IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 Consumption trends An eventual inability on the part of the Group to adequately read con- sumer preferences or customer’s needs, to adapt to behaviour chang- es, or to create or implement innovative and attractive concepts and offers in a timely and profitable way, can have a negative effect on its Operational Results, financial situation, and outlook. On the other hand, from the point of view of competition, the Group’s ability to de- velop and provide higher value products in competitive conditions is critical, in the current context of the restaurant sector. These develop- ments all depend on the evolution of behaviour, that the Group can find difficult to predict and follow. However, the Group maintains a close relationship with some of the main brands in the world, strives to constantly follow consumption trends in different markets, takes part in national and international sector innovation forums, and has its own resources permanently allocated to the development of new products, both for its own brands and to complement the standard offer of the brands it represents. Commodity prices According to the World Bank, most commodity prices (namely grains, oils and other food products) are expected to continue to fall in 2024, in continuity with the general trend seen in 2023 (-9% compared to 2022), despite a number of trade restrictions, the non-renewal of the Black Sea Grains Agreement, or the El Niño phenomenon. The expec- tation is for a further reduction of 2 per cent in 2024 and 3 per cent in 2025, taking into account a continued improvement in the perfor- mance of the global supply chain. In Europe, particularly, the effects of climate change have been felt in terms of the quality and availability of some products, but a reduction in the costs of energy, fertilisers and food products, combined with good prospects in the markets (espe- cially exports outside the European area) and a stable reduction in inflation figures, has helped to balance price levels. In terms of poultry markets, the outlook is for moderate market ex- 67