Genomma Lab Internacional Reports Second Quarter 2018 Results
MEXICO CITY, July 25, 2018 /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, 2018. All figures included herein are stated in nominal Mexican pesos and have been prepared in accordance with International Financial Reporting Standards (IFRS).
The following table provides an abridged Income Statement, in millions of Mexican pesos. The margin for each figure represents its ratio to net sales and the percentage change from the second quarter 2018, as compared with the same period in 2017:
| Q2-2018 |
% Sales |
Q2-2017 |
% Sales |
Var. % |
|
| Net Sales |
3,099.4 |
100.0% |
2,910.6 |
100.0% |
+6.5% |
| Gross Profit |
2,031.8 |
65.6% |
2,002.6 |
68.8% |
+1.5% |
| Operating Income |
620.4 |
20.0% |
570.4 |
19.6% |
+8.8% |
| EBITDA(2) |
637.8 |
20.6% |
589.6 |
20.3% |
+8.2% |
| Net Income(3) |
299.1 |
9.6% |
273.2 |
9.4% |
+9.5% |
| (2) EBITDA is defined as operating income before depreciation and amortization. |
| (3) Net Income of Majority Shareholders. |
Highlights
- Q2-2018 Sales increased by Ps. 188.8 million, a +6.5% year-on-year growth
- EBITDA margin for Q2-2018 reached 20.6%, a 30 bps year-on-year expansion
- Q2-2018 SGM&A(1) closed at 45.8%, a 280 bps year-on-year improvement
- Free Cash Flow of Ps. 80.3 million and Net Debt reduction of Ps. 40.4 million quarter on quarter, despite Ps 312.0 million investments in:- New Plant- Brands acquisition - Share buy-backs
- Acquisition of BUFFERIN®, Cheracol D®, and Rose Milk® brands; expands OTC offering in the U.S. market
| (1) Selling, General, Marketing and Administrative Expenses |
Comments from the CEO
Mr. Máximo Juda, Chief Executive Officer, commented: "Our second quarter results demonstrate continued progress towards our strategic priorities. Entering into the final phase of our cost containment and cash generation program, we are turning our focus to growth and innovation. The 6.5% year on year increase in topline is a reflection of our strong sales performance this quarter despite challenging macroeconomic headwinds in Argentina and Brazil. We have made initial progress in our product innovation program, which will be running at full speed by the fourth quarter of 2019. During this quarter, innovation contributed to our topline growth, with particularly outstanding performance by our Asepxia brand in all countries, Suerox®️ in Mexico and Tafirol®️ in Argentina."
Mr. Juda continued: "As part of our turn-around process, we further improved our operational efficiency this quarter. The construction of our manufacturing plant is on schedule. This facility will contribute to reduce our COGS line, to deliver enhanced shareholder value once the OTC plant begins operation this fall and the PC plant ramps-up during the first half of 2019."
For a full version of Genomma Lab Internacional's First Quarter 2018 Earnings Release, please visit: Genomma Lab Internacional
CONFERENCE CALL INFORMATION:
Genomma Lab will host a conference call on Thursday, July 26, 2018, to discuss these results at 11:00 a.m. Eastern Time / 10:00 Central Time (Mexico City Time).
To access the call, please dial:
+1 877-407-8031 (From within the U.S.)
+1 201-689-8031 (From outside the U.S.)
There will also be a live Audio Webcast of the event at:
http://www.investorcalendar.com/event/34219
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. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Genomma Lab Internacional, S.A.B de C.V.
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