Prosegur Cash SA

MAD:CASH

Earnings Call Transcript 2022-Q3

[Operator]

Good day, and thank you for standing by. Welcome to the Prosegur Cash 9 Months 2022 Results Presentation. [Operator Instructions] After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Miguel Bandres, Head of IR. Please go ahead.

[Miguel Ángel Bandrés Gutiérrez, executive]

And thank you all for connecting today. On behalf of Prosegur Cash's team, I'd like to welcome you to our 2022 Q3 results presentation that will be made by Javier Hergueta, our CFO; and myself, the company's IRO. The meeting will last around 25 minutes. And in it, we want to review with you the main events that have taken place in the quarter by region, the main financials and all the drivers behind our performance in the period. We will hold an open Q&A session in the last point, where we'll address all the questions you may have. If we don't get to address all points in this session, we'll answer those remaining on an individual basis. I again want to thank you all for attending and remember that this presentation has been prerecorded and that the webcast can be found on our corporate web page at www.prosegurcash.com.

To start, I'd like to share, as we normally do some relevant news that have a period in the media during the quarter regarding the world of cash that I'm sure will give some background to our environment. These news cover quite a few different angles from regulatory changes in the U.S. to protect cash to the effect inflation is having in cash-related behavior in markets such as the U.K. or amongst the young generations or the importance of having an alternative and independent payment system to the digital one.

In the first piece of news that we can read on the upper left-hand part of the page, published by Cash Matters. We see that Miami has approved legislation, making it compulsory for retail businesses to accept cash. This is our very important news since it adds itself to a large list of administrations passing laws in the same direction, such as Michigan, Massachusetts, New York or Pennsylvania that underline the strong existing movement towards protecting cash. The characteristics that make cash a unique payment system, its resilience, its immediacy, it's privacy or it's inclusivity amongst others, make it a very important element to be defended by legislators across the world. This legislation adds as well to the protective regulatory wave we are seeing in multiple other countries such as the U.K., Spain or France.

The second news that we can read in CBS regards cash stuffing, which consists in separating cash in different envelopes, labeling them for specific needs to be able to manage your budget in a more effective manner. This trend, which is not new, is now becoming viral among younger generations that are looking at creative ways to protect the budgets in inflationary times. This news shows clearly how cash is very relevant and transversal regardless of users' age.

In the third chosen news, we read in El Confidencial, a Spanish online newspaper on Brett Scott an expert in payment systems. The specialist underlines the importance of maintaining independent and alternative payment systems, underscoring how relevant it is to realize that the cash system and the digital money systems are independent and complementary in terms of their dynamics and their problems. [ He sign knows ] that it's very important to have the option of having both of them always available, being a problem when you lock yourself into one and getting rid of the alternative one as it's been the case with those promoting only digital cash.

And in the last news coming from CNBC and said Laura Suter, Head of Finance at AJ Bell, we can read that cash withdrawals and the use of cash in the U.K., a market where cash has been on a retreat for quite some time is increasing in a very large manner, as bridge use cash to manage their expenditure in a rolling inflation environment. Just as an example, Britain's Post Office that offers world banking services handled a record of over GBP 800 million in personal cash withdrawals this past month of July.

Now I'll proceed to review today's agenda. First, we'll share the highlights of the quarter; after we review our performance by region; then we'll review the main financials for the first 9 months results; and lastly, we'll review the key takeaways before opening the Q&A session. For the first point, I'll hand the floor to Javier who will share our view on this period's key highlights.

[Javier Hergueta Vázquez, executive]

Thank you, Miguel. As said, we can observe a continuous strong performance of the business as well as our relentless commitment to our performance transform strategy that continues to deliver the high points worthwhile underlining being. In first term, the fact that the first 9 months of 2022 today are posting an impressively robust growth. Our business continues to show very strong growth that led to turnover, reaching EUR 1,470 million, signaling its health.

If we look at sales growth figure on these first 9 months, it's up by 31% and important to underline that organic growth accounts to 26.8%. I would like to as well stress the performance of this third quarter stand-alone, where we see that overall sales have grown by 37.1%. And what is most important that our organic growth in the quarter has risen by 34.4%, this being the highest quarter growth ever.

Secondly, I want to share with you the growth of our transformation initiatives, something we are particularly proud of. New product sales have grown by 51.5% in these first 9 months, representing 24.7% of total sales. That is a 330 basis points larger share on overall revenue than a year ago. And if to these figures, we exclude divestments, then the growth has reached 62.7% and share of total sales have increased by 450 basis points, but not only the numbers, the quality of our product offering and the type of solutions being offered have both increased.

Next, when we look at profitability, we see that EBITDA margins have climbed these 9 months by 38.2%, reaching 13.7% of sales. The performance of the isolated third quarter increases by 48%. And in relative terms, account for 14% of sales. This is the highest margin in our industry and reflects our relentless effort to have the most efficient operations. We will continue to strive in this direction as we think it's absolutely paramount for our future. To put it into perspective, this profitability performance implies an improvement of 250 basis points over last year's 9 months on a comparable term and of 110 basis points if we consider the quarter stand-alone.

Cash flow, as we can see, continues to be a top priority for us. And in these first 9 months, we've delivered EUR 108 million, EUR 54 million of them generated in this last third quarter. This brings our leverage ratio to 2.1x, which is very well within our comfort zone, even when considering our latest acquisitions. This financial health, critical for us has been confirmed once again by third parties. In this case, S&P ratified our BBB stable rating and stable outlook. And lastly, in our continuous commitments to ESG, we are glad to share that we've recently published a new code of ethics that carefully takes into account new ESG requirements as well as the impact of new technologies in our environment.

In this Slide 5, I would like to share as well as the continued strong local growth, the fact that we are being able to translate our growth into profitability by continuing to leverage margins. Firstly, I think it's very important to consider the environment in which we are conducting business. Inflation continues to be strong across all our geographies, which has a very positive impact on the amount of money that is moved as we saw earlier in the news. As well, we see a sustained recovery in cash volumes as consumers keep on returning to it, which translate into activity growth. This inflationary environment not only accelerates the speed at which cash moves, but as said, makes consumers more [ brunch ] on using it.

We, of course, keep on being very vigilant and continue monitoring the evolution of all macro indicators in our markets as well as the evolution of the major geopolitical events that are taking place in different regions of the world. As of now, these are not having a negative impact on us, and we think that as inflationary pressures stay present, the macro continues to support our business into coming quarters. When we see the performance of our local growth, these first 9 months of 2022 post an impressive 31.6% growth, the highest recorded as we said earlier on. By region, this growth has been very strong as well. Latin America grew by 36.6% as compared to last year. Europe by 22.4% and Asia Pacific by a strong as well 20.8%. As said, all geographies have contributed very positively quarter-on-quarter to this growth.

When we look at margins, you can see that EBITDA in the period has reached EUR 195 million that represents 13.7% of sales. This is an increase over last year of 61.4% as well as a relative improvement of 250 basis points on comparable terms, if we exclude the capital gains we captured last year. These figures show that in this inflationary environment, we've been able to not only make our operations more efficient, but as well to translate prices in an effective manner. Combining both drivers, we have been able to enhance our margins. Lastly, I want to highlight sales in Q3 of EUR 534 million, which are the highest quarterly sales with experience in our history.

I want to turn now to Page 6 and share with you the results of our transformation strategy. As I earlier noted, we are particularly proud of the numbers we are achieving in this front. Sales in new products having increased by 51.5% in these first 9 months of 2022 as compared to last year, reaching EUR 350 million. Not only that, despite the overall strong growth of our card business, we mentioned, the acceleration of our transformation initiatives allow them to assume 24.7% of total sales in these first 9 months. If we are to exclude divestments, then the increase in sales has been of 62.7%.

Going back to penetration. This has increased by 330 basis points or 450 basis points if we exclude the mentioned divestments. Once again, it's very important to note the balance improvement of all regions towards this increase. If we consider this third quarter alone, sales reached EUR 143 million, an improvement of 73.1% over the same quarter 1 year ago and of 28.3% when compared to the second quarter this year that was already the highest till now. The quality of this transformation sales continues to improve quarter-by-quarter as customers keep on supporting our new businesses. Along that line, we are very happy to announce that we have a new line to add to our growth initiatives that we are very sure will be very relevant to our future, this being the foreign exchange business, as we will see in the following page.

As said, with the acquisition of The Change Group, we strengthened our new product transformation strategy. By welcoming Change Group into the Prosegur Cash family, we are entering into what will be a very fruitful relationship in a market that poses enormous growth opportunities into the future. If I am to underline the key elements of this transaction: first, Change Group is the third global peer player in the foreign exchange industry where there is ample space for both organic and inorganic growth. We think this acquisition with its seasoned management is the perfect platform from which to grow this promising market.

Second, the fact that after COVID, this industry has been recovering at extremely fast rates, showing that it's a preferred option for travelers around the world. Another relevant factor is that this business has a very strong case for future digitalization that opens tremendous opportunities, enabling us to enhance its revenue base. Being located in over 35 cities, it is a company with a major presence in Europe, which balances our geographical presence. In terms of sales on a run rate basis and looking into 2023, we are talking about EUR 100 million sales platform. Regarding the transaction itself, we can share that the valuation agreed in both an enterprise value well below 1x sales.

With this, I will pass over to Miguel, who will comment on our regional analysis.

[Miguel Ángel Bandrés Gutiérrez, executive]

Thank you, Javier. I'll start with Latin America that accounts for 68% of our sales. In the region, we see that we've had a very strong first 9 months of the year with 35% overall increase in revenue and with sales totaling EUR 957 million. Sales in the quarter reached EUR 355 million. This growth is based on a solid 31.9% organic growth, to which we add a 4.7% inorganic growth of acquisitions we did in new products in the last 12 months. The evolution of foreign exchange has had a minimal 1.6% negative impact consequence of the performance of the different currencies in the region during the period. If we look at transformation, we can see that new products have grown by 59.4% and they now reached 27.3% of total sales. This represents an increase of 410 basis points over sales when compared to 1 year ago. This figure underlines that in an environment with a very important organic growth, new products have increased at an even higher rate, showing the health of these initiatives.

Turning now to Europe, an area representing 25% of total sales. We can see that these have grown by 22.4% in the first 9 months, reaching EUR 360 million at the end of September. That growth reached 29.4%, which exclude divestments made in the region at the beginning of last year. If we consider the quarter alone, sales reached EUR 142 million. It's important to underline the good performance of organic growth that continues to exceed double-digit and reached 16.1%. I would like to underline that this organic growth is backed on the recovery of consumption in our markets. The positive impact inflation has on cash and to the increased embracing of cash by consumers as a mean of payment.

Important to note as well is a 6.3% contribution to sales of acquisitions made in this year in our core business to strengthen our position in the German market as well as the entry into the foreign exchange business we shared earlier in the presentation. If we read into new products performance, our sales have totaled EUR 67 million in these first 9 months of the year, up by 27.9% versus a year ago. Now if we exclude [ investments ], the 27.9% growth turns to 83.1% and reached 18.7% of sales. These results in our reported penetration climbing by 80 basis points, whilst comparable penetration would increase by a very significant 550 basis points. If anything, this shows our strong commitment to transform portion of our strategy.

Lastly, I turned to the Asia Pacific region that represents 7% of our total sales. If we look at the evolution of the sales figure in the region, it has reached EUR 101 million in these first 9 months, which represents a 26.1% overall increase versus 1 year ago. Sales in the stand-alone quarter reached EUR 37 million that has well-marked its historic record. I want to highlight the very good 20.6% organic growth in the region, which for the first time, exceeds 20% per year. New product transformation in the region has behaved very positive as well. It's gained 300 basis points of share on overall sales of 20.8%, reaching EUR 21 million and representing a 47.9% increase versus 1 year ago. This continues to underline the positive reception that our initiatives have on customers across all regions.

With this, I'll pass over to Javier, so he can share our key financials.

[Javier Hergueta Vázquez, executive]

Thank you, Miguel. I would like to start by reviewing our profit and loss statement. If we look at the sales figure for these first 9 months of the year, they have grown up to EUR 1,417 million, which represents a 31% increase over the same period 1 year ago. It is indeed a robust growth, the strongest growth in comparable terms in the company's history. Looking at the chart on the right-hand side of the page, we can see the breakdown of that 31% growth. It is particularly noteworthy to mention that organic growth accounted for 26.8%, showing the health of our underlying business that is driving in an environment that is positive for the evolution of our industry. Inorganic growth adds an extra 4.8% of growth despite the divestments that took place at the beginning of last year. And finally, FX has an almost flat impact in the period, showing a negative 0.6%. In summary, we see a healthy and record sales growth.

Moving down to profitability. We see a reported improvement of 38.2% of the EBITDA for the period reaching EUR 195 million and accounting for 13.7% of sales. If we now look at the chart on the lower right-hand side of the table, we see the evolution of the underlying EBITDA margin. In comparable terms, profitability has raised from EUR 121 million a year ago to EUR 195 million this year, which means an improvement in absolute terms of 61% and as well an improvement on relative profitability of 250 basis points. Once again, this improvement reflects how our efficiency structure resulting from all the cost initiatives we have performed along these last 2 years is effectively absorbing new volume resulting in better profitability both in absolute and relative terms.

Below EBITDA, we can observe that amortization of intangibles reached $17 million in the period and takes our EBIT margin to EUR 178 million in absolute terms, which represents a 41.2% increase over last year and at 12.5% of sales. At the financial results line, we see a negative impact of EUR 32 million, which is slightly lesser than the EUR 34 million we experienced in 2021. Altogether, this takes our profit before taxes to EUR 145 million, a 58.8% increase over 2021 and to 10.2% of sales in relative terms. Finally, taxes for the first 9 months of this year totaled EUR 67 million and places the tax rate at 46.4% versus last year's 56.5%. Bottom line net consolidated profit after taxes reached EUR 78 million, a 95.6% improvement over last year's EUR 40 million. In relative terms, net profitability over sales amounted to 5.5%, which is an improvement of 180 basis points versus the one we reported 1 year ago.

If we turn to the next page, we can review the evolution of our cash flow statement. Starting from an EBITDA for the period of EUR 275 million, we reached a free cash flow figure for the first 9 months of this year of EUR 108 million, an improvement over the EUR 102 million we generated 1 year ago. This is taking into account that in 2021, we benefited from a positive EUR 20 million cash flow impact from divestments and as well considering the phenomenal growth of the company we have financed in 2022. If we consider the third quarter on a stand-alone basis, cash generated in these 3 months was EUR 54 million. That is a very important improvement over last year's third quarter of EUR 37 million.

Provisions and other items accounted for a positive EUR 10 million versus last year's EUR 6 million outflow. Income tax rose to EUR 71 million, fundamentally due to the absence of payments in advance recoveries that took place last year as well as a gradual normalization of our tax rate and CapEx expenditure reached EUR 49 million, a EUR 7 million increase over last year fundamentally derived from capital expenditure directly linked to customers, this being mostly [ cash todays ]. And we invested EUR 57 million in the period in working capital to finance the company's growth with a constant and tight control of our DSOs and reaching the above-mentioned EUR 108 million free cash flow figure. This free cash flow implies a conversion over EBITDA of 82%, an improvement over last year's already remarkable 80%.

Interest payments in the period totaled EUR 4 million, a relevant decrease from last year's $12 million, while M&A payments increased to EUR 31 million in the period, deriving from the acquisitions that have taken place in the last quarters and whose payment obligations were due in these first 9 months. Dividends and treasury stock for the period amount to EUR 34 million and others totaled EUR 32 million. Resulting total net cash flow for the period after investing in the company's growth in CapEx for the business in M&A to continue transforming and repositioning ourselves for the future and in shareholder retribution amounted to EUR 7 million as compared to the negative EUR 9 million 1 year ago. Now looking at the chart on the right-hand side of the page, we see that we continue to maintain a very attractive free cash flow yield of 10%, taking into account these last 12 months, which makes the stock an extremely compelling investment proposition.

Turning now to Page 15. I would like to share with you the evolution of our total net debt, its main components being net financial position, deferred payments, IFRS 16 debt and treasury stock. The total net debt at the end of September reached EUR 756 million, that is EUR 39 million higher than 3 months ago. This increase is fundamentally driven by an organic growth investment. It is worth mentioning that this increase in debt has been absorbed by an even better performing business with a strong focus on cash generation that enables us to maintain a 2.1x leverage well below our internal 2.5x threshold and is at the lowest level since March 2020. In terms of our main debt maturities, we continue to see no significant changes and no important maturities are expected until 2026. I would as well like to underline that most of our debt portfolio is mainly at fixed rates and euro denominated.

With this, we finish our financial review and would like to conclude with our final remarks before opening the floor to the Q&A. These 9 months into 2022 clearly show a steady progress across all businesses. We are being 100% loyal to our performance transform strategy, and this is proving to be very beneficial. We can see that quarter after quarter, we are delivering results with a company that is tightly managed with a strong focus on transforming itself into the future and assuring we generate cash flow in the most effective manner, always having our shareholders in mind to maximize the value we generate for them.

Summarizing, sales in euro terms continue to improve with high growth rates in an inflationary environment, which will remain into the midterm as well as benefiting from a carefully designed and execute commercial strategy. Transformation continues to be one of our main priorities. New products already account for 24.7% of sales and have increased by 62.7% in comparable terms versus last year. We continue to build a business that is better positioned for today and most importantly, best prepared for the future. In this front, the acquisition of The Change Group is a very important landmark in opening ourselves into a promising new industry that will for sure fuel our transformation.

We never lose sight of profitability. All our actions have EBITDA in mind, and we continue to see significant increases in our relative margins having improved it by 250 basis points from 1 year ago. It is well worth underlying our absolute commitment to generating cash flow. And in these first 9 months, we reached a free cash flow of EUR 108 million. Half of those, EUR 54 million generated in the third quarter alone, while we've been financing a strong growth and being able to maintain our leverage at 2.1x. This financial discipline has enabled us to ratify our credit rating by S&P showing the appreciation of alter agencies to our financial management.

And last but not least, our continuous commitment to our ESG strategy. In this front, we have recently released our new code of ethics that pays a very special attention and prepares well our company with regards to the new and changing environment related to ESG standards and technology-driven behaviors. As well, I would like to share that 100% of the energy we consume in the Spain is green. An example of this strategy is the optimization of our flagship brands in Madrid through photovoltaic panels and improved lighting systems in order to reduce consumption. This initiative will serve its pilot experience to replicate similar energy efficiency initiatives in other countries and underscores our commitment to sustainability. As you can see, we are committed to manage our company in the most sustainable fashions, and we serve this is needed to be able to succeed in the future.

Thank you all for your attention, and we can open now the Q&A session.

[Operator]

[Operator Instructions] First question is from the line of Enrique Yaguez from Bestinver Securities.

[Enrique Yáguez Avilés, analyst]

I have 4 questions. The first one is if you could provide a specific time frame for closing the merger with Armaguard in Australia, any news on that. Secondly, regarding the acquisition of ChangeGroup, what contribution do you expecting profitability equities or in line with the group. Third, regarding the EUR 29 million quarter-on-quarter increase in the net debt associated with IFRS 16, what is the reason behind that? Because until now, it has been pretty smooth. And finally, if you could provide an outlook for Q4 in terms of revenues. Do you foresee the strong acceleration of previous quarters to continue? Or on the contrary, due to macro conditions, do you expect a meaningful deceleration.

[Miguel Ángel Bandrés Gutiérrez, executive]

We'll try to address the different questions one by one. On the first one on the time frame on Australia, the process is progressing. We are expecting a resolution from the anti-trust authorities for Q1 '23. So we are emerging that process. We are collaborating with the authorities with ACCC along the process, and we are confident that we have a solid case on that one. So we'll keep helping them during the process and we will need to wait some months until there's a final ruling money.

With regards to the second question about the ChangeGroup contribution, I would say that the margins of ChangeGroup are in line or slightly above our group margins as of today, and we'll start to see the contribution in more debt in Q4 because Q3 has been only partially consolidated, but you should be expecting that to be quite in line or slightly above.

Third question is on IFRS 16 debt. Most of the variation that you've seen in the quarter is related to the ChangeGroup acquisition. As you may think this is a business which is very much related on rental of retail spaces and therefore, has some IFRS 16 component into it. And another smaller portion of that has to do with the FX evolution of the existing -- already existing IFRS 16 debt.

And in terms of the outlook, I would say that for Q4 and full year '22 as a whole, I mean, we would be expecting to beat the consensus, the market consensus despite that has been already upgraded, but even with the upgrade included, we think that we will be beating the figures, and therefore, will be probably on the Capital Markets Day targets that we announced for 2023, and we will be probably meeting that 1 year in advance.

[Operator]

We'll now take our next question. This is from the line of Francisco Ruiz Martin from Exane BNP Paribas.

[Francisco Ruiz, analyst]

I have some 2 or 3 questions. The first one is regarding the ChangeGroup. I mean, following the other question of Enrique, if you could give us what is exactly in the contribution of the add-up contribution of this business because you had a previous business on the exchange as well. So you commented like around EUR 100 million run rate, but what is exactly the contribution and how much of the increase in debt comes from the initial payments on this? The second question is if you are concerned, you have seen some negative evolution for next year on this recession that we are starting to live mainly in Europe and are you concerned that probably there will be a reduction of the growth seen in this year? Or are you -- do you have any leading indicator on that. And last but not least, I mean, a follow-up on the net debt. So what do you expect the net debt to evolving in Q4? Because if you have already included ChangeGroup, can we see a significant reduction in free cash flow continues to be in the same line as Q3.

[Miguel Ángel Bandrés Gutiérrez, executive]

With regards to the first question on ChangeGroup, I mean in terms of continuous contribution, and you could be expecting on the top line, as we mentioned in the presentation, around EUR 100 million sales coming from this acquisition in terms of EBITDA, as we mentioned on the questions before, margin should be in line or slightly above. So you can put our margins on those EUR 100 million sales. And then in terms of debt that you were also asking most of the debt variation comes from the transaction. And that is the case, especially because of the structural fee, which is pretty much based on an earnout structure. And we have structured this transaction very much based on a long-term earn-out agreement with the vendors, which can last up to 7 years.

And that allows us to be fully aligned with the existing management and keep them total incentive on a business, which we are not experts seeing on this very first moment, but gives us total comfort that we are partnering with the best management in the industry. We think that this is a very positive transaction for us, I mean, ahead of the numbers that we just mentioned basically because we are capturing a wave of growth, significant growth in the industry as it is recovering very strongly post COVID.

From another point of view, I mean, we are entering into probably the most resilient piece of the cash business in the industry. But at the same time, it is bringing us an enormous opportunity for digitalization in that industry. And it also helps us balancing our geographic footprint as it is mainly focused in Europe itself, U.K., Nordics, some Central Europe and a bit less in Australia. And as we said, we are very confident that we are partnering with the best management team in the industry. So all in all, we are very, very happy about the transaction, and we think that it will be very successful for all parties involved.

In relation to the second question about the recession, we are not really seeing right now any signals of that recession in our activity and in the markets where we are. For 2023, we expect the growth trend that we are experiencing now to keep going. Of course, the comparable base, I mean, will be more demanding because we are performing very strongly in 2022. So in percent terms, we'll see what it translates into. But we definitely see so far that the same strong performance in the business keeps going ahead. And I would say that on a long-term basis, I mean, what we see is that remaining inflation going forward will probably be much higher than what it was pre-COVID because coming back to pre-COVID levels will probably be too hard to afford. I mean, for the economies where we operate and for the governments themselves. So despite it might be lowering based on the interest rates increases that we are seeing. We feel that the normalized level of inflation going forward will be higher than the pre-COVID 1.

And in terms of net debt, for Q4, you should expect some decrease of yield, not very dramatic because it's just 1 quarter ahead of us. And of course, we will expect to be generating cash flow, but the change should be gradual and not be very high just for 1 quarter. I mean it's something that should be happening quarter-on-quarter and Q4 should be the starting of that process itself.

[Francisco Ruiz, analyst]

Just one clarification. So we should expect EUR 100 million additional [Technical Difficulty] front change? Because if I understood well, this EUR 100 million is together with your resisting business.

[Miguel Ángel Bandrés Gutiérrez, executive]

With our existing business, it will be higher than the EUR 100 million, but our existing business is still an incipient phase. I mean, so it will be -- all together, it will be a bit more than EUR 100 million, but the bulk of it comes from this EUR 100 million from ChangeGroup.

[Operator]

We'll now take our next question. This is from the line of Enrique Parrondo from JB Capital.

[Enrique Parrondo, analyst]

Just one from my side. I was wondering what part of the close to 40% organic growth in LatAm in the third quarter is volume driven and what part is price driven? And just on this, I was wondering if you could comment whether pre-pandemic volumes have been recovered in the region or we're still a bit below?

[Miguel Ángel Bandrés Gutiérrez, executive]

In relation to the first question about the LatAm performance in Q3, you probably realized that the organic growth in Q3 in LatAm is an all-time high, and it's an absolute record. And the mix of it, which I understand is your question, is a bit more skewed towards volume than pricing. So it's quite balanced, but it's more volume than price. And in relation to the pre-pandemic volumes, we have several countries in all geographies, which are now exceeding the pre-COVID levels in terms of business performance. And so not only Latin America but also in Europe and Asia. We have examples of countries, several of them in all regions that are in that situation right now.

[Operator]

[Operator Instructions] And speakers, there are no further questions coming through. So I'll hand the conference back to you.

[Miguel Ángel Bandrés Gutiérrez, executive]

Great. Okay. So thank you all for taking part today in the conference call. Should you have any further queries, please do not hesitate to contact our Investor Relations team will remain available for you. And in any case, I hope to speak back again to all of you [Technical Difficulty] Goodbye.

[Operator]

Thank you. This does conclude the conference for today. Thank you for participating, and you may now disconnect.