Vidrala Stock

Good morning, and welcome to the conference call organized by Vidrala to present its 2026 First Half results. Vidrala will be represented in this meeting by Raul Gomez, CEO; Galo Alvarez, Chief of Sustainability and Corporate Development; Inigo Mendieta, Corporate Finance Director; and Unai Alvarez, Investor Relations.

The presentations and the Q&A session will be held in English in order to facilitate understanding of everyone. In the company website, www.vidrala.com, you will find available a presentation that will be used as a supporting material to cover this call as well as a link to access the webcast. Mr. Alvarez, you now have the floor.

Good morning, everyone, and thank you for taking the time to attend today's call. As previously announced, we published our 2026 First Half Results earlier this morning. together with the presentation that will support this conference call. We encourage you to access the webcast available through our website or alternatively to have the presentation at hand, -- with that, I will now hand over to Inigo.

Thank you, Unai. Before we start, let me briefly introduce Galo Alvarez, our Director of Sustainability and Corporate Development who is joining this call as part of the evolution of our Investor Relations function. Welcome, Galo. Please, go ahead with your introduction.

Thank you, Inigo. Let me start with a brief reminder of what Vidrala is today. We are a focused glass packaging multinational, clearly organized around 3 business units: Europe, U.K. and Ireland, and South America. We operate 12 sites around 10 billion containers a year we are producing and serve more than 1,600 customers, including leading global brands and key regional customers. We also combine that with strong sustainability financials. Recycle glass represents 55% of our raw material mix, and our CO2 intensity is 0.321 tons per ton of metal glass, 25% lower than 2019 and one of the lowest in the industry. Our 3 strategic pillars are customer, cost and capital and they reinforce each other. Our goal is to serve global customers in key regional accounts in the most competitive and sustainable way.

Our industrial model and cost discipline allow us to meet their requirements at scale and sustain resilient margins and strong cash conversion. We allocate that cash with discipline, reinvesting through smarter CapEx, designed to lower OpEx while also delivering sustainable shareholder returns. That reinvestment further strengthens our footprint and the value proposition we offer customers. Moving to Slide 4. Let me translate our footprint into how the group is organized. Again, we have 3 clearly defined business units: Europe, U.K. and Ireland, and South America. Europe remains around half of the group sales and EBITDA. U.K. and Ireland business represents roughly 1/3 of sales and 1/4 of EBITDA. And South America already contributes to almost 1/4 of group EBITDA. We are now a more diversified group, but not a more complex one. Each business unit has a clear accountability close to customers and markets, but all 3 operate under the same industrial model. With that context, Unai will take you through the first half figures.

Thank you, Galo. Before walking through the key financial figures, it is worth noting that the Chilean acquisition has been consolidated into our results as of 1st of January of 2026. To show comparability, we have included breakdowns on a like-for-like basis, incorporating the results generated by the acquired business into 2025 figures. So turning back to the presentation, let's begin with an overview of the main financial figures. For the first half of 2026, Vidrala delivered revenues of EUR 754 million and EBITDA above EUR 225 million, and a net income equivalent to an EPS of EUR 3.36. At the end of June, net debt stood at EUR 252 million, including the Chilean acquisition at an enterprise value of EUR 75 million, which translates into a low leverage ratio of 0.6x over the last 12 months pro forma EBITDA.

So let's take a closer look at revenue. In this chart, we have broken down the year-on-year movement on a comparable perimeter basis arriving at a reported sales of EUR 754 million. This represents an organic change of minus 3.8% at constant exchange in comparable perimeter. The variation just reflects the expected price adjustments of minus 1.8% and the ongoing progressive improvement in volume trends. Moving on to EBITDA. We apply the same breakdown to understand the year-on-year evolution. First half 2026 EBITDA amounted to EUR 225.5 million, showing a positive performance at constant currency and like-for-like growth. This highlights the benefits of diversification while ongoing cost focus actions continue to strengthen our competitiveness. This operational performance translated into a solid EBITDA margin of 29.9%, reflecting an expansion of 110 basis points compared to the same period last year, underlining the resilience of our business model and in challenging market conditions and ongoing inflationary presence. Top line performance continued to improve sequentially with volumes progressively recovering and turning into positive in Europe during the second quarter. This sustained momentum reflects the strength of our commercial strategy and our ability to adapt swiftly evolving market conditions.

At the same time, EBITDA growth accelerated with margins remain resilient despite ongoing market headwinds underpinned by operational excellence and continuous focus on cost discipline. We now turn to sales and EBITDA by business units. Europe, U.K. and Ireland, and South America, which includes operations in both Brazil and Chile. Performance was driven by the recovery in Europe and sustaining momentum in South America, where margins evolvedin line with expectations underpinned by the execution of our competitive actions, our ambitious investment program and the complementarity of our industrial footprint. Now I will hand over to Inigo, who will provide more detailed insights on our balance sheet position and shareholder remuneration.

Thanks, Unai. Let's look at the evolution of financial position. At the end of the period, net debt stood at EUR 252 million, equivalent to a net debt-to-EBITDA ratio of 0.6x. This reflects the strength of our cash generation capabilities and our disciplined approach to capital allocation, while at the same time, supporting several strategic initiatives undertaken during the period. In particular, this net debt figure incorporates, as already mentioned, the acquisition of Vidrala Chile completed at an enterprise value of EUR 75 million. And in addition, it reflects the interim dividend paid in February, the execution of our ambitious investment plan and the ongoing share buyback program. Despite this significant cash outflows, our balance sheet remains solid and continues to provide substantial financial flexibility.

Finally, turning to shareholder remuneration. This chart highlights the consistency for our distribution policy. Vidrala has increased its dividend every year, extending this track record through 2026. This year, we are making an extraordinary effort to enhance shareholder returns. 2026, the dividend has been increased by 15%, bringing total dividend payments to more than EUR 62 million. In addition, we have expanded our share buyback program. initially launched to repurchase shares equivalent to 1% of the share capital. The program has subsequently been extended twice by an additional 1% on each occasion.

As a result, we will repurchase up to 3% of share capital equivalent to a maximum amount of EUR 90 million. Taken together, dividends and share buybacks will represent more than EUR 150 million returned to shareholders this year, underlining the strength of our financial position, our confidence in the long-term prospects of the business and our continued commitment to deliver attractive and sustainable returns to shareholders.

Thank you, Inigo. Let me now turn to the outlook for the full year. The first half performance was consistent with our expectations, and we therefore reiterate the guidance announced in April. First, EBITDA about EUR 450 million, consolidating operating profits and margins despite challenging macro conditions and intense competition. Second, EPS growth above 5%, supported by strong operational performance, the contribution from our broader geographic footprint and the ongoing share buyback program. Third, underlying free cash flow of around EUR 200 million, excluding restructuring costs, while continuing to execute our strategic investment program. Raul, over to you for the closing remarks.

Thank you, Galo. Thank you, Inigo. Thank you, Unai. Not Unai, and thank you all for your time in attending today's call. We know that it's a busy day for all of you. We really appreciate your time. Well, our first half of 2026 reflects much more than solid financial performance. It demonstrates the resilience of our business built on this declined industrial execution, operational excellence and a clear strategic geographical vision. Vidrala delivered earnings growth despite quite a challenging complex environment. And that was supported by our ambitious industrial investment program, the contribution of our new expanded South American business platform, and our different operational initiatives to further enhance our cost efficiency.

And finally, the continued strength of our customer value proposition. These factors -- the combination of these factors position us well to deliver on our this year performance expectations as Galo reiterated before. Beyond this number and beyond this year, we remain focused on the future and firmly committed to our 3 strategic pillars: customer, trust and capital. We will invest and we will deploy our industrial model, maintaining a strict financial discipline, and we will allocate capital selectively and strategically. This is part of our DNA. We will remain focused on cost and competitiveness. And so as a result of this, we will make our best to our customers, make our products and serve our markets in the most efficient, competitive and sustainable way possible, returning value to our shareholders progressively.

At the end, we are proud of what we are building. The future belongs to us. Glass is a unique packaging material and consumers will prefer glass everywhere in the future.

Thank you, Raul. This concludes our position. We will now move on to the Q&A session.

[Operator Instructions]

Our first question comes from Inigo Egusquiza Castellanos from Kepler Chevreux.

I have 2 questions, if I may. The first one would be if you can elaborate a bit the better volumes that we have seen in Q2 versus Q1, especially the recovery that we have seen in South of Europe, which has been positive in Q2. And how is the trend for the summer for July as we are almost ending the month of July? And what are your expectations for the summer season? This is the first question.

And the second question would be more on 2027. You are reiterating the guidance for 2026, but my question would be more on 2027 pricing strategy what can we expect after 3 years of price moderation in the industry with the pickup in natural gas pricing, again, what can we expect for pricing still soon, but any thoughts would be much appreciated.

Thank you, Inigo. This is Raul. I will take these points. First, regarding the trends that we are seeing in our sales volumes, I think that the trends that we have seen in the second quarter give us the credentials or the confidence to reaffirm our initial expectations. If you remember our message 3 months ago at the time of our first quarter results publication. That gives us the confidence for the remainder of the year. And this is basically the result of [indiscernible] flat demand context in Europe, including the U.K.

We are seeing some growth in South America. This is very evident since the beginning of the year. And we are combining this, let's say, organic demand context with some efforts to recover market share. And this give us the confidence to reaffirm our expectations for the remainder of the year.

Also answer what is happening today in terms of the seasonality we are seeing, okay? Let us repeat -- probably repeat that this summer in Europe that we entered in South America. It's peak season in Europe, low season in South America. The peak season in Europe is performing as expected, not significantly worse or better. And the peak season in South America performed at the beginning of the year better than expected, and we hope this to maintain for the rest of the year. Volumes -- sales volume is not giving us any sense of surprise. Regarding prices, well, first, we should say that we are seeing persistent inflationary pressures, mostly due to the energy factor, something that is particularly evident today the events that we are seeing in the Middle East and the in Iran.

And despite we are widely protected in our energy exposure, we will see a number of collateral inflationary effects. So we will need to adapt our prices consistently as much as possible, depending on the competitive landscape. And so the message will be clear from our side, even after the selective efforts that we will make to recover some businesses with customers on market share, we do not foresee any risk of negative pricing movement for the remainder of the year even in '27, and more than this, we don't foresee any risk of margin degradation due to any potential negative spread between prices and cost in '27. We will do what we need to do.

Our next question comes from Natasha Brilliant from UBS.

My first question is just on the South American business. You showed the pie chart now that South America is now almost 20% of revenues. Is that the right mix? Or do you see further scope for acquisitions in the region? Can you talk a bit about the pipeline and your thoughts there?

And then my second question is just looking at working capital. I think it's ticked up quite a lot versus last year from what I can see. So could you just remind us of the dynamics and anything that we should bear in mind there, please?

Thank you, Natasha. I will take the second question regarding working capital and its impact in our free cash flow generation. So free cash flow for the first half has been almost EUR 30 million, an evolution fully in line with our expectations for the full year. And as already anticipated, this figure reflects the seasonality of working capital, where stock levels are pretty much under control and where movements are also under control.

So the main explanation comes from CapEx seasonality, where execution in the first half of the year has been more intense as already expected. And therefore, we are expecting robust free flow generation in the second half of 2026, underscoring our differential free cash flow profile to reach approximately EUR 200 million free cash flow as announced our full year guidance and today, reiterating.

And I will take the first question, Natasha regarding South America. Well, let me remind that we entered South America basically some days ago, okay, 2 years ago. So we are at the beginning of building the platform for future growth that we foresee. Things are going well so far. South America is wide region. Even Brazil is a continental country. So I'm sure that you will probably agree with me that we will unavoidably see a number of potential interesting opportunities, okay? And we will explore. You can be sure that we will explore any of them.

But for the time being today, what we are really trying to consolidate our new business in Chile, trying to consolidate our very solid business in Brazil, trying to analyze any potential opportunities to expand capacities and attack new customers in our existing perimeter. So it's time to keep coming for a while.

Perfect. That's very clear. And if I could just ask one final one, if we could get the usual breakdown of volume and pricing by region for Q2, please?

Sure, Natasha. So let me provide first volumes and in pricing, okay? So for the first 6 months of the year at group levels. Sorry, Natasha...

Sure. whatever is easier?

Okay. I'll give you Q2. So volume trends in Q2 at the group level has been slightly negative by minus 0.6% and going to a break down by business unit. Volumes in Europe have been positive as we anticipated, by 1.5%. Volumes in U.K. and Ireland have been negative, improving for Q1 by minus 7% and volumes in South America continue performing well, growing by more 4%, okay? If we go to pricing, pricing at the group level evolved as expected, down by minus 1.7%. And going to breakdown by region. In Southern Europe, pricing was down by minus 3%. In the U.K. and Ireland business was slightly negative also by minus 0.4%. And in South America, we continue to see some inflation prices going up by 3.5%.

[Operator Instructions]

Next question comes from Luis de Toledo Heras from ODDO.

Just one regarding the U.K. and Ireland market and import trends. Obviously, you have provided a figure about volumes, but prices seem to be resilient. I don't know if you have any reading on the import pressure and the construction, if you could also elaborate a little bit on the restructuring measures. You provided in the last conference call, the potential savings. I don't know if you have provided any approximation to restructuring costs.

Thank you, Luis. Well, it's true that we lost a number of businesses or volumes with customers in the U.K. some months ago, probably a year ago, due to what I should consider abnormal levels of competition, mostly from -- but not only from imports. And as we are getting adapted. We are under a straight process of restructuring, process of cost reduction, and the result of this is becoming evident in our margins, okay? This is progressing well, but there is still some work to do.

But let me insist that our margins are proving that we are doing the rising and we are going in the right direction to make our future belongs to us. And so we will progressively see some recoveries on the volumes that were lost, okay? This should become progressively evident during the next -- of this year, the remainder of this year and probably more in the next year in '27. Meanwhile, that means is profits and margins, profit levels even in value and margins relative to sales are broadly safe in the U.K. And that makes me think that the U.K. is a core, the U.K. and is a core business for us, really core business for us.

Our next question comes from Fraser Donlon from Berenberg.

Hello. Can you hear me?

Yes, but it's you, Manuel. We can hear you.

My apologies, the next question comes from Manuel Lorente from Santander.

Yes. Okay. No problem. So I have 3 questions, if I may. The first one is for Raul. You mentioned some specific market gains throughout the entire year in order to offset somehow these muted volume backdrop. Raul, do you have the perception that you are gaining market share from key large competitors or smaller competitors/

Thank you, Manuel. Let me say that the perception I have is not a perception. It's a conviction that I can't share with you now in this conference call, okay? What we are doing is something that you will prove seeing the numbers of some of our competitors is something that we are doing intensively with a real financial discipline. And okay, we are just progressively and modestly recovering what belongs to us.

And so my second question is on U.K. You also mentioned that we should see some progression in terms of volumes throughout the second half of the year. This -- do you have the perception or the conviction that this improvement progression is volume, it's mainly because of easier comps as you have a more benign comparable basis as part of the clients that you loss on last year? Or is, let's say, new clients?

This question is a key topic for us today, okay. It will take some time for us to recover the volumes that we lost in the past few years, okay? No more than 18 months, but this won't be fully captured this year, okay. But from now in the future, we will see a progressive better trend in the sales volumes in the U.K. And why? Because our costs are getting adapted because we are being able to get our prices adapted as well, and we are seeing that the level of competition is less intense than it was in the past, mostly to the renewed, probably the renewed inflationary pressures that of our competitors, particularly importers in the U.K. are suffering.

So that gives us the confidence that our sales volumes will recover in the U.K. Organically, demand still on what negative, probably performing slightly, but only a slighter or modestly worse than in Continental Europe. But that won't be an excuse, probably demand or demand will end this year on a flattish point, okay? And we are not foreseeing demand recovery significantly in '27. And if that happens, that will -- nothing but positive for us, but we are not betting or depending on any still unexpected or organic demand recovery..

Okay. Great. And then my last question, it's on M&A. There is an intense restructuring from several of your competitors, your strategic fit on the last year has been out of Europe into Lat Am. But due to the fact of the mounting opportunities that are arising in Europe do you keep this mantra of LatAm versus Europe? Is it still valid? Or you might see some tactical opportunities here and there in Europe?

Well, first of all, let me remind that we are fully aware of the fact that the world is dynamic. The world entirely, not only the glass container industry. And so we are forced to remain dynamic as well. It's evident that our financial position should give us some advantages. But in terms of M&A, the message remains the same for us. We will actively analyze, explore and in some cases, build the opportunities that we consider interesting. Today, we are fully focused on all our current perimeter. We cover sales volumes.

We need to maintain our margins under control. We will invest, and we will keep our priority on cost competitiveness. But we are always somewhat involved potential opportunities. Today, it's not an extension. But I will repeat the same message. Whatever happens in the future, you can be sure you won't be surprised.

Our next question does now come from Fraser Donlon from Berenberg.

Good morning. Can you hear me?

Yes, we can hear you.

Perfect. I just wanted to ask about Chile, could you maybe give an update on how the business performed specifically in Q2? And also, I know you had done some -- you had some ideas to increase a lot the kind of internal efficiency of that division. So any update you could give on the progress there since you acquired the asset? Thank you very much.

Thank you, Fraser. Well, you know that Chile is a significant step for us because we are entering a new country and a new business, but it's financially less relevant, okay. Let me say that since the beginning, we are trying to make and deploy our industrial model in Chile, and we will see some benefits on our cost competitiveness there. There is a lot of competition in Chile. This is not surprising us. It's probably surprising for people from out of Chile, but this is the reality in Chile today and we are battling under this reality with delivering better margins, better profits, and better sales. So that makes me think that we are performing well in this very preliminary first stage of our strategic cycle in Chile. Everything is going well so far, but this is just the beginning.

The next question comes from Ashish Khetan from Citi.

Hello, I just wanted to check on capital allocation plan with respect to medium term. So currently, your net leverage remains very low. So how are you thinking about the balance between M&A, dividends, buyback going into 2027? Are we going to see more cash -- more buybacks? Or like we see more M&As?

Well, thank you very much. It will be probably a combination of both, okay. Let me say first -- okay, our solid financial position, our low levels of debt is not a target in itself, is the result of the target. The target is to generate our ambitious level of sustained free cash flow. As long as we are delivering well in this target, our debt levels are solid. We are reducing debt, and this will nothing but put an additional -- I agree with you, an additional and accepted and positive level of pressure to return cash to our shareholders. And we will -- we promise that we will deliver well on this, okay?

This year is not an exception. If you remind of Inigo's explanations during the preliminary speech or the preliminary introduction, we are making effort this year, combining cash dividends with share buyback programs, and this is an example of what we will do in the future, okay? We will try to increase cash dividends if this -- if the business performs as expected, we will try to increase cash dividends with purpose in mind because we want to maintain a sustained level of dividend growth. And we will combine cash dividends with other tools, really like share buybacks. As long as we have capital to allocate or to return to our shareholders.

Our last question comes from Inigo Egusquiza Castellanos from Kepler Chevreux.

Two additional questions, if I may. The first one would be on the on the guidance that you reiterate today, Raul, which is EBITDA of more than EUR 450 million. The question is, if I am right, consensus has something in the region of EUR 450 million, EUR 451 million EBITDA for 2026. I don't know how do you see this number because making the numbers after the strong first semester this EUR 450 million annual EBITDA implies that H2 EBITDA would be lower than 2025. So I don't know how to use this consensus number. It seems a bit conservative for me. This is the first question.

And the second question would be more on a midterm perspective on the free cash flow that you mentioned this EUR 200 million. The CapEx, the last few years and this year is being slightly higher EUR 170 million, EUR 180 million compared to the normalized CapEx. So my question is, when can we expect the CapEx to be more normalized level and to see a stronger free cash flow if we normalize this CapEx to it to a more normalize level of around 10% over sales. Thank you.

Thank you, Inigo. I think by your second question is true, and we have certain message that our level of CapEx is abnormally high. This is purely intentional, okay? We are investing more than pure replacement, and we are doing this for a reason. And the reason is progressively becoming real in our cost competitiveness. And this is a final result in our margins resilience, okay? And we are set in Vidrala that we do have a challenge to deliver results after this level of our normal CapEx. CapEx will get normalized future, but not yet in '27, okay?

But this won't distort our levels of free cash flow. That means that free cash flow should even grow in the future even after this abnormal high level of strategic and intentional high level of CapEx, if we are able to grow on operating profits. The first question regarding the -- our guidance. Well, it's true that -- and I agree with you. And this message pass to surprise us that our second quarter results probably will give us more confidence, credentials to make our full year guidance on EBITDA, real, possible. But it's also that mathematically, it look to you that the second half is probably extensively conservative. But let me remind that this is still too soon. And the business is still full of complexities. Take a look at what is happening with energy cost in Europe. You can see that there is still a specific level of competition, something that we have suffered a lot.

And we are still trying to deploy some restructuring action plans, particularly in the U.K. and Chile. So we will maintain the same approach so far, and I will invite you to consider that, okay. This year guidance is realistic and to keep an eye on the next year.

There are no further questions by telephone. I now hand it back to the Vidrala team, who will address questions submitted via webcast.

Thank you. There is only one question through the webcast. A couple of ones but it's the same question, which is regarding our hedging -- energy hedging for 2026 and 2027. Maybe, Galo, you can take this one.

Thank you, Inigo. So I would say that before turning thing into our energy exposure, it is worth recalling that one of the most effective case we have to protect ourselves against energy price adjustment formulas. So this formulas are mostly secured through long-term contracts with customers, and this allows us to pass through cost inflation. But in addition to energy, parts or present formulas, we have a hedging policy with a mix of derivatives and options as you are very much aware.

South America is different in this case because energy prices are less volatile and mostly covered through adjustment formulas with customers. And as a result, approximately 70% of the energy exposure for 2026, and 60% of 2027 is hedged through derivative instruments. And this means that almost all of our energy exposure in Europe and including the U.K., is fixed for the remainder of the year and a larger part for 2027, both at reasonably competitive levels.

Thank you. Before ending this call, I would like to take a moment to share a personal note. As some of you may already know, after almost 10 years with the company, Inigo will be leaving his role as Corporate Finance Director to pursue a voluntarily voluntary 2 carrier opportunities. I would like to thank him for his contribution over these years and wish him all the best in his next chapter.

At the same time, we are evolving our Investor Relations function and which will now be integrated within the corporate development area led by Galo. This will allow us to continue strengthening our engagement with investors with the help of Unai, and ensuring consistent communication of our strategic priorities. Inigo, we will miss you a lot. Investors and analysts, you will be treated with transparency, implication and dedication as always. Thank you.

So with that, we have answered all the questions sent to the webcast and by telephone. So you have more questions or need more details, please feel free to contact us any time. That's all for today. Thank you very much for joining us.

Ladies and gentlemen, thank you for your participation. You may now disconnect.

Good afternoon, and welcome to the conference call organized by Vidrala to present its 2026 first quarter results. Vidrala will be represented in this meeting by Raul Gomez, CEO; Iñigo Mendieta, Corporate Finance Director; and Unai Alvarez, Investor Relations. The presentation will be held in English. In the Q&A session, questions will also be answered in Spanish. Nevertheless, it is strongly recommended to post questions in English in order to facilitate understanding of everyone. In the company website, www.vidrala.com, you will find a presentation that will be used as a supporting material to cover this call as well as a link to access the webcast. Mr. Alvarez, you now have the floor.

Good afternoon, everyone, and thank you for joining -- for taking the time to join today's call. As previous announced, we published our results for the first quarter of 2026 earlier this morning, together with the presentation that will support this conference call. We encourage you to access the webcast via the link available on our website or alternatively to have the presentation at hand. Following the structure of this document, we will start with a brief overview of the key figures released today before moving on to a more detailed discussion of other strategic topics. We will then leave an ample time for the Q&A session. With that, I will now hand over to Iñigo, who will take you through the financial results.

Thank you, Unai. Before we walk through the figures, it's worth noting that the Chilean acquisition has been consolidated into the results as of 1st of January 2026. So to allow comparability, we have included breakdowns on a like-for-like pro forma basis, incorporating into the prior year figures, the results generated by the acquired business during that period.

So turning now to the presentation we have just referred. The first quarter results reflect the following key business figures. Revenue of almost EUR 368 million, operating profit, EBITDA of EUR 104 million and a net income equivalent to an EPS of EUR 1.53. Net debt amount to EUR 273 million, including the Chilean acquisition at an enterprise value of EUR 75 million. As a result, the leverage ratio stands at 0.6x last 12 months pro forma EBITDA.

Moving on to the next slide. Let's take a closer look at revenue evolution. In the chart, we have broken down the year-on-year movements on a comparable perimeter basis, arriving at reported sales of EUR 367.5 million for the first quarter of 2026. As shown, this represents an organic change of minus 4.7% at constant exchange rates and on a like-for-like basis. This performance reflects a moderation in pricing in line with our expectations, together with a softer demand environment in European markets that have been partially offset by stronger momentum in South America.

Turning now to EBITDA. We apply the same analytical framework to better understand the year-on-year variation. EBITDA amounted to EUR 104 million, reflecting, in this case, an organic variation of minus 2.1%. These figures translate into an operating margin, EBITDA over sales of 28.3%, representing an expansion of more than 20 basis points compared with a 28.1% reported in the same period last year. On a like-for-like pro forma basis, margins would have expanded by almost 90 basis points. This improvement reflects the combined effect of our internal competitiveness initiatives and the execution of our investment plan, which remain the 2 key drivers behind margin resilience.

We now turn to sales and EBITDA by business units, Europe, U.K. and Ireland and the new South America, which now includes operation in both Brazil and Chile. As mentioned earlier, in the first quarter, we continue to see price moderation across our European divisions in a highly competitive environment, while at the same time, we are taking action on our cost base to support sales development over the course of the year. By contrast, South America continues to show solid performance driven by improving consumption trends and ongoing operational progress across the region.

Finally, net debt as of the end of March stood at EUR 273 million. This includes the interim dividend paid in February, the cash out related to the ongoing share buyback program and the acquisition of Charlie for an enterprise value of EUR 75 million, as already mentioned. Overall, the resulting leverage ratio remains broadly stable, reflecting the strength and financial resilience of the business.

This final slide is a slide where we just would like to highlight big messages, basically the resilience of our margins that are based on cost competitiveness. Second of all, our robust financial position even after M&A and additional efforts in terms of shareholder remuneration as we have already explained. And finally, also highlight the value of focused diversification and inorganic growth. Now we would like to spend some time explaining the recent acquisition in Chile as well as our broader strategy in South America.

On this first slide, we provide an overview of the Chilean market. And as you can see, it is a relatively consolidated market with 3 main players, and the map illustrates the footprint and plant locations of each of them. The image on the right corresponds to our facilities in Maipu. You can also see a summary of 2025 financials, which, just as a reminder, have not been consolidated in our 2025 reported figures. Chile is a region of strategic focus for us and is complementary to our current business base. A significant number of our key global customers are focusing their growth on this region. And in addition, our technological and industrial model offers further deployment opportunities.

Moving to the strategic rationale behind our expansion in South America. There are a few key messages we would like to highlight. First, we are acquiring assets that we -- that are well known to us as we have previously provided technical assistance to these operations. Second, we see clear room for further optimization, particularly in the most recent incorporated assets with a view to enhancing margins over time. Third, we are progressing in our strategy of building South America into a growth platform through a series of disciplined incremental steps while maintaining a structured and focused approach across differentiated regions. And finally, these moves reflect our commitment to following our customers, deepening our relationships with them and strengthening our positioning as a global partner that should allow us to capture opportunities across our different business units.

On this slide, we present three charts to frame the South American opportunity. Starting with demand fundamentals. The region is expected to deliver solid growth with demand projected to increase at a compounded annual growth rate of around 4.5% between 2025 and 2030. The second chart illustrates the competitive landscape. This covers South America as a whole from Panama southwards. Market is, as you can see, largely dominated by 2 major global players with ourselves positioned as the third key or global player alongside a number of smaller domestic operators across the region.

And finally, the third chart illustrates our customer base -- the customer base in the region, sorry, where we already maintain strong relationships across all these key customer segments that are in the chart, something that position us well to further strengthen our presence and capture additional opportunities going forward. And finally, on this slide, we present the 2025 group's pro forma figures, including the contribution of Chile on this basis, the group would have generated revenues just over EUR 1.5 billion and EBITDA of EUR 453 million with South America representing close to 20% of total group business. And now before opening the floor to questions, I will now hand over to Raul, who will provide his views on the 2026 outlook.

Thank you, Iñigo. Thank you, Unai, and thank you. Thank you all for attending this call today. We really appreciate your time. Thank you. Well, as you may know, today, we held our Annual General Meeting, please take note that this is a big day for us. Okay.

Our first quarter results provide a glimpse of the future we are building. In the face of adversity, -- you will agree with me under a context of abnormal complexity, we act. We never stand still. We are doing things to keep our costs under control. We are investing more than ever with our focus on the future and on the customer. We are managing our industrial capacity. We are divesting. We are investing selectively with a disciplined client. We remain acting highly dynamic, managing cost with an unwavering focus on our competitiveness, competitiveness, cost competitiveness. This is the core of our business. more as Iñigo said before, we are diversifying the business. We are building a growth platform in South America, a business platform that has already reached meaningful scale. Basically, we are delivering what we promised.

In the end, let me say that Vidrala is today a stronger and more diversified company, a real multinational, focused, designed in a structured way based on three different business areas that together create a powerful business combination, Europe, the United Kingdom and South America. With Vidrala, we are a world-leading glass manufacturer. We are today supplying major global customers, and we are operating industrial assets and technologies of the highest quality. And we are taking the necessary actions to ensure that our future is in our hands. Based on these factors, based on these principles and more important, based on the internal actions that we are taking, today, we are announcing our guidance or our outlook for the full year 2026.

So we today expect our full year EBITDA to exceed EUR 450 million, a figure that is similar or slightly higher than 2025, the prior year in comparable terms, including Chile. We also expect our earnings per share to grow by more than 5% and more relevant. We expect our free cash flow to remain sustainably at levels of EUR 200 billion after a year that will be, again, a relevant and ambitious years in terms of investments for us. So we are, in any case, we remain firmly committed to our strategic pilots and our management principles, customer, cost and capital discipline. Basically, what we are doing, we are building the future we deserve. Thank you.

Thank you, Raul. This concludes our opening remarks. So we will now move to the Q&A...

[Operator Instructions] [Foreign language] Our first question comes from Francisco Ruiz from BNP...

I have a couple of questions, and then I will pass it on for the colleagues. My first question is in the U.K. I mean you continue with a very weak situation in terms of volumes and also pricing in the area after the restructuring that you announced in Q4. How do you expect this to evolve? I mean I listened to some of the meetings we had during this quarter talking about an improvement in profitability or activity. And I don't know if this is something that have to do with a better pricing scenario or it's just cost initiatives? The second question is more on the industry in Europe as a whole. I mean one of your competitors today has commented on a strong pressure in wine and very low capacity utilization in Southern Europe. I don't know how you see the situation because these are an area and a product that matters to you. And how do you see prices with still, let's say, weak volumes, but also a big pressure in terms of energy cost.

Okay. Paco, thank you very much. Just as a very brief introduction to your two questions. Please just remind that over 50% of our commercial base is based on price adjustment formulas, okay, that will progressively reflect inflation or inflation in our pricing.

Thank you, Paco. And following initial message, beyond this level of natural protection that our sales have and this is a big difference when you compare Vidrala with most of our competitors, please keep this in mind. For the remainder, we will remain the same. We will try to remain first cost competitive to attract customers and regain market share when needed. and we will progressively adapt our prices to the real inflationary context as quick as necessary. Should inflation remains high after the context that we are seeing, we can be sure that we will progressively make our best to maintain our prices adapted. And this is the reason why we think that our operating margins are today pretty much under control.

Even taking your first question in the U.K. It's true that in the U.K., we are seeing a particularly softer demand context. We are confident that our sales volumes are -- or our top line performance is basically following real organic existing trading conditions in the U.K. That means that demand in the U.K. has suffered most in the last 2 years. But we have the feeling that demand today is more flattish and should start to recover. In any case, we are doing what we can do. We are reducing our costs. We are taking actions to remain competitive. We want to use our cost competitiveness to attract customers and secure volumes. And this is the reason why even after this softer-than-expected demand context that we consider that is basically organic or affecting the whole industry. We also consider that our margins and our profits this year in the U.K. are safe under control. Don't forget, despite these difficult years that we are seeing, we are managing in some regions, particularly the U.K. Our U.K. business and certainly is strategic part of the Iida Group, a wonderful business.

Our next question comes from Natasha Brilliant from UBS.

I've got a few questions on the Chile business. So firstly, how should we think about the margin profile of the Chile business versus the group average? You said you can enhance the margins over time. So can you just talk a bit more about that and where you think they might be able to get to? My second question is on Capex and whether there's any incremental Capex requirements linked to Chile that we should factor in over the coming years? And then just to come back on your comments on the customer base, can you tell us what the proportion of customers that you already have a relationship with you'll be serving in Chile and what proportion will be incremental to the Vidrala Group?

Thank you very much. As I said before, we consider our entry into Chile that is small from a financial point of view, but big for a cultural strategy point of view as a new step or next step to create a platform for growth in South America, okay? The number of customers we have in Brazil are in Chile. Some of our big customers in wine in the U.K. are Chan. So there is a big, big strategic rationale for us to entry into Chile, okay? It's very evident you take a look at the numbers, levels of profitability that Chile is a process that needs to be improved. And we actually do consider this as a restructuring acquisition.

In any way, we will, for now, consider Chile in combination with Brazil as part of our South American division. a division that probably controls already or supply already approximately 20% of the markets are in South America. So this is becoming -- our business is becoming a business of meaningful scale. And this business is today obtaining margins of between 35% to 40% operating margins, EBITDA margins that we do consider safe. And in this consideration, in this analysis, we understand that Chile will keep on improving as it is. And finally, your question, our customers are everywhere welcoming us, okay? But what our customers want is what we want from our suppliers. more than one only alternative supplier. And we are becoming a reference in the glass packaging industry in terms of ambitious investments, future and competitiveness. We know what we are doing entering.

Thank you. And if I can just come back on the CapEx point, whether there's any extra CapEx we should expect?

Probably, our CapEx levels over the next couple of years, probably at least in the next 3 years will be aligned with our last 3 years around 11%, 12% of our sales. You are aware that this is more than normal. This is more than replacement, and this includes ambitious investments and Chile won't be an exception. But if this is the question, Chile won't distort your expectations on our cash profile in any year in the future.

[Foreign Language] [Operator Instructions] Our next question comes from Francisco Ruiz from BNP Paribas -- our next question comes from Francisco Ruiz from BNP Paribas...

[Technical difficulty] Okay. Good. So I was telling -- I was mute. So mainly if there is no further question from anybody, I have another two. The first one is on current trade. If current -- if you could give us some details on how the business has evolved throughout the 4 months that we have already and if you see a better improvement in April versus March and the beginning of the year in the different markets. The second question is on -- in the use of cash. So mainly you announced a buyback of 1% in December, another a month ago. And if you are expecting EUR 200 million or around EUR 200 million free cash flow generation, you will arrive at the end of the year practically without debt again. Can we expect further announcement on this? Or given the share price performance, will you prefer all the type of renumeration?

Let me start with your second question about use of cash, is true. And we are fully conscious of this that in the case we achieve our expected free cash flow generation this year, we will have the challenge to decide what to do with our cash on the full challenge, okay? We assess the challenge. But it's too soon to announce something on this, okay? What we can tell you and the rest of you shareholders is that you won't be disappointed, okay? But please keep in mind -- you know that the industry is -- our industry is today living quite complex times. So we do consider that our capacity to sustain our cash flow -- differential cash flow generation, our capacity to maintain our debt levels at those levels for a while is something that will create a competitive advantage, okay? And this is our first priority to generate cash and maintain our debt levels under control. Anyway, in terms of shareholder remuneration, I insist you won't be disappointed. We are aware of that.

And second -- or first question, sorry, current trading. We, for our guidance to become real, the way we have built our outlook for this year, particularly at the EBITDA level, it is very evident that the second quarter will be more relevant than the first quarter in terms of profit contribution and third quarter should be more relevant than the second quarter. So April is more relevant month that it has been March and April is almost done. And what we can tell you is that everything is going as expected and aligned with our guidance.

Our next question comes from Iñigo Egusquiza Castellanos from Kepler Cheuvreux.

[Foreign Language] I have two questions, if I may. The first one would be on the... You mentioned the trading update with April slightly better, I guess, but in line with your budget. My question would be if you can elaborate a bit the performance of pricing and volumes by regions, Europe, the U.K. and South America. And also in the case of the U.K. why are you -- I would say, slightly more positive after the weak quarter in terms of volumes? It seems that your expectation is that the recovery will come. Why that? This is the first question. And the second question would be going to back to the free cash flow question. focus on consolidation. I know that you just closed the acquisition in Chile, but I read something this morning that you were looking at, I think it was Mexico. It was mentioned in the press. And what about further consolidation? You also mentioned that the industry, a big part of your players are facing financial troubles. So what about further consolidation, both in South America but also in Europe? Thanks for your thoughts.

Thank you. I will take the first one about first quarter of 2026 market evolution. first of all to say, has not been representative of what is going to be the full year. So if we look into the volumes by our different 3 markets, in Europe, volumes were down by minus 2%. In the U.K. and Ireland, where we still see highly competitive environment, volumes were down by minus 9%, whereas in South America, that comp operations of Brazil and Chile, volumes were up by plus 12%. If you look surprising, I still see the anticipated pricing moderation in Europe in the range of minus 2% or minus 3%, while we are seeing some price inflation in South America regions.

And following this point, just to give you an update on trading update today at the end of April, you keep in mind our -- the seasonality of our sales by that seasonality is more relevant sales peak are second and third quarter in Europe, third and fourth quarter of February natural year in the U.K. and last and first quarter in South America, something that also explains how powerful we are becoming under this more multinational business profile. So second quarter that is more relevant for Europe, particularly Southern Europe, is going as expected, as positive as expected. And final comment, it was regarding Free cash flow, can you remind me, please, the second question, please, Inifgo?

Yes. It's a question on consolidation, Raul. I mean, I read something in the press today. I don't know if it's the press conference before the AGM that potential consolidation, I think it was Mexico, it was mentioned in the press, but also opportunities in South America, in Europe probably as well considering how other competitors are evolving. I don't know your thoughts on further consolidation, both South America and Europe.

Sorry. Thank you, Ingo. I didn't have the time to take a look at the news that you are mentioning, but I remember what we said, okay, -- what we say is that Mexico is not for us tomorrow, okay? And Mexico is not part of South America. And actually, we are not thinking in any immediate action in terms of M&A, okay? We are just basically finalizing the first stage of integration in Chile. So it's too soon for another step. And in any case, we will remain dynamic. We will consider that our financial position is an opportunity to analyze opportunities. We will keep on analyzing different opportunities everywhere, but where we won't be surprised.

Our next question comes from Fraser Donlon from Berenberg.

It's Fraser here from Berenberg. I've got 3 or 4 questions. So the first, I was just wondering if you could quantify how much of the restructuring in Chile is done because I know you were kind of hoping to do some of that before you close the deal. The second question I have is about the U.K. I don't know what kind of you think or your customers think about the deposit return scheme, which will, I think, impact aluminum and other substrates, but not glass in 2027. Could that be good or bad for glass as you see it? And then the third question, I think this is something you and maybe some competitors have mentioned in the past few months, but could you maybe comment how you see glass against aluminum, the extent to which that could kind of support the business or not in the next kind of 6, 9 months, are you more or less positive than you were a few months ago on that? Those are my three questions.

Thank you, Fraser. Well, regarding the specific details of the restructuring in Chile, please let us remain silent for a while for competitive reasons. Just please keep in mind that we aim and we deserve to reduce our cost significantly there to remain competitive, and this is what we will do. And these actions won't distort significantly our profits. and our cash flow. And these actions will be completed before the end of this year. And we are today providing a specific guidance and outlook for this year. Hope this is enough, and I hope you understand that our obligation is to remain a little bit more prudent on specific details regarding this.

Second, the deposit return scheme and the rest of other regulation that we are seeing in the U.K. This is something that we do consider as being very much treated for the future of the glass industry in the U.K. Glass is made in the U.K. aluminum is not fully made in the U.K. We are doing our best to promote this idea in front of administrations and British politicians and let us be a little bit more optimistic. Please stay tuned, maybe something relaxes a little in terms of the U.K. regulation that is affecting our industry.

Finally, your comment regarding aluminum, I will take this opportunity to be more optimistic, okay? I have the feeling that if you -- if we put ourselves on the place of our customers, brand owners, even on the place of we as consumers, we will see some positive gap for the first time in a period of years under which the cost of aluminum will increase more in relative terms than the cost of glass. And this is what we need to build our future. I have the confidence, I am convinced on the fact that glass as a packaging material has today a brighter future than ever if and only if glass remain competitive. And we have reasons to believe on this.

There are no further questions by telephone. I will now hand it back to the Vidrala team who will address questions submitted via webcast.

Okay. Thank you. Let's address now the questions we have received via webcast. We have grouped them, but please if some of the questions aren't fully answered, just feel free to contact us after the call. First one says, how do we see the European business areas for the rest of the year after a soft Q1. As I think Raul has already mentioned, we have reasonably good visibility going forward, supported by the inherent seasonality of our European business. So we expect the second quarter to already be the first inflection point where we should start to see a gradual recovery taking shape.

Second question is on our energy hedging strategy. On top of the 50% of our contracts that are based on long-term agreements, with price formulas. And despite geopolitical volatility, please remember that we entered the year with a very strong hedging position with more than 85% of our European energy needs, which is the region that is most affected, already protected before the conflict in Iran. Then there is a second part of this question related on our financial costs in the first quarter. Financial results in this quarter are positive, although it's important to put into context. The main driver of that performance is the ongoing optimization of our financial cost, reflecting a disciplined management of our funding structure and lowering also our average cost of debt. And on top of that, we also benefited from positive foreign exchange effects, okay, related to intragroup financing exposures.

And then final question we have received through the webcast that if we have any feeling, Raul, probably this is for you, of our -- that our peers might be increasing prices this year due to energy costs.

Thank you. All the feeling we have is that there is a lot of renewed inflation pressures. The feeling we have is that the competition is intense out there in the marketplace. There's a lot of competition. And the thing we have is that margins across the packaging industry are pretty much under pressure. So there are a lot of reasons to think that prices should be progressively adapted to the new conditions. Conditions have changed quite significantly over the last couple of months. But in the specific case of Iida lapis, that means is that half of our sales volumes are automatically dictated by formulas. And for the remainder, our first priority is to remain competitive and attractive, and we will, for sure, progressively adapt our prices should inflationary pressures prolong in the future.

So with that, we have addressed all the questions received via webcast. Once again, thank you for your time and attention. And please do not hesitate to reach out should you have any further questions. [Foreign Language]

Good morning, and welcome to the conference call organized by Vidrala to present its 2025 full year results. Vidrala will be represented in this meeting by Raul Gomez, CEO; Inigo Mendieta, Corporate Finance Director; and Unai Garaizabal, Investor Relations. [Operator Instructions]. In the company website, www.vidrala.com, you will find available a presentation that will be used as a supporting material to cover this call as well as a link to access the webcast. Mr. Alvarez, you now have the floor.

Good morning, everyone, and thank you for joining today's conference call. As previously announced earlier this morning, Vidrala has released its 2025 full year results together with a presentation that will be used as a guide throughout this call. Following the structure of the presentation, we will start working through the key figures released before moving on to the Q&A session, where we will go deeper into business performance. I will now pass the floor to Inigo, who will take you through the key financial highlights.

Thanks, Unai, and thank you, everyone, for joining the call. We know it's -- these days are quite busy for you. So thank you very much for your time.

So let's begin with a quick overview of the key financial figures. For the full year 2025, Vidrala obtained revenue of almost EUR 1.5 billion, EBITDA of EUR 441 million and a net income equivalent to an EPS of EUR 6.24. A strong cash generation of EUR 200 million enabled a substantial reduction of debt to EUR 105 million, which is equivalent to 0.2x our annual EBITDA.

Please note that the right-hand column provides clarity on the variation on comparable scope basis and excluding also FX and comparable scope means excluding the impact of perimeter changes following the sale of Vidrala Italy back in 2024. In addition, and to allow comparability, EBITDA and earnings per share are shown excluding EUR 13.7 million and EUR 10.2 million, respectively, related to restructuring costs in the U.K. and Ireland.

Let's have a deeper look at revenue evolution. Sales for the period reached EUR 1,465.2 million. On a like-for-like basis, excluding contribution from Italy and constant exchange rates, sales declined by 5.4%, reflecting the expected combination of soft demand and price moderation in line with cost developments.

Turning now to EBITDA. We apply the same analytical framework to better understand the year-on-year variation. For the full year 2025, EBITDA stood at EUR 441 million, consolidating the profitability of our business model despite challenging market conditions. Excluding FX effect, EBITDA remained basically stable year-on-year. These results translated into a resilient EBITDA margin of 30.1%, reflecting a 1.5 percentage point expansion compared to last year.

Now let's understand sales and EBITDA evolution by market based on the current perimeter. Again, that means fully excluding Italy from the 2024 figures. As aforementioned, price moderation are visible over all our operating markets. Southern Europe demand remains resilient, while trading conditions in the U.K. and Ireland continue to be challenging. And in Brazil, Q4 exhibited expected signs of recovery, and we are also constructive for 2026 as we start the year.

Anyway, margins remain solid across all regions, thanks to our internal measures, cost discipline and actions to align industrial capacity with market realities. Now let's take a closer look at free cash flow generation, which is our top priority and a fundamental indicator of both our financial strength and the quality of our execution. This chart shows full year cash conversion performance. Starting from EBITDA margin of 30.1%, we deliberately allocated almost 13% of sales to investments, reinforcing our operational capabilities and driving future competitiveness.

In addition, 3.6% of sales was dedicated to working capital, financial expenses and taxes. As a result, free cash flow generation reached almost 14% of sales, equivalent to EUR 200.1 million, highlighting our ability to translate operational performance into cash flow despite investing at record levels.

As a consequence, net debt was reduced to EUR 105.3 million, which translates into a leverage ratio of 0.x our annual EBITDA. This solid financial position provides us with the ability to continue investing with ambition, with discipline while returning flexibility to seize growth opportunities and return capital to shareholders.

Overall, we have largely met the guidance issued in April 2025. Our results underscore the resilience of our business model in a challenging market environment. And notably, our ability to convert operational performance into cash has proven strong, generating value even in an unfavorable global macroeconomic cycle. Moreover, if we adjust the performance of each of our business units in their local currency to the exchange rates assumed in the guidance, namely EUR 0.84 for the British pound and EUR 6.20 for Brazilian real, our EBITDA would have reached EUR 445 million, representing only a very limited deviation of 1% versus the guidance.

And now before we move to the Q&A, I'll hand over to Raul, who will summarize the key takeaways and share additional insights.

Thank you, Inigo. Thank you, Unai. And thank you all for your time and attending this call today. We know it's -- and you know we know it's a busy day for you, so we will try to go ahead quick and direct.

Well, our 2025 results demonstrate the strength of the business we are building. Today, Vidrala, are a larger, more diversified and also a less complex company. And this is a result of mostly our deliberate intentional strategic actions. Let me remind, in the recent years, we have entered the U.K., exited Belgium and Italy, and we have started to build a long-term platform for future growth in South America through Brazil.

We are now clearly focused on 3 business divisions, operating across 3 different geographies, which create clear combinations and synergies at many levels across the business. And this structure makes us today more agile, closer to our customers and certainly better positioned to capture future opportunities. We are also more efficient industrial today. We invest more and more intentionally, always with our customer in mind. We are running ambitious projects to improve competitiveness, increase vertical integration and differentiate our service proposition.

Let me say our goal is quite simple: to become a trusted, reliable partner for every one of our customers. And we are also today a more global company. At the end of the year, after a long process of analysis, we announced our entry into Chile. And this makes us even more attractive to a significant number of strategic customers that will shape our future, customers that are looking for a reliable, distinctive, challenger, long-term packaging supplier.

And in the end, in 2025, we delivered despite a more difficult environment. It's evident demand remained negative. But even so, we protected our margins and we reinforced our industrial competitiveness. So the message we want to share today behind our 2025 results is quite clear. Margin resilience in a tough environment, driven by mostly internal actions, a stronger industrial platform supported by the solid execution of an ambitious investment plan and an expanded geographical diversification. And above all, we achieved our cash flow targets, something that help us to reinforce our financial position, increase shareholder remuneration and be ready, better prepared for what is ahead for us in the future.

These achievements frame how we see, what lies ahead and support and reflect our confidence in our future. Even more important, the trends of the last few months confirm our firm conviction. Glass may have more future today than ever. I repeat, glass may have more future today than ever. Glass is an unparalleled packaging material, the ultimate sustainable packaging material of choice, the preferred package for customers and consumers across the world, 100% recyclable, eternally. It is, in fact, the packaging of the future, if and only if we take the actions we need to take today to protect our industry.

Under this basis, under this starting point, we face 2026 with confidence, a year 2026 in which our results consolidate, evolve positively and support the transition we are making toward our future, a future that belongs to us. Thank you.

Thanks, Raul. So this completes our initial remarks. Let's turn to the Q&A session.

[Operator Instructions]

And our first question comes from the line of Paco Ruiz from BNP Paribas.

So I have 3 questions. The first one is on volumes. I mean it has been a very pure quarter in terms of volumes for Iberia and U.K. in this Q4. How do you see the start of the year in this respect and how is your view for the full year? The second question is on the payback and the cash out of this restructuring that you have announced in the U.K. If you could give us more detail on what's the total savings for this plan and if you are thinking further actions in the near future? And last but not least, you are approaching net cash position and even with the Chilean acquisition, the leverage is very low. Should we wait until the end of the year to see some announcement on shareholder remuneration or this is something that could come earlier than expected?

Okay. Paco, thank you very much for your questions. Just give the figures of Q4 and full year in terms of volumes, and then we can make some comments on the start of the year, okay? Just to be very clear, Iberia in Q4, our volumes decreased by 4%. Volumes in the U.K. in Q4, the figure is minus 7.9%. And in the case of Brazil, we have seen in Q4 the expected recovery following a weak Q3. And in Q4, our volumes have increased plus 5.3%, okay. Overall, for the full year, [indiscernible] also the picture of the 12 months, Iberia is flattish in terms of volumes, minus 0.1% with the U.K. and Ireland minus 5% and Brazil due to this weak Q3 is minus 0.8% in terms of volumes.

Paco, we know you are expecting that we deserve some level of clarity on this side. Let me say, quite clear, we expect our sales volumes to move on the positive side in 2026. And that should be driven by some external things of stabilization, even recovery and also on internal actions to recover market share. It's only the start of the year. We understand that you need more clarity. The start of the year is seasonally different in our regions. It's more seasonally stronger in South America, seasonally weak in Europe, and we are exactly where we expected to be. We are seeing some positive signs that we reflected progressively in our sales volumes across the year.

Okay. Taking your second question on the U.K. restructuring. So as you know, as we have explained throughout the presentation, industry-wide market conditions remain challenging throughout the year. And despite this, I would say we have acted decisively by accelerating investments to try to optimize our industrial footprint, but also to try to further strengthen cost efficiency across the business, okay?

And in this sense, we are taking steps to accelerate cost control measures, drive productivity plans, particularly in geographies more exposed to competitive pressures, such as the case of the U.K., okay? So obviously, these initiatives will have a short-term impact on our results, but we truly believe that we are fundamentally reshaping the competitive positioning -- our competitive positioning for the future.

Specifically, the U.K. workforce reduction plan has been recognized in our 2025 figures through a provision for the full amount that we have clearly disclosed, the EUR 13.7 billion, although you can consider that only 1/3 of the plan has been implemented to date, with the remaining 2/3 scheduled for hopefully completed in 2026, okay? And once fully implemented, trying also to get your point on the payback, once fully implemented, the plan is expected to deliver recurring structural savings of at least EUR 12 billion per year, which should have an effect on, as I was saying before, on enhancing our competitive position. Just to clarify, this is an effort aimed at improving competitiveness and protecting market share.

And regarding your question on potential further actions, we know or you know us, our future -- we have a firm conviction of this. Our future will be based on our cost competitiveness. So we will keep on dynamically trying to improve our cost competitiveness and attract our customers. So for sure, in the future, we will take more actions when needed. I don't know at what magnitude. You can be sure that we will do as much as necessary to remain competitive. And we have a firm conviction of what that means in each of our regions.

But we don't foresee that these cost restructuring actions, whatever happens in the future, should significantly distort the expectations you have in your mind in terms of our profits and cash flow.

And your last question, Paco, regarding shareholder remuneration, you know that we do consider that our shareholder remuneration policy is more result or a consequence of our targets. Our financial targets are much more focused on financial strategic targets on diversification, right investments, margin protections and mostly, and at the end, our definite target is cash flow. Should we remain achieving our cash flow targets, we will do as much as necessary to improve our shareholder remuneration. We know what is our level of the strength of our financial position. So let me say that we agree with you that is a margin for further improvement in our shareholder remuneration.

And our next question comes from the line of Enrique Yaguez from Bestinver Securities.

I have 4 questions. The first one is the expected evolution in prices for this year. Secondly, if you could provide some details about Cristalerias Toro acquisition. Whether the acquisition is expected to be closed and the size of the restructuring plan and potential synergies. Third, about the OpEx increase coming from natural gas price increases, then CapEx guidance and where it will be allocated. And finally, I don't know if you could provide some details about the impact of the Storm Kristin in Marinha Grande.

Okay. Thank you, Yaguez. Thank you for your question. So regarding -- so many questions, I will try to organize them, okay? Regarding guidance outlook for 2026 in terms of prices, in terms of CapEx, first of all, as usual, you already know, we will announce our official guidance at the Annual General Meeting in April, okay? However, what we can say at this stage in terms of results, free cash flow is that we do not see current levels being at risk.

But anyway, regarding prices, we remind you that approximately 50% of our sales are supported by multi-annual agreements with strategic customers that incorporate price adjustment formulas. And the outcome of these formulas points to a price moderation of around 2% at the group level. That said, it will be also important to assess potential mix effect associated from our strategy to recover selectively some market shares.

Let me take a little bit at this point with more detailed prices. And let me invite you to make a historical analysis, okay? We have the evidence, the strong evidence that our glass prices have been adapted significantly over the last 2 years. And this is very positive if we consider how glass was positioned 3 years ago after the inflationary shock in comparison with where we are today. I mean competition is still high. We will maintain a disciplined approach to our prices. But when we see all those numbers, when we see our cost competitiveness and we also see other materials, I have the feeling that we are going evolving in the right direction.

Okay. And just to complete on 2026, Yaguez, going back to CapEx. Well, first of all, just to clarify that we believe our cash profile is sustainable. Obviously, investment levels currently at almost 13% of revenues are expected to ease in the medium term, not in the short term, okay, which should be easing in this medium term CapEx over sales should further support the improvements in our cash generation profile.

And for 2026, CapEx should remain close to the 2025 CapEx figure, which is EUR 189 million, probably slightly lower than that, but still ambitious ranging between EUR 170 million to EUR 180 million. Then regarding the closing of the acquisition of Chile, everything is proceeding as anticipated, okay? There is no news there, and we continue to expect the transaction to close in the first quarter of 2026. A few remaining points still need to be finalized, which we expect to resolve in the very short term. And in any case, sales, EBITDA and margin figures remain in line with what we announced in December, okay? And we will take the opportunity of the guidance that we expect to issue with occasion of the AGM to include Chile and to give more visibility in that sense.

Then regarding the impact of the recent or increase in gas prices in the last -- in the start of the year, please consider that at year-end, around 80% of our NAV exposure for 2026 and around 40% for 2027 was hedged through derivative instruments. This excludes Vidroporto, where, as you know, almost all our customer contracts are dictated by price adjustment formulas. And what really hedges for 2027 are now slightly above the previously mentioned figures.

And then just to finalize on the impact of the Storm Kristin. At the beginning of the year, our plants in Portugal were impacted by Storm Kristin. This severe weather event caused disruptions to electricity supply and resulted in temporary impacts on our operations and consequently affecting production at both facilities. Although we expect there to be an economic impact. However, this should be largely mitigated through the group's insurance policies as well as through the support measures made available by the Portuguese government, okay? So we are not worried in that sense. And more relevant, let me take the opportunity to sincerely thank the teams for their professionalism, commitment and outstanding effort in responding to the situation and ensuring a swift and orderly record of operations.

And just to add on your comments, Inigo. Okay, the limited impact we will suffer under this big climate or external issue proves again the right direction and the strength of our investment plan. And finally, Enrique, on the Chile point, let me please remind that we know that this deal, this step for us will be -- will have less impact from a financial view and from the strategic sense. And we know what we want. We will need our time to take deficit actions to deploy our industrial model and everything is going as expected, okay? What that means? That means that the results we will publish regarding Chile will be the starting point for what is ahead in the future.

[Operator Instructions]

And our next question comes from the line of Inigo Egusquiza from Kepler.

So most of my questions have been already answered. So just 2 quick follow-ups on Chile. You mentioned that you will give us more information at the time of the guidance, if I understood well. My question would be more on further capital allocation. You mentioned, Raul, there is obviously room for increasing shareholder remuneration considering your limited leverage. But the question is more on -- on more M&A. I think that the company has a very clear strategy in my personal view of growing and continue consolidating the market and probably Latin America is the priority. If you can share with us if we can expect more M&A in the near future, 2026 and 2027. This is the first question.

And the second one would be on volumes. You have mentioned that you expect some stability in Europe in 2026. The question is how do you see, I mean, the industry evolving? You sounded more positive on glass future compared to other materials. And what about all the capacity shutdowns announced by the industry, if my numbers are right, almost, I would say, close to 9%, 10% of once the Europe capacity has been shut down. So obviously, this would be a positive for the industry recovery. So if you can share with us your thoughts.

Thank you, Inigo. Thank you very much. Well, first, regarding capital allocation, let me remind that we are -- as Inigo can add, we are today active under our share buyback program. So this is an example that we are taking seriously our shareholder remuneration policy with some specific efforts this year.

And regarding your specific question of what is next, well, let us please first finalize our entry into Chile before speaking about the next step. It's too soon. But our approach remains consistent, the same. We are and we will continuously -- remain continuously exploring potential opportunities. But this year is a year to be a focus and not distract? And at the end, whatever we see, whatever you see from us, I'm sure that you won't be surprised, okay?

And regarding the second question, capacity actions across the industry, capacity rationalization, it's all a matter of cost competitiveness. And capacity rationalization by its competitor in this industry in the glass space and in other substrates will be basically a matter of cost competitiveness. And we know how clear we are in our mindset regarding cost. Cost competitiveness will drive our future. And that's the reason why we are not expecting any capacity rationalization, and we hope the industry to rationalize capacity if needed. And this will help us to recover some market share.

There are no further questions by the telephone. I'll now hand it back to the Vidrala team who will address questions submitted via the webcast.

So we have received some additional questions through the webcast. First of all, on the Chilean acquisitions, we are asked about EBITDA margins because the question says that they are substantially lower over the rest of the assets and if this is structural or we can improve, okay?

As we disclosed at the time of the acquisition, it is true that margins -- the figures that we announced back in December showed EBITDA margins in the range of 17%. And part of this is due to factors specific to the asset. We should consider that a business in Chile with the scale of Cris Toro won't have the same metrics as the one in Brazil just because of a matter of scale and because of differences between the regions. But in any case, we consider that margins should improve.

So we recognize that this is a different transaction in the sense that it includes a process to improve margins, to optimize margins. And this should be through costs, won't be dependent on volumes, on sales volumes. And please remember that this is a company that we knew pretty good because we were providing them with technical assistance similar to the case of [indiscernible]. In any case, in order to give more visibility, as we have said before, we should wait at least until the guidance in April where we can give more detail.

Just to add on this, Inigo, you can be sure that we know what we are guiding, okay? I mean, far from a surprise, we do consider current operational margins in Chile as an opportunity, part of our business plan.

Good. Then there is a second question on overcapacity in Europe. As you all know, the capacity closures that have been announced in the last 2 years have been very significant. We are still seeing some announcements to further close capacity in regions that are structurally uncompetitive. And this means that considering the structural capacity closures, permanent capacity closures and also the adjustments in terms of production capacity, temporary adjustment that we are all hitting, we believe that the industry is reasonably balanced in terms of supply and demand.

And then there is a final question on savings in the U.K. due to the restructuring. I could say we have already answered that question through the live questions. But just to be very clear and to avoid any misunderstanding, out of the EUR 13.7 million that we have registered in our numbers, 1/3 has been already executed and I mean, in terms of cash flow. And 2/3 of that figure of the EUR 13.7 million will be executed in 2026. It's not an additional amount on top of the EUR 13.7 million.

So we have now answered all the questions received via webcast. So please remember, we are always at your disposal for any further questions. Thank you very much for connecting.

Thank you very much. Please keep on eating and drinking in glass and see you on April.

[Foreign Language] Good morning, and welcome to the conference call organized by Vidrala to present its 2025 third quarter results. Vidrala will be represented in this meeting by Raul Gomez, CEO; Inigo Mendieta, Corporate Finance Director; and Unai Alvarez, Investor Relations.

The presentation will be held in English. [Operator Instructions] In the company website, www.vidrala.com, you will find a presentation that will be used as a supporting material to cover this call as well as a link to access the webcast.

Mr. Alvarez, you now have the floor.

Good morning, everyone, and thank you for joining us today. Earlier this morning, Vidrala published its results for the third quarter of 2025. Alongside these results, have made available a presentation that will serve as a reference throughout this call.

We will begin by walking through the main figures released today and then we will move on to the Q&A session, where we will address your questions. With that, I will now hand over to Inigo, who will take you through the key financial highlights.

Thank you, Unai. Let's start with a brief overview of the key financial figures. During the first 9 months of 2025, we recorded revenues of EUR 1,124 million, an EBITDA of almost EUR 329 million and a net income equivalent to earnings per share of EUR 4.93.

As of September, net debt amounted to EUR 150 million, representing a leverage ratio of 0.3x over the last 12 months EBITDA. Please remember that the sale of the Italian business in 2024 affects year-on-year comparisons.

Moving on to the top line performance. Total sales for the period amounted to EUR 1,124 million. On a like-for-like basis and at constant exchange rates, this represents a year-on-year decrease of 5.1%.

This variation primarily reflects the price adjustments, which remain within the expected range of minus 3% to minus 5% alongside continued soft demand dynamics. In addition, the scope effect resulting from the exclusion of the Italian business had a negative impact of 1.4%.

Moving on to the next slide. EBITDA for the first 9 months of 2025 reached EUR 328.9 million, reflecting an organic growth of 0.5%. This performance demonstrates the resilience of our diversified business model and the steps we are taking to navigate the current market environment.

We're intensifying our investments while implementing measures to reinforce our cost base. This operational performance delivered a strong EBITDA margin of 29.3%, up 150 basis points year-on-year, underscoring our ability to stay competitive without [ comprising ] our profitability.

Let us now review revenue and EBITDA by region, reflecting the current scope that is with Italy fully removed from last year's numbers. Overall, the business is performing in line with expectations with price adjustments being implemented across all markets.

And in the third quarter, volumes were stronger in Iberia, weighted down in Brazil basically by adverse weather conditions and showed an improved trend in the U.K. and Ireland. Across all regions, margins continue to hold up well, supported, as we said before, by our ongoing footprint optimization and disciplined cost management.

Free cash flow conversion lies at the heart of how we create and preserve value. This chart illustrates how effectively we have converted cash over the first 9 months of the year.

Starting from an EBITDA margin of 29.3%, we have reinvested almost 12% of our sales in CapEx and allocated a further 3.5% to working capital, financials and taxes. As a result, we generated robust free cash flow generation equivalent to almost 14% of sales.

Consequently, by the end of September, net debt stood at EUR 150.3 million, maintaining a low leverage ratio of 0.3x EBITDA. This illustrates the capability of our model in turning strong operational results into cash and supporting key investments.

With a strong balance sheet, we are well positioned to consider potential growth opportunities, continuously optimize our operations and deliver value to our shareholders.

And now before we open the floor for questions, Raul will share additional perspectives on our performance and outlook.

Thank you, Unai, and thank you, Inigo, and thank you all for attending this call today. We really appreciate your time.

Well, things have been quite challenging out there in the consumer marketplace, particularly for some of our customers. But despite demand is significantly softer than initially expected, despite competition is very intense across the packaging industry, our results keep on consistently performing as expected. And this is a very good proof of the quality of our business.

We accepted the challenge. We are becoming a different company. We are taking actions. We are selectively realigning our industrial footprint. We are investing more and smarter than ever.

We are getting closer to our clients and the consumer and we are doing so with our customers in mind with the aim of making our products and serving our markets in the most competitive, profitable and sustainable way. As a result of all of this and despite the many macro and also some micro difficulties we are facing, we are today reiterating our guidance for the year.

And behind this small message, far beyond the next quarter lies a big reflection for us. We are making this company adapt and evolve in the direction of the future we, our people, our shareholders and our customers deserve.

And we will keep on moving forward. There is a bright future ahead for glass, the ultimate, most sustainable, healthiest packaging material of choice and for the packaging industry as a whole, if we do the right things today in the industry.

As a final remark from my side before moving to your questions, please keep in mind, whatever we do, however we react and adapt to the different difficulties wherever we go, whoever represent this company, please be sure that we will remain firmly committed to our three pillars, customer, cost and capital.

Vidrala will invest keeping a strict financial discipline in every scenario, maintaining our business under solid financial conditions to further improve our competitiveness, drive our future, attract customers and preserve the strong value of our products. Thank you.

Okay. That brings us to the end of our prepared remarks, and we will now begin the Q&A session.

[Foreign Language] [Operator Instructions] Our first question comes from Francisco Ruiz from BNP Paribas.

[Foreign Language] So I have 3 questions. First one is on the Brazilian situation. We have seen a very weak Q3, mainly due to the adverse weather, as you commented. But also, we have seen that 2 of your competitors has put new capacity in the market. So what are the expectations on Brazil? And what are your future development on the country?

The second one is on the current situation of leverage. I mean, you have said out loud that you're looking for M&A. I'm not sure if there are something big enough to jeopardize your financial position or the good financial position for that point. I wonder if the Board of Directors are thinking on a better shareholder remuneration policy. And if this is the case, I mean, I don't know if you have think on doing through buybacks or dividend.

And last but not least, I mean, once reiterated your guidance on Q4, I mean, this imply a significant growth in EBITDA versus what you have reported at 9 months. I mean, what is driving this? I mean, do you expect a better recovery in volumes in some geographies or some cost advantages also at the end of the year?

Well, let me take the first part of the question regarding Brazil. Our business in Brazil Vidroporto is wonderful business, strategic core, but particular, we are very well invested in Brazil.

We are supplying a small number of big, very demanding customers, global customers, particularly in the beer space. This is a very good proof of quality for our business, not only in Brazil that creates a lot of synergies and collateral results.

But Brazil is a particular country, it is a continental country full of opportunities in all the sense, a country of future for us, but also volatile in some circumstances. And our third quarter results have basically reflected what has happened in the country in terms of consumption, particularly consumption for beer, affected by climate, macroeconomic circumstances and many other factors that under our view temporarily affect consumption.

Things are today much more stable. We will end in Brazil this year basically flattish in sales volumes and this is more or less safe.

Regarding your -- just to finalize this point, regarding your comments around other actions to increase capacity the only thing I can comment is that we do have little reason to add capacity, but we will invest to improve cost competitiveness.

Regarding the second question, Paco, on leverage, we are very conscious of our current low leverage, which we understand is today a bigger competitive advantage than in the past probably.

As you perfectly identified, we are not seeing -- we are actively and we have a proactive attitude towards M&A, but probably there is nothing big enough to change this strong financial position right now.

So when we look into our Board of Directors of December, we'll probably shoulder our shareholder remuneration proposal. And as you said, buybacks is an option, okay.

And finally, regarding guidance, we are reiterating today the guidance. We are also stating that the guidance is not immune basically to FX fluctuations.

Indeed, we should consider that we should already have despite significant changes in FX from today until the end of the year, we should already have a negative impact from FX, exclusively from FX already in the range of EUR 4 million, EUR 5 million. So this means that you should also consider this context, okay?

Yes. Let me add on this, Inigo. Please keep in mind that you know the last quarter of the year is naturally the less relevant quarter in each year. So our eyes, as you will understand, our eyes are now good and our management priorities are not put on the year ahead, on 2026.

Our next question comes from Enrique Yaguez from Bestinver Securities.

I have several questions. The first one is regarding the demand outlook for Q4 and next year. And I would like also to know what -- how do you think about pricing and the risk of price aggressiveness in the sector if demand does not show a significant improvement?

And second, in terms of margins by business regions, I don't know if you foresee the need to implement further efficiency measures in the U.K. and Ireland, which are performing a little bit better than expected. And on the positive side, how far can margins improve in Iberia, which are showing a very strong evolution?

So regarding demand outlook for the most immediate fourth quarter, as we have been saying for the previous quarters, we are not expecting a significant recovery of demand. But even under this scenario, we should see some volume growth overall at the group level in the fourth quarter.

So we are still expecting volumes for the full year to be in the range of flattish for the group or slightly down, okay? But probably slightly better than the 9-month figure.

And basically, if we try to look ahead at 2026, Enrique, it looks like demand is apparently more stable than it has been for the last few years in all our regions of activity, including Brazil with all dimensions that we have done.

So now moving to your second part regarding prices. Well, it's very evident that there is a lot of competition out there. We compete against other glass makers and against the cost of aluminum and plastic and against the plastic that is inside aluminum cans.

And that means that -- well, the reality is that pricing and margin dynamics that we are seeing in the packaging industry have never been so different. And we have no option but to accept the challenge and adapt our prices.

But we still see a lot of positive inflation across cost for industrial manufacturing. And we have different reason to our prices significantly immediately only in some exceptional cases if we are forced to respond.

And my final conclusion on this, please keep in mind that more than half of our sales volumes are dictated by price adjustment formulas and the mathematical result of a typical formula looking at 2026 is not significantly negative. And this is a good reference for our strategy.

And the last question is regarding our business in the U.K. and Ireland. Again, Encirc is great, incredibly well-invested business. Our 3 facilities there are facilities we feel very proud of.

But we know and competition is getting harder, we know that we need to improve our cost competitiveness and we are taking actions to improve our cost competitiveness. And thanks to these actions, we expect to attract some customers back to us to recover some market share and more to stop imports into the U.K. market that could affect the historically very profitable British glass industry.

So I won't mention targets or references in terms of relative margins or sales. I will try to direct you to put the focus more on EBITDA or profits in value. And we do feel optimistic about our future in the U.K. and Ireland even under the current intense competition.

[Operator Instructions] Our next question comes from Fraser Donlon from Berenberg.

It's Fraser here from Berenberg. I had a couple of questions. So just on the U.K., what exactly do you envisage doing to kind of improve the competitiveness?

Because I know there was a kind of small restructuring in Encirc a few months ago, which you discussed on the last call. So are you referencing that? Or do you have kind of bigger plans, let's say? And have those plans changed given now Ciner, I think, has announced that they won't be adding this site in the U.K.

And then my second question was just on Europe. Could you maybe color a little bit like the import/export trend you see in different European markets and maybe where you see more or less pricing pressure or difficulty in the market?

Not necessarily just in Iberia and the U.K., but also like the markets that you sell into would be interesting to hear what you have to say.

And then the final question, I think following on from a prior question. I know -- I think Ambev had launched this furnace in Brazil recently. Given that's now been launched, could it change anything for you with respect to that customer or that customer's, let's say, willingness to keep operating those sites independently?

Well, first, regarding the U.K. -- our business in the U.K. and certain -- the actions we are taking, we need to improve significantly our cost competitiveness because this is our purpose to protect our business there, to protect our people and to attract back some of our customers.

I won't give you an exact number because these things are moving significantly. Let me ask for the time we need before providing you a little bit more clarity on the specific targets on this. But let me use the help of the numbers that we are publishing today to let you understand that we are doing the things that are needed to do in the U.K. in all the sense.

Your second point is, okay, regarding how intense is the battle against imports, exports, particularly in Europe and the U.K. I will say that the competition is quite intense in every place, particularly in Europe and the U.K. due to imports.

But Vidrala is under our view, an example of a low-cost glass manufacturer. So it's our aim to stop this and we are doing this without affecting significantly our margins.

That means that we are doing the right thing in our cost base. And that -- let me explain like this simplistically that also should give you a reference that we are to be and remain as cost-competitive as some importers into the U.K. and Europe. This is our aim, to remain competitive to stop this.

And third, you mentioned a specific case of relevant customer in Brazil. Let me avoid mentioning the specific names in this conference call, okay?

My only message is that we were aware of this. We have been preparing ourselves for this and all the message that I shared with you answering a previous question regarding Brazil, our business there and our actions to further improve our competitiveness and attract customers and differentiate our commercial positioning are very well aligned with this specific case. That won't be an excuse for us next year.

Our next question comes from Inigo from Kepler Cheuvreux.

Most of them have been already answered, but I have 3 questions, if I may. The first one is Brazil. Just to come back to Brazil again. If you can explain or elaborate a bit how margins be at more than 41% in Q3 with the top line falling double digit and with this important or [indiscernible] fall in volumes in Q3 that you mentioned before. So this is the first question.

The second one is on Iberia volumes in Q3. If we do the numbers, we have seen, I would say, a nice recovery with volumes growing in Iberia in Q3 more than mid-single digit. If you can elaborate a bit what is behind that nice recovery.

And the third question is on the guidance outlook for 2026. I guess we have to wait for the next AGM in April 2026. But with what you mentioned in terms of pricing and volumes for 2026, how -- Raul, how do you see the EBITDA margins evolution versus 2025?

Let me start by the final question regarding outlook, okay? The more you ask the question today, you won't give a response for us. It's too soon. We will give you the exact guidance in April this year, but I will try to give you a little bit more color, okay?

Demand is -- what we are saying today is that demand is more stable than it has been over the last 2 difficult years. There remains still an excess of capacity in the glass industry in all our regions of activity.

Our prices should be more or less under control, our prices despite intense competition. That means that we don't see a negative spread between our sales prices and our manufacturing cost in 2026. So margins are -- and profits in 2026 are looking like safe so far.

Okay. Moving back to your first question regarding Brazil. Okay, your question, Inigo, helps me further support previous questions.

The reality in these 3 quarters is that we have been affected by a significant deterioration, temporary deterioration in our sales volumes, the top line, but our margins performed as expected.

And this is a very good proof of the quality of our business in Vidroporto in Brazil and the competitiveness of this business, okay? If you compare our margins with other's margins, if you analyze these margins under this tough period, tough quarter in terms of sales volumes, you can imagine how clear is our vision in our capacity to recover sales and keep safe our margins and keep on investing in Brazil to further improve our competitiveness.

Let me just end this message with a final point that our sales in Brazil in October are much more stable than it has been in the third quarter.

And the last question is regarding Iberia. We are improving a little bit better than expected in sales in this region. Probably the reasons are some of them macro, south -- consumption in the south of Europe have been performing slightly better than in Brazil and the U.K.

And a lot of reasons are also due to internal factors. We are doing our best to keep on recovering some of the market share that we lost in the last 3 years. And you can see in our margins again, as we have said in the case of Brazil that we are quite cost competitive and we will try to keep on recovering progressively markets there.

Okay. Just a final question, if I may. On the free cash flow, which has been quite strong in -- up to September with EUR 155 million and you reiterate the EUR 200 million goal for 2025.

What can we expect for 2026 in terms of CapEx? I mean, 2025 has been quite intense in terms of CapEx, I think it's 12% over sales. We should expect these numbers to be stable? Or can we expect a reduction on that CapEx for 2026?

When we look into 2026, excluding potential inorganic opportunities, if they do not happen, CapEx should be slightly below the numbers that we are seeing for 2025. So 2025 should be considered as an extraordinary year in terms of CapEx, as you can perfectly imagine considering that we are investing 12% of sales into the business.

And let me insist on this because we like the message, we will invest more than ever, smarter, more than others, to further improve our cost competitiveness and with our customer in mind. The only reason for our CapEx to look like slightly -- only slightly more relaxed in 2026 is just a matter of calendar, okay?

But we will keep on investing. And let me arise again the message that our cash profile, the cash generation that we are obtaining is being obtained after a significant effort on our investment activities to try to drive our future.

There are no further questions by telephone. I will now hand it back to the Vidrala team who will address questions submitted via webcast.

So there is only one question left, if I am right, through the webcast because there are several ones that should have been -- we should have already answered them.

So there is one question that states that beer and wine consumption continue to decline and both products account for a relevant percentage of our sales. So which are our plans to compensate for this?

Well, then let's be clear, to improve our cost competitiveness to attract customers back, to try to recover market shares or fight against an specific level of competition when needed, we will obviously try to diversify our sales by regions and by segments.

But even in weakened segment of sales due to softer consumption than expected as the ones you mentioned, beer and wine, there are a lot of opportunities for cost competitive different glass makers as Vidrala aim to be.

So we have answered all the questions sent through the webcast. If you have more questions or need more details, please feel free to contact us any time. That's all for today. Thank you very much for joining and listening.