Of course, we have a mix effect on that and thus the prices, the net prices only increased 10% because three points were lost because of mix effect. But overall, the consumers there the consumption is there and we are maintaining, the level of consumption that we had last year And also growing against 2019. So, if you took four years 2023 2022 2021 2022, and the base of 2019 we are growing in beer and nonalcoholic exactly the same 19.3% compared to 2019. So if you divide this by four years, it’s more than GDP. So in times of economic acceleration, still our products are adding the wallet of the consumer. So, maybe people will not consume other kind of eateries nondurable. But beverage, still the market is there.
Henrique Brustolin: That’s very clear, Felipe. Thank you.
Operator: Thank you very much. We have a question from Mr. Diego Guzman from BTG Pactual Asset Management. Please go ahead, sir
Q – Unidentified Analyst : Hi. Thanks for taking my call – my questions — I have two questions. You specified that you did price increases in October in nonalcoholic business. So I suppose maybe that this business has a better pricing trend. But you also mentioned that cost outlook is a bit more pressured here. So mixing these two things, which one of the business, do you think that has a better margin trend in terms of gross margin maybe in the next six months or so. And the second question, is regarding the nonoperational expense — it’s an operational expense in Argentina, but we see it in the nonoperational results of CLP 8,000 million something around that. Do you have maybe a payback of this or internal rate of return? Or what is can you explain a little bit deeper, where the economic or implications of this changes.
Felipe Dubernet: There is someone that has an open mic. Okay. – Thanks for turning off. So your first question, if I understood was about prices. Yes, as I said, nonalcoholic we have more pressure, because we have more commodity price pressure from nonalcholic commodities such as sugar and especially oranges. Our beer business has better margins than the non-alcoholic maybe non-alcoholic – beer, although beer is more linked to the US dollar. So we expect that at the end both categories of course require at least inflation but non-alcoholic request more than inflation price increases to compensate this cost pressure. Regarding the non-recurring expenses in Argentina this is related to the integration of the Danone water business into our sales and distribution network.
So this is a non-recurring effect as you highlighted up of approximately $10 million. This is the impact of our P&L is a non-operating because it’s – it’s a JV that we do not consolidate. And thus it has an impact in our non-operational results. Regarding the payback of that is very clear is adding to our network between 5 million hectoliters more or less of volume that certainly will provide us a better scale in Argentina in the future and especially in very difficult times in Argentina it’s very good to synergize both distribution networks, the one that we have for beer and the one for water. This was an acquisition that we did last year. And then now this year we came to a very successful integration of both businesses not only in sales and distribution but also in head office in financial services and other overheads function.
So it would provide us a stronger P&L in Argentina, okay?
Unidentified Analyst : Okay. Just to be sure you mentioned that both businesses will try to outrun inflation maybe non-alcoholic but which business you see has a better trend in margin normalization beer or non-alcoholic?
Felipe Dubernet: No big difference this year. I think because we had – last year very high aluminum prices on the one hand that affect the beer business very high resin prices that affect the non-alcoholic business, very high mold prices, very – so at the end I think as of today, both business are in the same range of normalization in terms of on average. The point is looking forward but always is an estimate. But given what we had on the table, which are the commodity costs certainly the non-alcoholic business has more cost pressure than the beer business.
Unidentified Analyst: Great. Thank you.
Operator: Okay. Thank you very much. Our next question comes from Mr. Carlos Laboy from HSBC Securities. Please go ahead, sir.
Carlos Laboy: Yes. Hello, everybody. I was hoping you could give us more insights into how things are going in Colombia, market share — not just the volume terms market share, how your brands are doing in the marketplace, et cetera.
Felipe Dubernet: Yes. Regarding Colombia, we do have maybe a little reduction in the first semester in terms of market share. However, recovering, especially in the last few months, especially in September. We have also — we are being recuperating margin also because of input costs again we have a very tough situation in input costs in 2022 but along the time, it’s been recovering this. So still, there are work to do especially in enhancing our brand equity of our brands in Argentina especially. And also, the other thing that is important improve our sales business there. But the last finance — on the last quarter, especially in September, in terms of market share are very encouraging.
