Ambev S.A. Q4 FY2025 Earnings Call

Good afternoon, and thank you for waiting. We would like to welcome everyone to Ambev's 2025 Fourth Quarter and Full Year Results Conference Call. Today with us, we have Mr. Carlos Lisboa, Ambev's CEO; and Mr. Guilherme Fleury, CFO and Investor Relations Officer. As a reminder, this conference presentation is available for download on our website, ir.ambev.com.br as well as through the webcast link. We would like to inform you that this event is being recorded. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Ambev and could cause results to differ materially from those expressed in such forward-looking statements. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during today's call are both organic and normalized in nature. And unless otherwise stated, percentage changes refer to comparison with 2024 fourth quarter and full year results. Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of Ambev's normal activities. As normalized figures are non-GAAP measures, the company disclosed the consolidated profit, EPS, operating profit and EBITDA on a fully reported basis in the earnings release. Now I'll turn the conference over to Mr. Carlos Lisboa. Mr. Lisboa, you may begin your conference.

Good afternoon, everyone, and thank you for joining our fourth quarter and full year 2025 earnings call. As we close the year, here is the message I hope you take away today. We made meaningful progress on the mission we set from day one, even in a dynamic context that stress tested our strategy. Here is how we progressed. First, avoiding disruptions. We built on a strong foundation and maintained execution consistency across the company. Through active listening, we protected what was working and implemented improvements without destabilizing the organization. Second, keeping momentum. Over the course of the year, we advanced quarter-by-quarter on different fronts, finishing the year with a better performance for 2026. Third, building a stronger company. We avoided changing directions with the context. We advanced simultaneously on the three pillars of our strategy because that is where our differentiation comes from. This is what we mean by being ambidextrous. And it is building a flywheel that strengthens each year and sustains our performance over time. As a result, we ended 2025 stronger than we started. We strengthened our portfolio, got closer to our customers and consumers, and advanced profitability. Volumes, however, were pressured by the environment, and that matters because it frames our ambition for what comes next. To use a simple analogy, 2025 was a tough season to play with a wet beach, cold weather, and a game that kept changing. It forced us to build muscle, resilience, and adaptability, and it strengthened our collective ownership as a team. And just as important, that strengthening showed up in our people. In a demanding year, employees' confidence in our future increased, driving engagement indicators to all-time highs, back to post-pandemic peak levels, and reinforcing that our culture truly stands out in challenging moments. All that means we are coming out better prepared for the next season, which in 2026 happens to be the FIFA World Cup, a big passion point in our markets. So let me touch on another passion, beer. What we saw in 2025 reinforces our view that the headwinds were primarily cyclical and occasion driven, not a sudden change in beer fundamentals. A strong proof point is this: The most engaged consumers, our beer lovers, got closer to the category, and the category equity strengthened over the year. In other words, beer continues to be loved, culturally relevant, and deeply connected to socialization across our markets, where it holds a high share of alcoholic beverages. And we continue to see meaningful runway ahead. The category has headroom to expand, supported by favorable demographics in Latin America and growth through occasions development, both out-of-home and at home and through a broader portfolio that addresses trends and needs, recruiting new consumers. Simply put, what changed in 2025 was not whether consumers want beer, but how often the right moments happen. Now let me connect that to our strategy. Under Pillar 1, as the category captain, our job is to bridge the gap between beer potential and actual consumption, fostering category growth. In 2025, we led where the category expanded the most, premium, balanced choices, and nonalcohol. We elevated the core segment through innovation and investments while building adjacencies like flavored beers. And that leads us to our Pillar 2, where we are using data and technology to shape our own future and stay ahead of the curve, strengthening the core business while building new growth engines. On the B2B side, our priority is to go deep with BEES as an enabler to make the core business stronger, helping us win through better execution at the point of sale. Our ecosystem is built on the idea that the better our customers perform, the better we perform. That is why we are embedding digital sellout activation tools powered by our data and insights, benchmarking what works across points of sale, and translating it into sharper activation and portfolio recommendations. Also, BEES marketplace continues to scale with full year GMV growing 70%, driven by 3P expansion and gross margin up 3.5 percentage points versus last year, reinforcing both relevance and improving economics. On the consumer side, Zé Delivery closed 2025 with all-time high performance, delivering BRL 4.7 billion in GMV, up 13% versus last year. 67 million orders and 27 million yearly active users, up 11% versus last year, consolidating its position as one of the major convenience platforms in Brazil. Strategically, Zé puts us close to young adult consumers with nearly 80% of buyers either Gen Z or millennials, and it accelerates both execution and our test and learn innovation loop. It is our food in the future. And this brings us to our third pillar, the muscle that makes the other two pillars scalable. In 2025, we set a clear ambition to expand Ambev's consolidated EBITDA margin again, EBM. Despite industry softness and FX and commodity headwinds, we delivered a meaningful evolution from top to bottom line that came from thoughtful choices on resource allocation, revenue management, productivity, and expenses governance while sustaining brand investment. That discipline translated into delivery. At the consolidated level, we expanded organic EBITDA margin by 50 basis points, marking our third consecutive year of margin expansion and by 110 basis points in Brazil Beer. And that reinforced our confidence in capital allocation. Consistent with our commitment to return excess cash to shareholders over time, we announced approximately BRL 20 billion in shareholder returns in 2025, the highest in our history through BRL 13.2 billion in dividends, BRL 4.2 billion in interest on capital, and a new BRL 2.5 billion share buyback program. And we are starting the year paying the first BRL 1.2 billion tranche of the IOC declared by year-end. Now let me give a quick overview across our footprint. In 2025, we grew EBITDA across all our business units, and we expanded EBITDA margin in 4 out of 5. In Brazil Beer, full year volumes were in line with the soft industry, and our performance reflected two different halves. Our revenue management initiatives weighted on share in the first half. As conditions improved in the second half, market share expanded meaningfully. In Q4, as weather sequentially recovered, so did our volumes. October was the main drag, and we returned to growth in December. For the quarter, we delivered a low single-digit market share gain in Nielsen sell-out. We continue to lead where the category is expanding the most. Premium and super premium volumes increased high teens, and we closed the year as leaders in the segment, reflecting stronger portfolio brand equity. Our balanced choices brands grew high 60s and nonalcohol grew around 30% as we continue to expand leadership and unlock incremental occasions. In the quarter, we delivered 100% of the Brazilian beer industry's growth in premium and nonalcohol according to our estimates and Nielsen sell-out data. In the core segment, softness was more pronounced given its higher reliance on out-of-home socialization. We are sustaining its recovery through stronger trade activation, marketing campaigns, and continued innovation, and we started to see progress with market share gains in Q4. In Brazil NAB, during 2025, the disciplined execution of our strategy and resource allocation supported EBITDA growth with margin expansion. At the same time, Guaraná Antarctica's equity improved, showcasing the strength of the brand. In the first half, volume momentum and commercial execution supported market share gains despite margin pressure given higher costs. In the second half, the CSD industry decelerated amid the same cyclical drivers that impacted beer, and price relativity became less favorable following our revenue management decisions, resulting in market share pressure while delivering a better profitability profile. In Argentina, the macro environment continued to improve with lower inflation and less FX volatility. The consumption recovery, however, is taking longer than we expected and continued to weigh on results in 2025. Still, performance improved sequentially throughout the year with a more balanced dynamic between top line and bottom line in the fourth quarter, supported by tighter execution and revenue management. Looking ahead, we remain constructive on a gradual recovery as the consumption environment improves. In the Dominican Republic, the consumption environment also improved sequentially through the year despite a weather-related disruption in Q4. In this context, beer gained share of alcoholic beverage in full year, supported by healthier dynamics between categories, while Presidente's brand health reached all-time highs. In Canada, we outperformed both beer and beyond beer industries, supported by our beer mega brands and continued beyond beer momentum while maintaining disciplined cost execution and delivering EBITDA margin expansion. With that, I will now turn it over to Fleury.

Thank you, Lisboa, and hello, everyone. As we enter 2025, we made it clear that this would be another year focused on long-term value creation through disciplined execution of our capital allocation framework. In a dynamic operating environment, we focus on what we can control and delivered another year of normalized EBITDA growth with margin expansion, EPS growth, resilient cash generation, and a higher capital return to our shareholders. Let me walk you through our financial performance for the year, starting with the margin improvement dynamics. We closed 2025 delivering consolidated normalized EBITDA margin expansion of 50 basis points reaching 33.4%, mainly driven by three factors: First, net revenue per hectoliter growth of 7.5%, supported by stronger brands, revenue management strategy, and continued premiumization across our portfolio, leading to net revenue per hectoliter growth across all of our business units. Second, financial discipline. Consolidated cash COGS per hectoliter performance benefited from productivity initiatives and operational efficiencies across our industrial and logistics operations. Brazil Beer is a clear proof point. Despite the cost headwinds anticipated at the beginning of the year and the operational deleveraging associated with lower volumes, our cash COGS per hectoliter, excluding non-Ambev marketplace products increased by 6.1% in 2025 at the lowest quartile of our guidance. And third, efficient resource allocation. In SG&A, we continued to invest behind our brands while keeping total cash SG&A growth under control. Now moving to below EBITDA lines. We closed the year with almost BRL 4 billion in net financial expenses mainly explained by FX variation losses related to foreign currency-denominated assets and the BRL appreciation, coupled with expenses related to sourcing U.S. dollars in Bolivia. In terms of income taxes, our effective tax rate for the year was 17.7%, reflecting some one-off effects mainly from Q3, such as the Barbados divestment, the partial reversal of tax liabilities associated with the 2017 Brazilian tax amnesty program and certain effects related to tax credits. Absent such one-offs, our consolidated effective tax rate would have been approximately 20% for the year. As a result, stated net income reached almost BRL 16 billion with stated EPS increasing 8.2% year-on-year, while normalized EPS increased by 2% in the year. Now turning to cash flow. Cash flow from operating activities remained solid and totaled BRL 24.5 billion, BRL 1.6 billion lower than last year, mainly due to softer volumes that impacted working capital. Cash flow consumed in investing activities totaled approximately BRL 5 billion, mainly driven by CapEx investment broadly in line with last year. Cash flow consumed in financing activities amounted to BRL 26.8 billion, driven by shareholder payouts and the completion of our 2024 share buyback program. In total, we returned BRL 21.7 billion to shareholders on a cash basis, meaning that approximately 90% of our operating cash flow was returned to shareholders in 2025 and reinforcing our commitment to sustainable long-term value creation. Our return on invested capital continued to be meaningfully above our weighted average cost of capital and improved in 2025, driven by NOPAT margin. For 2026, we remain consistent towards our capital allocation priorities of: one, reinvesting in our organic growth to keep supporting the development of Pillar 1 and Pillar 2 of our strategy; two, maintaining a disciplined approach towards M&A opportunities; and three, consistently returning excess cash to shareholders over time. In terms of costs, in 2026, we expect Brazil Beer cash COGS per hectoliter, excluding non-Ambev marketplace products to increase between 4.5% and 7.5%, driven primarily by commodity prices, aluminum in particular, and portfolio mix with higher cost pressures anticipated in the first half of the year. At the same time, we remain focused on identifying opportunities and enhancing efficiency as we continue to pursue our ambition of expanding consolidated margin over time. And before handing it back to Lisboa, I would like to share a team update. Patrick Conrad, a seasoned finance professional, is joining our Investor Relations team, succeeding Guilherme Yokaichiya. Yoka, in turn, will transition to a fully dedicated position leading Ambev's treasury team. I would like to take this opportunity to thank Yoka for the outstanding work he has done leading Ambev's Investor Relations team over the past 5 years and to wish both continued success in their new roles. Now back to you, Lisboa.

Thank you, Fleury. As I reflect about 2025, it was another year marked by a very dynamic operating environment, and that strengthened our ability to read and adapt to market changes. 2026 will certainly bring its own dynamics, but it is also shaping up to be a promising year for socialization, and those moments have already started. Carnival is underway, not only in Brazil, but across several of our Latin American markets. From there, we begin to warm up for the FIFA World Cup, the biggest additional record in favorable time zones for our footprint, creating another interesting backdrop for people to come together. On top of that, in Brazil, a holiday-rich calendar adds several long weekends throughout the year, creating additional occasions for socialization. In this context, I want to leave you with three reminders. First, beer is a loved category in Latin America with strong fundamentals, and that strength comes with headroom for growth, given its versatility to address consumers' trends and needs. Second, we, as a company, are advancing simultaneously on our three strategic pillars, strengthening a flywheel we can compound year after year. And third, we entered 2026 as a stronger company with momentum carryover, and how we navigated 2025 was another proof point that our culture stands out in times like this. And none of this happens without our people. I want to close by thanking our teams across all markets for their ownership, adaptability, and execution through a very demanding year and for the energy they are bringing into 2026. With that, let me hand it over to the operator.

Our first question comes from Nadine Sarwat from Bernstein.

I'd like to double-click on Brazil. So firstly, great seeing that commentary about December beer volumes being in growth. Can you unpack that a little bit, the magnitude factors behind that? Was it all weather? Or were there any other favorable shifts? And are you able to comment any trends in January? And following up to that, secondly, Brazil NAB, I know you guys called out your revenue management strategy as a reason behind the volume decline. Can you add some color as to what the exact decisions were that resulted in that decline? And then what can we expect for volumes in '26?

Nadine, nice to talk to you again. Lisboa here. Look, I'm going to follow the protocol. I'm going to get the first answer. Regarding Brazil Beer, to your point about what are the drivers. So quickly reminder, what happened last year made 2025 like an outlier year for the beer industry in Brazil. Prior to that, for the past ten years, five years, three years, there was consistent growth and pretty much driven by favorable demographics and an increase in disposable income. Last year, and we mentioned that during the result announcement, what we saw was unseasonable weather impacting mostly the wintertime and boosted by the La Nina phenomenon that somehow made the winter go deeper and longer in the second half. And that created an unfavorable type of situation for beer because it impacted the most an occasion and out-of-home occasions that are where the beer category volume resides. So that's the reason why we saw the impact. Obviously, it was not an easy situation for us to manage. As I said before, it was the first time that we saw such a strong impact in our industry, but I think the team put all the emphasis behind things that we could control. And by doing so, we kept evolving quarter by quarter. And when the weather changed during the last quarter of last year, we were ready to ride together with the more favorable weather impacting the demand again. And this is exactly how the situation went through. In October, pretty much the month represented the vast majority of our decline in the quarter view year-over-year. We got to a better position in November. And then in December, when you combine the better weather with the market share gain that we got in the final quarter of the year, which represents around a low single-digit in sell-out data growth, that explains the positive territory that we landed. I won't go into the details about the first quarter of this year. But what I can say, Nadine, is the following. Actually, that weather pretty much came into the first round of this year, the first month of this year; what puts in a year-over-year comparison, the weather impact is neutral, which is important for us.

Sustaining and even improving profitability in 2025. You ended up doing that. There was an impressive performance on the SG&A, especially distribution costs. I would just like to get your thoughts about how you're thinking about this going into 2026, when you think about the hedging that you have for Brazil Beer as well as the room for additional efficiencies, how you see all of that shaping up for the year?

Thank you, Henrique, Fleury here. Can you hear me well? Just checking the mic here on my end.

Yes, I can.

Great. Let me address your question. In 2025, we faced significant cash cost pressures, particularly in Brazil Beer, which led us to set a guidance range of 5.5% to 8.5% last year. We conducted various projects targeting different areas of our profit and loss statement. As mentioned earlier, we concentrated on the industrial aspect and distribution while prioritizing investments in our brands to enhance the performance of Pillar 1 and Pillar 2. As a result of these strategic implementations, we are pleased to report a figure of 6.1%, falling within the first quartile of our guidance. Looking ahead to 2026, two things remain essential. First, we must continue our hard work on these initiatives, maintaining a focused approach as we aim for another year of margin expansion, which we have already begun achieving. Our analysis on costs, nonspeculative hedging, and commodities has led us to provide the market with a guidance range of 4.5% to 7.5% for the entire year of 2026, with the midpoint aligning closely with our 2025 results. This guidance is influenced by commodity pressures, particularly from aluminum and our portfolio mix. However, we will persist in our efforts and aim to refine our outlook as the year progresses. For now, that is our guidance.

Henrique from Lisboa here. To add to Fleury's comments, it's evident that we didn’t anticipate such a significant drop in volume for the industry, particularly in Brazil. This has created considerable pressure on our goal to maintain margins for Ambev. Last year served as a test for us. We managed to navigate the challenges posed by foreign exchange, commodities, and our limited capacity to absorb costs without the volumes we needed for confidence. I believe these challenges helped us strengthen our internal capabilities and prepared us for the future in a much better condition. It wasn’t just practice for us; last year was a tough experience that ultimately equipped us to face what lies ahead.

Our next question comes from Gustavo Troyano from Itau BBA.

My question relates to capital allocation. And how should we think about your approach towards dividends throughout the year? Last year, you paid interim dividends on a quarterly basis, but I just wanted to touch base on how you're thinking about the policy for this year, not only in terms of the final payout target, but also on the timing of the distributions throughout the year. So it would be nice to understand if we should expect dividends being concentrated towards the end of the year as we were used to see until 2024 or if there is something new towards this discussion?

Thank you for the question. Let me highlight again what we've accomplished in 2025. We've had proactive discussions with Lisboa and our Board to ensure we can consistently change the payout or return to shareholders each quarter compared to last year. At the beginning of this quarter, Lisboa mentioned we are also distributing part of the IOC that was approved by the Board at the end of 2025. I cannot provide guidance on how this will unfold over the year. However, as CFO, I can assure you that we have ongoing discussions every quarter. We are continually assessing our cash position and cash generation while keeping in mind our three capital allocation priorities: investing in organic growth, considering selective acquisitions, and delivering sustainable returns to shareholders over time.

Our next question comes from Thiago Duarte from BTG Pactual.

Yes, in my question, I wanted to circle back to some of the topics I think we discussed a year ago, right after the return of both of you to Ambev, and things that are related to the strategic vision that you shared with us at the time, and I wanted to comment, if possible, in light of not only the quarter but I think 2025 results as a whole. The first one is to you, Lisboa, when you referred to make, I remember a year ago, bigger investments in the core brands as part of your analogy of making the company more ambidextrous and fostering the category growth. You mentioned briefly about elevating the core in your initial remarks. But when we look at the portfolio and the way it performed throughout the year, it appears that was premium, not the core that really stood out. So I wanted to hear how you think core stands a year later in terms of potential or whether you think it will continue to be gradually eclipsed by the premium brands and the portfolio will be somewhat transitioning more into premium and core losing relevance. So that would be the first of the topics we discussed a year ago. And the second one is related to the portfolio itself. In the past, I don't know, five or six years, Ambev made lots of investments in innovation, introduced many new brands, you repositioned the pricing. And obviously, I think this led to higher costs and expenses to support that expansion. And I remember a year ago, you mentioning that you believe the portfolio was stronger and it was time to reap the benefits of these investments. So on the question of the SG&A dilution, whether you think what we saw this year is really related to that and obviously, the sustainability of that going forward, which you mentioned a little bit before in the previous question. So those will be the points.

Thiago, it's good to connect with you again. One piece of feedback we received was to follow the protocol by providing one answer only, so I'll address the first question. The core role for us, especially in Brazil, where we are experiencing rapid growth with our premium offerings, is an important consideration. I still believe we are a company equipped to manage various aspects of our portfolio, especially since the core segment is the strongest part of the industry. Given that a significant portion of Brazil's population depends on one minimum salary, the core segment has a vital role to play because it makes our products more accessible. Additionally, Brazil consists of diverse regions, each with its own unique market trends. I've noticed that the portfolio's performance can differ significantly from one region to another. For instance, areas that were traditionally dominated by Brahma are now leaning towards Ambev or Skol. Skol remains a prominent brand in several Brazilian states, including Sao Paulo, so it's crucial for us to maintain the strength of our company and the category, as these brands represent the category itself. There is ample opportunity for us to enhance the relevance of these brands in the future. For example, we recently introduced Skol Zero Zero, which not only aligns with the zero-alcohol trend but also introduces a unique product, being both alcohol-free and sugar-free. This is how we ensure these brands stay significant for our consumers moving forward. It's fascinating because when we effectively balance our portfolio, we can truly unlock its full potential. A strong example is the last quarter of last year when we realized the full capabilities of our portfolio. Our market share growth was driven not just by new premium options or non-alcoholic beverages, but also by our core offerings. Interestingly, during this period, we saw Skol stabilize and gain traction, especially in states where we focused our marketing efforts. Consequently, our market share improved across different segments, channels, and regions in Brazil. This is our objective because we know our strength comes from a robust portfolio, and the core aspect of our business is essential to that strategy.

And Lisboa, if I can just add like one thing here, Thiago, quickly. I think, connected with the strength of our portfolio, core was more impacted by, I would say, weather-impacted occasions, which were not fundamentally impacting the category. And with the other side of the portfolio, we led where the category expanded. And that's where we came with the bulk of the growth in premium and zero in Brazil.

Our next question comes from Renata Cabral from Citi.

My question is related to GLP-1 drugs and the potential impact on the company's portfolio. We are seeing the discussion a lot developed in the U.S. Of course, the penetration of the drug has been much higher than in Brazil. So my question for you is the weakness of the portfolio this year somehow can be attributed to that. And more than that, since in March, one of the patents will expire in Brazil. So the usage can expand in 2026 or maybe '27. What are the expectations of the impact in the portfolio and what the company is working to mitigate that and offer other options to consumers, not only in beer but also in the portfolio?

Thank you for your question, Renata. It's important to reflect on 2025 to understand what occurred. There are two types of impacts to consider: attitudinal changes and behavioral changes. Last year's changes were primarily behavioral, largely due to weather conditions. Bad weather and a longer, colder winter significantly affected the out-of-home drinking occasions in Brazil, especially among friends sharing beer, which contributed to the overall decline we experienced. As noted by Fleury, the brands most affected by this trend are our core brands, which is why their performance mirrored that of the industry. On a positive note, despite these challenging circumstances, we consistently assess consumer attitudes towards the category. We find that our relationship with consumers remains strong, particularly among those who are more engaged with the category. However, we acknowledge that less frequent consumers may fluctuate in their preferences. To address this, we are expanding our offerings to meet various needs and trends, including developing zero alcohol beer, functional options such as gluten-free and lower-calorie beers, and sweeter flavors like Flying Fish introduced last year. Regarding GLP-1, we haven't seen any significant impact on our business so far. However, like any emerging trend, it takes time to gather more evidence. Therefore, we will continue to monitor this situation and respond as needed.

Our next question comes from Isabella Simonato from Bank of America.

My question is about the beer market in Brazil for 2026. Last year was quite challenging due to weather and occasion factors, but you mentioned several positive influences this year, particularly with the World Cup and additional holidays. However, your guidance suggests that costs will increase more than general inflation, and you are starting from a strong SG&A performance last year. I would like to hear your thoughts on your pricing strategy for 2026, as well as some insight on how we should consider the mix during the World Cup. Among these factors, what do you believe will be most significant for volume growth this year?

Isabella, that's quite a question. Let me address the pricing aspect, as it's quite sensitive. Our pricing strategy has two main objectives. Firstly, we aim to keep our industry accessible because a significant portion of the population in Brazil relies on having access to our category. It's essential for us to consider this, which is why core products and varied packaging options are crucial; we want to ensure accessibility. If we focus solely on premium products, we would complicate things for consumers. Secondly, pricing is important for safeguarding our profitability moving forward. We have a goal to expand our margins, as previously mentioned at the start of last year, and we continue to uphold that ambition. It’s essential to balance these two aspects; it’s not a matter of choosing one over the other but ensuring both coexist. The positive aspect of our current situation is that our product portfolio has significantly expanded, both in variety and regionally. This diversification supports our revenue management strategy. Additionally, we are developing our digital ecosystem, with BEES helping to enhance our core business and create new growth opportunities. To delve deeper into our core business, we are utilizing technology to refine our revenue management strategies in a more detailed manner than before. We are now more efficient in how we invest in promotions, using algorithms to identify the best product mix for different points of sale. This approach allows us to effectively implement our pricing strategy while also achieving a beneficial mix that can help offset any potential impacts on costs, just as we did last year. Maintaining this balance is something we strive for every day, and I must admit that the more we practice it, the better we become. Last year served as an excellent test for us to be prepared for the coming year.

And Lisboa, Fleury here, just to add one thing here, Isabella. When you look at our costs, it's important to think about expenses in a holistic manner. We consistently review our resource allocation, as Lisboa mentioned, assessing the returns from market promotions and all our activities. It's fair to note, as Lisboa pointed out, that our ambition is to increase our margin over time. However, achieving this every quarter may not be possible because the optimization of Pillars 1, 2, and 3 will take time. Our long-term goal is to refine our costs by eliminating what doesn't work and reinvesting in our brands. This is what Lisboa referred to as a flywheel, and we aim to build momentum continuously.

This does conclude the Q&A section. I will now hand the floor back to Lisboa for any closing remarks. Please go ahead, sir.

Thank you for joining our call today. I would like to close reinforcing some messages. Our mission is to always strive for our better version. And we will do that by leading and shaping a loved category with clear headroom for growth. Advancing simultaneously on the three pillars of our strategy is what sets us apart. 2025 stress tested our strategy, and we closed the year stronger and better prepared for what comes next. Thank you, and hope to see you soon. Enjoy carnival.

This does conclude today's presentation. You may now disconnect, and have a wonderful day.