Grupo LALA Reports Second Quarter 2019 Results
MEXICO CITY, July 24, 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 second quarter 2019. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.
Quarter Highlights:
- Comparable Net Sales increased 3.3% in constant currency and 1.5% in consolidated figures, driven by +3.9% from Mexico with flat sales in Brazil, and a 9.6% BRL depreciation
- Comparable EBITDA grew 14.4% YOY, to MXN $2,210m
- +130bps EBITDA margin expansion; the highest margin in the last six quarters, having all regions increasing margins
- Mexico reached a 13.6% EBITDA margin, a 10bps YOY and sequential improvement
- Brazil with a 7.8% EBITDA margin, mitigating high raw milk cost by anticipating price increase vs. competitors
- USA delivered highest EBITDA since business was acquired, with 2.8% margin
- Controlling Net Income expanded +44.6% YOY to MXN $536m, due to the strengthened Operating Income and optimized tax rate
- -290bps YOY Working Capital improvement, to 2.7% of sales
- 3.1x leverage ratio (pro forma of 2.9x including Itambé settlement paid on July 3, 2019)
The following chart provides an abridged Income Statement, in millions of pesos. The margin for each figure represents its ratio to net sales for the quarter ended on June 30, 2019 as compared to the same period in 2018. Net Sales and EBITDA information related to Q2'18 has been presented on "comparable" basis. Comparable Q2'18 figures will include the effect of IFRS 16 and the deconsolidation of Elopak.
MXN$ in millions |
Q2´18 |
% Sales |
Q2'19 |
% Sales |
Var. % |
Var. bps |
|
Net Sales |
18,596 (1) |
100% |
18,876 |
100% |
1.5% |
||
Gross Profit |
6,611 |
35.0% |
6,839 |
36.2% |
3.4% |
+120bps |
|
Operating Income |
1,311 |
6.9% |
1,452 |
7.7% |
10.8% |
+80bps |
|
EBITDA (2) |
1,932 (1) |
10.4% |
2,210 |
11.7% |
14.4% |
´+130bps |
|
Controlling Net Income |
371 |
2.0% |
536 |
2.8% |
44.6% |
+80bps |
|
(1) Comparable figures, including IFRS 16 adjustments and the deconsolidation of Elopak JV |
|||||||
(2) EBITDA is defined as operating income before depreciation and amortization |
|||||||
MESSAGE FROM MANAGEMENT
Mauricio Leyva, Grupo LALA's CEO, commented:
"The virtuous cycle is in place and starting to deliver results, albeit lower than expected topline growth in Q2. Productivity initiatives are fueling resources for our premiumization and value-added growth strategies in Mexico, allowing us to invest more in innovation and categories like premium milk and plant-based beverages. We have started to see signs of profitability recovery, as well as a strengthened working capital, setting the path to deleverage the business and increase value for our shareholders."
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/Earnings release Q2-19.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/Reporte Resultados 2T-19.pdf
CONFERENCE CALL
Thursday July 25, 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=135100
To access the replay service (7 days), please dial:
United States: +1 844 512 2921 (Toll-free)
International: +1 412 317 6671
PIN #: 13692093
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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