#Mexico #Mexico City #financial results #Genomma Lab #EBITDA margin

Genomma Lab Internacional Reports Third Quarter Results

On October 22, 2025, Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B) presented its financial outcomes for the third quarter of the year, showing a challenging landscape for the company.

Overview of Financial Performance

According to CEO Marco Sparvieri, Genomma faced a 2.9% decline in like-for-like sales, mainly attributed to a lackluster summer affecting beverage sales in central Mexico and a broader downturn in consumption. Despite facing pressure on top-line figures, the company showcased a commendable 23.7% EBITDA margin, reflecting solid business fundamentals and effective cost management strategies across the board.

Genomma has recently undertaken a productivity initiative aimed at generating MXN 3 billion in savings by 2026, with MXN 1.1 billion already secured this year. These resources are being reinvested into the business to catalyze growth through innovative product developments, expanded distribution, competitive pricing, and enhanced e-commerce strategies, while maintaining an average EBITDA margin of 24%.

Detailed Financial Highlights

In reviewing the detailed financial outcomes:

• - Net Sales decreased by 12.8% to MXN 4,441.4 million compared to MXN 5,092.5 million in Q3 2024.
• - Gross Profit, as a percentage of sales, also reduced from 64.3% to 63.9%, indicating a 13.3% fall in absolute terms to MXN 2,836.2 million.
• - Operating Income fell by 14.3%, showing the adverse impact of the consumption stagnancy.
• - Net Income saw a significant decrease of 34.2% to MXN 434.1 million, primarily due to foreign exchange and inflation variances impacting Argentine operations.

With the backdrop of a tough economic environment, changes in consumer behavior, and a fluctuating currency exchange rate, Genomma's proactive strategies highlight its resilience and commitment to navigate through these hurdles effectively.

Company Outlook

Genomma Lab is strategically positioning itself to regain growth momentum, targeting a resurgence in the first half of 2026 after what is anticipated to be a demanding finish to 2025. The company continues to emphasize its dedication to strengthening its operational framework and expanding its international footprint.

Conference Call Information

The details for the upcoming conference call scheduled for October 23, 2025, at 1:00 p.m. ET will see participation from key executives including CEO Marco Sparvieri and CFO Antonio Zamora, who will delve deeper into the company's performance and future strategies.

In summary, Genomma Lab Internacional’s quarterly results reflect both the challenges presented by current market conditions and the proactive steps being taken to ensure sustainable growth moving forward. With solid leadership and strategic initiatives, the company seeks to emerge from this cycle with renewed strength.