#Mexico #Mexico City #earnings report #Q1 2025 #Genomma Lab

Genomma Lab Internacional's Financial Update for Q1 2025

Genomma Lab Internacional, S.A.B. de C.V. recently shared its financial performance for the first quarter of 2025, illustrating a robust outcome bolstered by increased sales and operational efficiency. The company reported a 5.0% growth in net sales, totaling 4.41 billion Mexican pesos, compared to 4.20 billion pesos in the same period last year. This solid performance underscores Genomma's resilience despite market challenges.

CEO Remarks

CEO Marco Sparvieri noted the company's growth was significantly influenced by a 12.0% increase in EBITDA, with margins expanding 149 basis points, reaching 23.8%. The growth in EBITDA is attributed to enhanced productivity across operations. Moreover, the earnings per share (EPS) saw a substantial 17.7% increase, climbing to Ps. 0.50.

Despite the overall positive trajectory, certain regional challenges were flagged. In the United States, a lackluster flu season contributed to lower sales in cough and cold products, while in Argentina, a stable economy prompted retailers to reassess their inventory levels. This shift has replaced the previous trend of stockpiling seen in more volatile economic climates.

Financial Highlights

• - Net Sales: 4,406.3 million pesos (an increase of 5.0% YoY)
• - Gross Profit Margin: 62.8%
• - Operating Income: 21.8% margin, reaching 960.6 million pesos
• - Net Income: Increased by 15.4%, totaling 498.7 million pesos
• - Free Cash Flow: Rose by an impressive 62.4%, totaling 2,678 million pesos over the past year.

The reported 1.0% increase in gross profit highlights Genomma's strategic advantage and commitment to maintaining product quality while driving costs down, characterizing its proactive approach in a competitive market.

Forward Outlook

Looking ahead, Genomma aims for sustained growth, targeting a low double-digit increase in sales in the medium term. The company plans to strategically reinvest profits into ten defined projects while aspiring to uphold an average EBITDA margin of 24%. Such initiatives are designed not only to fortify its market standing but also to enhance shareholder value amidst an evolving business landscape.

Conclusion

As Genomma Lab Internacional continues to navigate market fluctuations and seize growth opportunities, its Q1 2025 results reflect a brand gaining momentum in the pharmaceutical and personal care sectors. The company remains optimistic about its promising trajectory as it leverages its strength in product development and consumer marketing strategies to build upon its solid foundation in the industry.

Conference Call Information

Genomma will hold a conference call on May 2, 2025, at 11:00 a.m. Mexico City Time to discuss these results in detail and address questions from analysts and investors.

Through strategic insights and operational efficiencies, Genomma Lab is positioning itself for continued success, demonstrating its capacity to adapt and thrive in a dynamic marketplace.