Genomma Lab Internacional (LABB) investor relations material

Executive summary

• Q3 net sales rose 1.3% as Latin America growth and Mexico’s continuing recovery offset U.S. weakness; net income increased 18.6% to MXN 514.9m, supported by lower financing costs and favorable FX.

• Mexico sell-out returned to growth, market share held or improved across business units, and new-product innovation supported stronger sell-out among customers carrying the product.

• EBITDA margin was 21.0%, down 271 bps, amid increased promotional and commercial investment; net margin expanded 168 bps to 11.4%.

Financial highlights

• Q3 net sales were MXN 4,497.6m, up 1.3%; gross profit was MXN 2,762.1m, down 2.6%, and gross margin declined to 61.4% from 63.9%.

• Operating income was MXN 863.6m, down 10.8%; EBITDA was MXN 944.9m, down 10.3%, with a 21.0% margin versus 23.7%.

• Net income rose 18.6% to MXN 514.9m; EPS increased 18.6% to MXN 0.51.

• 9M net sales declined 3.2% to MXN 13,085.3m; EBITDA fell 11.0% to MXN 2,859.8m, while net income rose 7.5% to MXN 1,384.1m.

• Excluding IAS 29 and IAS 21 effects, Q3 net sales declined 6.2%, EBITDA fell 18.8%, and net income increased 20.2% YoY.

Outlook and guidance

• Q4 cash conversion cycle is expected to decline to ~140 days as Mexico winter inventory sells through and Argentina’s non-cash accounting effect normalizes.

• Brazil sell-in is expected to normalize in Q1 2027 after customers reduce inventories ahead of consumption tax reform; winter inventory is expected to sell through in Q4 and Q1.

• Consolidated EBITDA margin is expected to gravitate toward 23%–24%; Mexico margin is expected to exceed 20% and move closer to 27% next year.

• Gradual U.S. recovery is expected as the commercial footprint and distribution model are realigned; Mexico launches and investment aim to convert improving sell-out into sustained sales growth.

• December 3 Investor Day in New York is planned to present the operating model, strategy, execution commitments and AI platform.