Grupo LALA Reports Fourth Quarter And Full Year 2018 Results
MEXICO CITY, Feb. 25, 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 fourth quarter 2018. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.
Quarter Highlights:
- Net sales increased 9.9%, to 19,516 million pesos and increased 4.1% based on comparable figures
- YoY reported and comparable EBITDA decreased 9.5% and 3.3%, respectively, due to inflation and energy costs
- Mexico sales rose 4.5%, and progressively recovered EBITDA margin by 90 bps vs. previous immediate quarter
- Brazil net sales increased 10% in BRL terms, while EBITDA margin expanded to 8.5%, excluding one-offs, a 150 bps improvement
- US sales grew 10.3% in MXN terms, reaching positive EBITDA for first time since LALA's acquisition of this business
- Net Income expanded 82.9% to MXN $875 m, due to differences in taxes paid in last year's quarter and an optimized fiscal result
The following chart provides an abridged Income Statement, in millions of pesos. The margin for each figure represents its ratio to net sales for the quarter and the year ended December 31, 2018, as compared to the same period in 2017:
As reported |
Quarterly |
Yearly |
||||||||
MXN$ in millions |
Q4'17 |
% Sales |
Q4'18 |
% Sales |
Var. % |
2017 |
2018 |
Var. % |
||
Net Sales |
17,751 |
100.0% |
19,516 |
100.0% |
9.9% |
62,540 |
75,419 |
20.6% |
||
Gross Profit |
6,474 |
36.5% |
6,872 |
35.2% |
6.2% |
23,378 |
26,510 |
13.4% |
||
Operating Income |
1,859 |
10.5% |
1,510 |
7.7% |
(18.8)% |
6,175 |
5,411 |
(12.4)% |
||
EBITDA(2) |
2,360 |
13.3% |
2,137 |
10.9% |
(9.5)% |
8,045 |
7,781 |
(3.3)% |
||
Net Income |
479 |
2.7% |
875 |
4.5% |
82.9% |
3,338 |
1,994 |
(40.3)% |
||
Comparable(1) |
Quarterly |
Yearly |
||||||||
MXN$ in millions |
Q4'17 |
% Sales |
Q4'18 |
% Sales |
Var. % |
2017 |
2018 |
Var. % |
||
Net Sales |
15,403 |
100.0% |
16,042 |
100.0% |
4.1% |
60,192 |
62,655 |
4.1% |
||
Gross Profit |
5,748 |
37.3% |
5,877 |
36.6% |
2.2% |
22,652 |
22,784 |
0.6% |
||
Operating Income |
1,526 |
9.9% |
1,374 |
8.6% |
(10.0)% |
5,841 |
4,885 |
(16.4)% |
||
EBITDA(2) |
1,981 |
12.9% |
1,915 |
11.9% |
(3.3)% |
7,666 |
6,982 |
(8.9)% |
||
Net Income |
405 |
2.6% |
737 |
4.6% |
82.1% |
3,264 |
1,548 |
(52.6)% |
||
(1) Comparable is defined as the year-over-year comparison excluding the effects of LALA's Q4 2017 acquisition of Vigor Alimentos in Brazil
(2) EBITDA is defined as operating income before depreciation and amortization
MESSAGE FROM MANAGEMENT
Mauricio Leyva, Grupo LALA's CEO, commented:
"We are focusing and restructuring ourselves for growth, enabling this evolution by our already started Cultural and Talent Transformation, concentrating our efforts on creating value behind Revenue Management, Innovation and Zero-Based Budgeting to drive a Virtuous Cycle. We have initiated new strategic and digital alliances that will reinforce our short- and long-term growth strategy. During the fourth quarter, we started seeing some progress on margin recovery in LALA's Key Markets, Mexico and Brazil, delivered break-even EBITDA results for the first time since the acquisition in the US, a material upswing in Net Income and produced an overall improvement in our Working Capital indicators at the Group level."
Please click on the following link for a PDF file containing the full text of the press release:
http://www.lala.com.mx/pdf/docs/Grupo_Lala_Earnings_release_4Q_2018.pdf
Please click on the following link for a PDF file containing the full text of the press release in Spanish:
http://www.lala.com.mx/pdf/docs/Comunicado_de_resultados_de_Grupo_Lala_4T_2018.pdf
CONFERENCE CALL INVITE
Tuesday, February 26, 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=133121
To access the replay service (2 days), please dial:
United States: +1 844 512 2921 (Toll-free)
International: +1 412 317 6671
PIN #: 13687160
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.
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