Genomma Lab Internacional Announces Results for the First Quarter 2025

MEXICO CITY, April 30, 2025 /PRNewswire/ -- Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B) ("Genomma" or "the Company"), today announced its results for the first quarter of 2025. 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 sales grew 5.0% in Q1 2025 while sell-out grew in the low teens. The sell-in / sell-out gap is mainly due to the U.S. and Argentina. In the U.S., a weaker-than-expected flu season and share loss in cough & cold impacted sell-in. In Argentina, lower inflation led customers to reduce inventories to improve productivity, reversing prior stockpiling behavior typical in a hyperinflationary environment. EBITDA grew 12.0%, with margin expanding 149 bps to 23.8%, driven by productivity gains. EPS increased 17.7% to Ps. 0.50 and free cash flow grew 62.4% to Ps. 2,678 million over the trailing twelve months. In conclusion, Genomma delivered strong EBITDA increase and an even stronger EPS growth."

Mr. Sparvieri added, "Looking forward, Genomma targets low-teen sales growth in the mid-term by reinvesting excess profits and cash in ten specific projects, while sustaining a 24% average EBITDA margin."

Q1 2025 Financial Summary
The following table provides a summary of the Company's Income Statement, in millions of Mexican pesos.

Net sales: +5.0% increase reflecting strong Suerox sales growth across markets, primarily offset by a weaker-than-expected flu season and related market share loss of Genomma cough & cold brands in the US market. 86% of sales outpaced inflation and 72% maintained or increased market share.

Like-for-like ("LFL") sales: -2.1% decrease when adjusting sales to constant currency and excluding the hyperinflationary subsidiary, reflecting weaker US market performance.

EBITDA: reached a 23.8% margin; a +12.0% increase reflecting a significant 149 basis-point expansion resulting from manufacturing cost efficiencies and company-wide productivity initiatives.

Net income: +15.4% increase due to a higher operating income and a favorable FX environment during the quarter.

EPS: Ps. 0.50 per share; a +17.7% increase reflecting higher net income and the cancellation of 20 million shares during the second quarter 2024.

CONFERENCE CALL INFORMATION

Date: Friday, May 2, 2025

Time: 11:00 a.m. Mexico City Time

Webcast Registration: Genomma's Q1 2025 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 April 30, 2025 "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.

Contact Information:

Christianne Ibanez
Daniel Suárez
Tel: +52 (55) 5081-0075
[email protected]

Barbara Cano, InspIR Group
Tel: +1 (646) 452-2334
[email protected]

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