Thank you, and welcome, everyone. On today's call are Marco Sparvieri, Chief Executive Officer, and Antonio Zamora, Chief Financial Officer.

Before we get started, I'd like to remind you that the remarks today will include forward-looking statements, such as the company's financial guidance and expectations, including long-term objectives and forecasts, as well as expectations regarding Genomma's business, products, strategies, demand, and markets. These statements are subject to risks and uncertainties that could cause actual results to differ materially.

They are also based on assumptions as of today, and the company undertakes no obligation to update them as a result of new information or future events. Let me now turn the call over to Mr.

Marco Sparvieri.

Thank you, Chris. Thank you, everyone, for joining our first quarter 2026 earnings call.

Let me open with where we stand. We are executing on our growth initiatives, expanding distribution, opening up new routes in the traditional channel, stepping up in-store execution, and increasing media investment.

This execution is delivering early signs of market share recovery in Mexico, which is encouraging. At the same time, sell-out is growing slower than we expected, driven by further full-market category contraction in Mexico, most notably in OTC.

The main performance issues are concentrated in three areas: beverage in Mexico, gastro in Mexico, and Tukol in the United States. We are adapting our plans with targeted interventions on these issues, and we expect recovery between Q2 and Q3 2026.

We remain confident in our growth initiatives as we navigate a tough consumption environment in Mexico. I would also like to thank our investment community for your continued trust.

We will continue to operate with the highest level of transparency, and please, do not hesitate to reach out with any questions beyond this call. Now, let me address five key highlights of the quarter.

Number one, LatAm continues to deliver solid results, while net sales remain under pressure from a weak consumption environment in Mexico and Hispanic market disruptions in the United States. Two, we are facing the toughest comparative base of the year, with significant FX headwinds offsetting LatAm's strong like-for-like performance.

Three, in Mexico specifically, full-market category contractions are weighing on sell-out, and we are adapting our plans to offset targeted weakness. Number four, our disciplined OPEX behind growth initiatives kept margins stable despite operating deleverage.

Number five, increased investment is required to support sell-out and defend market share amid increased competition while Mexican consumption remains soft. Turning to our consolidated results, like-for-like sales declined -3.9%, and net sales, -4.9%, impacted by a 13.9% appreciation of the Mexican peso.

The top line reflects a soft Mexican consumption environment, partially offset by +5.3% like-for-like growth in LatAm. Gross margin expanded +61 basis points to 63.4%, reflecting the productivity gains we have been building.

EBITDA margin declined -96 basis points to 22.8% as we invested behind our growth initiatives into a weaker than expected demand environment. Net margin expanded +49 basis points to 11.8% on lower taxes and financial expenses.

This view shows where the pressure is coming from. Two geographies are driving the consolidated gap: Mexico, representing 45% of our business—sorry, Mexico, representing 45% of our business, contracted -5.8% in sell-out, and the USA, at 8% of the mix, declined -10.3%.

On the other side, LatAm ex-Argentina grew +45%—4.5%—and Argentina grew +96.6% in local currency. LatAm is compensating, but the recovery work sits squarely on Mexico and the United States.

One of the macro headwinds we are navigating is remittances, which directly affect Mexican consumer purchasing power. After declining 5% in dollar terms in 2025, the peso value of remittances deteriorated sharply in early 2026, down -16.9% in January and -15.6% in February.

This is the combined effect of lower dollars inflow and a stronger Mexican peso. It is a real drag on the consumer we serve.

At the full-market level, the categories where we compete are contracting. After a weak 2025, OTC is now down -6.3% year-to-date through March, reflecting a softer consumer.

Beverages, personal care, and infant nutrition are all slightly negative as well. This is a full-market headwind, not a Genomma-specific one, but it continues to weigh directly on our sell-out.

Against that contracting market backdrop, this is one of the most encouraging signals of the quarter: Genomma Lab Mexico is improving market share sequentially across every key category. In full-year 2025, market share remained largely stable across categories, with the exception of oral serums, which declined 1.8 percentage points due to pricing pressure late in the year.

With the available data for 2026, we can see sequential improvements versus the full-year 2025 across categories. Our categories are gradually recovering terrain.

These moves are modest, but they indicate that our growth initiatives are beginning to gain traction despite a challenging environment. Let me walk you through the three priority issues we are actively addressing.

These are the concentrated performance issues, and we want to be very specific about the challenges and the action plans behind each. First, Suerox in Mexico, pressured by a contracting category and increased competition.

We're launching Suerox Gas, exclusively in Walmart, Oxxo, and the traditional channels, targeting 250,000 points of sales within three months. Second, gastro in Mexico, under pressure from a contracting category and generics gaining terrain.

We're bringing Genoprazol to price parity to generics and investing in incremental media behind QG5 and Next. Third, Tukol in the United States, where the brand is pressured and the B2B Hispanic channel is contracting following the deep US Hispanic market disruptions.

We're scaling perfect store execution and e-commerce while protecting cash. Recovery on these three priorities is expected between Q2 and Q3 2026.

Let me go deeper on Suerox because it is the largest single priority. We launched a bolder new brand image in March: cleaner label, stronger shelf impact, a unified look across the portfolio.

We are adding 60,000 new stores in the traditional channel and deploying 27,000 branded coolers at the point of sale. We are also launching Suerox Mineral, a zero-sugar, carbonated isotonic beverage that extends the brand beyond traditional hydration into functional carbonated refreshment.

Same brand equity, genuinely new consumer experience. The launch is backed by cooler replacement at 25,000 Oxxos and all Walmex stores, supported by AI-powered digital ads.

We are planning the Mexican launch for summer 2026, the peak category season. This is the category bet with the biggest near-term upside on volume and share.

We're also evolving how we communicate with our consumers. We're shifting incremental media investment toward digital-first mix: TikTok, Instagram Reels, and YouTube Shorts.

At the same time, AI-powered creativity production is lowering our cost per asset, accelerating time to market, and letting us test far more variants. Critically, this communication engine is directly aligned to our Mexico priorities: Nextol, reactivating the gastro category, and Suerox, support the gas launch.

Let me be direct about the margin implications. Over the next three to six months, we expect EBITDA margin pressure as we prioritize market share through increased discounts, higher COGS, and digital communication increases, and stronger in-store and distribution spend.

Beyond that window, we expect growth initiatives to ramp up and operational leverage to improve. The choice to invest now is deliberate; defending market share today is what protects the company's value tomorrow.

Our productivity engine is what is letting us self-fund this investment. What started as a modest program in 2023 has compounded into accumulated savings of 1.8 billion pesos through 2025.

We have secured an additional 1.1 billion pesos in savings by 2026, bringing the accumulated total close to one to Mexican 3 billion. These resources are secured and are fueling every growth initiative in our 2026 recovery plan.

However, further resources are needed to defend market share in a weak consumption environment. Let me give you a couple of examples of our growth initiatives.

The traditional channel expansion is a key growth engine, and it is already executing. In 2026, we're opening 430 new routes and adding 138,000 new points of sales across Mexico and LatAm.

We are also deploying in-store media in 314,000 points of sales. We are not just expanding coverage; we are activating it.

In-store execution is the single largest contributor to our growth plan. We're ramping up the perfect store model and expanding the pharmacist recommendation program across independent pharmacies, supported by better brand visibility in store.

We have a particular aggressive plan in analgesics, and we are preparing top-notch in-store executions for both the summer and winter seasons ahead. Innovation is what keeps our distinctive brands distinctive.

In OTC, we are launching five new products that conquer new segments. In beverage, we are refreshing Suerox with a new image and opening new consumption occasions.

In hair care, we're delivering improved clean performance and an expected routine. In skin care, we are democratizing high-end formulations with clean formulas and a refreshing scent.

We're stepping up our media investment and rebalancing the mix toward a more efficient, more diversified structure with a stronger weight on digital. This is a conscious decision to put the investment where our consumer engagement is actually happening, and it directly backs the priority actions we just discussed.

E-commerce continues to be one of our highest-growth channels. We expect to grow 30% in 2026, reaching 7% to 8% of consolidated sales and contributing 310 million pesos in incremental sales.

We're investing in traffic generation tools and digital capabilities to sustain that trajectory. Before I close, I want to step back and anchor on our long-term trajectory.

Over the past six years, consolidated net sales have grown at a 5.4% CAGR and EBITDA at a faster 8.8% CAGR. The faster EBITDA expansion is not an accident; it is the reflection of the compounded benefits of vertical integration, manufacturing efficiencies, cost discipline, and the productivity program we have built over time.

The same operating model that delivered this track record is what will carry us through this cycle. Let me leave you with four messages that summarize how we see the path forward.

First, momentum is rebuilding at a slower than expected pace as Mexico sell-out remains pressured from a soft consumption environment. Second, increased investment is required to protect Mexico market share, and we expect short-term EBITDA margin pressure until the operational leverage normalizes.

Third, our growth initiatives are starting to show early signs of recovery, with year-to-date sequential market share improvements in Mexico. Third, LatAm remains a growth engine, with growth projects yielding clear results and a disciplined focus on winning initiatives.

To close, we're executing on our growth initiatives, and we are seeing early signs of market share recovery, and we understand where the concentrated issues are. We remain confident in our growth initiatives as we navigate this tough consumption environment, and we expect to be in a better place by Q2 and Q3.

Thank you for your continued support. Toño, please go ahead.

Thank you, Marco, and thank you, everybody, for joining. Marco mentioned Q1 was a challenging quarter, particularly in Mexico and the United States, and our results reflect that.

However, beneath the headline numbers, there are three things I want to take away from my remarks. First, our gross margin continued to expand, demonstrating that our productivity agenda is working.

Second, Latin America is gaining momentum, with like-for-like sales growing 5.3% in the quarter. Third, our balance sheet and liquidity remain solid, giving us the financial flexibility to invest through this period and emerge stronger in the future.

Let me now walk you through the numbers. Net sales were 4.2 billion pesos, a reported decline of 4.9% year-on-year.

We all know that a large driver of this decline was currency. The Mexican peso appreciated 14% against the US dollar and also against many other currencies, and this compressed the value of our international revenues when consolidated into Mexican pesos.

On a like-for-like basis, stripping out the FX effect, sales declined only 3.9%. This reflects two specific headwinds: continued inventory destocking and soft consumer demand in Mexico, and disruption in the US Hispanic retail channel.

These were partially offset by solid underlying growth of 5.3% in Latin America. Put simply, our core business outside Mexico and the US is growing.

The near-term noise is concentrated in just two geographies for reasons we understand and are actively addressing. In terms of profitability, as I mentioned, gross margin expanded 61 basis points to reach 63.4%, reflecting the continued impact of our productivity and cost-efficiency programs.

This is a meaningful result; it demonstrates that we are protecting our margins even as volumes are pressured. EBITDA margin was 22.8%, down 96 basis points.

This reflects the impact of operating deleverage on a lower revenue base, combined with deliberate investment in our growth initiatives and market share defense. We are investing to support a recovery.

This is intentional, not structural. Net income was broadly stable at 495 million pesos, with net margin expanding 49 basis points to reach 11.8%.

Lower financial expenses were the primary driver of this improvement, partially offset by higher inflationary losses in Argentina, recognized under IAS 29. Moving on to the geographies, Mexico sales declined 8.6%, driven by ongoing inventory destocking at retail and soft consumer demand.

Some positive offsets: infant nutrition and personal care both grew in the quarter in Mexico. Going now to the international, as we mentioned, the 14% appreciation of the Mexican peso created strong FX headwinds when consolidating the international figures.

In the case of the United States, local currency sales declined 9.7%, reflecting disruption in the Hispanic retail channel, as we've seen over the past few months, and a weaker than expected cough and cold season. Additionally, the 14% appreciation created a significant translation headwind when consolidating US results.

We're working closely with our retail partners to stabilize distribution as well. Moving on to the other geographies, and as mentioned earlier, there was generalized FX depreciation of the local currencies against the Mexican peso, which again created a severe translation headwind for the region.

Latin America, on a like-for-like basis, sales grew 5.3%, driven by strong execution in Central America and the Andean region. Reported growth was limited by broad FX depreciation of the local currencies across Latin America relative to the Mexican peso.

The underlying businesses and momentum is real and encouraging. Like-for-like sales in Latin America, I would say, is the highlight of the first quarter.

Moving on to cash flow and working capital, the cash conversion cycle reached 119 days, up just 3 days versus the prior year, driven by higher receivables and lower payables, partially offset by inventory improvements. Improving working capital efficiency is a clear priority for the team in the coming quarters, and we expect to see progress as the consumer demand in Mexico normalizes.

Free cash flow on a trailing 12-month basis was 2 billion pesos, down 31% year-over-year. This reflects lower operating income and higher working capital requirements in the short term.

As we all know, we paid a quarterly dividend of 20 cents per share, totaling 200 million pesos. We remain committed to our quarterly dividend, which reflects confidence in the durability of our cash generation.

CAPEX totaled 150 million pesos, with investment concentrated in our manufacturing plant and, especially, in the expansion of our distribution center. Both are critical to our long-term operational efficiency.

On the financing activity, we remained active in the local debt market throughout the quarter, issuing a little bit over 1 billion pesos across multiple tranches. These are all refinancings.

In Mexico, we placed 427 million, in February 409, in March 200, all of them with very attractive spreads, as you can see in this table. Every issuance received the highest available local short-term ratings: F1+ from Fitch and HR+1 from HR Ratings.

This is a clear market endorsement of our financial strength and our competitive cost of funding. As we mentioned, our balance sheet remains strong.

Net debt to EBITDA stands at 1.3 times, clearly investment grade, and our debt service coverage ratio is 5.3 times. We have the financial flexibility to fund our investment agenda while maintaining a conservative leverage profile.

In closing and to summarize, Q1 was a difficult quarter in terms of reported results, but the fundamentals of the business remain intact. Our margins are expanding, especially gross margin, Latin America is growing, our balance sheet is strong, and we are taking the right actions in Mexico and the US to stabilize performance and position the company for an eventual recovery.

We are focused on what we can control: disciplined execution, working capital improvement, and continued investment in the initiatives that Marco has described, and these initiatives will drive growth over the medium term. With that, I would like to hand back to the operator to begin the Q&A.

Hi, guys. Sorry, I didn't see the button.

Can you hear me now?

Clearly, Froylan. Clearly, Froylan.

Thank you for your question.

Thank you. Given the let's say slower than expected evolution of the destocking in the first quarter, does this move your annual outlook on being able to recover some of the margin in the second half and maybe start seeing some growth, especially in Mexico in second half?

Should we expect that ramp-up more into next year? Secondly, can you dig deeper into what is driving the performance in Latin America on a like-for-like basis, either country or product?

Thank you.

Thank you, Froylan, for your questions. On Mexico, the situation is the following.

The plans that we discussed with you and with all the stockholders at the end of the last year and the beginning of this year, we are executing those plans with a lot of discipline, okay? From a share point of view, you can see very early signs that these plans are actually starting to work.

In every category, what you see is that versus where we were in 2025 in the first quarter, our shares are starting to recover. The problem that I am seeing is that the categories as a macro level are suffering beyond what I was expecting.

I was actually expecting that the sell-out in the first quarter was going to be flat in Mexico or growing slightly, okay? The reality is that we declined in the first quarter, okay?

I was expecting that by the second quarter, we're going to start to see growth in Mexico. I now believe that that's going to be delayed at least to the third quarter.

I do see that during this year, at some point, either quarter three, quarter four, we're going to start seeing the business growing, okay? In terms of margin, at the beginning of the year, I presented a guidance of 23% to 25%—23.5%—and given the current environment, both the macro environment and then the competitive environment, because what we're suffering here in Genomma, in the business, is basically what every other player is suffering in the market.

Everybody's reacting. It's reacting with more promotions, more discounts.

There's a lot of activations at the point of sale because everybody's desperate to get their business back growing or to grow further. We have to defend our market shares, and that will imply that we're going to have to use some of the money that we have in our margin beyond the productivity savings that we just explained, and that will put a little bit of pressure in the margin at least during second quarter and the third quarter.

I do believe and I feel very strongly that this is going to be a short-term situation. I expect to go back to the 23% to 24% EBITDA by the end of the year or the beginning of 2027.

In terms of LatAm, we have several countries and brands that are performing really well. We have Argentina is performing extraordinarily.

We grew in Argentina almost 100% versus the first quarter in 2025. That market is doing really well.

Remember that the inflation in Argentina is in the range of 30%, growing 100% means significant growth in dollars. Peru is performing also really well.

We had a very strong 2025, especially the OTC business. Colombia and Central America are markets that are growing really fast.

We feel very confident on what's happening in several markets in LatAm.

Perfect. Thank you so much, Marco.