Grupo LALA Reports Second Quarter 2020 Results

MEXICO CITY, July 20, 2020 /PRNewswire/ -- Grupo LALA, S.A.B. de C.V., a Mexican Company focused on healthy and nutritious foods, ("LALA") (BMV: LALAB), today reported results for the second quarter 2020. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.

Quarter Highlights:

• Proven consumer staples business resilience, brand loyalty and extensive portfolio targeting all consumer segments, socioeconomic demographics and "consumption moments" protect margins and preserve liquidity
• +5.2% YOY constant currency Branded Sales driven by volume
• 10.1% EBITDA margin; -8.2% YOY due to margin contraction in Mexico and Brazil
• +90 bps sequential EBITDA margin recovery in Mexico
• -22.0% YOY in Net Income due to lower Operating Profit in Mexico and Brazil
• -220 bps Working Capital improvement to 0.5% of sales, driven by negative Working Capital in Mexico
• Leverage ratio: 3.4x

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 second quarter ended June 30, 2020 as compared to the same period in 2019.

MESSAGE FROM MANAGEMENT

Arquímedes Celis, Grupo LALA's CEO, commented:

"The current pandemic has underscored the unique resilience and adaptability of LALA's business model, with robust demand for LALA products- particularly our high-quality staples. As our second quarter performance demonstrates, LALA's healthy supply chain, broad portfolio reach, channel access and our ability to quickly adapt to capture the changing consumer trends and purchasing habits have enabled strong results in an exceptionally challenging environment."

He continued, "During the quarter we successfully executed on our strategic priorities as defined prior to the crisis; streamlining and rationalizing operations while increasing shareholder value. We are committed to our principles and remain focused on the safety of our employees, suppliers, clients and consumers- with increased support to vulnerable communities affected by COVID-19. While we know the balance of the year will be impacted by uncertain circumstances and ongoing challenges, we're confident in the strength of our underlying foundation and performance, the dedication of our team and the response from customers as they recognize our commitment to serving them. I have great confidence in the future of our business and in our ability to deliver the changes needed to drive sustainable growth."

Please click on the following link for a PDF file containing the full text of the press release: http://www.lala.com.mx/wp-content/uploads/2020/04/Earnings release Q2'20 v7.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/wp-content/uploads/2020/04/Reporte Resultados 2T'20 v3.pdf

CONFERENCE CALL
Tuesday, July 21, 2020 at 11:00am EST / 10:00am CST
Led by: Arquímedes Celis (CEO), Alberto Arellano (CFO) and David González (IRO)
Webcast: http://public.viavid.com/index.php?id=140533

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

To access the replay service (7 days), please dial:
United States: +1 844 512 2921 (Toll-free)
International: +1 412 317 6671
PIN #: 13706224

CONTACT – INVESTOR RELATIONS
David González Peláez and Elías Rangel    
Tel.: +52 55 5814 - 7124
[email protected]

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

Related Links

https://www.lala.com.mx