Earnings Call: Q2 2021

Jul 29, 2021

Good morning, everyone, and welcome to Alsair's Q2 2021 Earnings Webcast. Today, our management team will be presenting an overview of Alseda's results of the Q2 of the year. Presenting today, we will have our Executive President, Alberto Tovrada Fernando Gonzalez, our Deputy CEO our Chief Digital Officer, Dario Oprin and our CFO, Rafael Contreras. I will now hand over to Alberto for initial comments. Alberto, please go ahead. Alberto, and good morning to everybody. We're as you've seen, we're changing the way we want to communicate with you guys, so I hope you like it. Welcome to Alsea's Q2 2021 earnings video conference, and we will discuss the most significant events from the Q2 of the year, our strategy going forward and will be then open like always to questions. I'm pleased to report excellent results for the Q2. As many of our key geographies, especially Mexico and much of Europe, reduced most of the restriction after more than a year of strict lockdowns, and our different commercial strategies paid off. As a result, we posted strong sales, positive EBITDA margin of 22.8% and healthy operating cash generation in our main regions. After a turbulent year and a half caused by pandemic related lockdowns, Alsea is back at what it does best: serving customers from our restaurants and coffee shops and products and services they want and generating sustainable value for all our different stakeholders while we do so. The easing of restrictions has driven improvement in sales. When compared on year over year basis versus 2019. Sales in January 2021 were down by 29%. Weather sales in June 2021 were only down by 12%. We also seen a positive month by month tendency during the quarter, with sales increasing from ARS 3,700,000,000 in April to ARS 4,300,000,000 in May and ARS 4,400,000,000 in June. We are very pleased with these results in view of the broader economical context. We are currently on track to continue this progress in July as the 1st couple of weeks sales reached approximately 95% of the sales reported during the same period of 2019. While we are keeping a close eye on recent increase in COVID-nineteen in some of our geographies, the evidence so far suggests that impact will be far lower than the last year due to the vaccination significantly weakening the link between infections and hospitalizations. With Colombia, Chile and Argentina still impacted by lockdowns in 2nd quarter and more limited restrictions still in place in Mexico and Europe, we should expect further sales improvement as the pandemic restrictions are reduced, in line with vaccination rollouts. Our businesses will benefit not just from the full reopening of our outlets, but improved consumer confidence, higher employment and return to the corporate offices and other trends likely related to the easing of the pandemic as tourism. Notwithstanding risks related to the emergence of the new contagious delta variant, we are optimistic that with the successful rollout of vaccination programs, economies will return to normal before too long. As they do, we expect to see a continued return to on premise dining. The positive month to month sales strength during the quarter is encouraging as it did continue strong performance of delivery and pickup. In terms of brands, Domino's, Starbucks and Burger King continued to lead the way and perform well, with a higher increase in sales coming from Spain, with a growth of 5 92% in Starbucks, 169% in Burger King and 70% in Domino's Pizza compared to the Q2 of 2020. And compared to the same quarter of 2019, Domino's Mexico reported a 14% growth as well as Starbucks Mexico up 13% and 12% in Burger King Chile. Also during the second quarter, we also began to see improvement in the family dining sector, with bids reporting positive figures, reaching close to 70% of the sales reported in June of 2019. During the 1st semester of 2021, we have reached more than MXN 1,500,000,000 in sales and EBITDA breakeven. We have made some changes to our strategy for bps and expected to see continued improvements in profitability for the chain. There are various branches to these strategies improvements, including changes to the menu and product innovation, like our new burger and Pepito's campaign, and we are also working on improving the portions and designs of our dishes, which certainly will enhance our customer experience. Also, we are investing a lot of money in the refurbishing of our restaurants to make sure that they are in the best conditions for our customers. We will launch our new strategy marketing campaign and special offers to drive footfall and while targeting a younger client base. With respect to geographies, Alsea and Mexico saw increase by 134% year over year and reached 96% of the sales figure reported in the Q2 of 2019. Despite the current situation, Alxa Mexico EBITDA of ARS 1,700,000,000 was only 4.3% shy of 2019 for the same quarter and reported a margin expansion of 160 basis points versus the Q2 of 2019. Sales in ASEA Europe increased by 160% from a very low base of the Q2 of 2020, and EBITDA was ARS875,000,000. Sales in Alsea South America increased by 121% compared to the same quarter in 2020, and EBITDA was ARS 226,000,000. We have continued to control costs in response to the sustained disruption to operations and believe that many of the cost efficiencies we have implemented over the past year will continue to bear fruit in the near future. During the Q2, we were still able to maintain some agreements in terms of rent expenses and some other operational costs as well as making efficiencies in our workflows and still benefiting from some government support, especially in Europe, thereby reducing labor costs. There has been an increase in the cost of some commodities, but this has not affected our sales so far. While we continue to source high quality ingredients for our customers in all our restaurants. Moving to ESG. As of the end of the second quarter, with our Vapo Mi Cuenta initiative, we have served more than 385,000 meals, benefiting approximately 5,200 people through our 14 dinings and the support of 9 institutions. Also, through our Integra program, which aims to develop young talent in Mexico by providing scholarships, we have been able to help more than 4,700 students collaborating with 18 different institutions. It is important to point out that we are conducting a compliance diagnosis in Alsea, along with a group of experts specialized in implementation of ESG indicators, which will allow us to measure tangibly our current position in our geographies and identify areas of opportunity and improvement. And we'll establish the benchmarks with a view to systematically strength our compliance framework and establishing ESG goals and objectives until 2,030. Finally, as you know, Fernando Gonzalez joined in the quarter as Deputy CEO before taking over from me as a CEO after a transition period. Fernando has been focused on our Mexico operations in this initial period. I am pleased to report an excellent integration with our existing team and lots of new ideas and initiatives that we are working on. When Fernando takes over as CEO, I will remain fully committed to Arcea as Executive President, focus on the long term strategy of the firm and ensuring effective execution. I will now hand over to Fernando so he can introduce himself. Thank you very much. Good morning to everyone. Thank you very much, Alberto, and all our CEA families for everyone. Welcome. It's a pleasure for me to be part of this call and of course, to answer all the questions that you may have. As you know, in the last 2 months, I have been quite focused in a well known FALCEA with the help of our colleagues and, of course, focus in Mexico that Acuna is one of main part of our business. I have been doing a deep dive about the strategies in the company, strategies in digital, in processes, of course, in our brands and mainly in the results optimization, okay? I'm very impressed about the commitment about the customers and the results orientation of our ICR. And I hope to be part of the company and to help the company in order to maintain and enlarge the leadership in all the geographies where we are working today. So thank you very much. And now that Dario is going to present to us our strategy in digital, which we have been talking in our previous calls. Dario, please. Hello, everybody. And it's a pleasure to talk with you here. Let me talk to you about the digital strategy and how we are looking at quarter that is very, very strong. The sales in Mexico in particular compared with the last year because for the digital area, 2020 was a great year due to the COVID-nineteen situation, was 39% in sales and 31% in orders. So we reach around $135,000,000 sales and $12,200,000 order sales this year in the 1st 6 months, especially with a really strong performance in this area. Going to Spain, we grow up 72% in terms of sales and 67% in terms of orders. That is around $77,000,000 in sales and 3,430,000 orders. That is really, really strong. And finally, because we are operating in 11 countries, We reached around 260,000,000 sales in the 1st 6 months of this year, that is a 55% growth versus 2020. And we reached 21,000,000 orders in this 1st 6 months, that is 37,000,000 growth regardless the last year. So we are very happy with these results in the digital area because instead of now the restaurants are open, The increasing of sales in the digital area is really strong. And well, we are doing the we are having the same numbers in July, too. So going to the KPIs, in particular in last last quarter, we were talking about the relaunching of World plus as our backbone of the digital strategy. And in this year, we have sold around $32,000,000 that is this MXN673 1,000,000 And we made more than 3,000,000 orders year to date this year with a tender of 6.33 growing regardless last year. And we have around 800,000 customers this year. That is a very strong performance versus last year. And the ARPU this year is around MXN 813. That is also a good result because remember last year, by this time, we were closed. So our performance in our digital platform is really strong. And of course, we have to continue in this path. And while we are delivering this kind of results also, we are building the new digital strategy for the coming years. Then talking about our digital platforms, we have these 6 platforms in Mexico and Spain. In Starbucks Mexico, we have 2,300,000 users with 25% of usage of the platform in Mexico. In Domino's, we have 6,800,000 users with an average usage of 24%. And in Wow Plus, we have 2,500,000 users with 28% of average usage. In Spain, we have include bps, 2,500,000 users with a 77 average usage for Serianos with 1,700,000 users with a 70% of average usage and Domino's Pizza with 8,300,000 users with 21% of average usage. So as our digital highlights this year, we have, as I told you before, a very strong plan. And now in terms of Wow! Plus in Mexico, we just launched our omnichannel platform where now you can not only order, but also accumulate and redeem Wow Plus points in the same platform with a new app. We have a new CRM and loyalty platform integrated in this new app. We changed our CRM to SessionM that is a very powerful tool now owned by Mastercard that is a great partner for us. And we had the record sales of this year, this quarter with almost 250 ks orders and more than 2.7 $1,000,000 in sales that was the week of the Mother's Day, May 10. In Starbucks, we are making around 90,000 orders per week with our record sales in the same week than Wow Plus with 167 1,000 orders and more than €1,000,000 in sales. And in Domino's, one interesting data is that 27% of digital buyers are world class customers that are using the program. And also in this quarter, we had the record sale of the year with more than 230 9 ks orders and €2,790,000 in sales. Regardless to Spain, in this year, we integrate the digital orders in all the brands. So now it's very easy for our operation to take the orders integrated in the POS. If you think that we are processing around 1 order per second in digital in the digital channel, is really, really useful. And in Chile, we launched the MOP, the mobile order and pay in Burger King. And we have also integrated the digital orders in the casual brands with aggregators. That is really helpful for the same reason than in Spain. In Mexico, we have this integrated since last year. So basically, it's what I have to say. And now we continue with Rafael Contreras. Thank you, Dario. This is Alberto again. I wanted to make sure that we share with you this information, and obviously, Dario can answer any questions later. But as you know, we've been talking a lot about digital. We think it's a competitive advantage for Alsea that the competition will not be able to get, at least in the short term, especially because of the synergy and the critical mass of Alsea. So we'll talk about that when questions if there's any questions later. And then I pass to Rafael to give you the details on the financials. Thank you, Alberto. To begin, I want to clarify that as in the previous quarter, all the explanations and notes reported in our earnings release include the effect from the statement related to the hyperinflation in Argentina as well as IFRS 16. These two factors are also included in the financial statements issued to their corresponding authorities. We also made a reclassification on the cost line by registering all the logistic expenses of the Alsea and Mexico operation that previously were reported in operating expenses, which now will be reported in the cost line. This is the reason why the consolidated cost as a percentage of sales for the Q2 2020 increased to 37.1 percent versus the 1% last year of 33.9%. The impact of IFRS 16 on our financial results for the quarter are as follows: ARS 1,300,000,000 EBITDA increase and a positive impact of ARS 35,000,000 on net income. In the last weeks of June, we have reached a sales in some weeks of more than ARS1 1,000,000,000, a figure similar to those reported at the beginning of 2020 in the weeks prior to the start of the pandemic. In some of these weeks, we reached a delivery participation of up to 25% which contributed to the reaching, as Arione mentioned before, close to ARS3 1,000,000,000 in sales through delivery in the 2nd quarter. We have been able to increase the number of units in operation. And with this, it is important to mention that we reached 60,300,000 total orders in Asia during the Q2 of 2021. In Mexico, same store sales are only 2.5 below the Q2 of 2019 figures with brands like Domino's Pizza and Starbucks presenting mid double digit growth. The amount of sales missed due to unit closures represented about MXN730 1,000,000 in the 2nd quarter. Also, we have been able to achieve a reduction in inventories of 16% versus 2019 as a result of the different agreements with suppliers, increasing in average 40 days payment terms. In line with what has been achieved in last year, we continue to focus on labor productivity, agreements with landlords and directing spending to what generates value to increase sales and improve the customer experience. Given this strategy, we managed to have positive EBITDA in all geographies, highlighting that in Mexico, it is already at 96% versus the EBITDA presented in 2019, reporting a consolidated EBITDA of ARS2.8 billion with a margin of 22.8%, reaching 93% of the EBITDA generated in the Q2 of 2019 and finally, achieving a positive net profit after 5 difficult quarters. As we mentioned last quarter, we successfully negotiated the extension of our covenant waivers until June 30, 2022. This put us in a strong position to continue managing our operation as we move through the different stages of the pandemic. We continue to comply with all of their requirements, including the minimum levels of indebtedness, liquidity, stockholders' equity and CapEx as set out in the agreement. Our net debt to EBITDA ratio decreased to 5x at the end of the second quarter. As EBITDA increased, yet debt levels remained high following pandemic related losses. Nonetheless, the agreements with our main banks regarding waivers to our current covenants have given us the financial flexibility we need for the rest of the year. The debt structure at the end of the quarter was 78% long term with 59% in Mexican pesos, 41% in euros and less than 1% in Chilean pesos. In the financial statement reported, the total debt classified as short term according to IFRS accounting regulation. This presented since the current waiver is valued until June 30, 2022, and the report is in July. In terms of liquidity, at the end of the Q4, we had ARS3.8 billion in cash, above the agreed ARS3 1,000,000,000 minimum liquidity level required by the new waiver terms. Regarding CapEx, we are still prioritizing maintenance and remodelings and needed investments, especially in digitalization. We have also been focusing on unit openings with high projected returns, having opened 25 units during the year. Total CapEx in the quarter reached MXN 503,000,000 with the following breakdown: 30% for unit openings, 55% for maintenance and the remainder 50% for strategic projects, always complying with the covenant cap of not exceeding €800,000,000 per quarter. Thank you. We would like to open the call to Q and A. Thank you, Rafael. We will now start the Q and A session. The first question is from Alvaro. Please go ahead. Hi, gentlemen. How are you? Great new format, by the way. So far so good on my end, at least. Good morning. I have two questions. The first one on for Fernando actually, it's very nice to meet you. I was wondering if you could discuss what you think your initial agenda might look like and on that front, whether your focus is on sort of the top line and growth and getting back to growth or if it's really just sort of looking at sort of, I'd say, as cost base today and sort of driving down efficiencies given your history at D1? That would be my first question. Okay. Thank you very much for your question. In order to try to answer quite fast, I consider that in the short term, my focus has to be the brands in Mexico, the normal evolution of our business in Mexico. And of course, the digital transformation, the digital plan in the company that I consider that is key for the future, as explained Alberto before. I don't I think that the plans in the company has to be short times bit a bit. And the most important for me is, as I explained to you, the brands and the detailed information. Wonderful. Wonderful. And my second question, I've asked this in the past and sort of just thinking out loud on Veeps. Alberto, when you guys bought that asset, one of the big sort of plans was to pass price. And without passing price, really improving the mix, desserts, more alcohol. And my question and I'm referring to Vipps. My question is whether or not emerging from the crisis, emerging from COVID, whether or not you rethink that, just thinking out loud here and go sort of low cost is something that's worked here for the likes of Denny's and other players here in the U. S, but really just focusing a lot more on traffic and getting utilization up, you're still at 70 index relative to last year. Maybe if that's part of the strategic thinking as you emerge into next year? Thank you, Alvaro. Yes, but first of all, in bps, what we are doing and it's paying very good results is going back to the basis, especially making sure that the products that characterize beefs and why and the reason why for the customers to go like the Caldo del Peno, Las Enchilada, those frijoles, our core products are the best products. We have changed our frijoles. We have changed our tortillas. We have changed our portions. So what we are really doing, Alvaro, is focusing on the basic, which is let's make sure we have those iconic products that people love, including the club sandwich the best. And we're changing all of them in our in these 6 months. We just tested a couple of weeks ago our new sandwiches, which is amazing, and the bread is great. And also, another thing that we are doing, making sure that the restaurants you guys know that we were not able to refurbish all the restaurants at time. And last year, we really left that behind because we didn't have the money to do that or restrictions in our cash flow. So we're putting a lot of money, and Rafael just explained you the CapEx. We're making sure that the restaurants are looking good. We're making sure that all our team members have what they need, and we're making sure that we offer the best product to the consumers. We're also doing some campaigns that you guys have seen probably, which is bringing the people heart into Bibs. Bibs is a brand that has been in this market for 52 years. People love the brand. Everybody love the brand. It's true that the brand was or is used by a lot of older people. That older people were in their houses and they were not being able to go to our restaurants. We can see now after the vaccination how people are going back to the restaurants and the results are there. I am I was very concerned about Vipps and I was openly telling you guys because we were not able to bring it with to a level of sales that I believe it should be compared to the other brands. But today, I will tell you that I'm very positive that what we have done, have paid. And I'm sure that you will see next quarter, bps sales close to 80% or probably, hopefully, 90% of what we were doing in 2019. So I'm quite positive, Alvaro. We are not doing alcohol. We are not doing those things. We tried them. They didn't work, and that's why we're going back to basis where we know we are the leaders in the segment. Very clear. Thank you very much. Our next question is from Antonio Hernandez from Barclays. Please go ahead. Hi, good morning. Congrats on your results and thanks for taking my question and congrats this new format as well. Very well appreciated. My question is regarding, I mean, of course, net openings, that's not a priority right now. I mean, we can see it from a CapEx standpoint, and that's very reasonable because of what we are facing. But what can we expect maybe going forward in terms of maybe an acceleration of QSRs and maybe, of course, some closures of casual dining, maybe family dining. And of course, you also have the brands that you might be willing to sell as well that might have not been working throughout the last couple of years. So how should we see the next couple of years in terms of openings and closures? Thanks. Thank you, Antonio. First of all, it is a priority. It's obviously opening stores, it's a business where we are. And I will say probably now because of what we've seen in the market, we think that Alsea can gain market share not only at the stores that we operate, but also in new stores in different markets. We also believe that there's opportunity to get very good real estate that was not available before and at conditions that were not available either before. So what we decided to do, seeing that things are looking good, and I am personally very positive that they will continue like this, understanding our restriction of CapEx is we are creating a pipeline of growth from July 2020 'twenty one, sorry, to December 2022. So as soon as we because if we don't create a pipeline to openings, we will not want to be able to achieve the number of openings for 2022. I have personally, and quote me if you want, it's around 150 stores by 2022. Things can't will tell. We need to finish the year. We need to see our cash flow. But what we are making sure is that we are not letting any opportunity go. As Rafael said, we spent 29% of our CapEx, ARS 236,000,000 in openings. And I do believe that if we create the pipeline for 2022 and we continue having enough cash flow, we will have a very good year of openings in 2022. Thanks. And in terms of In terms of which brands sorry, you asked that question. We will focus in the big ones. I mean, we will focus in Domino's, we will focus in Starbucks, we will focus in Burger King in some geographies, and we will focus probably also in the main contributors of margins in the casual dining. But mainly, you will see the 3 big brands growing, which has been that in the past, but now more than ever. Perfect. Thanks a lot, and have a nice day. Thank you. Our next question is from Hector Maia from Santander. Alberto, Fernando and Rafael, thank you very much for taking my questions and congratulations on the results. Also, I wanted to say that I'm loving the format. This is the first company that I see that leaves behind the outdated phone conference. So very, very happy about this. This is innovation. So two questions. The first one is, how are you going to refinance your long term debt and in which currencies could be? And would it happen as soon as in September? And the second one would be, considering the acquisition of Domino's by Burger King in Brazil, what do you think about the multiple of that transaction? And does it make sense to you listing Domino's separately to pay down some of the debt you have and getting even a larger rerating for ourselves? Thank you. In terms of the we are working to refinance our short and long term credits. Right now, we are working to be with the rating agencies. And we think at the end of September, 1st week of October, we can issue a higher bond in the U. S. Market between $300,000,000 to $500,000,000 Then prepay all the short term and part of the long term credits. And then also we are working to refinance the long term credit that we couldn't repay with this U. S. Bond. And we are trying to push the amortization to 2026. Right now, we are talking with banks to trying to do this refinance of all of our short and long term credits. I think at the end of October, we're going to have these new amortizations of our credits. And Hector, regarding the other question, yes, I obviously saw the purchase of Domino's Pizza in Brazil. Remember that we were we used to own that business long time ago. And I think it's good news for the brand, and I also believe it's good news for the system itself. I also saw I don't know if you guys have seen this morning, there was an announcement about the deal, which we knew already about it, of Burger King in Spain, where it has been bought by a phone. And obviously, also the multiples are very good. But no, we don't plan today to sell anything. I think our balance sheet will be very strong after what Rafael just said and if the numbers keep looking as they are today. We expect to close the year, correct me, Rafael, here around 5x net debt to EBITDA if everything continue like we are. Free IFRS IFRS 16. Pre IFRS 16. So coming from where we were and taking in consideration the big acquisitions that we did in 20 18, 2019. And with these 2 years, I think it's we are in a very good position and we are able to launch, which I think we will, and the banks think the same, our bond before the end of the year, I think, will be in a good condition to grow organically very strongly in 2022. And obviously, if there's any inorganic opportunity in the future, we will need to find other ways of financing. Thank you. Very clear. And the last one, in this transaction, Domino's, I think they said that they consider themselves an a technology company that happens to sell pizzas. So I mean, would you say something similar to that? Or what would be missing for you to say something like that? Domino's in Brazil, in the transaction, they were mentioning that they are a technology company that happens to sell pizzas. Yes, yes, yes. Well, that doesn't come from Brazil. That comes from Rich in the U. S. He has always said that they are a technology company, which I think they are, and now more than ever. And that's why for me that was important to bring Dario to the conference today because I mean, we did EUR 10,000,000,000 orders in this quarter. I mean, just imagine, we said in our last call that 12% of the orders in delivery in Mexico was done by Alsea. I think we are a very strong player. I think taking Domino's technology, Starbucks technology and all of our other brands' technology altogether, again, as I said, it's a competitive advantage that is going to be very hard for the competition to get. And that's one of the beauties of Alsea's model, having this variety of brands and being able to take the best of all when it takes it is for the customer experience. And that's exactly what the Arion team is doing. And you just saw the numbers of how well we are doing that. And you just heard Fernando that one of his focus will be the digital strategy in Alsea. Excellent. Thank you very much. Congratulations. Thank you. I would like to say, if you don't mind, I really don't think we are a technology company. I think we're a restaurant company because I think what the customer wants for us is great products for them to consume. But definitely, we need to use technology to be the leaders in the segment and to take advantage of all these convenience that was before, but with the pandemic has become so exponential. Thank you very much for your question. Our next question is from Rodrigo Alcantara from UBS. Please go ahead. Hi. Good afternoon. Can you hear me well? Yes. Yes. Thanks for taking my question, Alberto. Just my question would be regarding your initial remarks on Alsea's competitive advantage on the delivery platform. If you can elaborate a bit there, were you referring competition talking about aggregators per se or competition talking about different restaurants? And about your plans on Wow Plus, correct me if I'm wrong, but right now, Baumino's Pizza is not inside Wow! Plus Is this a plan for the long term to include Domino's Pizza inside Wow! Plus That would be my question for you, Albert. Yes. Estenao, as I mentioned before, when I mean competitive advantage against competition is other restaurant companies. For us, aggregators are strategic partners. They do delivery millions of orders of Alsace restaurants. We plan to use them and work with them as much as we can with all of them. That's why we don't have exclusives. That's why we are making sure that we are the top of the list every time and you want to ask for a product in every aggregators. We understand our consumers. We like to use Rappi, Uber, Didi, whatever they want. We're going to be there for them whenever they want. We want to make sure if they use them, they use they buy Domino's, they buy Starbucks, they buy Burger King. That's exactly what we are doing. So we are doing very good deals with them. We are taking the size of Alsea to get good conditions to be there for them. They need us. We need them, and the customer wants the service. So we don't see them as a threat. We see them as business partners, and that's exactly how we are working with them. You guys saw and Rafael just showed you a graph to see how big delivery is now for the company, not only Domino's. We also use aggregators in Domino's today. You can order your pizzas, and you can see in the TV, Rapid is right now announcing Domino's Pizza in the TV. So you can order through them. We will deliver the pizzas to you through our own delivery team, but you can place the orders through them. And on Wow! See, it is used in Domino's Pizza. Okay. And very quickly, my question for Rafael, if you can give us an update on the Senna option. I mean, any update there on the exploration? It's negotiating a potential pushing ahead exploration. Any update regarding that, that will be helpful, Rafa? That will be all. Thank you. The option we extend the option until June 2022. And we are working to see if a new investor can buy part of that option or if banks allow us to buy back that 21% before June 2022, but we are working right now on that. Right now, the amount is €110,000,000 the 21% of the SINA option. Okay. So just to make sure I understand, is such options buyback that stake or look for another investor, right? Well, we are working on both parts, looking for a new investor to buy part of that 21% and trying to bank allow us in some parts buyback also part of that participation, but we are working on that. That's right. Thanks, Alberto. Rafael? And Rodrigo, just to add some things regardless to the delivery question. As Alberto said, we work with all the aggregators. And doing that, not only we have local, but global agreements, and that's key for us. From the digital area, what we are looking is to do global agreements in terms of Latin America with aggregators like Rafi and global agreements with aggregators like Uber. So we work with all of the aggregators. In Domino's, you can pay with well points, okay? If you are enrolling in Wow, you can pay with points and also you can choose pay with points and money and split the account instead of the money that you have in the account. So and this is the first part of the, of course, digital transformation and the omni channel experience. In the coming months, we are going to launch many interesting things. And as Alberto said, we are 12% of delivery a very significant participation in Argentina and Chile. So we are one of where we are, we are the biggest player in the country. Yes, that's very impressive. Thank you, Dario. Congrats on the development. Our next question is from Rodrigo Echevaraj from Scotiabank. Please go ahead. Thank you, and good morning, everyone. And Fernando, great meeting you. Welcome. A couple of questions from my end. The first one is just a clarification on data points. What will be the penetration of sales if we included aggregators to the mix? And also, I think I saw a different number of users on the presentation from the EU than what's stated in the press release. So just wanted to understand what's the number of users? And then I have a follow-up on that. Okay. So Rodrigo, regardless the penetration of digital users, That's the question. Can you repeat some parts to Yes. Just wondering how much how bigger is the delivery penetration on total sales if we include what's being sold through the aggregators? Yes. With aggregators and Domino's, we are in around 22%, 23% of total sales. So the number that you referred to that you're referring to on the press release at 25% or so, that includes the aggregators? Exactly. Okay. Got it. And the number of users at Wow rewards up? The number of users is around is changing on and on because we have active users and people that have the app installed. So we have around 800,000 users and more than 2,000,000 users with the app installed. Got it. 800,000 versus 2,000,000. So the active users are 800,000? Exactly. Got it. And then just a quick question on the delivery itself. I understand that when you're doing the delivery, you're doing it with in house personnel. I'm just curious if you can share whatever color you can share on the differences on the unit economics when you do it that way versus when a sale takes place through the aggregators. And I understand you can't go into a lot of detail for obvious reasons, but whatever color you can share in contrasting both delivery strategies would be appreciated. I'll start for the end. I think that this part an answer. It's a question for Rafael. But with the first part of the question, we are not doing delivery only with our workforce. If you order using WoWplus, you can be delivered with Uber Direct, Mentajero Urbanos, Zuvalay, our own delivery or other players. We have a kind of marketplace that just developed. So our aim is to deliver with the delivery guide that is closer with the higher qualification and it costs less. So we are we have this algorithm running right now and it's improving on and on. That's very clear. That's great to hear. So you're agnostic. Whatever is cheaper, if it's in house or a third party logistic company, whatever is cheaper. And I guess you're going to Not only cheaper. The point is the quality, because the last mile is key for us, not only the price, the quality. So the route optimization algorithms, that's being done in house? Yes. It's going to us. And Rodrigo, let me mention something. This is Alberto. That's why I say we're not necessarily a technology company. What Dario just said is, we want to make sure that you get delivery the fastest as possible we can, not the cheapest one, but the fastest because we do believe that time matters, time is convenience, but also time in food is important. So we are developing packaging, we are developing everything that we can to make sure that experience of the consumer at their houses is good. I don't believe today the consumer has yet understand how high we can take the level of quality food to their houses, and that's something that Alsea is trying to do. And because of that critical mass that we have on locations everywhere, I think we can be the leaders taking quality food and quality experience with the convenience of the consumer. And again, this is really challenging because we are reprocessing one order per second. And it is not easy to balance that, but we are developing technology and processes to provide the best experience possible for the customer. Our next question is from Vanessa Quiroga from Credit Suisse. Please go ahead. Hi, Alberto, Fernando, Rafa. Thanks for the call. Unfortunately, I want to go to less fun topics, talking about margins, evolution. I'm curious about how you see, especially operating expenses evolving in the coming quarters given that government support is coming to an end. In most markets and also rent concessions, we are seeing the shopping malls improving substantially on their income. However, for Alsea, it seems that you've been able to keep those expenses very reduced. So if you can give us any color to get a better idea of how these margins could evolve, that would be very helpful. I will say that in terms of margins, this second quarter, we have a better margin because we have some government support in some of our geographies, Vierte in Spain and something like Vierte in Argentina that we think we are going to we are not going to have it in the few quarters. Also the agreement that we had with the landlords in the first and second quarter because we didn't achieve the sales in all of our brands. We have a pretty good expenses or less expenses in terms of rents because of that. And we think in the 3rd Q4, it's going to be more stabilize the expenses in rent. So we don't think that in terms of margins, we're going to be back to the margin that we used to have in the previous quarter to the pandemic. But and at the end of the year, we expect to be in terms of EBITDA margin pre IFRS 16 close to 11%, 12%. Vanessa, what I can tell you is that, obviously, I'd rather see sales than any support from the government. I'd rather see sales than any discount from the landlords. So I do believe, and we are doing our job in this term, that we will be able to maintain better margins if sales get to where they were in 2018. Remember that we closed as you see, Ola said, we closed like 180 stores last year. So we took most of the stores that were losing money. We still have a lot of stores we have 50 something stores still in the international, what we call in Mexico, that are not yet open because they are mainly in office markets. We still have important, I would say, number of stores that are not yet in the sales that they will be to be producing positive EBITDA. I mean, every day, they are less, but there is so my personal opinion, and we'll see the numbers, is that we will be able to get back to better marginalities than what we had in 2019. And that if we get to the sales, of course, because we've been able to have less G and A, which will stay like that, we've been able to be a better scheduling our people in our stores and staffing our stores, learning from the markets where labor is so expensive like in Europe. And also, we've been doing deals with some of our suppliers in terms of time, our landlords in terms of variation. And the new stores that we are opening, we are being able to negotiate better rents. So I am positive that we will not get the margins that we are getting today or the discounts that we were getting before, but we will be out with better margins. Thank you very much. Can you comment just briefly on impact of raw materials, I mean commodities price increases for the future quarters? Yes. I mean, we were seeing this problem for commodities since the beginning of the year because we buy ahead. So we knew the things were coming, and we knew that, that was going to happen. So we were able to buy our most important commodities like cheese, for example, are negotiated at a quite reasonable price. Also, exchange rate has helped us in those type of commodities. Where we are getting very big pressure is in chicken, for example. Chicken has been growing like crazy. And obviously, we are finding the way to try to stop some increasing prices. But I do believe that by the Q3, we're going to have to take some prices in some of the brands that are affected more. But as of today, we have not been able to do that, and you can see that in the margins that we are generating. Thank you very much. Very helpful. Our next question is from Bob Ford from Bank of America. Please go ahead. Thank you, and good day, everybody. Alberto, as your profitability recovers, how are you thinking about an add on? Or as again, as you're making strides in terms of the rebound, is there any appetite among the banks to maybe explore a debt structure that would enable you to continue deferring interest payments? No. No. Bob, I have always been very positive about our situation if things keep recuperating. As you know, we've been very openly talking with the banks. They've been very helpful. We have paid them everything we have to. We have not as Rafael said, we have not have been in any default with them. And as I said, I do believe that if we are able to refinance the way we will, the leverage of the company will go down very, very fast. But we have not think anything about that about not paying interest. And I don't think that's something that our banks will accept today because they are seeing that the company is healthy. They are seeing the improvement in the numbers. I mean, you guys can take a look at our financial numbers as of today. And the banks, obviously, have information about not only today, but the future. And they know that Alsea will get out and that Alsea will get out well. My fight with the banks not a fight. My discussion with the banks right now is to do the bond, to be able to refinance what is 2022 and 'twenty three because we have some walls there to cover and then be able to get enough CapEx to continue the growth of the company. Because if things are, as I said, 5x net debt EBITDA by the end of the year, next year, we'll be at 3. So we're back where we were before. So I don't think that we should do something different, but I'm always happy to hear what you have to say. No, that's helpful. It sounds like you still have expectations of quite a bit of leverage as things recover. Yes. Great. Thank you. Thank you very much. Thank you, Wolf. Thank you very much for your question. That was the last question. I will now hand over to Mr. Torado and Mr. Contreras for final comments. Well, first of all, thank you again. Thank you for always being supporting Alsea. As you've seen in our numbers, we are doing our job and we are trying to make the best out of the situations that we're facing in the different geographies. We are obviously also taking in consideration what is happening in the different markets with this COVID situation and everything that is coming back. I'm positive that the economy will keep at it is today. And I'm glad you like the new format. I think it's important to be innovating not only in the business, but also in the way we communicate with them. Alcer has always been interested in being close to our investors, our analysis. So thank you again. We'll be here. And hopefully, next time, we can give you better results than what we have already done today. And thank you all. Thank you, Fernando. Thank you, Rafael. Thank you, Ariel. And thank you all, the team. Take care. Bye.