Genomma Lab Internacional Announces Results for the Third Quarter 2024

MEXICO CITY, Oct. 23, 2024 /PRNewswire/ — Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B) (“Genomma” or “the Company”), today announced its results for the second quarter of 2024. All figures included herein are stated in nominal Mexican pesos and have been prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise mentioned.

Comments from Genomma’s CEO, Marco Sparvieri

“Genomma delivered a strong third quarter, with a 15.9% Net Sales increase, an 82% EPS increase to Ps. 0.66, and EBITDA margin expanding to 23.7% for the quarter; a 245 basis-point increase driven by our productivity initiatives’ continued progress. Lower CAPEX coupled with an increased EBITDA margin resulted in a record-high free cash flow of Ps. 2.4 billion for the trailing twelve months, reflecting a 68% increase. We saw steady growth in Genomma’s key markets and brands, and will continue to strengthen our core brands while we focus on achieving Ps. 1.8 billion in annual cost savings by 2027.”

Q3 2024 Financial Summary

The following table provides a summary of the Company’s Income Statement, in millions of Mexican pesos.

Net sales: +15.9% increase reflecting strong sales growth in the US, Mexico, Brazil and Central America coupled with sales recovery in Argentina and a favorable FX environment for Genomma’s ex-Mexico operations. 92% of sales grew above inflation and 73% of sales maintained or increased market share.

Like-for-like (“LFL”) sales: +5.6% increase when adjusting sales to constant currency and excluding the hyperinflationary subsidiary, reflecting healthy growth in six of its nine core categories. 

EBITDA: reached a 23.7% margin; a +29.3% increase reflecting a significant 245 basis-point expansion due to manufacturing cost efficiencies and company-wide productivity initiatives.

Net income: +78.1% increase due to a higher operating income, a favorable FX environment and the classification of the associated affiliate as a “non-core asset available for sale” (IFRS-5).

EPS: Ps. 0.66 per share; a +81.6% increase reflecting higher net income and the cancellation of 20 million shares during the second quarter 2024.

CONFERENCE CALL INFORMATION

Date: Thursday, October 24, 2024

Time: 1:00 p.m. ET | 11:00 a.m. Mexico City Time

Webcast Registration: Genomma’s Q3 2024 Earnings Call

After registration, please use the Zoom link provided to ensure optimal access to the event webcast and to avoid difficulties associated with local carrier connections.

Sell-side Analyst Coverage
As of October 23, 2024 “LABB” is covered by 9 sell-side analysts at the following brokerages: Actinver Casa de Bolsa, Banco Itaú BBA, BBVA Bancomer, BTG Pactual US Capital, GBM Grupo Bursátil Mexicano, Grupo Financiero Banorte, J.P. Morgan Securities, Monex Grupo Financiero and Vector Casa de Bolsa.

About
Genomma Lab Internacional, S.A.B. de C.V. is one of the leading pharmaceutical and personal care products companies in Mexico with an increasing international presence. Genomma Lab develops, sells and markets a broad range of premium branded products, many of which are leaders in the categories in which they compete in terms of sales and market share. Genomma Lab relies on the combination of a successful new product development process, a consumer-oriented marketing, a broad retail distribution network and a low-cost, highly flexible operating model. Genomma Lab’s shares are listed on the Mexican Stock Exchange under the ticker “LAB B” (Bloomberg: LABB:MM).

Note on Forward-Looking Statements
This report may contain certain forward-looking statements and information relating to the Company that reflect the current views and/or expectations of 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, and may contain words like “believe,” “anticipate,” “expect,” “envisages,” “will likely result,” or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Risks and uncertainties include, but are not limited to: risks related to the impact of the COVID19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays, supply chain disruptions and other impacts to the business, or on the Company’s ability to execute business continuity plans as a result of the COVID-19 pandemic, economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products attained by competitors; challenges inherent in new product development; the ability of the Company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; significant adverse litigation or government 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 products and services; financial instability of international economies and legal systems and sovereign risk. A further list and descriptions of these risks, uncertainties and other factors can be found within the Company’s related filings with the Bolsa Mexicana de Valores. Any forward-looking statement made in this release speaks only as of the date of this release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
For the three months ended September 30, 2024 and 2023

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SOURCE Genomma Lab Internacional, S.A.B. de C.V.