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Genomma Lab Internacional (LABB) investor relations material
Genomma Lab Internacional Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Second quarter sales grew 0.5% year-over-year, or 5.5% excluding Argentina, with profitability remaining solid despite FX headwinds and a weak beverage season in Mexico.
EBITDA increased 4.4% year-over-year, with an 89 basis point margin expansion to 23.8%, driven by productivity initiatives.
Pro forma net income rose 16.6% year-over-year when excluding noncash hyperinflationary and FX effects from Argentina; reported net income declined 43.8% due to these non-cash items.
Free cash flow increased 64.6% to 2.7 billion in the trailing twelve months, supported by a seven-day improvement in the cash conversion cycle.
67% of sales maintained or gained market share, and 75% of sales outpaced inflation.
Financial highlights
Consolidated net sales reached 4.68 billion, up 0.5% year-over-year; excluding Argentina, sales grew 5.5%.
EBITDA margin expanded to 23.8%, up 89 basis points, reflecting cost efficiencies and favorable sales mix.
Net income declined 43.8% year-over-year due to noncash FX and inflationary losses in Argentina; pro forma net income and EPS both grew 16.6%.
Free cash flow conversion reached 14.4% of trailing twelve-month net sales.
Proforma EPS: Ps. 0.67 (+16.6%); reported EPS: Ps. 0.35 (-43.8%).
Outlook and guidance
Full-year 2025 sales growth expected to be near zero due to ongoing FX headwinds and hyperinflationary adjustments.
Q3 projected to be the weakest quarter with a single-digit contraction; gradual growth expected in 2026 as new routes and product relaunches ramp up.
Targeting a 24% average EBITDA margin for the year and mid-term double-digit sales growth.
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