Genomma Lab Internacional (LABB) Q4 2024 earnings summary

Executive summary

• Net sales grew 32.4% in Q4 and 13% for the full year 2024, with strong performance in Mexico, Argentina, Brazil, the U.S., Colombia, and Central America, aided by favorable FX and a recovery in Argentina.

• EBITDA margin expanded to 24% in Q4 and 23.3% for the year, with EBITDA up 55% in Q4 and 26% for the year, driven by productivity gains and cost containment.

• Net income increased 97% for the year, with EPS doubling to Ps. 2.14 in 2024, supported by a 20 million share cancellation.

• 68% of sales maintained or gained market share, and 85% of sales outpaced inflation.

• Free cash flow hit a record Ps. 2.8 billion, up 36% year-over-year.

Financial highlights

• Consolidated net sales for 2024 reached Ps. 18,606.9 million, up 13% year-over-year; Q4 net sales were Ps. 4,665.6 million, up 32.4% year-over-year.

• Q4 EBITDA was Ps. 1,121.6 million (+55% YoY, margin 24%); FY EBITDA was Ps. 4,330.3 million (+25.7% YoY, margin 23.3%).

• Net income for 2024 was Ps. 2,137.3 million, up 97% year-over-year.

• Free cash flow for FY 2024 was Ps. 2,793.5 million (+35.5% YoY), converting 15% of net sales into cash.

• Q4 EPS was Ps. 0.47; FY EPS was Ps. 2.14 (+100.9% YoY).

Outlook and guidance

• Expect to sustain an average EBITDA margin of 24%, with potential to reach 24%-25% by year-end.

• Plans to reinvest productivity savings to strengthen core brands and pursue a cost savings target of Ps. 1.8 billion by 2027.

• Suerox inventories expected to decrease after temporary build-up for high season.

• Continued quarterly dividend payments intended.

• Growth initiatives underway to accelerate top-line growth beyond historical rates, but no specific revenue guidance provided.