Grupo LALA Reports Fourth Quarter and Full-year 2019 Results

USA - English

• Latin America - español

MEXICO CITY, Feb. 24, 2020 /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 2019. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.

Quarter Highlights:

• Management change: Arquímedes Celis serving as Grupo LALA's CEO
• +2.0% Q4'19 and +3.9% FY'19 constant currency Branded Sales
• 8.3% Q4'19 EBITDA margin; a -27.5% comparable YOY decrease due to margin contraction in Mexico resulting from overinvestment and disruptions to operations
• 10.9% FY'19 EBITDA margin, a +3.0% comparable YOY increase
• -86.5% Q4'19 and -3.0% FY'19 YOY Controlling Net Income due to lower operating profit in Mexico
• 180 bps WC improvement to 0.6% of sales, driven by negative WC in Mexico
• Leverage ratio: 3.0x at year-end

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 on December 31, 2019 as compared to the same period in 2018. Net Sales and EBITDA information related to Q4'18 and FY'18 has been presented on "comparable" basis. Comparable Q4'18 and FY'18 figures include the effect of IFRS 16 and the deconsolidation of Elopak.

(1)  Branded Sales exclude raw materials sales
(2)  Comparable figures, including IFRS 16 adjustments and the deconsolidation of Elopak JV
(3)  EBITDA is defined as operating income before depreciation and amortization

MESSAGE FROM MANAGEMENT

Arquímedes Celis, Grupo LALA's CEO, commented:
"While our Company and industry currently face challenging consumer environments in many key markets, opportunities to drive profitable growth clearly exist. Effective execution of our strategy will enable us to leverage the strength of LALA's diverse market-leading brand portfolio and our dominant refrigerated distribution network, to strengthen our distinct competitive advantages, with the aim of increasing market share and expanding margins. Most important, to meaningfully increase shareholder value we will be restoring profit levels at LALA's Mexico business. We are confident in our ability to achieve this near-term objective by capturing these opportunities and leveraging the culture of innovation for which LALA is best known."

Please click on the following link for a PDF file containing the full text of the press release:
http://www.lala.com.mx/wp-content/uploads/2020/02/Earnings-release-Q419-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/2020/02/Reporte-Resultados-4T19-v3.pdf

CONFERENCE CALL
Tuesday, February 24, 2020 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=137875

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 #: 13698568

CONTACT – INVESTOR RELATIONS
David González Peláez and Elías Rangel
Tel.: +52 55 5814 - 7192
[email protected]

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

Related Links

http://www.grupolala.com

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