MEXICOCITY, July 24, 2024 /PRNewswire/ -- GenommaLab Internacional, S.A.B. de C.V. (BMV: LAB B) ("Genomma" or"the Company"), today announced its results for the second quarterof 2024. All figures included herein are stated in nominal Mexicanpesos and have been prepared in accordance with InternationalFinancial Reporting Standards (IFRS), unless otherwisem*ntioned.
Comments from our CEO, MarcoSparvieri
"We had a strong quarter, with a 6.4% Net Sales increase, a54% EPS increase to Ps. 0.63, and EBITDA margin expanding to 22.9%;a more than 180 basis-point increase due to our productivityinitiatives' continued significant progress. We saw steady growthin key markets and brands, and will continue to strengthen our corebrands while we focus on achieving Ps. 1,800 MM in annual costsavings by 2027."
Q2 2024 Financial Summary
The following table provides a summary of the Company's IncomeStatement, in millions of Mexican pesos.
Q2 2024 | % sales | Q2 2023 | % sales | % var | |
Net Sales | 4,651.5 | 100.0% | 4,370.5 | 100.0% | 6.4% |
Like-for-likeSales(1) | 5.2% | ||||
Gross Profit | 2,977.7 | 64.0% | 2,664.8 | 61.0% | 11.7% |
OperatingIncome | 983.3 | 21.1% | 871.1 | 19.9% | 12.9% |
EBITDA(2) | 1,065.8 | 22.9% | 920.2 | 21.1% | 15.8% |
Net Income | 631.6 | 13.6% | 417.4 | 9.6% | 51.3% |
EPS | 0.63 | 0.41 | 54.4% |
(1) Like-for-like("LFL") Sales are Net Sales expressed in constant currency andexcludes the hyperinflationary subsidiary |
(2) EBITDA defined asoperating income before depreciation and amortization |
Net sales:6.4% increase reflecting healthy growthacross regions, sales recovery in Argentina and a favorable FX environment forGenomma's ex-Mexico operations.78% of sales grew above inflation and 64% of sales maintained orincreased market share.
Like-for-like ("LFL") sales:when adjusted toconstant currency and excluding the hyperinflationary subsidiary,sales increased by 5.2%, reflecting healthy growth in six of ninecore categories.
EBITDA:reached a 22.9% margin; a 15.8% increasereflecting a significant 186 basis-point expansion due tomanufacturing cost efficiencies and company-wide productivityinitiatives.
Net income:51.3% increase due to a higher operatingincome, a favorable FX environment and the classification of theassociated affiliate as a "non-core asset available for sale"(IFRS-5).
EPS:Ps. 0.63 per share; a 54.4% increase reflectinghigher net income and the cancellation of 20 million shares duringthe second quarter 2024.
For a full version of Genomma Lab's Second Quarter 2024 EarningsRelease, please visit:https://inversionistas.genommalab.com/en/financial-information
CONFERENCE CALL INFORMATION
Genomma Lab will host a conference call on Thursday, July 25, 2024, to discuss these resultsat 1:00 p.m. Eastern Time /11:00 a.m. Mexico City Time.
To access the call, please register here.
After registration, please use the Zoom link provided to ensureoptimal access to the event webcast and to avoid difficultiesassociated with local carrier connections.
About
Genomma Lab Internacional, S.A.B. de C.V. is oneof the leading pharmaceutical and personal care products companiesin Mexico with an increasinginternational presence. Genomma Lab develops, sells and markets abroad range of premium branded products, many of which are leadersin the categories in which they compete in terms of sales andmarket share. Genomma Lab relies on the combination of a successfulnew product development process, a consumer-oriented marketing, abroad retail distribution network and a low-cost, highly flexibleoperating model. Genomma Lab's shares are listed on the MexicanStock Exchange under the ticker "LAB B" (Bloomberg:LABB:MM).
Note on Forward-Looking Statements
This report maycontain certain forward-looking statements and information relatingto the Company that reflect the current views and/or expectationsof the Company and its management with respect to its performance,business and future events. Forward looking statements include,without limitation, any statement that may predict, forecast,indicate or imply future results, performance or achievements, andmay contain words like "believe," "anticipate," "expect,""envisages," "will likely result," or any other words or phrases ofsimilar meaning. Such statements are subject to a number of risks,uncertainties and assumptions. We caution you that a number ofimportant factors could cause actual results to differ materiallyfrom the plans, objectives, expectations, estimates and intentionsexpressed in this presentation and in oral statements made byauthorized officers of the Company. Readers are cautioned not toplace undue reliance on these forward-looking statements, whichspeak only as of their dates. Risks and uncertainties include, butare not limited to: risks related to the impact of the COVID19global pandemic, such as the scope and duration of the outbreak,government actions and restrictive measures implemented inresponse, material delays, supply chain disruptions and otherimpacts to the business, or on the Company's ability to executebusiness continuity plans as a result of the COVID-19 pandemic,economic factors, such as interest rate and currency exchange ratefluctuations; competition, including technological advances, newproducts attained by competitors; challenges inherent in newproduct development; the ability of the Company to successfullyexecute strategic plans; the impact of business combinations anddivestitures; manufacturing difficulties or delays, internally orwithin the supply chain; significant adverse litigation orgovernment action, including related to product liability claims;changes to applicable laws and regulations, including tax laws;changes in behavior and spending patterns of purchasers of productsand services; financial instability of international economies andlegal systems and sovereign risk. A further list and descriptionsof these risks, uncertainties and other factors can be found withinthe Company's related filings with the Bolsa Mexicana de Valores.Any forward-looking statement made in this release speaks only asof the date of this release. The Company undertakes no obligationto update or revise any forward-looking statements, whether as aresult of new information, future events or otherwise.
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SOURCE Genomma Lab Internacional, S.A.B. de C.V.
