Puerto Rico is an important engine for future growth within this region, too. Robust sales at our South American operations were reflected in a double-digit year-on-year sales increase, led by particularly a strong performance in Chile, Colombia, Peru, and Bolivia, as said before. This was achieved through successful new product launches and line extensions, supported by outstanding point-of-service execution and an increased presence and visibility within the region's key e-commerce channels, as well as added sales for more than 100,000 new mom-and-pop traditional points of sales resulting from our new distribution strategy and expansion in Central America and Andean markets. Regarding supply chain and logistics, in Brazil, we are pleased to announce that we began operation of our new warehouse site located in Minas Gerais. The new site has a 31,000 pallet capacity and 21 more truck docks than our prior warehouse, enabling increased transport by more than 50 trucks a day. The new warehouse is located at a key logistics hub in Southeast Brazil, providing access to important logistics channels to the south, southeast, and central east regions. This favorable location ensures expedited online purchase fulfillment from Genomma's warehouse, aligned with the company's omni-channel focus on both e-commerce and physical store channels with cost savings through improved efficiencies. In Mexico, Genomma personal care manufacturing plant and central logistics warehouse at our industrial cluster formally began operations during the Q1, as was reported on February 24, 2021. Genomma's Suerox-isotonic beverage line began production, with several million of bottles being manufactured as we speak. I'm very pleased to share that in March, we unveiled our comprehensive 2025 sustainability strategy, entitled "A Commitment to the Future," based on an extensive in-depth evaluation of Genomma's business model as it relates to social, environmental, and governance. This detailed plan is closely aligned with our company's corporate culture and mission, reviews Genomma's 10 primary areas of operation, with clearly outlined goals and objectives, as well as specific target dates. The plan is aligned with the United Nations Sustainable Development Goals to ensure we address the world's most important sustainability challenges. Needless to say, I know the ambitious goals we have established as a company. We plan to share relevant updates with you twice a year on related accomplishments. To conclude, we are capitalizing on the growing consumer focus on health and wellbeing, trusted brands, as well as digital engagement and purpose-minded practices. These long-term trends have only accelerated during the pandemic. Our alignment, which, combined with the breadth and reach of our portfolio and continued success building on our growth plan, sustainably positions us for continued growth. We also remain focused on identifying exciting opportunities for potential inorganic growth through alliances, partnerships, M&A within our two core categories. As we look to a year ahead, while uncertainty remains, with limited visibility to the pace and magnitude of COVID recovery, we are confident that our continued disciplined execution, financial prudence, and the strength of our underlying operations will drive shareholder value. Thank you for your attention. It's now my pleasure to turn over to Antonio. Antonio? Thank you, Jorge, good morning, and thank you all for being part of Genomma's earnings call. I'll keep this quarter's comments focused on key highlights related to the Q1 of 2021. Genomma achieved MXN 3.5 billion in consolidated net sales for the Q1 of the year, reaching a 6.4% year-on-year increase, despite a challenging year-on-year sales comparison due to 2020 pandemic-related panic sales and to reduced sales of cough and cold products during the quarter, as Jorge has already discussed. With some Forex headwinds in some of our markets impacted our top line growth. Continued successful execution of our growth strategies as well as innovation and product launches supported our top line during the quarter. A 20.4% EBITDA margin for the quarter reflected a 10 basis point year-on-year margin improvement, a reflection of continued cost control and expense containment throughout the organization. A MXN 63 million non-recurring logistics expense associated with the migration of logistic operations in Mexico and the warehouse relocation in Brazil also impacted the quarter's EBITDA margin, as well as increased operating expenses associated with innovation, product launches, and expenses associated with operations ramp-up at our new personal care facility in Mexico. To a lesser extent, an unfavorable product mix with decreased sales in higher margin categories and lower operating leverage impacted the margins for the quarter as well. Mexico EBITDA margin for the quarter closed at 20%, a 320 basis points year-over-year margin decline, primarily due to the previously mentioned extraordinary expenses related to Genomma's relocation of our distribution center in our new industrial cluster, as well as growth and optimization investments made during the quarter. Q1 EBITDA margin for Genomma's U.S. operations closed at 3.7%. This is the result of the decreased sales, as Jorge has described, resulting in lower operating leverage as well as negative sales mix as higher margin cough and cold product sales declined during the quarter. Q1 2021 EBITDA margin was also impacted by increased expenses related to digital marketing initiatives, and to a lesser extent, to an increase in extraordinary expenses related to one-off logistics and operational costs in the U.S. In Latin America, new product launches and line extensions drove a 12% year-on-year increase in net sales for the quarter, with a noteworthy double-digit sales increase in Chile, Colombia, Peru, and Bolivia. This was partially offset by a negative Forex impact in Argentina, Brazil, Uruguay, and Paraguay, among others. Q1 2021 EBITDA for Latin America reached MXN 404 million with a 23.9% EBITDA margin, a 390 basis points year-on-year increase due to efficient cost and expense control, as well as the positive effect of increased higher margin product sales during the quarter, and positive operating leverage and sales mix effect in Latin America. Consolidated gross profit grew 5.8% during the quarter to MXN 2.2 billion with a 30 basis points year-on-year gross margin decline due to increased input costs resulting from primarily FX headwinds during the quarter. Net income reached MXN 390 million, a MXN 54 million year-on-year decrease. This decline is largely explained due to increased income tax expense when we repatriate cash from Genomma's international subsidiaries, and to a lesser extent, to increased all-in cost of financing impacted by FX losses in the countries that I have previously described during the quarter. Genomma remains with a very strong financial position with a leverage ratio of just 1.5x net debt to EBITDA and a solid MXN 1.8 billion in cash balance at the quarter's end. At 33% year-on-year cash position increase as compared to the prior year. We further optimized Genomma's working capital during the quarter, reducing our cash conversion cycle by three days to 96 days at the end of March 2021, from 99 days a year before. Finally, Genomma repurchased more than 1.3 million shares during the three months ended March 31st, 2021, an investment of approximately MXN 28 million. Our active share buyback during the quarter is a testament of our continued confidence in Genomma's continued growth and future success, while ensuring prudent approach to use of our cash and maintaining the balance sheet strength. In summary, we continue to deliver on our financial expectations. Our Q1 performance was a strong start for the year from an operating perspective, and we are optimistic for the balance of the year, while also making investments to drive growth in 2021 and beyond. With that, Omar, let's open it up to questions, please. Absolutely. Thank you. At this time, we'll be conducting a question- and- answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question is from Alvaro Garcia with BTG Pactual. Hi there. Good morning, Jorge, Antonio. I have two questions. The first one is on sort of a housekeeping question on the one-off expenses we saw in the quarter. One, if you could sort of break out how much of the MXN 63 million was Brazil versus Mexico, but more so whether you expect more of these one-off expenses going forward throughout 2021. My second question, I suppose maybe a little bit more of a strategic question on the U.S. Whats preventing the U.S., obviously there's some big headwinds, demand-driven headwinds, cough, cold, flu season. As you ramp up all of this new innovation, maybe it's your channel approach, or maybe you can explain on sort of what your strategy in the U.S. might be going forward. Thank you. Antonio, could you take the first one? Sure, Jorge. Thank you, Alvaro, for your question. This is Antonio. Regarding our one-off expenses for the quarter, as we have described, we basically moved the whole central warehouse in Mexico, which was a significant operation. It was more than 1,500 trucks and more than 20,000 pallets. Sorry, more than 140,000 man-hours. It was a very complex project that obviously involved a number of expenses, paying, moving trucks, people, installing racks, et cetera. That was the big part, Alvaro. The majority was located in Mexico. We also relocated our distribution center in Brazil to a much more convenient location where there's operating savings that we're gonna be getting, also logistics savings, and most importantly, we're gonna be able to reduce five days of transit when we ship our products to our clients on average from the new distribution center. There's also going to be efficiencies in Brazil with the new operation. Again, the large impact, the majority of the impact was located in Mexico. Just to illustrate, this is a little bit of when you buy a new house or a new apartment and you move from the old one to the new one. When you are packing everything, sometimes you find those clothes, those items, those furniture that you say, "Okay, this is very old. I'm not going to use it anymore. This is very old. I don't want it in my new house," et cetera. That happens when you do this kind of operation. We identify some very old items that we don't want that complexity. Let's just write them off. Some old SKUs that have very little impact on our top line, basically to reduce complexity. We took advantage of this very important project to clean up some old inventory that was there, and that's also included in this figure. In that regard, this is a one-time. We don't anticipate to move to a new warehouse in the near term. That's it. It's a one-time. I don't know if I was able to answer your question, Alvaro, or you want me to expand there? No, that's clear. Just to clarify, within that MXN 63 million, you have this sort of old inventory cleanup as well, reflected this quarter, right? Yes, exactly. Right. Great. Thank you very much. Yeah. Just to reinforce, it includes also the moving expenses of the Brazilian distribution center to a much better place, as I explained in my remarks. The second question, Alvaro, the U.S. Just quickly going back to 2019, remember that by late 2019, we agreed on a renewed strategy for the U.S. that we launched at that time, late 2019, early 2020. Unfortunately, the pandemic hit early in 2020, and it kind of slowed down, of course, what we were doing. Didn't stop us from launching a few new initiatives, including the launch of Suerox in California in the second semester of 2020. Unfortunately, again, this very historically low flu, cold, and COVID season really affected the U.S. in the Q1, and Mexico somewhat too, because both countries were in the winter season. With that in context, I can say that we continue to be very optimistic regarding the strategy. We are focusing, as we said, in three, four states that are large so that our efforts can be much more efficient. We, in addition to the initiative that we launched in the second semester, including Suerox, that is being very successful, and now will be going through a process of expansion in the next months. We approved early this year a set of innovations in different categories that are not related to cough and cold and flu. We want to continue balancing efficiently our portfolio, especially in these countries, and the U.S. is one of those, so that our categories are less dependent, quote unquote, or our business is less dependent of specifically cough and cold and flu remedies. You will be seeing these new initiatives that we approved early this year in the market in the second semester. That will be a battery of initiatives that will bring much more. It will strengthen our current model there in the U.S., and will rebalance the way we are focusing versus, as I said, cough and cold and flu products. Yeah, that's great to hear. Yeah. Great. Thank you very much. Thank you, Alvaro. Our next question is from Ben Theurer with Barclays. Please proceed. Hey. Good morning, Jorge, Antonio. First of all, congrats on the results. Just two quick ones I wanted to hit. First of all, you've talked a little bit about the gross margin compression, and we saw obviously a little bit of increased input cost. The one thing we've seen in many areas via higher packaging cost, raw material costs, energy costs. There's a lot of things currently in a more of an inflationary environment. Just wanted to understand, what is your expectation in regards to input cost and your possibility to potentially offset those or mitigate those going forward? That would be my first question. Thank you. Antonio. Thank you, Ben, for your question. This is Antonio. As we all know, there has been a number of external situations that have happened in the world. The major storm in Texas created a disruption in many hydrocarbon products, gas, ethylene, gasoline, different components that are used in the chemical industry and in the packaging industry. That created some kind of inflation there, and that obviously has impacted, I would say, Mexico in general, but also other countries and the U.S. On top of that, there was another situation with the Suez Canal. That for some time, added more pressure in certain components of certain manufacturers. Let me just give you one example. Pallets. One of the largest pallet providers in the Americas is this company called CHEP. They have problems to source certain raw materials that they require to manufacture those pallets. The country basically ran out of pallets, and that created some pressure on everyone, not just Genomma, but also our competitors, retailers, et cetera. Again, the Texas situation and the Suez Canal are things that are, I would say, temporary, that are there, and obviously everybody's coping with that. We saw some inflation due to these particular situations. I don't expect that to continue for the long run, because as prices go up, more companies jump in and expand production. I think that's going to be somehow short-term. Having said this, obviously our strategy to cope with input cost inflation has a lot to do with the plant, with the manufacturing facility. That is something where we have placed a lot of energy. The good news is that the personal care plant started operations with one line. We're commissioning the other lines that we expect to start operations by the end of the first half, end of Q2. That's going to help us cope with this input inflation that you described. Obviously, we don't have a crystal ball. We think that the Suez Canal situation and the Texas major storm were temporary, and that things will get a little bit back to normal. Let's assume for a moment that that doesn't happen. That is going to impact everybody's input cost. That is not only Genomma, but also the P&G, Unilever, GSK, Bayer, AstraZeneca. As long as it's a level playing field, we are fine. The good news is we have these initiatives to improve our gross margins with the plant. I don't know if I was able to answer your question, Ben. Yes, that was very good, Antonio. The second one I wanted to ask is around capital allocation. Take a look at your cash balance, but take a look at your leverage. It's fairly low now compared to where we saw it some years back. You've done, obviously, a big investment into the new facility, but that's coming to an end as well. How should we think, aside from what's already out there in terms of share purchases, buyback program, et cetera, how should we think about capital allocation between more buybacks, dividends, versus M&A, versus organic growth? Just to understand a little bit where is Genomma heading within the next, call it two to three years from a capital allocation perspective. Thank you. That's a great question, Ben and as we shown the market, we want to be very prudent with the use of cash. In 2020, we were very prudent, and we were able to refinance ahead of time the long-term bonds that were outstanding and with great success. Obviously, they were oversubscribed, and that's an excellent signal that at least the fixed income market, which is much more prudent and more risk-averse bet on Genomma. That was great. We want to be very prudent with the use of cash. As we all know, there was a dividend declared by the company some years back. We decided not to pay it until we have completed the plant, and we could start delivering savings. Yes, the board is now considering possibly that dividend may come in the future. That's something that is being discussed because that's a commitment to our shareholders. That also reflects our commitment to generating cash and creating value to the shareholders. Obviously, there's going to be buybacks. You've seen throughout this quarter that we've increased our buyback program, and we will continue doing so at this moment. Jorge and I are very much involved in the organic and the inorganic growth opportunities. We want to maximize shareholder value. Everything that we do needs to be accretive, and we want to make the best returns possible. It's interesting your question, because there's a number of growth initiatives that are being worked at this moment. Organic opportunities like in the blades and razors category, infant nutrition, et cetera, but we have also other projects that when you consider the invested capital versus the return, it's a very good business. We are going to continue investing organically because we see a lot of potential there. The buyback program, definitely that's going to be reinforced because, obviously, we think that the current valuation doesn't reflect what the company is worth. M&A is something that Jorge and I are spending a lot of time looking at that, but not only M&A for the sake of M&A and for the sake of buying something. We're also thinking about alliances, strategic alliances, and developing new businesses that if we can do it the way we like to do it's not going to require a lot of CapEx or investment in goodwill, so that the return on investment capital would be maximized. Your question is excellent because we are approaching a new phase of Genomma. At this moment, we need to focus on making sure that the plant delivers the savings that we planned. With those savings, we're going to generate more cash, and with more cash, obviously there's going to be more opportunities to develop all the different things that you mentioned. That is why the board is considering a dividend, but that decision has not been made yet. We're just sharing with everybody that capital allocation is clearly going to be a focus, and we want to be accretive, and we want to maximize the return for our shareholders. Jorge, I don't know if you want to add some comment to this. Just one comment quickly, Antonio, just to highlight what you've mentioned about inorganic and organic growth. That was part of the question. I think that is a very important topic, and we are really working very hard, a few of us, in the inorganic area of that comment. As you know, we've been growing organically. It's been two and a half years already, and this year we'll continue growing organically. We've been doing it in the, let's say, high single digits, and profitably, because the rate of growth of our profits is even higher than the rate of growth of sales in overall terms. We want as part of our strategy for the next, as you know, three years, four years, is to add the inorganic piece to this growth strategy so that it will be periods of time in which we can double the rate of growth with solid, strong projects. That's why Antonio and myself especially are spending a lot of our time talking, discussing, analyzing alliances, partnerships, M&A, et cetera. We will do it in a very responsible way. This new Genomma, when we do something new, it will be something that has high chances or probability of success, and it brings to the company additional, very profitable volume with minimum capital required. That's the way we are looking at all these projects. Just examples of Novamil and Groomen are great because we haven't really been investing capital on those, as you know, because we have partners that provide the manufacturing and the R&D. They are the best in terms of technology, infant formula, and razors, and we provide the rest. We provide the brand in the case of Groomen, and we input to the project our best skills in marketing, go to market, logistics, et cetera. We'll continue, as I said, doing this, and you will be seeing in the near future, new things related to this focus on inorganic growth also in the near term. Perfect. Thank you very much, Jorge and Antonio, for those very clear comments. Looking forward to hearing. Thank you. Thank you. Our next question is from Andrés Ortiz with Credit Suisse. Please proceed. Hi. Thank you for taking my question, Jorge, Antonio. Hope you're well. I would like to ask about the relocation of the central warehouse in Mexico. Besides the one-off that you recorded, you saw some impact in lead times towards your clients, and could this have affected top-line growth during the quarter? Do you have some visibility on this? My second question- Sure. Go ahead. No, go ahead, Andrés. Okay. The second question is if you could give us an update on the product that you launched during last year, particularly those that you take advantage of the overall situation of the pandemic. How are they doing? What changes have you done to that strategy? Are you continue pushing in that regard, and what are your next steps? Those are my questions. Thanks. Okay. Thank you. In your question regarding the central distribution warehouse move. Yes, I would say that as normal, as you would expect in a move of this complexity and size, we had some effects in terms of our service to the clients at the beginning. That was for the first few weeks in overall terms. Yes, I would say that affected fill rate for a few weeks until we stabilized the system and all the processes. Remember that this move is not only to a new place, but is in theory, a move that will give us more efficiency and effectiveness in what we do from a logistic and service standpoint, in addition to being next to the two plants. That was a short period of time. It's under control now. Nothing major, I would say, happened during this time. Yes, we can say that fill rate, maybe that was affected for a few weeks, affected somewhat our sales. Despite that, we were able to catch up a lot of that during the second and third months of the quarter. We don't foresee that will continue being a major issue. Let me just take advantage of your question, because I just wanted to reinforce something that we have said in the past, that 2021, we are calling it the year of our supply chain. We call it the year of our supply chain because just going back to our four-pillar strategy, you would know very well that in the first two years, we focused on product innovation and go- to -market. Those were our key priorities to reignite profitable growth. It worked, and it will continue working, and we have worked very hard in perfecting both how we do innovation and how we improve the way we win at the point of sale with our go- to- market. This year, which is the third year of the strategy, is the year of the supply chain, together with the startup of the plants, of course. Just to remind the group that in late 2020, we started upgrading our supply chain team in all fronts. We hired a couple of very experienced plant manager directors, one for OTC and one for personal care, and they are there up and running already. They have more than 20 years of experience in their respective categories. We hired a new quality control corporate director with lots of experience also in both types of businesses or categories. We hired, early this year, a new purchases director that also comes with great experience in multinationals in his previous life. We have hired a new demand planning person that is bringing this process to the next level, et cetera. If you think about all of those interventions, the new plant, the plan that we have with all our key suppliers so that we continue optimizing not only the size of the suppliers, the amount of the suppliers, but also the processes and all these new people that we have brought. We are betting that by the second semester of this year, we will be talking about a totally renewed, redesigned, much improved and efficient supply chain as a whole. From the day where we forecast demand to the day we go and deliver the product to the point of sales, all that chain is being taken to the next level. That's great news, and we are very excited about the work that is being done in that front. That is the thing that in addition to the COGS optimization that the plan will bring, we are also expecting great efficiencies from our interventions in the whole supply chain model. Jorge, if I may add, and thank you, Andrés, for your question. When you move the central warehouse from one location to the new location, it's obviously a very complex project. As we said before, it involved more than 140,000 man-hours, which is a lot. Obviously, you want to plan and try to make it perfect. What we did is plan in advance and ship products to our clients in advance. During the few days of the blackout, the sellout would not suffer. At the point of sale, consumers would find the products that they needed, they wanted, because our clients would have enough inventory. During those days that the blackout took place, obviously there could be an occasion where a consumer goes to a point of sale and they don't find the Tío Nacho that they want. Obviously that sale was lost, okay? It wasn't there. Your specific question was, do you think sales could have been higher if you hadn't relocated during the quarter? The answer is yes, a little bit, not so much, because the planning, I think, it was done really well, and so the impact was not huge. However, we do need to acknowledge that there was more demand of certain brands. That simply the product wasn't there for a few days while the blackout took place. That happened a little bit with Tío Nacho. That also happened with our blades and razor business, as Jorge described, has been really, really successful, and we could grow significantly more. We're probably more successful than what we had anticipated. There's some supply chain improvements that we need to make. I'm just saying this because when you look at your model, and obviously, Andrés, you're making this question to try to see if you need to calibrate your model or not. I think there's more demand in certain categories. There's opportunities there, and the team is clearly committed to catch up and to cover those minor gaps, I would say, during the Q1. That's going to be covered in the balance of the year. Again, we are very proud of what the team achieved in moving a very complex operation from one side to the other and do the same thing in another major market like Brazil. The impact was not much. Again, your question is, could you have had a slightly higher growth? Possibly, yes. Understood. Thank you very much. Our next question is from Rodrigo Alcantara with UBS. Hi, Jorge, Antonio. Thanks for taking my question. Just a quick one here, if I may. In previous meetings, Jorge, we have discussed about this mid-term objective target to double sales by 2024. I was wondering if, based on what we saw in this Q1 and the trends that you're looking at for 2021, if you could help us reconcile or make sense of this target. That would be my question. Thank you. It's related to what I said a few minutes ago, is that within that vision, our plans include inorganic growth that we have basically not seen in these first two and a half years of the strategy. We plan to continue growing organically behind our four pillars, our strategy, and that will continue being probably around the high single digits in overall terms. We need to add inorganic growth, new businesses, and that's part of what Antonio and I are looking for. I'm sure you will start seeing the contribution of those new things as soon as before the end of this year. Those will continue in the next two, three years so that we can achieve this number. It wouldn't be possible to achieve it with only what we are doing today. We need to get into these new businesses opportunities that we are assessing, plus the growth of the new things that we launched last year, like Novamil and Groomen, expansion to other countries, et cetera. That is why it's included in the whole vision. That's very helpful. Thank you. In summary, we should still expect similar agreements such as the one with UP, which is only a distribution agreement. This would be it or what? I would say that you will see three different type of things happening. You will see us launching new brands, our own brands, like we did with Groomen, we are finalizing several projects from that standpoint. You will also see licensing agreements like the one we have with UPI. You will see others that also we are right now working on. You will see some M&A, too. We are also looking some opportunities of brands that are maybe very important accretive to what we have in our portfolio today, always with shareholder value in mind, you will see things coming from those three fronts. That's very clear. Thank you, Jorge. Thank you. Our next question is from Nicolas Larrain with JP Morgan. Please proceed. Good morning, Jorge, Antonio. Thank you for taking my question. I had two, actually. The first one more related to the Q1, if you could help us to understand how relevant the cough and cold category is during Q1, so to have a better grasp of how much it actually suffered. Also thinking about the plan, you guys have been ramping up several production lines. I was just wondering how has this ramp-up been performing? Has it been according to your expectations in terms of speed? Just wanted to get your two cents on how the ramp-up is going on the personal care front. Thank you. Okay. Let me take the first question. We'll answer the second together with Antonio. Let me start for the plant. I think that would be better. The ramp-up of the plant has been very fluent, I would say. We have had several weeks already in the last two months, I would say, March and April, basically since February, of a good ramp-up in the production of Suerox. Suerox has gone from a few thousand bottles to millions now on a weekly basis, and is already being shipped to our client in Mexico. We still are planning to go to the maximum capacity in May. In May, we should achieve maximum capacity in the Suerox line in overall terms. Also in the next month or two months, we will be seeing the start of pilot runs in the shampoo lines. Those are being finalized assembling, and you will see first Vanart, and after Vanart, you will see Tío Nacho, and those are already in the works so that they can start production in a few weeks. Antonio, anything else in the plant? No, I think you did well right there. I'm sorry, what was the first question? I'm sorry. Yes, it was- Yeah. -on how relevant cough and cold is on the Q1. I would say that if the cough and cold flu season in the U.S. and Mexico would've been normal, just normal, and we would've sold exactly what we sold the previous year, that would've added a couple of growth points to the top line. That's something that Antonio and I calculated, and the number of the growth will be between 8% and 9% instead of 6.4%. Yes, Nicolas, expanding on Jorge's comment, if you look at previous reports in prior years, we always talked about the winter season, always the winter season, winter season for Q4, Q1, et cetera, because we have very relevant products for cough and cold. We have the Tukol syrup, we have Next, we have Tafirol, we have Alliviax. We have a number of brands, a number of categories that are extremely relevant, and by the way, they're very highly profitable. Let's put it this way. If we had just followed the macro trend, just following the macro trend, and you look at the statistics from the CDC in the U.S., and same thing is happening in Mexico, basically, there's no flu. It disappeared. I haven't seen anyone getting a cold in my family or relatives or friends, et cetera. It's a unique phenomenon where because people are socially distancing, wearing masks, washing their hands, taking a lot of vitamins, not using public transportation, et cetera. It's like if that cough and cold and the flu just disappear from Earth. Okay? That's happening in the northern hemisphere. Obviously, in the southern hemisphere, it's different because you're now in the summer. It was really drastic. Again, if we had just followed the macro trends, this could have been a very bad quarter. The good news is that whenever there's a challenge, Genomma and the leadership team is flexible enough to say, "Well, this is happening. What are we going to do? So let's try to conquer some other categories. Let's expand market share in other businesses, in other countries, et cetera." What you've seen is a remarkable growth in Latin America. The northern hemisphere is having this situation that impacted the U.S. heavily. In the case of Mexico, we have blades, razors, infant formula, isotonic beverage. We expanded our commercial strength in those categories, and Mexico did well. We also said, "We need to cover the gap. Let's put a lot of more energy in Latin America." The growth was remarkable, especially taking into consideration that we had to cope with Forex headwinds, significant headwinds, in a number of the largest markets in South America. With these comments, what I'm trying to say is that, yes, we were impacted, as Jorge said. If the cough and cold season or the winter season or the influenza, the flu, et cetera, would have been normal, our results would have been a lot better. The good news is that Genomma is flexible enough. It's very well diversified in terms of geographies, in terms of categories, that whenever we find a challenge, then we try to find a way to cope with it and keep on growing and keep on generating profits and cash flow so that we keep on adding value to our shareholders. That's the beauty of a business like Genomma, where we are present in 18 countries, in so many categories that we can do that, and we have the flexibility and the culture, Jorge always talks about the fourth pillar, which is culture, of a team that says, "Yes, we can do it. Okay, this challenge is major, we can do it." The other question that you might have is, what is going to happen with the flu season next year? Nobody knows. We expect the world to be more normal, and people to get more vaccinated, and so then people are going to the office and traveling and this and that. We expect a much more normal winter season next year, and that's going to be positive. Just wanted to expand those comments, Nicolas. I hope they help. Just a quick comment to close our answers is that the fact that we had great growth coming from Latin America also helped the profit mix because our margins in Latin America are very healthy, higher than the average of the company. That was good news, too. Thank you. I think we don't have any more questions. I will go ahead with my closing remarks. Thank you everyone for joining us today. We're encouraged by the underlying positive signs that our strategy is taking hold. While COVID and the related soft peak flu season have had an outsized impact on our overall results, we are very well positioned to capitalize on exciting opportunities as life begins to return to normal. We are confident in our strategy, the results we are currently seeing, and energized by our efforts. We look forward to continue to drive progress on our key strategic initiatives, and we are embracing our critical role in helping our customers have amazing health and wellbeing. Thank you, everyone.