Michel Doukeris: Hey. Thank you for the question. I think that the first point is really a matter of and instead of and instead of or. So, I think that we need to be able to invest in the core and renovate, create excitement around our core brands. As you said, best-class work being done in Brazil for Brahma Duplo Malte. If you think about Cass in Korea, incredible results, Victoria and Modelo in Mexico doing extremely well. At the same time, because we know that we have penetration opportunities, and we can gather more consumers and be present in more occasions. We need to continue to innovate in this Beyond Beer space that offers us incredible opportunities for growth, especially with female consumers and sources a lot from liquor and from wine.
One of the key learnings, I can talk about this for a long time, but I — I’ll try to get to you the biggest learning that we had so far because of the timing the other questions that we’d like to talk about is really that when we create new brands that are catered to this consumer and to the occasions that we want to gain share, they work better in the long term. They start — is lower than when you extend brands from our core brands, but they build a much more sustainable model. And the learnings that we’ve been having on that — they go from Brutal Fruit in Africa to BEES in Brazil to what we’ve been seeing with Cutwater and NÃœTRL in North America from Canada and the U.S. And those brands, they are champions of the future that we are investing consistently to build.
It’s a very, very good way to expand the portfolio. It’s aggressive because they go outside of our core and they interact with new consumers, but is much more sustainable. And we’ve been doing things both ways, when we need to do something fast, using our core brands, extension lines, but we’ve been doing also creating new-to-the-world brands, and they are doing very well. And this is true in the physical world. I just gave you examples NÃœTRL, Brutal Fruit and it’s even more true in the digital space. For example, what we are doing in TaDa now in the direct-to-consumer ecosystem is a multi-country already born global brand. We’re are in 11 countries, expanding very quickly, is a very powerful value proposition to consumers, a brand that is being built at fast stellar pace.
And we are very happy with both examples, physical but also digital products that we are creating.
Operator: Our next question is coming from the line of Trevor Stirling with Bernstein.
Trevor Stirling: Two questions from my side, please. The first one, Michel, you highlighted that volumes are up almost 6% compared to 2019. I think by my calculations, revenues are up 24%, but margins are down — EBITDA margin is down about 600 bps. How much of that do you think you can get back? I appreciate there have been input cost pressures, transactional FX, negative operating leverage from COVID. But how much is it realistic to get back and over what time frame, especially since — guess, implicitly, you expect more margin compression in 2024? And the second question, maybe one more for Fernando. The underlying EPS is up 5%. The dividend is up 50%. Is that purely a function of where we are on the deleveraging curve?
