Genomma Lab Internacional Reports Third Quarter 2018 Results

MEXICO CITY, Oct. 24, 2018/PRNewswire/ -- Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B) ("Genomma Lab" or "the Company"), today announced its results for the third quarter ended September 30, 2018. All figures included herein are stated in nominal Mexican pesos and have been prepared in accordance with International Financial Reporting Standards (IFRS).

The following table provides an abridged Income Statement, in millions of Mexican pesos. The margin for each figure represents its ratio to net sales and the percentage change in the third quarter 2018 as compared with the same period in 2017:

Highlights

• Net Sales reached Ps. 9.15 billion, for the first nine months ended September 30, 2018
• Net Revenues grew +4.9% as expressed in local currency for Q3 2018
• EBITDA margin for the first nine months of 2018 closed at 21.2%
• SGM&A⁽¹⁾ for the first nine months ended September 30, 2018 closed at 46.0%, a 130 bps year-on-year improvement
• Free Cash Flow of Ps. 97.9 million by September 30, 2018
• Capex Investments for the first nine months of 2018 reached Ps. 839.4 million allocated to:
• New Plant
• Brand acquisitions
• Ps. 121.1 million invested in Share Buy-backs year-to-date.

Comments from the CEO

Mr. Jorge Brake, Chief Executive Officer, commented: "I am very pleased to take the helm at Genomma Lab, a company with leading OTC and Personal Care brands present in millions of homes throughout Mexico, Latin America and increasingly in the U.S. Over the last 45 days I have visited most of our markets and met with experienced, agile and engaged leaders who are well-positioned to work together to launch our Company into its next phase of growth.  Important steps have been taken over the last few years to initiate the Company's transformational process. Based on what I have seen so far, it is clear to me that today we have a strong platform in place to fully capitalize on our Company's potential: a very strong team, a highly effective GTM model, a product innovation pipeline which will expand our presence in key consumer segments, a right-sized and efficient operating structure, an improved financial model and structure, and a strong plan to fully optimize our supply chain to now drive profitable near-term growth."

Mr. Brake continued: "During my first 100 days leading Genomma, I have committed to developing a five-year strategic plan focusing primarily on accelerating our top-line growth. So far, I have seen clear opportunities to leverage and expand our presence in the current categories we manage in those countries in which we operate, while adding new adjacent categories with considerable growth potential. Importantly, innovation will be a key component of this strategy. We will also review our pricing strategy and assess opportunities to expand our footprint within our markets via the right portfolio of products. I am encouraged by the success achieved with the turnaround process to date, which focused primarily on cost efficiency. We now will fine-tune Genomma's business model to establish a solid performance for the years to come. Genomma Lab is well positioned for the future, driven by our Company's ability to capitalize on our many strengths and competitive advantages. I am looking forward to optimizing shareholder value building from our solid foundation, through the achievement of our long term top-line growth plan."         

For a full version of Genomma Lab Internacional's First Quarter 2018 Earnings Release, please visit: Genomma Lab Internacional

CONFERENCE CALL INFORMATION:

Genomma Lab will host a conference call on Thursday, October 25, 2018, to discuss these results at 12:00 p.m. Eastern Time / 11:00 a.m. Central Time (Mexico City Time).

To access the call, please dial:
+1 877-407-8031 (From within the U.S.)
+1 201-689-8031 (From outside the U.S.)

There will also be a live Audio Webcast of the event at:
http://www.investorcalendar.com/event/38498

Replay will be available until November 1, 2018
Please dial:
+1 877-481-4010 (U.S.)
+1 919-882-2331 (International)
Replay ID: 38498

About Genomma
Genomma Lab Internacional, S.A.B. de C.V. is one of the leading pharmaceutical and personal care products companies in Mexico with an increasing international presence. Genomma Lab develops, sells and markets a broad range of premium branded products, many of which are leaders in the categories in which they compete in terms of sales and market share. Genomma Lab relies on the combination of a successful new product development process, a consumer-oriented marketing, a broad retail distribution network and a low-cost, highly flexible operating model.

Genomma Lab's shares are listed on the Mexican Stock Exchange under the ticker "LAB B" (Bloomberg: LABB:MM).

Note on Forward-Looking Statements
This report may contain certain forward-looking statements and information relating to the Company that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like "believe," "anticipate," "expect," "envisages," "will likely result," or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Genomma Lab Internacional, S.A.B. de C.V.