In the first quarter of this year we have seen how, far from easing after 2021, inflation has become even steeper due to the new challenges arising in the wake of the Russian invasion of Ukraine. Although the Ebro group has no operations in those countries, the collateral effects are very strong and we are coming up against higher extraordinary costs as a result of: (i) new waves of inflation in raw and auxiliary materials, transport, energy and labour costs; and (ii) the transport strike in Spain over the higher fuel costs. Against this backdrop, our latest estimates point to cost inflation for this year of €234.4 million, on top of the inflation already suffered in 2020 and 2021.
But in spite of all, we have achieved positive results thanks to the soundness of our brands, a strong, highly diversified supply chain and the business consistency of our Group. We place our trust in these strengths to weather this complicated situation with certain guarantees.