Grupo LALA Reports Second Quarter 2021 Results

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

Jul 26, 2021, 19:14 ET

MEXICO CITY, July 26, 2021 /PRNewswire/ -- Grupo LALA, S.A.B. de C.V., a Mexican Company focused on the healthy food industry, ("LALA") (BMV: LALAB), today reported results for the second quarter of 2021. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.

Quarter Highlights:

  • +3.7% YOY increase in constant currency sales driven by Mexico
  • 9.1% consolidated EBITDA margin; -100 bps YOY. 9.5% Adjusted(1) EBITDA margin, -60 bps YOY
  • 12% EBITDA margin for Mexico; +10 bps YOY expansion
  • $160m in Net Income; 0.8% net margin, -130 bps YOY. $262m Adjusted(1) Net Income, 1.3% net margin and
  • -80 bps YOY
  • -0.7% Consolidated Working Capital; a 120 bps YOY improvement
  • Leverage ratio: reported 3.0x 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 second quarter ended on June 30, 2021 as compared to the same period in 2020.

MXN$ in millions

Q2'20

% Sales

Q2'21

% Sales

Var. %

Var. bps

Net Sales

20,048

100%

20,162

100%

0.6%

Gross Profit

6,854

34.2%

6,566

32.6%

(4.2%)

(160 bps)

Operating Income

1,228

6.1%

958

4.8%

(21.9%)

(130 bps)

EBITDA(2)

2,028

10.1%

1,826(1)

9.1%

(10.0%)

(100 bps)

Net Income

418

2.1%

160

0.8%

(61.6%)

(130 bps)


(1)

Adjusted EBITDA and Net Income exclude BRL 36.6m of one-offs recognized as part of the Anápolis plant closure and corporate restructure in Brazil

(2)

EBITDA is defined as operating income before depreciation and amortization

MESSAGE FROM MANAGEMENT

Arquímedes Celis, Grupo LALA's CEO, commented:

"In a complex operating environment still subject to an unpredictable health pandemic and inflationary pressures, our results this quarter reflect a commitment to improving our performance in LALA's core markets. Consumers' enduring preference for our brands and broad product portfolio supported stable sales relative to last year's quarter, which benefited from a pantry-loading tailwind. Although LALA is experiencing inflation pressures from a wide range of raw materials - like most sectors of the economy - our Mexico business benefited from the structural changes we made last year. Similarly, we continue strengthening the foundations of our CAM and US operations. As the Brazilian market and the inflationary dynamics there have been particularly challenging, we have also taken steps to improve the profitability of that business."

He continued, "These actions reflect our unwavering focus on creating value for all LALA stakeholders through operational and financial discipline in every market."

Please click on the following link for a PDF file containing the full text of the press release: Earnings Release Q2'21

Please click on the following link for a PDF file containing the full text of the press release in Spanish: Reporte de Resultados 2T'21

CONFERENCE CALL
Tuesday April 27, 2021, at 11:00am EST / 10:00am CST
Led by: Arquímedes Celis (CEO), Alberto Arellano (CFO) and Daniel Espinosa (IRO)
Webcast: http://public.viavid.com/index.php?id=145481

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 #: 13721080

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

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