Genomma Lab Internacional Reports Second Quarter 2020 Result

|Jul 22|magazine17 min read

MEXICO CITY, July 22, 2020 /PRNewswire/ -- Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B) ("Genomma Lab" or "the Company"), today announced its results for the second quarter ended June 30, 2020. All figures included herein are stated in nominal Mexican pesos and have been prepared in accordance with International Financial Reporting Standards (IFRS).

The following tables provide an abridged Income Statement, in millions of Mexican pesos. The margin for each figure represents its ratio to net sales and the percentage change in the second quarter 2020 as compared with the same period in 2019:


Q2 2020

 % Sales

Q2 2019

% Sales

Var. %

Net Sales

3,636.3

100%

3,277.5

100.0%

10.9%

Gross Profit

2,178.4

59.9%

2,087.9

63.7%

4.3%

Operating Income

714.9

19.7%

633.3

19.3%

12.9%

EBITDA(1)

754.9

20.8%

667.5

20.4%

13.1%

Net Income

360.8

9.9%

243.2

7.4%

48.4%


1)     EBITDA defined as operating income before depreciation and amortization

Highlights

  • Q2-2020 Sales increased by Ps. 358.8 million; +10.9% year-on-year
  • Q2-2020 EBITDA grew 13.1% with a 20.8% margin; +40 bps year-on-year margin expansion
  • Q2-2020 Net Income increased by Ps. 117.6 million; +48.4% year-on-year
  • Net Debt to EBITDA ratio closed at 1.9x at the end of Q2-2020
  • Capex Investments for the six months ended June 30, 2020 reached Ps. 219.1 million. 

Comments from the CEO

Mr. Jorge Brake, Chief Executive Officer, commented: "While Genomma Lab faced an exceptionally challenging second quarter 2020, we continued to embrace the crisis mindset to transform headwinds into opportunities for our Company, supported by all four pillars of our 2020 growth and expansion strategy. Innovation was an important driver during the quarter with continued line extensions, new categories and product launches. We also expanded our reach and deepened our presence within key retail outlets, particularly in the traditional channel, while leveraging our strong presence in the many e-commerce platforms vital to consumers' access to our products in the current environment. The strength of our organization and of our corporate culture have been critical to our success during this period of volatility, and one of the reasons we have delivered outstanding execution within today's unprecedented market environment- reflected in robust growth throughout the regions in which we are present. This is further evidence of our continued evolution and transformation, I am confident we will emerge from the current crisis as an even stronger Company."

He added: "I'm honored that LAB was one of the 29 companies recently included within the new S&P/BMV Total Mexico ESG Index. Further, we remained focused on social responsibility during the quarter, donating more than 950,000 Genomma products to local communities in need and 10,000 meals to front-line medical personnel as part of Genomma's Feeding the Heroes campaign in Mexico. This reaffirms our commitment to social and environmental responsibility, and to continuously delivering value for all of our stakeholders."

For a full version of Genomma Lab Internacional's Second Quarter 2020 Earnings Release, please visit: https://inversionistas.genommalab.com/en/financial-information/

CONFERENCE CALL INFORMATION:

Genomma Lab will host a conference call on Thursday, July 23, 2020 to discuss these results at 11:00 a.m. Eastern Time / 10:00 Central Time (Mexico City Time).

To access the call, please dial:
+1 877-407-0784 (From within the U.S.)
+1 201-689-8560 (From outside the U.S.)

If you would prefer to receive a call rather than dialing in, please register via the following link. Please use this option 10-15 minutes prior to conference call start time: Call Me Link

Participants who do not wish to be interrupted to have their information gathered may have provider dial out to them by clicking on the above link, filling in the information, and pressing the green phone button at the bottom. The phone number provided will be automatically called and connected to the conference without any interruption to the participant. (Please note: Participants will be joined directly to the conference and will hear hold music until the call begins. No confirmation message will be played when joined.)

Webcast:
There will also be a live Audio Webcast of the event at: Second Quarter 2020 Results

Replay:
+1 844-512-2921 (U.S.)
+1 412-317-6671 (International)
Replay ID: 13706813
Available until July 30, 2020 

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 COVID-19 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.

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