In This Article:
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Revenue Growth: Sales increased by 15.9% year-over-year.
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Gross Margin: Improved by 184 basis points to 64.3%.
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EBITDA Margin: Expanded by 245 basis points to 23.7%.
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Net Income: Increased by 78.1%.
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Earnings Per Share (EPS): Grew by 81.6%.
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Cash Conversion Cycle: 117 days, adjusted to 95 days for inflationary accounting in Argentina.
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Cash Flow Generation: Reached MXN2,404 million, a 68.1% increase over the past 12 months.
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Consolidated Net Sales: MXN5,093 million, a 16% year-on-year increase.
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Mexico Operations Sales: Increased by 13% to MXN2.4 billion.
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US Sales Growth: Increased by 12% in USD terms and 25.8% in Mexican Pesos.
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Latin America Sales Growth: Increased by 17% in Mexican Peso terms.
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Argentina Sales Growth: Increased by 59% in Mexican Peso terms.
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Financial Leverage: Reduced to 1.2 times EBITDA.
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Free Cash Flow: Increased by 68% year-on-year.
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Dividend Payment: MXN200 million or 20 Mexican cents per share.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sales increased by 15.9%, driven by strong performance in major markets such as Mexico, Brazil, Argentina, and the US.
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Gross margin improved by 184 basis points, reaching 64.3%, indicating successful productivity initiatives and manufacturing efficiencies.
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EBITDA expanded by 245 basis points to 23.7%, reflecting effective cost management and operational improvements.
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Net income surged by 78.1%, with earnings per share growing by 81.6%, showcasing strong financial performance.
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Cash flow generation reached a record high of MXN2,404 million, representing a 68.1% increase, highlighting robust cash management.
Negative Points
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Challenges persist in the skincare category, with expectations to resolve issues by Q2 2025.
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Blades and razors face issues related to Celine, although sellout remains healthy in Mexico.
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Headwinds were encountered in Peru and Chile, impacting overall regional performance.
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Receivables increased by seven days year over year, and days payable outstanding decreased by seven days, indicating potential cash flow management challenges.
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Forex was a headwind in Argentina and Brazil, affecting financial results in these regions.
Q & A Highlights
Q: Can you share your thoughts on the growth prospects for Suerox outside of Mexico, especially in the US and Latin America? A: We have completed the expansion of Suerox in Latin America, and early results are optimistic. In Chile, we have achieved almost a 20% market share. We expect similar success in Argentina, Brazil, Colombia, and Central America. In the US, where we've been present for 3-4 years, growth is promising, and we have strong plans for next year.