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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.
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Q2 2025 earnings summary24 Jul, 2025

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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Frequently asked questions

Genomma Lab Internacional S.A.B. de C.V. specializes in pharmaceutical and personal care products, with a growing international presence. The company is recognized for developing, selling, and marketing a wide array of premium branded products, many of which hold leading positions in their respective categories in terms of sales and market share. Genomma Lab is distinguished by its successful new product development process, consumer-oriented marketing strategies, extensive retail distribution network, and a low-cost, highly flexible operating model. The company is headquartered in Mexico City, Mexico, and its shares are listed on the BMV.

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