Financial Data and Key Metrics Changes - Revenue from continuing operations increased by 6% compared to Q3 2024, reaching $13.4 million [8][20] - Consolidated adjusted EBITDA grew by 36%, reflecting cost management efforts despite a 1.5% decline in system-wide sales and negative comp sales of 2% [8][18] - Unrestricted cash and cash equivalents stood at $29.7 million, up from $25.1 million at the end of the previous year [23] Business Line Data and Key Metrics Changes - System-wide sales decreased by 1.5% to $127 million, with comp sales down by 2% [18][20] - The company opened nine franchise clinics in Q3, bringing the total to 884 franchise clinics, which is 92% of the portfolio [19] - The break-even point for new clinics improved significantly due to enhanced pre-opening protocols [19] Market Data and Key Metrics Changes - The company is focusing on a national marketing campaign to drive new patient acquisition, shifting from local to national advertising [10][11] - The marketing strategy emphasizes pain relief, which is identified as the primary reason for seeking chiropractic care, with 80% of new patients citing aches and pains [10][12] Company Strategy and Development Direction - The company aims to become a pure-play franchisor by refranchising corporate clinics, with an initial agreement to sell 45 clinics in Southern California for $4.5 million [9][27] - A new pricing pilot for wellness plans is being tested to optimize revenue while maintaining affordability [16][28] - The company is enhancing patient experience through technology upgrades, including a mobile app that has seen 178,000 downloads [17][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds affecting the refranchising timeline but expressed confidence in progress [27] - The company revised its full-year 2025 guidance, expecting system-wide sales to range from $530-$534 million, down from previous guidance [24] - Management believes that 2026 will be more profitable than 2025 due to ongoing cost-saving initiatives and refranchising efforts [24][38] Other Important Information - The company was recognized in the Franchise Times Top 400 for the sixth consecutive year, ranking 139th [25] - The patient-facing mobile app is expected to enhance patient engagement and retention, although it is too early to measure its impact [42][43] Q&A Session Summary Question: Timeline for completing refranchising of corporate clinics - Management indicated that while exact timing is uncertain due to lender dynamics, they are confident in making progress [27] Question: Details on pricing plan pilot - The company is testing three different price increase levels for wellness plans to find the optimal balance for patients [28] Question: Steps to improve same-store sales - Management highlighted a shift in marketing focus to pain relief and reallocating funds from local to national marketing efforts [30] Question: Initiatives to improve break-even point for new clinics - The company has implemented robust pre-opening protocols to ensure new clinics achieve break-even faster [32] Question: Trends in comp growth and guidance for Q4 - Management noted that comps were slightly softer at the end of Q3 and that Q4 comparisons would be tougher due to last year's performance [34] Question: SG&A expense reductions and adjusted EBITDA guidance - Management is targeting significant reductions in SG&A expenses as part of the refranchising process [36][38] Question: Performance of clinics in Southern California - The clinics in Southern California are generally performing well, and the company is focused on finding strong operators for refranchising [40] Question: Insights on app utilization and engagement - While it's early to provide metrics, initial feedback on the app's patient experience has been very positive [42][43] Question: Timing for potential pricing increases - Management anticipates activating pricing changes in Q1 2026, pending insights from ongoing tests [45]

Financial Data and Key Metrics Changes - Total company revenues for Q3 2025 were $240 million, an increase of $34 million or 16.6% compared to Q3 2024 [22] - Adjusted EBITDA for the quarter was $57.3 million, the highest quarterly result in company history, reflecting a 25% increase year over year [24][25] - Net income available to stockholders for Q3 was approximately breakeven, reflecting $23.5 million in debt refinancing expenses [25] Business Line Data and Key Metrics Changes - Lindblad segment revenues were $138 million, an increase of $16 million or 13.4% compared to the prior year, with occupancy increasing from 82% to 88% [22][23] - Land Experience segment revenues were $103 million, an increase of $18 million or 21.1%, driven by a 12% increase in guests and an 8% increase in revenue per guest [23] Market Data and Key Metrics Changes - The luxury travel segment is expected to grow at a 10% CAGR through 2028, reinforcing confidence in the company's positioning for sustained growth [10] - The company has seen a significant uptick in bookings for 2027, with strong demand in popular destinations like Alaska [9][10] Company Strategy and Development Direction - The company focuses on three strategic pillars: maximizing revenue generation, optimizing financial performance, and exploring accretive growth opportunities [10][11] - The partnership with Disney and National Geographic is expected to introduce the brand to new audiences and expand distribution channels [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving historical occupancy levels in 2026 and beyond, supported by strong booking momentum for 2025 and 2026 [9][29] - The company is raising full-year guidance for net yields, revenue, and EBITDA due to strong performance [20][30] Other Important Information - The company completed a comprehensive refinancing of its debt, lowering its cost of debt by approximately 75 basis points and enhancing financial flexibility [28] - The company ended the quarter with total cash of $290.1 million, an increase of $74 million compared to the previous year [26] Q&A Session Summary Question: Can you provide more color around booking trends for 2026 and 2027? - Management noted that bookings for 2026 are strong, with significant upticks in both segments, and they are on track to achieve historical occupancy levels [38][39] Question: How do you view pricing and yield growth for next year? - Management indicated that while double-digit yield growth is not expected to continue, they will maintain price integrity and continue to increase occupancy [41][42] Question: Are there any macroeconomic headwinds affecting the business? - Management acknowledged the geopolitical environment but noted that demand remains stable, particularly among higher net worth customers [56][57] Question: What are the financing alternatives for growth opportunities? - Management expressed confidence in pursuing expansion opportunities through charters, acquisitions, and new builds, supported by a strengthened balance sheet [63][65]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [7][21][25] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][25] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of mega brands [7][21] Business Line Data and Key Metrics Changes - The premium beer, non-alcohol beer, and beyond beer segments continued to outperform, with the quarterly GMV of the BIS marketplace reaching nearly $1 billion [5][6] - In the U.S., revenue growth in the mid-40s was led by Cutwater, which grew revenue in the triple digits [9] - Michelob Ultra became the number one brand in the industry by volume year to date, gaining market share in all 50 states [9][10] Market Data and Key Metrics Changes - Revenue increased in 70% of the company's markets, with bottom-line growth in four of five operating regions [8][21] - In China, revenue declined by 15.2% due to a soft consumer environment, with the company focusing on enhancing execution and route to market [13][14] - In Brazil, revenue declined by 1.9% driven by unseasonable weather, but market share gains and disciplined management offset the decline [11][12] Company Strategy and Development Direction - The company is focused on consistent execution of its strategy, investing in brand power and innovation to drive market share gains [5][6] - A $6 billion share buyback program was approved, alongside an interim dividend of €0.15 per share, reflecting confidence in long-term growth [6][24] - The company aims to leverage partnerships, such as with Netflix, to enhance brand visibility and consumer engagement [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in China and unseasonable weather in the Americas but expressed confidence in the resilience of the strategy [4][5] - The outlook for the beer category remains positive, with expectations for industry volume growth as conditions normalize [12][41] - The company anticipates a strong performance in 2026, driven by events like the FIFA World Cup in North America [27][41] Other Important Information - The company is actively managing its debt portfolio, announcing the redemption of $2 billion of outstanding bonds [6][24] - The non-alcohol beer segment is seen as a key growth opportunity, with net revenue growing by 27% [16][86] Q&A Session Summary Question: Thoughts on the $6 billion buyback program - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [30][32] Question: Outlook for global beer volume growth - Management noted that the long-term potential for the beer category is around 1% growth, with opportunities for further growth through beyond beer propositions [34][35] Question: Volume growth expectations for 2026 - Management expressed optimism for volume growth in 2026, citing reduced consumer pressure from lower inflation and the impact of the FIFA World Cup [41][42] Question: Impact of input costs in 2026 - Management did not provide specific guidance on input costs but indicated that hedging policies are in place to manage FX risks [45][47] Question: Consumer improvement in Brazil and Colombia - Management noted that while Brazil faced challenges due to weather, Colombia continued to show strong volume growth and market share gains [56][57] Question: Performance of Cutwater brand - Management highlighted Cutwater's significant growth, becoming one of the top 10 spirits brands in the U.S., and emphasized the brand's potential for further expansion [70][71]

Financial Data and Key Metrics Changes - Consolidated volume declined 0.6% to 1,040 million unit cases, showing sequential improvement compared to the second quarter [8] - Total revenues grew 3.3% to MXN 71.9 billion, with a currency neutral increase of 4.7% [9] - Gross profit increased 0.9% to MXN 32.4 billion, leading to a margin contraction of 100 basis points to 45.1% [10] - Operating income rose 6.8% to MXN 10.3 billion, with operating margin expanding 50 basis points to 14.3% [10] - Adjusted EBITDA increased 3.2% to MXN 14.4 billion, with EBITDA margin remaining flat at 20.1% [11] - Majority net income slightly increased to ARS 5.9 billion, driven mainly by operating income growth [11] Business Line Data and Key Metrics Changes - In Mexico, volumes declined 3.7% due to a soft macroeconomic backdrop, while Coca Cola Zero grew 23% year on year [12][14] - Guatemala saw a volume increase of 3.2% to 50.8 million unit cases, with Coca Cola Zero Sugar growing 16.9% [17] - Brazil's volumes increased 2.6% year on year, driven by share gains and a successful Star Wars campaign for Coca Cola Zero [19] - Colombia's volumes grew 2.9%, supported by share gains in brand Coca Cola and flavors [22] - Argentina's volumes also increased 2.9%, with a focus on affordability and digital initiatives [26] Market Data and Key Metrics Changes - Mexico faced a soft macroeconomic environment impacting consumer preferences, while South America showed a more resilient consumer environment [7] - In Brazil, despite lower temperatures and slower growth, volumes increased due to share gains [19] - Colombia's economy is gradually recovering, driven by improving sectors such as commerce and agriculture [22] - Argentina's strategy focused on maintaining household penetration during economic challenges, leading to better positioning for recovery [48] Company Strategy and Development Direction - The company aims to adapt to challenging operating conditions, focusing on sustainable growth, affordability initiatives, and cost control measures [8][16] - Plans to install 125,000 coolers during the year to enhance market presence [14] - The company is committed to incentivizing low and non-caloric products in response to the new excise tax in Mexico [15][16] - Emphasis on maintaining household penetration and volume base despite expected declines due to tax increases [82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the impact of the beverage excise tax increase in Mexico, anticipating a challenging year ahead [16] - Positive brand equity expected from the World Cup, which may offset some negative impacts [16] - The company is prepared for potential volatility in the trade environment but sees stability in key commodities [33][34] - Management highlighted the importance of maintaining a lean cost structure and focusing on productivity improvements [26] Other Important Information - The company is implementing a new digital sales tool, Juntos Plus Advisor, to enhance service levels and share improvements [14] - The recent passing of a board member was acknowledged, reflecting on their contributions to the company [6] Q&A Session Summary Question: Insights on profitability improvement in Mexico and Central America - Management noted that profitability improvements were driven by savings initiatives and operational adjustments rather than solely volume recovery [44][47] Question: Strategies for Argentina, Colombia, and Guatemala - Management discussed maintaining household penetration in Argentina during economic downturns and adjusting strategies in Colombia and Guatemala to capture growth opportunities [48][52] Question: CapEx plans for next year - Management indicated a rethinking of CapEx, delaying some investments due to expected volume declines [58][60] Question: Volume outlook for Mexico next year - Management provided a preliminary outlook of low to mid single-digit volume declines for Mexico, considering the impact of the excise tax [63][73] Question: Pricing strategies in light of new taxes - Management confirmed plans to pass through the excise tax and adjust pricing strategies to encourage consumer shifts towards non-caloric options [89]

Financial Data and Key Metrics Changes - EBITDA increased by 6.5% with continued margin expansion [7] - Revenue per hectoliter growth accelerated by 4.9% compared to last year [7] - Overall revenue increased by 3% this quarter versus last year [10] - Underlying EPS grew by 8.7% in U.S. Dollar terms and 17.4% in constant currency [10][25] - Free cash flow increased by $5 billion compared to last year [26] - Net debt to EBITDA ratio improved to 3.27 times from 3.42 times year over year [27] Business Line Data and Key Metrics Changes - Non-alcohol beer portfolio revenues increased by 33% [8] - In the U.S., Michelob Ultra and Busch Light were the top two volume share gainers in the industry [12] - In Brazil, revenue declined by 1.9% due to volume performance [13] - In Colombia, record high volumes drove high single-digit top and bottom line growth [13] - In Europe, volumes were flat, but revenue grew due to premiumization [14] Market Data and Key Metrics Changes - Volumes declined by 1.9% globally, impacted by soft industry performance in China and Brazil [9] - In China, revenue declined by 6.2% with underperformance in volumes [16] - Revenue increased in 70% of markets, with top and bottom line growth across four of five operating regions [11] Company Strategy and Development Direction - The company continues to invest in mega brands and platforms, with $3.6 billion invested in sales and marketing in the first half of the year [17] - Focus on premiumization and innovation to drive growth in the beer category [20] - The company aims to optimize its business and improve margins through disciplined revenue management and operational efficiency [25] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term growth of the industry despite short-term volume challenges [36] - The company expects to deliver on its 2025 outlook of 4% to 8% EBITDA growth [29] - Management highlighted the importance of consumer confidence and economic recovery in driving future growth [56] Other Important Information - The company is focusing on digital platforms to enhance consumer engagement and drive new consumption occasions [22] - The company is committed to increasing investments in mega brands and expanding its non-alcohol beer portfolio [21] Q&A Session Summary Question: Concerns about volume growth and long-term outlook - Management acknowledged the volume decline but emphasized the strength of their global footprint and consistent performance in other KPIs [36][37] Question: Margin improvement sustainability - Management indicated that margin improvements are expected to be sustainable, driven by operational efficiencies and disciplined cost management [39][40] Question: Key learnings from U.S. market performance - Management highlighted the importance of consistent long-term planning and strategic investments in brands to drive growth [46][47] Question: Consumer slowdown in Mexico and Brazil - Management noted that while there are challenges, underlying demand remains strong, and they are monitoring consumer confidence closely [54][56] Question: On-premise channel performance in China - Management reported that the on-premise channel remains weak, but there is growth in the off-premise channel, presenting opportunities for improvement [62] Question: Future marketing opportunities with FIFA 2026 - Management expressed optimism about leveraging major events like FIFA 2026 to drive category growth and brand momentum [88][90]

Financial Data and Key Metrics Changes - Consolidated volume declined 5.5% to 1,035,000 unit cases, driven by declines in Mexico, Brazil, Colombia, and Panama, partially offset by growth in Argentina, Uruguay, Guatemala, and other Central American territories [8] - Total revenues grew 5% to COP72.9 billion, with a 2.4% increase on a neutral currency basis [9] - Gross profit increased 3.4% to MXN33 billion, with a margin contraction of 70 basis points to 45.3% [9] - Operating income remained flat at COP9.7 billion, with an OI margin contracting 60 basis points to 13.4% [10] - Adjusted EBITDA decreased 3.8% to MXN13.4 billion, with an EBITDA margin contraction of 160 basis points to 18.4% [10] - Majority net income decreased 5.3% to MXN5.3 billion, primarily due to increased comprehensive financial results from higher interest expenses and a lower foreign exchange gain [11] Business Line Data and Key Metrics Changes - In Mexico, volume declined 10%, cycling a historic second quarter from the previous year that grew 7.9% [11] - In Guatemala, volumes increased 1.6% to 51.3 million unit cases, with a 10,000 new customer increase [17] - In Brazil, volumes declined 1.5% year on year, cycling strong 12.1% growth from last year [19] - In Colombia, volumes declined 2.8% year on year, while in Argentina, volumes increased 11.9% [22][24] Market Data and Key Metrics Changes - Mexico faced a softer macroeconomic backdrop and adverse weather, impacting consumer behavior [7] - Brazil's volume performance was affected by colder temperatures, particularly in June [19] - Argentina's macro indicators improved, with monthly inflation below 2%, fostering a disciplined financial surplus policy [23] Company Strategy and Development Direction - The company remains focused on long-term sustainable growth, with investments in capacity expansions [7] - Key initiatives include improving customer service metrics and enhancing productivity [14][15] - The company is leveraging affordability initiatives in response to negative consumer sentiment in Mexico [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first half of the year but remains optimistic about long-term perspectives [7] - The outlook for the second half of the year is cautious, with expectations of a more complex scenario due to economic factors [41] - Management is focused on leveraging local initiatives to recover momentum in the second half of 2025 [24] Other Important Information - The company completed key projects and began additional capacity initiatives during the first half of the year [15] - The Porto Alegre plant has returned to 100% capacity, with a full portfolio of SKUs restored [67][69] Q&A Session Summary Question: Expectations for the second half of the year and market share in Mexico - Management discussed a cautious outlook for the second half, with market share in modern trade above last year but below in traditional trade [41][43] Question: Performance in Brazil and channel specifics - Management indicated that weather was a key driver of performance in Brazil, with expectations for a rebound in volumes [44][45] Question: Pricing mix in Mexico and Brazil - Management noted that pricing held well in Mexico despite promotional spending, with a cautious pricing stance expected for the end of the year [49][54] Question: CapEx investments and updates on the Porto Alegre plant - Management confirmed commitment to structural capacity investments while adjusting volume-linked CapEx as needed [62][66] Question: Interest expense and leverage position - Management acknowledged higher interest expenses due to new financing and higher rates in Brazil, with expectations for balance sheet adjustments in the future [92][95]