Grupo LALA Reports Fourth Quarter 2020 Results

News provided by

Grupo LALA, S.A.B. de C.V.

Feb 22, 2021, 18:15 ET

MEXICO CITY, Feb. 22, 2021 /PRNewswire/ -- Grupo LALA, S.A.B. de C.V., a Mexican Company focused on healthy and nutritious foods, ("LALA") (BMV: LALAB), today reported results for the fourth quarter and full year 2020. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.

Quarter Highlights:

  • Strengthened operations and financial discipline, coupled with business resilience and flexibility, resulted in continued Mexico margin stability and a stronger financial position
  • +10.0% YOY constant currency Sales growth driven by Mexico and Brazil
  • 13.0% reported EBITDA margin for Mexico, +450 bps YOY expansion
  • One-time impacts from Central America operations
  • $616m in normalized (1) Net Income, +300 bps net margin improvement YOY
  • -0.8% Consolidated Working Capital to Sales; a 140 bps YOY decrease driven by improvements in all regions
  • Leverage ratio: reported 3.1x Net Debt / EBITDA

The following chart provides an abridged Income Statement, in millions of pesos. The margin for each figure represents its ratio to net sales for the quarter and the year ended December 31, 2020 as compared to the same period in 2019. Operating Income, EBITDA and Net Income information related has been presented on a "normalized" basis (1).

MXN$ in millions

Q4'19

% Sales

Q4'20

% Sales

Var. %

FY'19

% Sales

FY'20

% Sales

Var. %

Net Sales

19,217

100%

20,654

100%

7.5%

75,784

100%

80,831

100%

6.7%

Gross Profit

6,463

33.6%

7,011

33.9%

8.5%

26,608

35.1%

27,501

34.0%

3.4%

Operating Income (1)

615

3.2%

1,380

6.7%

124.5%

5,029

6.6%

5,144

6.4%

2.3%

EBITDA (1)

1,429

7.4%

2,221

10.8%

55.4%

8,100

10.7%

8,335

10.3%

2.9%

Net Income (1)

3

0.0%

616

3.0%

22,343%

1,739

2.3%

1,889

2.3%

8.6%


(1)

Normalized excludes: Q4'20 CR Closure and NIC Impairment, Q3'20 MX one-time tax expense, Q2'20 US accrual cancellation, Q1'20 BR tax benefit, and Q4'19 BR tax benefit

MESSAGE FROM MANAGEMENT

Arquímedes Celis, Grupo LALA's CEO, commented:

"We´ve lived through a year of unprecedented circumstances since I rejoined LALA - a year which underscored the resilience, flexibility and adaptability of our team and our business. Our employee and consumers' health and well-being remain our priority while we further build out our strategy to ensure our Company prevails through the pandemic and emerges optimally positioned for the future. Despite significant headwinds, we delivered strong results against our stated priorities and initial objectives. Our successful Mexico business turnaround has resulted in a stabilized, leaner and substantially more viable operation."

He continued, "While we took bold steps to strengthen the profitability of our Mexico operations, we simultaneously made difficult decisions to ensure our Central America business is aligned with our expectations and value potential, based on our strategic priorities of focusing on core markets, delivering financial discipline, and achieving profitable and sustainable growth. This will further drive our decisions in the year ahead, as we navigate towards to a post-pandemic economy and nimbly adapt to capitalize on evolving trends. As we begin 2021, our Company is now stronger and better positioned to turn to the next phase to build sustainable value for all LALA stakeholders."

Please click on the following link for a PDF file containing the full text of the press release:
http://www.lala.com.mx/en/wp-content/uploads/sites/9/2021/02/Earnings-Release-Q420-v8.pdf

Please click on the following link for a PDF file containing the full text of the press release in Spanish:
http://www.lala.com.mx/wp-content/uploads/2021/02/Reporte-Resultados-4T20-v4.pdf

CONFERENCE CALL
Tuesday February 23, 2021, at 11:00am EST / 10:00am CST
Led by: Arquímedes Celis (CEO), Alberto Arellano (CFO) and David González (IRO)
Webcast: http://public.viavid.com/index.php?id=143144

To participate, please dial-in ten minutes ahead of the scheduled time.
Mexico: 01 800 522 0034
United States: +1 877 705 6003 (Toll-free)
International: +1 201 493 6725

To access the replay service (7 days), please dial:
United States: +1 844 512 2921 (Toll-free)
International: +1 412 317 6671
PIN #: 13715420

SOURCE Grupo LALA, S.A.B. de C.V.

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