Genomma Lab Internacional (LABB) Q3 2026 earnings summary

Executive summary

• Q3 net sales grew 1.3% YoY as Latin America growth and Mexico’s continued recovery offset a steep U.S. decline; net income rose 18.6% on lower financing costs and a favorable FX result.

• Sell-out returned to growth in Mexico, market share held or improved across business units, and innovation supported 39% sell-out growth among customers carrying the new product.

Financial highlights

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

• Q3 operating income was MXN 863.6 million, down 10.8%; EBITDA was MXN 944.9 million, down 10.3%, with a 21.0% margin versus 23.7%.

• Q3 net income rose 18.6% to MXN 514.9 million; EPS increased 18.6% to MXN 0.51.

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

• 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 2026 cash conversion cycle is expected to decline to ~140 days, down ~25 days, as Mexican winter inventory sells through and Argentina’s non-cash accounting effect normalizes.

• Brazil sell-in is expected to normalize in 1Q27 after customers’ inventory reductions ahead of the consumption tax reform.

• Winter-season inventory is expected to normalize as products ship to customers; Q4 2026 and Q1 2027 launches include Cough & Cold products.

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