In This Article:
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Gross Margin: 64%, a 7.1-point improvement over the past 1.5 years.
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EBITDA Margin: 22.9%, a 186 basis points increase year-on-year.
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Net Income: Grew 50.1% to MXN631 million.
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Earnings Per Share (EPS): Increased by 53.1% to MXN0.63.
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Revenue Growth: Sales grew by 6.4% in Mexican pesos; like-for-like sales up 5.8%.
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Cash Conversion Cycle: Extended to 122 days including Argentina, 105 days excluding Argentina.
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Net Sales: Reached MXN4.652 million, a 6.4% year-on-year increase.
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Gross Profit: Increased by 11.7% to MXN2.978 million.
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SG&A Expenses: Represented 41.2% for the quarter.
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Mexico Operations Net Sales: Increased by 5.7% year-on-year to almost MXN2.2 billion.
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Mexico EBITDA Margin: Closed at 22.6%, a 320 basis points increase.
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US EBITDA Margin: Closed at 13.7%, a 720 basis points year-on-year expansion.
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Latin America EBITDA Margin: Reached 25.2%.
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Leverage Ratio: 1.4x net debt to EBITDA.
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Cash and Equivalents: More than MXN1.2 billion.
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Dividend Payment: MXN200 million or MXN0.20 per share, a 2% increase relative to the first quarter of 2024.
Release Date: July 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Genomma Lab Internacional SAB de CV (GNMLF) reported a strong gross margin of 64%, marking a 7.1-point improvement over the past 1.5 years.
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EBITDA margin increased to 22.9%, a 186 basis points rise compared to the previous year.
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Net income grew by 50.1% to MXN631 million, with EPS increasing by 53.1% to MXN0.63.
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The company completed strategic M&As, including acquisitions in the US and Argentina, expected to enhance growth in core brands.
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Genomma Lab Internacional SAB de CV (GNMLF) achieved 41% of its MXN1,800 million productivity savings target as of Q2 2024.
Negative Points
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The cash conversion cycle extended to 122 days, influenced by hyperinflationary accounting in Argentina and reduced supplier days.
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Challenges were noted in the Skincare category, with Asepxia and Cicatricure brands facing mixed performance.
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Macroeconomic headwinds, including the strengthening of the Mexican peso, impacted results in some regions.
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Sales in Chile and Peru faced headwinds, with Chile experiencing a consumption contraction and Peru affected by government policy changes.
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The company is still navigating a highly volatile macro environment, impacting figures in countries like Chile and Brazil.
Q & A Highlights
Q: Can you provide more details on the challenges faced in Chile and Peru, and your expectations for improvement? A: In Chile, we are experiencing a consumption contraction in most categories, but it's easing off, and we expect improvement by next quarter. In Peru, a government policy change impacted OTC sales, but we anticipate a turnaround as we reach our base next quarter.