Genomma Lab Internacional (LABB) Q1 2025 earnings summary

Executive summary

• Announced 10 targeted growth projects to accelerate sales, focusing on key categories and capabilities, with disciplined capital deployment for sustainable, profitable growth.

• Net sales grew 5.0% year-over-year to MXN $4,406 million, with 86% of sales outpacing inflation and 72% maintaining or increasing market share.

• EBITDA increased 12% year-over-year to MXN $1,048 million, with margin expanding 149 bps to 23.8% due to productivity gains.

• Net income rose 15.4% to MXN $499 million, and EPS increased 17.7% to $0.55, aided by share cancellation.

• Free cash flow grew 62.4% to MXN $2,678 million over the trailing twelve months.

Financial highlights

• Consolidated net sales reached MXN $4,406 million, up 5% year-over-year.

• Gross profit was MXN $2,767 million (62.8% of net sales), up 1%.

• EBITDA was MXN $1,048 million with a 23.8% margin, up 12% and 149 bps year-over-year.

• Operating income rose 12.1% to MXN $961 million, representing 21.8% of sales.

• Like-for-like sales (constant currency, excluding hyperinflationary subsidiary) decreased 2.1%.

Outlook and guidance

• Near-term sales expected to grow in the low to mid single digits due to macroeconomic uncertainty.

• Midterm sales growth targeted in the low teens as growth projects gain traction, with management aiming to sustain a 24% average EBITDA margin.

• Gross margin guidance set at 63%-65% on average, with quarterly fluctuations.