Good afternoon. Welcome to Alfa's Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session with instructions given at that time. As a reminder, today's conference is being recorded. Now, I would like to turn the conference over to Mr. Hernán Lozano, Vice President of Investor Relations. Mr. Lozano, you may begin. Thank you, Alex. Good afternoon, everyone, and welcome to Alfa's third quarter 2021 earnings conference call. Additional details about our quarterly results can be found in our press release, which was distributed yesterday afternoon, together with a summarized presentation. Both are available on our website in the investor relations section. Let me remind you that during this call, we will share forward-looking information and statements, which are based on variables and assumptions that are uncertain at this time. These uncertainties include, but are not limited to, ongoing risks related to the impact of COVID-19. It is my pleasure to participate in today's call together with Eduardo Escalante, Alfa's CFO, Carlos Jiménez, Alfa's Senior VP of Legal and Corporate Affairs, Roberto Olivares, Sigma's CFO, and other representatives from each Alfa company. I will now turn the call over to Eduardo. Thank you, Hernán. Good afternoon, everyone. I hope you and your loved ones are remaining safe and healthy. Third quarter results surpassed our expectations, with double-digit top line and EBITDA growth, despite the complex operating environment. As a result, annual EBITDA is trending ahead of our previous full-year guidance. Importantly, we continue to advance on the three key directives that we laid out as part of our Unlocking Value Strategy. Let me begin by sharing a few insights on the latest developments for each of them. Starting with reducing leverage. Q3 2021 was the third consecutive quarter of sequential leverage reduction. Our net leverage ratio decreased to 2.5 times at quarter end, the best level in three years. This good performance was mainly driven by Alpek, which reported a low ratio of 1.2 times. We are firmly committed to further leverage reduction through strategic initiatives. The Axtel team is actively engaged in negotiations with potential investors, as a transaction would be a significant contributor to accelerate the leverage. Unfortunately, we cannot provide further comments at this time, given that conversations are ongoing. At the same time, Alfa is evaluating additional alternatives to continue with its orderly transformation process in any scenario. Next, focus on core businesses. Alpek, Sigma, and Axtel continue driving business-specific initiatives that boost their own underlying value while our transformation process is completed. On this matter, I would like to highlight Project Evergreen, implemented by Alpek to enhance its ESG strategy. During the third quarter, the company completed the first phase of this engagement, involving a deeply analytical review that resulted in specific targets for its 12 material issues, as well as the corresponding action plans. For example, in terms of carbon emissions and eco-efficiency, Alpek is committed to the Paris Agreement, 27.5% reduction in scope one and two emissions by 2030, and carbon neutrality by 2050. We invite you all to review the full set of targets at Alpek's website. Enhancing business independence is the third directive. We celebrate the merger of Nemak and Controladora Nemak. For us, this event marks the successful completion of a multi-stage process that initiated with the announcement of Alfa's Unlocking Value Strategy a little more than one year ago. Alfa's corporate headcount is down 14% year to date. This is primarily driven by the gradual transfer of personnel to our subsidiaries, which is an important part of our efforts to support their service-related independence from Alfa. On a separate matter related to shareholder value, last quarter, we announced that we successfully expanded the maximum Nafinsa trust threshold to 75% of Alfa shares outstanding. Based on figures from the fiduciary, foreign investors held 49.3% of outstanding Alfa shares at the close of September 2021. The approved threshold of 75% provides ample room for foreign investors to continue investing in Alfa. Following this announcement, we were happy to see an update issued by FTSE increasing the number of Alfa shares in its indexes, effective at the close of September 17th. We have also been actively engaged with MSCI, providing them with complementary information to restore Alfa's inclusion in their indexes as soon as possible. Moving next to a brief discussion of the third quarter results. Alfa once again demonstrated its ability to adapt and deliver solid growth. Q3 2021 net sales were MXN 3.97 billion, up 30% year-over-year and 7% quarter-on-quarter. This represented the 5th consecutive quarter of sequential revenue growth. This strong performance was primarily driven by higher average prices at Alpek. Additionally, Sigma reported record revenues, thanks to a better-than-expected recovery in the food service channel and its ability to manage through inflationary pressures. Consolidated EBITDA increased 11% to MXN 486 million, driven by strong results at Alpek. These good results contributed to a 36% year-over-year increase in accumulated EBITDA to a record MXN one and a half billion. Adjusting for extraordinary items, primarily non-cash inventory gains and carryforwards effects at Alpek, comparable EBITDA in the quarter was MXN 440 million, up 21% versus Q3 2020, boosted by a 52% gain at Alpek. I will now turn the call over to Roberto Olivares, Sigma CFO, to discuss the company's third quarter results and progress on strategic initiatives in more detail. Please, Roberto. Thank you, Eduardo, and good afternoon, everyone. On the business update, I will offer an overview of our operational and financial results, as well as comment on recent developments related to the profitability improvement plan for our European operations that will take us one step closer to double-digit EBITDA margin in this region. During the third quarter, Sigma achieved record consolidated revenues of $1.7 billion, 10% above year-over-year, driven by comprehensive revenue management initiatives amid inflationary cost pressures in the U.S., Mexico, and Latin America. The record consolidated revenues were also driven by resilient volumes due to a strong consumer preference for our products and the appreciation of the Mexican peso. In local currency, revenues were 5% above year-on-year, following high single-digit average price increases in Mexico, the U.S., and Latin America. In Europe, average prices were flat in local currency amid lower pork prices in the region. EBITDA reached MXN 176 million, a 2% decrease year-on-year, mainly due to inflationary pressures in the Americas and a decrease in European pork exports to China. Results were partially offset by a solid operating performance in Mexico and Latin America, where the pricing actions are reflected more quickly. In local currency, consolidated EBITDA decreased 7% when compared to 2020. Sigma will continue to implement pricing actions to mitigate the impact of higher raw material costs. The timeframe of these actions may vary by region and channel, and thus, generates temporary margin pressures. As of the end of the third quarter, our pricing actions have allowed us to mitigate most of raw material cost increases, and additional negotiated price increases will be reflected during the fourth quarter. The food service and convenience channels continue to recover despite a recent surge in COVID-19 cases. Food service revenues increased 11% sequentially, 55% year-on-year, and are only 8% below pre-pandemic levels. Meanwhile, food service EBITDA increased 6% sequentially, has increased nine times year-on-year, and is 11% higher versus pre-pandemic levels. The food service margin expansion is the result of successfully implemented tangible cost and expense-saving initiatives. The consolidated EBITDA margin decreased to 10.2% during the quarter. However, year-to-date EBITDA margin as of Q3 2021 reached 10.7%. Throughout 2021, Sigma has faced industry-wide challenges that resulted in a complex operational environment. Our teams have leveraged the company's global sourcing capabilities to overcome supply chain challenges and have taken data-driven pricing actions aimed to mitigate inflationary pressures. We have maintained our focus on building long-term relationships with suppliers, sustaining client service levels, and meeting customer demand. Despite the challenging third quarter, year-to-date revenues and EBITDA are on track with our guidance. Even during challenging times, we remain on the lookout for new opportunities to innovate and continue strengthening our product offering to maintain consumer preference and foster growth. I am proud to announce that during the quarter, our growth business unit launched Sigma's first global plant-based brand, Better Balance, which offer healthier and tastier plant-based food options. Better Balance products are currently in a pilot phase in over 90 restaurants in the European, U.S., and Mexican markets. Finally, I will comment on recent developments regarding our comprehensive plan to improve profitability in the European operations and reach double-digit EBITDA margin in the region. More than seven years ago, Sigma expanded its operations to Belgium and the Netherlands with the acquisition of Campofrío Food Group. As part of our transformation process to continue raising profitability and growth at Sigma, and after an exhaustive analysis, we accepted an offer from the Ter Beke Group to acquire these operations in Belgium and the Netherlands, subject to clearance by competition authorities and local employees' consultation rights. The transaction includes 6 production facilities and five brands. As reference, these operations and brands represented approximately 1% of our consolidated EBITDA in 2020. This decision will consolidate our operations and allow us to focus on our leadership position in the core European markets, where we will continue to offer the nutritious and quality foods that characterize us. At this time, I would like to take a moment to thank all of our colleagues for their great sense of responsibility and teamwork. Through times of uncertainty and despite the challenges, their dedication and resilience has made it possible to continue bringing communities everywhere favorite foods to love. Thank you for your attention. I will now turn the call back to Eduardo for additional comments and closing remarks. Thank you, Roberto. To end our prepared remarks, we will provide a brief update on guidance. Alpek continues to be an outstanding performer this year, delivering record EBITDA levels. As a result, the company increased its guidance again, supported by ongoing strong margins. Year to date, Sigma and Axtel are in line with previous EBITDA estimates. In turn, Alfa's consolidated 2021 EBITDA guidance increases to $1.937 billion, up 10% from $1.767 billion previously. Summing up, since mid-2020, we have been driving foundational changes across our business, and we are very pleased with the progress so far towards our financial operation and strategic goals. This has been a dedicated effort across our entire organization, and I want to thank every Alfa team member for their hard work. We are exiting 2021 on very strong footing and remain firmly committed to continue building sustainable value for our stakeholders. This concludes my remarks. We are now available to take your questions. Please, Hernán. Thank you. We would like to begin the Q&A session with questions on Alfa. Eduardo, Carlos, and I will take questions on Alfa or corporate matters. Alex, please instruct participants to queue for questions on Alfa. Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question over the phone, 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. If you would like to ask a question on the web platform, please type in the ask a question box on the lower left-hand side of your screen. Our first question comes from the line of Vanessa Quiroga with Credit Suisse. Please proceed with your question. Hi. Thank you. My question is regarding the corporate expenses that you foresee for 2022. Do you expect to be able to achieve further efficiencies, reductions in corporate expenses, independent of what happens with the subsidiaries? I guess if you could give us an update on that process of divesting Axtel or parts of it. Thank you. Sure. Thank you for the questions, Vanessa. Regarding corporate expenses, we think we are going to close this year around probably $mid-40s million. We expect to be at a level similar to last year, probably slightly below, but similar level. If you compare that with 2019, we would be about 19% below pre-pandemic levels. Of course, some expenses we didn't incur last year since we were working from home, and now we have seen a little increase versus last year in those line items. Overall, we are very happy to be so much below pre-pandemic levels. Regarding your second question about Axtel, what I can tell you is that conversations continue. We still feel that infrastructure business unit remains very appealing to investors as they have shown us in this process. Also in the case of the service business unit, opportunities in mobile and digital transformation solutions are also very attractive for them. Certainly, it has been a challenge to be able to close a transaction regarding Axtel, has taken us a long time. We continue pursuing a transaction that would allow us to accomplish the objective of value maximization for shareholders in Axtel. It is a priority of ours. We'll continue working towards that goal. As I mentioned before, we cannot provide you a specific update since we have ongoing negotiations at this time. Great. Great, Eduardo. Just to clarify, for 2022, you expect similar corporate expenses than in 2021, correct? We think they are going to be below, Vanessa. We still don't have a number, since, as I mentioned, we have a 14% reduction in terms of personnel that we are transferring to the subsidiaries, we think there is going to be a further reduction from this year. Oh, okay. That's great. Thank you. You're welcome. Thank you. Our next question comes from the line of Rodolfo Ramos with Bradesco BBI. Please proceed with your question. Thank you. Good morning, everyone. Good afternoon. My question is on the farther end of this unlocking value initiative of yours, and just want to get your thoughts on, obviously Alpek has been performing very strongly, and I just want to understand how does this strong performance that we've seen so far play out in your minds as to the potential spinning off of this subsidiary and any color on the timeline. Considering the tax implications that it could have. Thank you. Sure, Rodolfo. Sure. Thanks for the questions. Let me start by saying that we continue to be committed to move forward with the strategy that we laid out. Alternatives for the path forward are really subject to determination of the potential Axtel transaction. At this time, we feel confident that in addition to the Axtel transaction, we do have several alternatives on the table. Some of them we have discussed before and are very obvious. We have some real estate assets at the corporate level. We have 40 acres of prime real estate in Monterrey and some other non-strategic assets. As you correctly mentioned, the positive results of a strong balance sheet at Alpek, and I will also add at Sigma, open up several opportunities for Alfa. Alpek being at 1.2 times and Sigma being at 2.4 times, that allows us flexibility in terms of options, which are being looked and analyzed by our Board of Directors, and they will decide on the best way to proceed in order to make a recommendation to our shareholders. That's where we stand today. We do not have a timeline. We do not have a specific time goal to move forward with the process. We will pursue what our Board considers to be the best initiative for shareholders. Regarding the tax implications, as you know, we have historically adopted conservative fiscal practices. Today, we do not have a number regarding taxes for any further step, like an Alpek spin-off. The impact would really depend on several factors. Like the stock price, the way we do the spin-off, there are different ways to spin off a company. Can be a dividend distribution, can be a capital reduction, et cetera. It would also be affected by the fiscal treatment of other transactions at Alfa. When we decide, or the board decides, which way to pursue, we will also define the best way to proceed regarding the fiscal front. At this time, we don't have it. Thank you. Thank you. As a reminder, if you would like to ask a question over the phone, please press star one on your telephone keypad. One moment please while we pull for questions. Hernán, move forward? In the meantime, Alex, we do have a couple of questions from participants joining us via webcast. Let me read the first one from Declan Hanlon with Santander. What is the current thought process/timing around the eventual separation of Alpek? Following the Nemak model, and how Alpek may eventually participate in balancing leverage metrics at the pro forma Alfa level? This is a question from Declan. Thank you, Declan, for the question. As I mentioned before, we do not have a strict timeline to move forward with this. We will do the next steps when it is appropriate and certainly minimizing any financial risk for what will be remaining in Alfa. Again, I think we have ample room, as you mentioned, ample room with Alpek for Alpek to not only, as Pete mentioned in the previous Alpek call, to look at some M&A ways to grow, but also to help us at the Alfa level in order to reduce leverage and move forward with this. Again, we don't have a time or any specific steps. That's actually our next question, which comes from Rodrigo Mugaburu with Newfoundland Capital. Is there a deadline for a go or no-go decision on the Axtel sale? No, it isn't. There is not. We are, again, pushing as hard as we can in order to close a transaction. We don't have a deadline. Nevertheless, as I mentioned before, we are looking at other alternatives in order to proceed if this continues to take longer than what we expect. Next question comes from Mark Pomper with MEAG. The question reads: ESG is an increasing investor focus, but oddly, MSCI ESG commentary seems quite dated, still incorporating Nemak in their comments. Are you in active discussions with MSCI ESG? Any sense on MSCI perception? Thank you for your question, Mark. We are in contact with MSCI. Hopefully that information is updated the next time around, the next round of results. Unfortunately, the MSCI platform or the MSCI rating, it is not as other rating processes where you have a back and forth with the rating agency and provide the latest information, but rather, they look at publicly available information on a different time basis and drive their conclusions based on that. Yes, short answer to your question, we are in active discussions with them and seeking for that information to be updated as soon as possible. That is our last question from the webcast. Alex, do we have any more questions from the line? We do have a question from Alejandro Azar from GBM. I can open his line. Alejandro, please proceed with your question. Good morning. Eduardo, Hernán, thank you for taking my questions. Just a quick one on Axtel, if I may. Does the process continues to be focused solely on the infrastructure sector or the infrastructure unit, or could that change to include the whole company? Thank you. Thank you, Alejandro, and thanks for the question. We are looking at both options. As we have discussed before, we think there is value in both. Certainly, the infrastructure business unit, being the largest neutral fiber optic network in Mexico after the incumbent, is very valuable. We think the rest of the company, also the services part of it, is also attractive in particular because the streaming and social media consumption is also growing significantly. We do see an opportunity to expand our services, in particular in terms of cloud and cybersecurity services. The investors are looking at both. Perfect. One more, if I may. This is a follow-up on Vanessa. I think the line doesn't read that well, but on corporate expenses, you mentioned that for 2021, you expect similar to 2020 levels or am I mistaken? You mentioned MXN 50 million or? Yeah, let me clarify, thanks for the opportunity to do so. In 2019, corporate expenses were around $57 million. Last year, the level was around $46 million. Okay. Last year, we already had a reduction of 19% versus 2019. For 2021, we expect to close the year, I would say around mid-40s, around $45 million-$46 million, very similar to last year. Okay. For next year, we expect to have a further reduction from the $46 million, mainly driven by the transfer of personnel that I discussed before. Excellent. Well, thank you for the detailed answer. Thank you. Thank you. Our next question comes from the line of Alfonso Salazar with Scotiabank. Please proceed with your question. Yes. Thank you. Good day, everyone. The question I have is very general and regarding Axtel as well. Because it's taking longer than probably you were expecting at the beginning, this divestment. The question I have is how are you incorporating time value of money in the decision-making process? Is there any range of cost of capital that you are using or anything that you can help us to understand this part of the decision-making process, which is time value of money? Yeah. Thank you, Alfonso. Certainly, timing is very important for us, not only in terms of the Axtel transaction, but as it is obvious, also in terms of the restructuring of Alfa. Of course, that is an important factor. Really the challenge to be able to close a good enough transaction for us has been very significant, since, as you correctly mentioned, it has taken much longer than we would like. Thank you. Hernán, there are no more audio questions. Thank you, Alex. We do have a couple more webcast questions. The first one comes from Mario Epelbaum with First NY. In a post-spin-off world, how much of the MXN 40 million in expenses at Alfa do you estimate will have to be absorbed by Sigma? Thanks, Mario. That's a tough one because we do not have the completed analysis for each one of the functions that are going to be transferred to Sigma. At the end of the day, what I can tell you is we expect to be able to significantly reduce the overall expenses that we are going to transfer to each one of the groups. We think the reduction in corporate functions are going to allow us to have an overall reduction. Let me take the next question, which comes from Arell Villeda with GBM. Congrats on the results. My question comes, if you see an impact from the changes in electricity regulation in Mexico, and how is the proportion electricity represent of your, on a consolidated basis? How much of the electricity comes from self-generation or privates? I hope I read your question correctly, Arely, but rephrasing a little bit, you want to know about the impact from changes in the electricity regulation and also some more color on the proportion of our electricity coming from private sources versus CFE. Sure. Thanks, Arely, for the question. In Alfa, the majority, I would say 85%-90% of our electricity consumption is sourced from private suppliers. We do not have significant generation in-house. If you recall, Alfa sold its cogeneration facilities a few years ago. 100% of what we source is from other private suppliers. Regarding the bill, what I can tell you is, we are following very closely the process in the Cámara de Diputados and the Senate. Depending on the outcome, we will try to adjust to minimize the impact for Alfa's cost. Certainly, today, as I mentioned, we source from private suppliers, which are affected by this bill. We have one last question from our webcast, and this comes from José Salce with Arzentia. Eduardo mentioned other sources. One, the corporate land. Have you explored further? Any estimate? Thanks for the question. Yes, we do. We have explored different options for the real estate that I referred to. As you can imagine, I'm not in a position to give you a value today, since we are looking at potential ways to monetize the estate. What I can tell you, it's a significant, I would say, very valuable real estate in San Pedro. In Monterrey, it's 40 acres of, I would say, very prime real estate. Thanks, Eduardo. It seems that we don't have any more questions on webcast or audio for Alfa or corporate matters. Is that the case, Alex? Yes, Hernán. There are no further audio questions. Great. In that case, we will then take questions on Sigma. Roberto Olivares, Sigma's CFO, will answer your questions. Operator, please prompt for questions on Sigma. Thank you. As a reminder, if you'd like to ask a question over the phone, please press star one on your telephone keypad. Our first question comes from the line of Alfonso Salazar with Scotiabank. Please proceed with your question. Yes. Thank you again. The question that I have is regarding the different trends in margins in Mexico and in the U.S. Just want to see if you can help us to reconcile what's going on here. Is this only related to cost pressures? Is there something about pricing, something about the peso appreciation? If you can give us a sense on what's going on here, and also if you can provide some guidance on what to expect for fourth quarter in terms of margins and pricing for the fourth quarter and 2022. Thank you, Alfonso, for your question. Regarding the first one, let me talk briefly about the U.S. and Mexico. U.S., as we stated in the report, has been impacted by a few challenges. However, these are not specific to Sigma, but impacted the whole industry. By far, the most significant factor has been the raw material cost increase. Just to give you an idea, some of these materials have increased more than 100% during the quarter. We also have, in the case of U.S., some freight, fuel, and energy cost increases that impacted us. In response to these inflationary pressures, we have taken pricing actions. On average, prices in the U.S. increased by 9% year-on-year. In this region, it usually takes two-three months to negotiate prices with retailers. By the end of September, prices were sufficient to cover about 90% of the impact from higher raw material costs. As I mentioned in my briefing, additional price increases were already negotiated and will take effect on the fourth quarter. In the case of Mexico, we have a really strong performance. Volume was up. We have also record revenues, mainly explained by the pricing actions to mitigate these same inflationary pressures. In the case of Mexico, we have a sweet pricing that allow us to improve margin. As you may remember, in Mexico, around 50% of our business come from the traditional channel, where we have the opportunity to reflect the price increases more quickly than in the case of the U.S. In regards to guidance as of 4Q, by the end of the quarter, we start to see some of the raw material cost to decrease, especially pork, that is returning to normal levels. Usually, it takes about one month to be reflected in our cost of sales. We expect to recover some ground on margins by the fourth quarter. Thanks. Thank you. Our next question comes from the line of Gilberto Garcia with Barclays. Please proceed with your question. Hi. Good afternoon. Thank you for the call. On Mexico, given the significant relevance of the traditional channel, do you believe that you still have room for price increases in the short term? On fixed prices, what are you seeing in terms of pricing pressure into next year, considering that current U.S. regulation of the pork industry is likely to trigger incremental pork price inflation? Thank you. Thank you, Gilberto, for your question. In regards to the question related to Mexico, we still see traditional channel is increasing. Volume was actually up low single digits during the quarter, and we have the capability to increase prices there to reach mid-double digits on sales. We usually have the capability to do that, and we expect to continue doing in case it is necessary. As I mentioned, we do not, as of right now, see more impact on raw material costs than the one that we already saw during the third quarter. Pork prices have normalized in the case of the Americas. In the case for inflation for next year, yes, regulation in the U.S., especially on pork, is increasing. Also, a lot of the impact from this year on pork had to do with three things. The main one is the recovery of the food service channel, and this is something that will normalize eventually. Mostly because of complications on the supply side due to labor shortages that impacted labor, they lowered deboning activity. As COVID phases out, we think that labor shortage will normalize, and we think that with that, the deboning activity will also normalize, reducing pressures on cost. In case of poultry, on the other side, we might expect a little bit of pressure as well, probably in the coming quarters, because poultry has not normalized yet. This year, we have some contracts that hedge a little bit our exposure to this market. Those are going to be negotiated for the next year in the next couple of months. Thank you very much. Thank you, Gilberto, for your question. Our next question comes from the line of Rodolfo Ramos with Bradesco BBI. Please proceed with your question. Thank you. I have 1 question remaining. How much of your sales are in exports to China and for the European operation, and when do you expect this to normalize? I don't know if you can quantify the impact that you saw during the quarter there. Thank you. Sure. Thank you, Rodolfo. Let me just do a recap for everyone's benefit. We have a Fresco business which sells fresh pork meat globally. We have an impact this quarter due to a temporary suspension of a license required to export to China. The main two impacts were related to shipments that were in transit and had to be diverted. The second one related to lower sales volume. We acted quickly to resolve the issue. We're currently waiting for a reply from the Chinese authorities. We expect this to resolve, Rodolfo, in the short term. We are, in the meantime, strengthening our markets in Asia as well as other channels. The goal is to diversify sales and mitigate some of these effects. Also increasing, for example, value-added products within Europe that have higher margin. Exports to China represent close to mid-single digits of the whole European business unit. I hope that answered your question, Rodolfo. Yes, just to follow up, if I may, back to the U.S. Are these labor shortages preventing you, besides increasing your cost structure, are they preventing you from landing product? Are you having trouble getting the products to the shelves? Is this mainly more of a financial, more of a cost pressure? Sure. Thank you, Rodolfo. I would say it's both. We had some increases in raw materials because our suppliers are running their plants slower, and that has increased prices of raw materials. Also we have had, at some moment during the pandemic this year, we have some issues filling up the open position that we have in some of our plants now. It has not been a big impact, but we had some issues. That also is happening, Rodolfo, when you see freight. The amount of drivers that is out there that is willing to take that job is also something that is impacting the cost of freight. Thank you. Thank you, Rodolfo, for your questions. Our next question comes from the line of Alejandro Chavelas with Credit Suisse. Please proceed with your question. Hi, Sigma team. Thank you very much for taking my question. I think some of my questions have already been answered. Perhaps if you could comment a little bit on where food service sales are versus pre-pandemic in each market, that would be super useful. What are you seeing during the fourth quarter? Thanks. Thank you, Alejandro. We continue seeing a recovery in food service. We have sales very close to pre-pandemic levels, still below, but EBITDA above pre-pandemic levels, due mainly to customs and expense-saving initiatives. Let me give you an example of Mexico. Revenues were close to 9% below pre-pandemic levels, but EBITDA is 14% above pre-pandemic levels. In the case, for example, of Europe, revenues were 8% below and EBITDA was 3 x higher than 2019. Although we have seen a recent surge during the last months of COVID-19 cases, we have not seen additional impact on this channel. On the contrary, we're looking into a faster-than-expected recovery. Thank you very much. Thank you, Alejandro. Our next question comes from the line of Alejandro Azar with GBM. Please proceed with your question. Hello, Roberto. Alejandro here. Just one quick question on free cash flow. Your CapEx seems to be way below your guidance. Are you still expecting to spend MXN 270 million or should we postpone some of that to next year? Sure. Thank you, Alejandro. Yes, during the first nine months, we have invested close to MXN 120 million, which is a 42% increase versus last year. The deployment rate of CapEx also increased more than 100% year-on-year. We have faced some challenges due to COVID. Lead times are a little bit higher. This has not stopped us, and the idea is to continue deploying our CapEx, and we will be within range of our guidance. Excellent. One more, if I may. Given your strong free cash flow generation, should we expect Sigma to send more dividends to Alfa this year? Sure. Just to comment on two things besides the part of dividends, a portion of the cash that we have on hand has already been assigned to CapEx. As I already mentioned, the idea is to continue accelerating the deployment rate. We also are evaluating investing in some strategic inventory during the winter months, when usually prices are on average lower than on the summer months due to seasonality. Yes, we might still see a portion of dividends in the fourth quarter, I would say to total an amount similar to those that we have paid in the previous years. Great. Thank you, Roberto. Thank you, Alejandro. Hernán, there are no more audio questions. Thank you, Alex. We do have two webcast questions, but I believe they were covered with the previous questions. One was related to margins, and the other one was related to the Chinese exports. Thank you very much to Sebastián from LarrainVial and Antonio Gomes from Ninety One for your questions. Thank you, Hernán. We actually have one question that has just come up, from José Salce with Arzentia. If the Axtel process isn't successful, is Sigma IPO in your alternatives? Hi, this is Eduardo. Sigma's IPO, as it was in the past, is an alternative. We feel today the markets are not... In particular, in Mexico, are not recognizing the intrinsic value of the companies. We don't think it is an option in the short term to do an IPO of Sigma in Mexico, but certainly that would be an alternative if conditions improve. That was our last webcast question related to Sigma, Alex. No more audio questions. Is that the case? That is correct. Thank you. We can now move forward and take questions on Alpek, Axtel, and Newpek. From Alpek, we have José Carlos Pons, CFO. From Axtel, Eduardo Escalante and Adrián de los Santos, CEO and CFO respectively. From Newpek, Rodolfo Gamboa, Senior Vice President of Oil and Gas. Could you please prompt for questions on Alpek, Axtel, or Newpek, Alex? Thank you. As a reminder, if you would like to ask a question over the phone, please press star 1 on your telephone keypad. Our first question comes from the line of Alejandro Chavelas with Credit Suisse. Please proceed with your question. Hi. Thanks for taking my question again. I listened to the Alpek call, and you obviously mentioned the very strong Asian spreads and Chinese spreads and obviously very good performance from polyester this quarter. I was wondering if you could comment a little bit on how are contract negotiations and margins for contracted volume looking for 2022. If you can share something indicative, it would be great. If not, just some comment on that, if you have already undertaken different negotiations with clients, et cetera. José Carlos, I believe that question is for you. Sure. Thank you, Alejandro. Well, thank you for your question. Yes, certainly the dynamics for contract negotiation are, I would say, a little bit favorable to Alpek at this moment. Supply demand, specifically in the North American region, it's short. All of our customers are asking us to increase the volume and increase the deliveries for products. Therefore, that in complementing with the current condition of margins that Pepe said in the call, more or less, what we're seeing are far above 300, 350 on Asian margins. We do expect that we'll have an important improvement on overall margins going forward for 2022. How much? Well, hopefully, we will be able to tell you in the first quarter call, on the call that we will have earlier this next year. Certainly, the dynamics are positive in terms of volume and the dynamic, it's positive in terms of margins and what we're seeing in other markets. Great. Perhaps just a quick follow-up. Have these contract negotiations already taken place, or are they still ongoing? No, they are actually ongoing at this moment. Okay, great. Thanks. We have not finalized that. We will end up probably in the first part of December. Great. Thanks. Thank you. Hernán, there are no further audio questions. Thank you very much, Alex. I think we went through all of the questions. There are no more webcast questions either. I would just like to thank very much for your interest in Alfa, and if you have any additional questions, please feel free to reach out to us. We would be pleased to assist you. We also extend our best wishes to you and your families to stay safe and healthy. Thank you very much for joining us today, and have a great day. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.