Grupo LALA Reports First Quarter 2019 Results

MEXICO CITY, April 29, 2019 /PRNewswire/ -- Grupo LALA, S.A.B. de C.V., a Mexican Company focused on healthy and nutritious foods, ("LALA") (BMV: LALA), today reported results for the first quarter 2019. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.

Quarter Highlights:

• Net sales increased 6.1% in comparable constant currency, or 3.9% in Mexican Pesos
• Pricing strategy successfully executed in Mexico, Brazil and US
• YoY comparable EBITDA grew 2.9%, achieving +10 bps of sequential improvement
• Margin expansion in line with 2019 Plan
• Mexico comparable net sales increased by 5.3%, achieving a 13.5% EBITDA margin
• Brazil net sales increased 13.0% in BRL, with a 7.6% EBITDA margin, affected by a 25% increase in milk prices
• US delivered its highest EBITDA since the acquisition of the business, reaching a margin of 2.0%
• Controlling Net income expanded 17.1%, to MXN $560m, due to the strengthened and streamlining of operations
• CAPEX in line with Full Year guidance
• Continued Working Capital improvement in Q1'19
• 2019 results were impacted by the implementation of IFRS 16 and the deconsolidation of LALA's Elopak Joint Venture due to the adoption of Circular Única de Auditores Externos (CUAE) – new External Auditor Regulations

The following chart provides "reported" and "proforma" net sales and EBITDA, in millions of pesos. The margin for each figure represents its ratio to net sales for the quarter ended March 31, 2019 as compared to the same period in 2018. The chart below clarifies this quarter's unique comparison of Q1 2018 proforma results which include the implementation of IFRS 16 and Q1 2019 proforma results which exclude the deconsolidation of LALA's Elopak Joint Venture.

MESSAGE FROM MANAGEMENT

Mauricio Leyva, Grupo LALA's CEO, commented:

"Positive advancement towards the priorities we defined to drive Grupo LALA's virtuous cycle has started to be reflected in our first quarter 2019 results. We have identified areas of future value creation through our Revenue Growth Management initiative, have been executing on our Premiumization Strategy and launched LALA Mexico's Food Service business unit, an important growth driver for the future. Our team is aligned with our "Big Five" KPIs to drive shareholder value. While we have much work ahead to realign the Company to our new growth strategy, the talent we have in place and the plan we are successfully implementing will continue to achieve our short-term and long-term objectives."

Please click on the following link for a PDF file containing the full text of the press release: https://lala.com.mx/pdf/Earning_Final_en.pdf

Please click on the following link for a PDF file containing the full text of the press release in Spanish: https://lala.com.mx/pdf/Earning_Final_es.pdf

CONFERENCE CALL
Tuesday April 30, 2019 2019 at 11:00am EST / 10:00am CST
Led by: Mauricio Leyva (CEO), Alberto Arellano (CFO) and David González (IRO)
Webcast: Grupo LALA Presentation

To participate, please dial-in ten minutes ahead of the scheduled time.
Mexico: 01 800 522 0034
United States: +1 877 705 6003 (Toll-free)
International: +1 201 493 6725
http://public.viavid.com/index.php?id=133887

To access the replay service (7 days), please dial:
United States: +1 844 512 2921 (Toll-free)
International: +1 412 317 6671
PIN #: 13689410

CONTACT – INVESTOR RELATIONS
David González Peláez, Elisa Manzato and Elías Rangel
Tel.: +52 55 9177-5900
[email protected]

SOURCE Grupo LALA, S.A.B. de C.V.

Related Links

http://www.grupolala.com