Genomma Lab Internacional Announces Results for the Fourth Quarter and Full Year 2024
MEXICO CITY, Feb. 26, 2025 /PRNewswire/ -- Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B) ("Genomma" or "the Company"), today announced its results for the fourth quarter and full year ended December 31, 2024. All figures included herein are stated in nominal Mexican pesos and have been prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise mentioned.
Comments from Genomma's CEO, Marco Sparvieri
"Genomma delivered strong Q4 and full-year results, with Net Sales increasing 32.4% and 13.0%, respectively. EBITDA margin expanded to 24.0% in Q4 and 23.3% for the year, rising 351 and 235 basis points, driven by productivity gains. Full-year EPS doubled to 2.14 while Free Cash Flow hit a record Ps. 2.8 billion, a 36% increase. We achieved steady growth across key markets and brands, with notable profitability gains in 2024. Looking ahead, we will strengthen core brands by reinvesting savings from productivity gains as we pursue our cost savings target of Ps. 1.8 billion by 2027."
Q4 2024 and Full Year Financial Summary
The following table provides a summary of the Company's Income Statement, in millions of Mexican pesos.
Q4 2024 | % sales | Q4 2023 | % sales | var % | 2024 | % sales | 2023 | % sales | var % | |
Net Sales | 4,665.6 | 100.0 % | 3,525.2 | 100.0 % | 32.4 % | 18,606.9 | 100.0 % | 16,467.1 | 100.0 % | 13.0 % |
Like-for-like Sales(1) | 3.5 % | 5.9 % | ||||||||
Gross Profit | 2,941.7 | 63.1 % | 2,112.7 | 59.9 % | 39.2 % | 11,931.0 | 64.1 % | 10,083.2 | 61.2 % | 18.3 % |
Operating Income | 1,013.1 | 21.7 % | 699.1 | 19.8 % | 44.9 % | 3,982.5 | 21.4 % | 3,259.7 | 19.8 % | 22.2 % |
EBITDA(2) | 1,121.6 | 24.0 % | 723.8 | 20.5 % | 55.0 % | 4,330.3 | 23.3 % | 3,444.9 | 20.9 % | 25.7 % |
Net Income | 473.5 | 10.1 % | - 61.2 | na | na | 2,137.3 | 11.5 % | 1,084.9 | 6.6 % | 97.0 % |
EPS | 0.47 | - 0.06 | na | 2.14 | 1.06 | 100.9 % |
(1) Like-for-like ("LFL") Sales are Net Sales expressed in constant currency and excludes the hyperinflationary subsidiary (2) EBITDA defined as operating income before depreciation and amortization. |
The following review compares results of the reported quarter and full year with the same periods of last year:
Net sales: +32.4% increase in Q4, driven by strong growth in the US, Mexico, Brazil, Colombia and Central America, coupled with a sales recovery in Argentina and favorable FX for ex-Mexico operations. Full-year 2024 sales expanded by +13.0%, with 85% of sales outpacing inflation and 68% maintaining or increasing market share.
Like-for-like ("LFL") sales: +3.5% increase in Q4 and +5.9% for the full year 2024 when adjusting sales to constant currency and excluding the hyperinflationary subsidiary, reflecting healthy growth in six of its nine core categories.
EBITDA: Reached a 24.0% margin in Q4 and a 23.3% margin for the full year 2024; a +55.0% and 25.7% increase, respectively, reflecting a significant 351 and 235 basis-point expansion resulting from manufacturing cost efficiencies and company-wide cost containment and productivity initiatives.
Net income: Reached Ps. 473.5 million in Q4, a meaningful increase from a negative base caused by the Argentine peso depreciation in Q4 2023. The 97.0% full-year 2024 increase reflects higher operating income, a favorable FX environment and the reclassification of the associated affiliate as a "non-core asset available for sale" (IFRS-5).
EPS: Reached Ps. 0.47 in Q4, driven by higher net income. Full-year 2024 EPS doubled to Ps. 2.14 due to higher income and the 20 million share cancellation executed during 2024.
CONFERENCE CALL INFORMATION
Date: Thursday, February 27, 2025
Time: 11:00 a.m. Mexico City Time
Webcast Registration:Genomma's FY & Q4 2024 Earnings Call
After registration, please use the Zoom link provided to ensure optimal access to the event webcast and to avoid difficulties associated with local carrier connections.
Sell-side Analyst Coverage
As of February 26, 2025 "LABB" is covered by 9 sell-side analysts at the following brokerages: Actinver Casa de Bolsa, Banco Itaú BBA, BBVA Bancomer, BTG Pactual US Capital, GBM Grupo Bursátil Mexicano, Grupo Financiero Banorte, J.P. Morgan Securities, Monex Grupo Financiero and Vector Casa de Bolsa.
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. Risks and uncertainties include, but are not limited to: risks related to the impact of the COVID19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays, supply chain disruptions and other impacts to the business, or on the Company's ability to execute business continuity plans as a result of the COVID-19 pandemic, economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products attained by competitors; challenges inherent in new product development; the ability of the Company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws; changes in behavior and spending patterns of purchasers of products and services; financial instability of international economies and legal systems and sovereign risk. A further list and descriptions of these risks, uncertainties and other factors can be found within the Company's related filings with the Bolsa Mexicana de Valores. Any forward-looking statement made in this release speaks only as of the date of this release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Genomma Lab Internacional, S.A.B. de C.V.