Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Genomma Lab Q2 2021 Results Conference Call. At this time, all participants are in listen-only mode. Following today's discussion, 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 from your telephone keypad. A replay will also be available shortly after the conclusion of the call. I'll now turn the call over to Barbara Cano of InspIR Group. Please go ahead, Barbara. Thank you, Robin. Good morning. Welcome to Genomma Lab's conference call to review Q2 2021 results. On today's call are Jorge Brake, Genomma Lab's Chief Executive Officer, and Antonio Zamora, Chief Financial Officer. Our results were released yesterday afternoon and can be found within the investor relations section of our website, along with the appropriate filings with the Mexican Stock Exchange. Certain comments made during today's discussion may be deemed forward-looking statements within the meaning prescribed by the securities laws, including statements related to future business and financial performance. All forward-looking statements represent management's judgment as of the date of this conference call and are subject to risks and uncertainties that can cause actual results to differ materially from current expectations. Investors are urged to carefully review various disclosures made by the company, including the risk and other information disclosed in the company's filings with the Mexican Stock Exchange. In particular, uncertainty remains about the duration and impact of the COVID-19 pandemic. This means results could change at any time due to the pandemic's impact on the company's business results. Management's outlook is a best estimate based on the information as of today's date. With that, I'm now pleased to turn the call over to Mr. Jorge Brake. Jorge, please go ahead. Thank you, Barbara. Good morning, everyone, and thank you for joining us today. Throughout the last year and a half, Genomma Lab has come together as a strong team through the pandemic and made decisions prioritizing the safety and wellbeing of our employees while swiftly adapting to the changing needs of our customers and consumers. This approach has served us well, enabling us to make meaningful progress on our four-pillar strategy despite the volatile operating environment. Our team pulled together, we executed with excellence, and we delivered strong operating results. As you read in our press release yesterday, Genomma's Q2 results reflected expected challenge in comparison to the prior year as we cycled the demand surge that accompanied the COVID-19 pandemic in Q2 2020, while navigating several current headwinds. Vaccination rates in Latin America continue to lag with growing unemployment that impacts consumption across the board. Genomma is also experiencing FX headwinds compounded by a challenging macroeconomic environment and inflationary impacts across the key markets where we operate. However, we delivered MXN 3.9 billion in sales for Q2 2021, a 6.3% year-on-year increase reflecting Genomma's resilient and dynamic business model based on our four-pillar strategy. From a top-line perspective, Q2 2021 represented the 11th consecutive quarter of increased sales and one of the best quarters in the history of the company. Our sales benefited from the continued momentum of our product portfolio optimization as well as innovation strategies, with line extensions and new product launches also within new categories such as Novamil and Groomen, et cetera. Net sales and EBITDA at Genomma's Mexico operations grew almost 9% and 14% year-on-year, respectively, to close at MXN 1.64 billion with a 20.2% EBITDA margin. Latin America net sales reached MXN 1.9 billion during the Q2, almost 16% year-over-year increase. It's also important to note that today, close to 20% of Genomma Lab's growth comes from innovation initiatives. To put this into perspective, essentially none of our growth was driven by innovation before 2019. It jumped to almost 16% in 2020 and 20% in 2021, as already mentioned. We are now at a solid level as compared to our global peers on this front. The macro is an excellent example of a heritage Genomma Lab product that today is growing behind innovation, reflected in a double-digit year-over-year increase in sales for this product. This is achieved through improved formulas and fragrances, strengthened distribution channels, and an expanded presence in the countries where we operate. The strong quarterly results were also driven by our decision to invest in supply and service while preserving brand investments through advertising and consumer promotions, which has further enabled Genomma to gain share in a difficult operating environment. While we faced significant inflationary pressure in the quarter, we anticipated and mitigated the vast majority of an impact by consolidating Genomma's third-party manufacturers. Today our suppliers are fewer, larger, more efficient, at a lower cost. We have also fine-tuned our pricing strategy to be able to pass through costs while continue growing our volume. This quarter's results were favorably impacted by the interventions we have successfully made within our supply chains through the third quarter of 2020. Genomma's new and strong talent is focused on proactively and aggressively addressing all related opportunities, expanding from demand forecasting to purchasing, specifically what, where, and how much, while optimizing costs. As I have commented on our call last quarter, this is the year of the supply chain. In particular, we are focused on transforming our supply chain in line with our new plant initiating operations. We, therefore, are confident that we can continue addressing future headwinds reflected in the plans and pricing already in place. We have also identified purchasing targets where we see important opportunities to further optimize costs, particularly related to raw materials and packaging, from which Genomma can benefit. In tandem with the benefits we are seeing from streamlining our supply chains to become more efficient and productive and of our manufacturing plant ramp-up, we also have seen our continued strength in market, underpinned by the fact that Genomma has been uniquely, competitively positioned to win. Genomma's broad range of products have powerful local brand recognition and can be found at an attractive price point relative to our competitors. Further, we continue developing a big presence within the traditional channels, the famous mom-and-pop stores, while at the same time, we were able to swiftly pivot towards e-commerce early in the pandemic, more than tripling Genomma's business within this platform over the last 18 months. We drove a strong quarterly performance through our expanded presence within the traditional channels in Mexico, Central America, and the Andean region during the first two quarters of 2020, while we also deepened e-commerce channel sales, notably in Mexico, through attractive Hot Sale campaigns that increased Genomma's share within this market during the quarter. Consumers are increasingly moving online, as we all know, and we are ramping up our connected commerce, e-commerce efforts to continue to take advantage of related opportunities. Genomma was once again selected as a component within the S&P/BMV Total Mexico ESG Index for the second consecutive year, as one of 29 companies recognized for outstanding ESG practices based on its Standard & Poor's Corporate Sustainability Assessment. During the Q2, we updated our diversity, inclusion, and gender equality policy, also inaugurating our global committee for diversity, inclusion, and gender equality. We worked with a consultancy to update our climate risk and opportunities analysis to closely align with the TCFD, the Task Force on Climate-related Financial Disclosures recommendations. In closing, when I joined Genomma, our initial focus was on de-risking the company to increase market share. We also strived to help Genomma's employees work differently and more effectively, supported by our company's effective four-pillar growth strategy. As a result, Genomma has not only survived today's unprecedented challenges, we've also prevailed, and we'll continue doing so. Thank you for your attention. It is now my pleasure to turn it over to Antonio, and I'll be back to answer your questions in a few minutes. Thank you. Thank you, Jorge. Good morning, and thank you all for joining today's conference call. As Jorge just shared, we once again delivered strong results with another quarter of sales growth. Genomma achieved MXN 3.9 billion in consolidated net sales for the Q2 of the year, reaching a 6.3% year-on-year increase. Continued successful execution of our growth strategies, innovation, and product launches during the quarter, supported sales during this quarter. This increase is due to excellent new category performance in Mexico, successful line extensions and product launches in key regions, go-to-market initiatives, and digital advertising and marketing campaigns throughout the regions, as Jorge had just commented. Consolidated EBITDA increased MXN 21.5 million year-on-year to reach MXN 777 million. However, as Jorge just shared, our Q2 year-on-year EBITDA margin and sales results were adversely impacted by last year's demand surge related to the start of the COVID-19 pandemic in certain markets where we're present, as well as pronounced inflation, ForEx headwinds, decreased operational leverage, and a negative sales mix effect from increased sales of lower-margin products, as well as non-recurring investments related to the process of consolidating the company's industrial cluster. Mexico net sales for the quarter reached MXN 1.6 billion, an almost 9% year-on-year increase. This MXN 131 million increase is primarily due to a better than expected performance of new categories and line extensions, as well as an improved go-to-market and in-store visibility execution within the various trade channels where we operate. This increase was also driven by an increase in points of sales served, as well as ongoing e-commerce initiatives. Mexico Q2 2021 EBITDA reached MXN 332 million with a 20.2% margin, reflecting a 100 basis point expansion. This was primarily due to the operational leverage effect on fixed expenses with continued cost controls and supply chain efficiencies reached during the quarter. Q2 2021 EBITDA was partially offset by expenses associated with the commissioning of new lines at the industrial cluster and investments made in trade channels. Net sales for Genomma's U.S. operation decreased by 33% to MXN 390 million, also due to a challenging year-on-year comparison base, with an extraordinary increase in Q2 2020 hand sanitizer sales and the residual effect of weak OTC portfolio performance due to fewer 2021 cold and flu cases within this market. Traditional pharmacy chain consumer foot traffic also decreased during the quarter due to increased e-commerce competition. In Latin America, successful go-to-market strategies enhanced in-store visibility, new product launches and line extensions, as well as an increased store base, drove top-line growth during the quarter. Net sales for the quarter increased by almost 16% year-on-year to MXN 1.9 billion. Year-on-year sales in Argentina, Brazil, Bolivia, Chile, and Colombia reflected a double-digit increase when expressed both in local currency and in Mexican pesos. Consolidated gross profit grew 8% during the quarter to MXN 2.4 billion, with a 90 basis point year-on-year gross margin increase. This was the result of increased operational leverage and the favorable impact of a positive sales mix on the company's consolidated top line, despite the considerable inflationary challenges which Genomma and companies throughout the world continue to confront, particularly relative to the cost of goods sold. Net income reached MXN 379 million, an MXN 18 million year-on-year increase, despite ForEx headwinds. Q2 2021 net income increased due to a lower reported effective tax rate as compared to the prior year. Genomma remains well-positioned from a balance sheet perspective, with a leverage ratio of 1.6x net debt to EBITDA and MXN 1.4 billion in cash and equivalents at the quarter's end, a 16.5% year-on-year increase. During the quarter, we again issued short-term bonds within the Mexican market at lower interest rates than those we have prepaid, further improving our financial cost and maturities. This is further an affirmation of investors' continued confidence in Genomma and our strategies. Thank you for your trust. Finally, during the quarter, we continued to invest in Genomma's buyback program to drive further liquidity on the stock. For the three months ended June 30, 2021, the company repurchased a total of 1.9 million shares, representing an investment of approximately MXN 38.4 million. In closing, I would like to reiterate Jorge's conviction in the long-term performance of Genomma. We are delivering the results we knew we could deliver and are very optimistic about our strategy, our team, and the underlying strengths of our brands. With that, let's open it up to questions. Rob, please. Thank you. We'll now be conducting a question and answer session. If you would like to ask a question today, please press star one on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. If you're a participant 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. Once again, that is star one to ask a question today. Our first question comes from the line of Antonio Hernandez with Barclays. Please proceed with your question Hi. Good morning. Thanks for taking my questions regarding the U.S. You mentioned promotional activity there and you mentioned, I believe, market share gains, if I hear correctly. Could you elaborate a little bit more on the overall competitive environment, if you are expecting, of course, with input cost pressure, if you are expecting maybe a need of price increases from the overall industry, from yourself, and if you are going to continue as well with these promotional activities. Thanks. Hi, Antonio. This is Jorge. I will comment on your question. In overall terms, Q2, Q1 also have been tough quarters for many reasons. I cannot isolate one. In addition to the external factors that Antonio just mentioned, that have to do with FX, for instance, and some macroeconomic issues in some countries, mainly behind the impact of the pandemic, some social issues in some countries like Colombia, that also had several weeks of social manifestations in the country, et cetera. In addition to those external factors, the internal, which is related to our business and categories and market and competition, was also tough because all companies are trying to do their best, as you can imagine, coming out of a very tough 2020 for most of us. They have been very creative and aggressive in the different markets. However, as we have said, we truly are confident on the potential of our strategy, our four pillar strategy that continues to be valid, continues to be very solid in terms of the things that we are doing in the marketplace. I'll give you some examples together with explaining how competition is behaving, the pricing situation, and the promotion situation. I would say that if you think about our four pillar strategy, I would say that, as I said, continues to be very valid. It was valid during 2020. That was the best year in the history of the company in terms of sales and profit, and continues to be valid in 2021. I think it's going to become better than 2020 because we are in the right path now. My personal opinion is that the second half is going to be better than the first half. What is working? We continue to be very aggressive in innovation, and innovation means line extensions, as you know, completion of our portfolio in different countries, restoration and modernizing brands. You will see a huge relaunch of one of our key brands in next month. We continue also pursuing new big brands or categories. Let me mention one or two examples here is, as you know, we started with Novamil, a new brand for us entering the infant formula category in 2020. 2020 was not a normal year. Pediatricians were not opening, we couldn't display the brand to its full potential. The first half of this year is growing more than 30%. That's the potential of a brand that will bring much more growth, profitable growth, to the future in the company. We are also growing a razor brand, Groomen, that was launched in Mexico exactly one year ago. Now it's proving to be a very powerful initiative, reaching between 5% and 10% market share, depending on the channel and on the accounts, as you can mention, which is making us now be more aggressive in terms of the plan for the brand that includes promotions, communications, consumer, supply, distribution, et cetera. Also thinking about expanding those two brands to more countries in the countries where we operate. You will see that happen by the end of this year. I think the power is innovation. As we said when we launched the innovation pillar two and a half years ago, it's enormous. Now it's 20% of our growth is coming from innovation, and that is one driver that is going to make us be very consistent in terms of continuous and consistent growth in the medium and the long term. Also, thinking and competition, to be honest with you, as I said, is being very aggressive, but more from a commercial standpoint. We haven't seen lots of initiatives in any other countries in terms of impact against our brand, negative impact against our business. It's more commercial, it's more short-term. Sometimes we react, sometimes we don't react when we don't think it makes sense. That's normal. I'm not my part of running this type of businesses. Also, in the go-to-market, we are stronger and stronger by the day in this area because we continue expanding our presence in the traditional channel. We continue making stronger our presence and visibility in the modern channels, too. As I mentioned in my summary, we continue to grow dramatically in the e-commerce platforms. And that is happening in most of the countries in which we also operate. From a competitive standpoint, I would say a normal situation. I would say that we are winning because we are consolidating the impact of our innovation pillar that has been there two and a half years, et cetera. It's very important. In terms of pricing, as you mentioned, this is an area in which all of us are working very hard. I also mentioned inflation, cost inflation is here and will stay with all of us in all industries for a while, and we've been able to manage, as I said, fine-tune our pricing strategy. We are very close to all markets. We are very close to all costs and taking action in pricing as soon as possible. That is happening. That has been happening this quarter very frequently. When we do so, it's to cover the increased costs and our system, our model now is very agile so that we can react very quickly to any of the needs we may face in pricing terms. If you put together the need of being aggressive in pricing because of cost inflation, with the fact that we will continue innovating in commercial speaking in terms of product or initiatives, we have been able to compensate that. We have been able to reduce the risk of pricing affecting our sales in overall terms. It is working for us. It will continue working, I think because we are taking a very well-balanced approach. Perfect. Thanks a lot for the call, and have a nice day. Thanks. Thank you. Our next question comes from the line of Joaquin Ley with Itaú. Please proceed with your questions. Hi. Good morning, Jorge. Hi, Joaquin. Yeah. The first one, you just explained, the exposure that you have to oil derivative prices and so on and so forth. I would like you to elaborate a bit more on the contraction in the margin that we saw in the Latin American operation. Particularly, you mentioned in your press release that there's some contraction that relates to sales mix acceleration, which is something that surprises me, right? OTC grows over 20% and personal care less than 10%. I would like to understand that better, please. The second question goes to the U.S. I understand the super soft basis for comp you had because of Antibac last year and the soft performance of anti-flu. The results of the U.S., they kind of look like a roller coaster in terms of sales and EBITDA. If you could share with us where are we in terms of your new strategy in that operation, the four regions that you have focused, what we could expect for the coming quarters, that would be helpful. Okay. Thank you, Joaquin. I will make some overall comments and then Tonio will complement in some others. To add perspective, in the U.S., I will start from the last comment. In the U.S., yes, you're right, because if you see the numbers, you see this kind of roller coaster in terms of results, especially if you compare it versus year-ago. That is what we are seeing in Q2. I was just with the U.S. team yesterday, however, as you said, if you take out the Antibac gel, that was an opportunity that came together with COVID in Q2 2020 from the base, then the growth of the U.S. is double digits. That is the impact of a big volume sold giving the opportunity, especially in Q2 when we were starting the pandemic. As you can imagine, also taking that Antibac gel volume from Q2 2020, the company's result in terms of sales would have been double digits. That's the way I'm looking at it to confirm how solid our overall business is if we take out those things that were present at that time. It doesn't mean that we are not continuing to sell Antibac. It does mean that that explosion in consumption that came with the start of the pandemic is not there anymore. People are still using gel, but not at the volumes they were using in the first months of the pandemic. We will continue with that business, but not at the levels we saw in Q2 2020. The U.S. business, as you said, Joaquin, the model that we launched last year, we continue very strongly developing it. This is year two of the restructure we implemented in the U.S. Given the way we are looking at it, because as you know, we are now thinking about expanding or working actually, expanding our presence in other segments of the population, including the general market, in a gradual basis. We will see the potential of our business being much bigger than now as we start implementing those strategies. You will be hearing from us in the next quarter what we mean. Basically, it's looking for implementing initiatives of product within our portfolio, product that will appeal to more and new segments of the consumers in the U.S. market. One example of that, quickly, is Suerox. We launched Suerox in the U.S. with a different mindset, not the mindset of the Hispanic market, the mindset of the general market. Suerox is a brand that appeals to all segments of the population, including the name, including the product, the uniqueness of the product. As you know, it's eight ions and no sugar, no calories, great flavor. As we started with that new initiative, our mindset was this is for the general market, not for Hispanic market only. We started in California by mid-2020, as you may remember, and it's doing great. It's doing great to the point that today we are expanding our production capacity to be able to meet the demand before expanding it to other states in the U.S. Everything that was implemented with Suerox in terms of consumer, in terms of go to market, in terms of supply chain, we can reapply to other categories or brands, maintaining some key differences. We are proving that we can get into those other segments if we are smart in the way we develop new initiatives as part of the U.S. portfolio. I think that's the way to think about this business. I am very confident that in the next quarters, especially 2022, is the year in which we are going to see the results of all these changes implemented between 2020 and 2021. I think in the case of Latin America, different situations in different places, and Antonio will explain more of that. The margin differences are due to specific things that happen in some countries and not in other countries. I will let Antonio give more perspective on that. Thank you, Jorge. Thank you, Jorge. This is Antonio. Joaquin, thank you so much for your question. Regarding Latin America, I think your question is very interesting because usually it's a rule of thumb that OTC has a better profitability than personal care. It is a rule of thumb, and it's a right rule of thumb. Depending on the category and the specific moment, that may not hold true. Let me give you one example, which is very relevant, at least for Genomma this quarter. Our paracetamol-based business, the brand Tafirol in Argentina, which is very, very strong, and it grew at a very high speed during the quarter, and we are very proud of that brand. The problem is paracetamol API is imported. Obviously, we're increasing prices of the end product in the market, sometimes there are some lagging effects. You take the hit of the COGS immediately, especially when it's about ForEx, it takes some time just to adjust pricing. One of the things, one of the drivers of the margin decline in Latin America, which again, let me stress, this is temporary, had to do with this COGS inflation, especially ForEx, and particularly with paracetamol in Argentina. That's one of the drivers. That's one of the situations why the general rule of thumb didn't apply this quarter. On top of that, we always talk about the flu season, and we generally speak about the northern hemisphere. We talked about the U.S., we talk about Mexico during the winter, now it's a winter in the southern hemisphere. There's some cough and cold medicines that didn't have the performance that we had anticipated. It's the same thing that we are experiencing everywhere else. People wearing masks, staying at home, washing their hands. The flu, at least for this year, almost got eradicated from the face of the world. I think that the good news is that as people get vaccinated and as people start moving out and getting to public places, et cetera, there was this possibility that the flu will come again and the cold symptoms will come in the near future. We don't know if this is going to hold true as there's new guidelines at this moment. The important thing, Joaquin, is that one of the beauties of Genomma is that it's a well-diversified company in terms of markets, geographies, as well as categories. When we see an opportunity, as we did last year with the hand sanitizer opportunity in the U.S., we took it. We said at that time, this is a great opportunity to help us offset the gap that was happening at that time in Chile, in Central America, in other markets that were experiencing a very hard or strong lockdown. That was then. That was last year. This year, we don't have that benefit or that tailwind of the hand sanitizer. Many people already have the hand sanitizer. Then we are capturing new opportunities. As Jorge mentioned, Suerox in the U.S. is growing like hell. To be honest, it's one of the pleasant surprises. If we exclude the hand sanitizer business and we do apples-to-apples comparisons, the U.S. would have grown double-digit. We need to extract that just for comparative reasons. Again, Suerox was one of the key drivers. As everybody knows, during the Q2, the Suerox line is already fully commissioned and operational. We manufactured more than 5 million bottles during the month of June. That's additional capacity that we didn't have. In the past, we have many different third-party contractors. We added our lines, and basically we sold everything. Demand is not stopping for that product line. It's very promising. Growth in the U.S. works well. Unfortunately, we have these tough pumps because of the hand sanitizer. Excluding that, as I said, the U.S. would have grown double digit. Let me ask you if I was clear enough, or do you need more clarification in terms of what happened with margins during the quarter in Latin America? As I said before, when you get especially ForEx impacts for APIs and some raw materials, this comes immediately, and it takes some time for companies, for consumer goods companies, to adjust pricing to the retailers and eventually to the end consumers. That's part of the strategy, that's part of the actions that we are taking to offset this negative trend in terms of COGS. This is something that all consumer goods companies are experiencing everywhere. We are confident. This is just part of doing business, and in the long run, we have seen this kind of situations many times in our careers, not only at Genomma but previously, and we know how to deal with it. Obviously this quarter we have that effect. I don't know if I was able to clarify your question or you need more clarification, Joaquin? No, you were. That was great color. Thank you, Antonio. Thank you, Joaquin. Our next question is from the line of Alvaro Garcia with BTG Pactual. Please proceed with your questions. Hi, Jorge, Antonio. Thanks for the space for questions. I have two questions. The first one is on e-commerce and conversion. Now that it's been a couple of years of solid dynamics on the front, I was wondering if you can comment, which of your products sell best online, which have the highest conversion? Where do you see the best long-term opportunity there? My second question, a big chunk of your growth, obviously new channels, given the strength of the traditional channel we've seen from you guys. I was wondering if you can comment on sort of same-brand sales. There's been a lot of line extensions within specific brands, and I just worry that maybe the core original brand might not be where it used to be. Any sort of comment there would be very helpful. Thank you. Okay, Alvaro, thank you for your question. I'll start with the e-commerce front. As of Q3, we are doing great in terms of growth in the diverse e-commerce platforms in which we are participating, basically in partnership with key companies, key customers. Amazon has become one of our largest partners in e-commerce in both the U.S. and Mexico, where they are operating in the case of other regions. Also Walmart and others similar to Walmart in different countries in Latin America are also now key partners for us in our sales in e-commerce. This has different fronts. We've learned a lot in the last couple of years about this, and I think the things we have been doing are working based on the results we are seeing. There are countries in which we already have 10% of our sales coming from e-commerce. That was our midterm goal for the whole company. We are thinking now and taking that to a higher level, given the success that we are facing. What is it that is working in our case? I would say that there are two or three things. One, we assign people dedicated, fully dedicated to this program. We didn't have that before. Now we have a few experts in different countries that are fully dedicated to developing our business in e-commerce. As you know, it is different than selling in a physical store. We are developing the same concepts that we have for a perfect physical store, now we call it a perfect e-commerce store, that includes the image of the brand, it includes the content we have, it includes the depth in terms of information. It includes reaction and answers to the comments from consumers. It includes the right pricing versus the physical channels or the physical stores, et cetera. Includes a strategic alignment of what we say in the e-commerce platform versus what we say in the TV copy or the TV commercial or different communication vehicles that we have. There's consistency in terms of the strategy we are using to grow in e-commerce. That's one big thing that is happening. Obviously, special specific agreements with the key e-commerce platforms or companies, it's also another key thing. We have been able to develop a good long-term plans with them so that we support each other in what we do to grow our category. We see that brands like Teatrical, Cicatricure, Suerox, Groomen, Novamil, that are our key representatives in terms of growth in the e-commerce channel, depending on the country. You will see that those four or five brands are the ones that are enjoying more growth in overall terms. It's behind that type of different strategy in different fronts that is working now. Just to finalize in terms of in the e-commerce front, is that this is the tip of the iceberg. We think that we are going to grow much more in the channel because what we are seeing today is the result of the first interventions. We are perfecting what we do in the e-commerce as we go. I think that we have a few more years of growth that we are going to be seeing in these type of platforms. Going to the growth of our core brands. That's a great question because it's difficult to say. Let me talk about Cicatricure, for instance. That's a flagship brand of Genomma, that this year is growing more than 20%. Why is that? Why is it growing that much in a moment that the markets and everything is challenging? We always say that is because of innovation. If you think about the core brand, when we started two and a half years ago, the core brand was very strong, continues to be strong. We call it core brand is basically the lineup we had at that moment, that was working very well. What we have done in terms of innovation came also with other interventions that have to do with formula, that have to do with packaging, that have to do with the way we communicate the benefits of the brand, and the fact that the brand is natural, and we are taking now that to a different level in terms of communication, and that is one of the key benefits that the consumers appreciate. It is a combination of strengthening the core brand by doing all of these other things, including core distribution and expansion in other channels, et cetera. Also at the same time bringing the other type of innovation, which is line extensions. We brought new flavors, new fragrances, that are in line with the consumer needs and trends that complement what we did in the core front of the business of the brand. If you add up those two things, you have a brand that is exploding. It keeps growing in Brazil, it's growing in the U.S., et cetera. It's a combination of both, but I feel very comfortable with the fact that the core front is growing and the new line extensions, the new fragrances, the innovation is complementing that. The same thing is happening to Asepxia, same thing is happening to Cicatricure Gold, who is a low gold extensions, and now it's a whole lineup. Those flagship brands of Genomma are experiencing the same sort of growth and the factors behind that. If you think about other brands of other companies, as you know, I come from other big multinationals, and if you think about shampoos like Pantene does the same. It's a brand that has been in the market for, I don't know, 30 years probably, and they keep growing the core, but they keep bringing new line extensions every year. It's the combination of both that make the brand much more stronger and make the brand gain shares, retain market share on a constant basis. Alvaro, this is Antonio. Just wanted to complement Jorge's answer. When we talk about innovation, it's very important to clarify that innovation, it's a concept that is very wide. Let me use one example. When we say we are launching a new product, which is part of innovation like Suerox in the U.S. For the U.S., Suerox is a new launch. It is innovation from scratch, but it is not for Genomma because we have a successful brand, a successful category in Mexico. We're just following what we call at Genomma, the route to success. It's innovation for certain markets, for certain channels. That doesn't mean that it's a completely new product, but it's more about replicating our existing brands, our existing SKUs in other markets. That's innovation for those regions, for those markets. The good news is that it's proven innovation. We also have two types of other innovation. One is line extensions, total new products that we are experimenting, that we are entering. I think that the hand sanitizer business last year was an example of that. Blades and razors was an example of that. Entering the infant nutrition was an example of that. We also have a 3rd type of innovation, which may be called renovation. You see this in the very large multinational CPG companies across the world. You may see the same product, but it's not the same product. There's improved formulation, there's improved packaging, there's new communication, as Jorge was very well describing. For example, when we relaunched Tukol, you may argue that the formulation was the same, but the packaging was different, the communication was different, and the positioning of the product was different. Instead of targeting a niche segment that only represented 7% of the market for the heavy smokers, we wanted to target the overall market, the family market, which represented 93% of the market. It's an innovation. We use the word innovation, but it's something proven. The good news about this is that it's less risky than starting something new, number one. Number two, and I think this is very important to say, because if people compare what Genomma was doing, I don't know, 20 years ago when the company was launching new products every six months, and then the old product is no longer existent because every time we launch something, it's being replaced. That is no longer the case. We launch innovation, new products, but we also have a substantive base of our brands, of our core SKUs that are very important to us. The Tío Nacho, we launch a new version of Tío Nacho, but we keep the old version as well, and we launch it in different market segments, et cetera. It's a great topic. Innovation, it's always a great topic. I just wanted to clarify, I don't know if we were able to answer your question, that it's not about doing everything new. We're launching new things, definitely, and it's very important. We are also renovating the core, and we are reapplying the route to success that we have in certain markets to other markets. I don't know, Alvaro. Yeah. if you would like to expand. No. That was very clear. They are great examples. Suerox, for example, in the U.S. Awesome. Thank you very much. Thank you. Thank you. As a reminder, to ask a question today, you may press star one. The next question comes from the line of Nicolas Larrain with JP Morgan. Please proceed with your questions. Hello, good morning, Jorge, Antonio. Thank you for the call and thanks for taking my question. I want to touch a bit on the production plan, especially around the personal care lines. Do you have some color that you can share in terms of ramp-up of the existing lines, and also the new lines you mentioned in the release? Also, what is your expectation towards the end of the year, thinking about how much of your personal care sales could actually be sourced by the plant towards the end of the year? Thank you very much. Yeah. I'll just make one quick comment and then Antonio will complement. As part of the plan, it is going very well in terms of what we are doing in this personal care section of our industrial site. As you know, Antonio mentioned, and I also mentioned that in June, we already produced 5 million bottles of Suerox, and we are targeting to surpass that number July, August on a monthly basis. It is going very well. We also starting in the next few weeks with production, initial lots of production of our two shampoo brands, Tío Nacho and Vanart, and also creams in the following months. You will see us by the end of the quarter with already those four categories being produced at the plant as we speak. Together with that, as part of our supply chain project, as I mentioned before, we are also following very close all the interventions that are being made to optimize costs. I will let Antonio explain that because he is part of that project, he is very close to that, because in all cases, we are intervening in all key areas to make sure that we start seeing the benefit of our own production facility. Antonio? Yes. Thank you, Nicolas, for your question. It is a great question, and it is part of the transformation that we are doing with the manufacturing cluster, as Jorge mentioned. There is a number of lines to be commissioned and to be installed and to become fully operational. By the end of the year, I am sure we are going to have very good news. The first personal care line, which is the Suerox isotonic beverage, as we said, more than 5 million bottles were manufactured during the month of June. That's excellent news. As of today, the shampoo line has just started tests with some initial batches. Same thing as happened with the beverage line. We need to do tweaking, fine-tuning, optimization, et cetera. We believe by the end of Q3, that line is going to be operational and manufacturing products. We are also in the commissioning phase of the facial creams, body creams, and ointments, and we are installing an additional line for medical devices in that plant. In terms of the personal care plant, everything is going well according to plan. Fortunately, we don't need government permits or GMPs to manufacture there. Everything is more on our own terms. It's very hard to say what the% of products that are going to be manufactured in the personal care plant at the end of this year. Remember, this is a multi-year project. As Jorge mentioned, we are also upgrading some of our products. For example, one of our shampoo lines will be relaunched as a more sustainable product with the environment in terms of packaging, formulation, et cetera. We are doing some changes to improve the quality, the marketing, and the profile of our products. That is being considered in the plant, so that we gain even higher efficiencies in terms of COGS and better quality as planned. I wouldn't venture at this moment say how much of our personal care products will be manufactured there, because everything is being under commissioning, and we need to do a ramp-up and the learning curves. If everything goes the same way as it did for the beverage line, I think that everybody's going to be pleased by the end of the year, that's what we are planning for. In the case of the OTC plant, well, everything is ready. It has been ready for a number of months. I think we're closer than ever to get the GMP for that plant. We've seen the authorities moving faster than they did in the past. I think that the changes that the government did are positive, and we expect to have good news soon, but I wouldn't venture in terms of saying when that is going to happen. I just want to say we are more positive than ever in that regard. Once that happens, we will start manufacturing products in the OTC plant as well. The third component of the industrial cluster is obviously our central warehouse that is working seamlessly, with high levels of efficiencies. It's working really well. We're very proud of what they are doing. The other thing that is important to mention, and it hasn't been asked during this call, is what happened about the labor reform in Mexico. The good news, and I want to highlight that, is that Genomma was prepared. We did all the changes that were needed. We don't need any extension in time as other companies are requiring. There's basically no impact whatsoever, but we are prepared, and that entailed a huge work with the people, with the culture. Everybody was satisfied the way we did it. Everybody's motivated. Hopefully, in the very short term, everybody will have a chance to go and visit the plant. It's worth visiting. Jorge and I are preparing something for the near future. I would say stay tuned. Your question is great. I don't want to give a number at this moment. We're not ready for that, Nicolas. Just one quick comment to complement your answer, Antonio. We had 2 key visits in the last couple of weeks at the plant. I just mention that because it's positive in terms of context. Cofepris, which is the Mexican authority that approves the GMPs and operation of plants. That was a visit that we were expecting since early 2020 when COVID started. It finally happened. As Tonio said, that is a very good sign of the new administration of Cofepris starting to move finally. Second, last week we had a visit of the World Bank inspectors, and they spent a full day at the plant. As you know, they finance the project, and they were expecting progress, and they were very positive. Their comments were very positive at the end of the visit, which confirmed what we think, is that we are now starting with this, facing a bright future, I would say, in overall terms. Perfect. Thank you very much, Jorge. Thank you. Our next question comes from the line of Ben Wilson with Lazard. Please proceed with your questions. Yes. You partly answered the question I had, but it was related to the GMP certificate for the OTC client. You used the words more confident than ever that it's coming soon. We've been hearing soon for a long, long time now. I was wondering if you could expand on what you mean by more confident than ever? I will repeat what I said, and then Tonio has probably more perspective. I said this visit from Cofepris authorities to the plant 10 days ago is something that makes us feel more confident because, as I said, that visit was scheduled for early 2020. Didn't happen, then COVID showed up, and it never happened. The fact that today it happened, which meant that was the last piece of the last part of the process that we had to complete for them now to, in theory, deliver the final approval. That was completed just a few days ago. Also the fact that, as Tonio also mentioned, that there's a new administration in Cofepris that basically already took over the management of the execution last month. They were announced three, four months ago, but they took over last month. All signs, all comments coming from the industry are very positive about these new people in charge of Cofepris, and we are seeing it in terms of the visit, put it that way. Tonio, anything else? I completely agree with you, Jorge. That's probably the news. The news is there's news. The original visit from the authorities was scheduled for April 2020. Okay? That's when we were expecting the visit, the inspection for the GMP process. That didn't happen because in March 2020, we had the lockdown in Mexico, and there were very strict regulations in terms of what we call the semáforos, or the significant red, orange, yellow, green lights in terms of the kinds of visits, inspections, et cetera, that the authorities could do. That inspection visit that was scheduled to happen in April 2020 got canceled because of that. It just happened. They were very strict. They were very professional. They looked at every single aspect of the plant. Generally speaking, it went really well. Obviously, they made a lot of questions. It was more than 800 different items that they checked. Everything went well. That's the reason why we are positive. Again, it was just a matter of having that visit so that the process may continue. It is a requisite. It's mandatory for them to do that in order to continue the process. That's the news. Obviously, we don't have the GMP yet, but the visit has already been accomplished, so we're waiting for the next stages. That's why we're more confident than ever. Still, we don't have the GMP yet, but it's closer. I don't know, Ben, if we were able to answer your question. No, no, you were, because the fact that you had the inspection, I did not know that. That's a new piece of information that is very relevant. Thank you. It is. It is. Thank you. That concludes the question and answer portion of today's conference call. I would like to turn it over to Mr. Brake for closing remarks. Thank you, operator, and thank you everyone for joining us today. I would like to conclude today commenting that while we expected the Q2 of 2021 to be a challenging quarter for the company, we delivered a significant performance reflecting robust momentum despite a challenging year-over-year comparison and external headwinds. We have a strong foundation and a balanced portfolio which drives consistency in our performance. We are well-positioned to capitalize on those long-term consumer trends which accelerated during the pandemic, and we look forward to taking advantage of the momentum and adding wood to the fire for the future. Thank you very much, and have a great week. Ladies and gentlemen, that concludes Genomma Lab's Q2 2021 results conference call. We would like to thank you again for your participation. You may now disconnect.