Genomma Lab Internacional (LABB) Q1 2025 earnings summary

Executive summary

• Announced 10 targeted growth projects funded by excess cash and profits, aiming for low-teens sales growth midterm and maintaining a 24% average EBITDA margin.

• Initiatives include expanding distribution, relaunching and repositioning products, and building digital and commercial capabilities.

• Net sales grew 5% year-over-year to MXN 4,406 million, with 86% of sales outpacing inflation and 72% maintaining or increasing market share.

• EBITDA increased 12% to MXN 1,048 million, with margin expanding 149 bps to 23.8% due to productivity gains.

• Net income rose 15.4% to MXN 499 million; EPS increased 17.7% to $0.50 per share, aided by share cancellations.

Financial highlights

• Consolidated net sales reached MXN 4,406 million, up 5% year-over-year; 86% of sales outpaced inflation and 72% maintained or gained market share.

• Gross profit was MXN 2,767 million (62.8% of net sales), up 1% year-over-year.

• EBITDA was MXN 1,048 million (23.8% margin), up 12% year-over-year.

• Free cash flow for the trailing 12 months was MXN 2,678 million, up 62% year-over-year.

• Operating income rose 12.1% to MXN 961 million, representing 21.8% of sales.

Outlook and guidance

• Near-term sales expected to grow in the low to mid single digits due to macroeconomic uncertainty, but midterm outlook targets low-teens sales growth as projects gain traction.

• EBITDA margin expected to remain stable around 24%.

• Gross margin guidance set at 63–65% on average, with quarterly fluctuations due to product mix.