Grupo LALA Reports First Quarter 2020 Results

|Apr 20|magazine8 min read

MEXICO CITY, April 20, 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 first quarter 2020. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.

Quarter Highlights:

  • +5.1% YOY constant currency Branded Sales increase
  • 9.4% EBITDA margin; a 15.0% YOY decrease due to margin contraction in Mexico and Brazil
  • +250 bps sequential EBITDA margin recovery in Mexico
  • -53.8% YOY in Net Income due to lower Operating Profit in Mexico and Brazil
  • -270 bps Working Capital improvement to 0.3% of sales, driven by negative Working Capital in Mexico
  • Leverage ratio: 3.2x
  • COVID-19: All facilities continue uninterrupted production, increased cash position 4.4x to strengthen liquidity

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 March 31, 2020 as compared to the same period in 2019.

MXN$ in millions

Q1'19

% Sales

Q1'20

% Sales


Var. %

Var. bps

Branded Sales (1)

18,297


18,905



3.3%


Raw Materials and Others Sales

411


499



21.6%


Net Sales

18,707

100%

19,405

100%


3.7%


Gross Profit

6,619

35.4%

6,389

32.9%


(3.5%)

(250 bps)

Operating Income

1,455

7.8%

1,045

5.4%


(28.1%)

(240 bps)

EBITDA (2)

2,155

11.5%

1,831

9.4%


(15.0%)

(210 bps)

Net Income

560

3.0%

258

1.3%


(53.8%)

(170 bps)

(1)  Branded Sales exclude raw materials sales

(2)  EBITDA is defined as operating income before depreciation and amortization

MESSAGE FROM MANAGEMENT

Arquímedes Celis, Grupo LALA's CEO, commented:

"LALA's resilience to today's COVID-19 challenges underscores the strength of our brands, business and market position as important competitive advantages. LALA benefits from a guaranteed milk supply, proprietary refrigerated distribution network and an extensive market-leading brand portfolio of the important nutritious food staples currently in demand, while also addressing all market segments, demographics and price-points. The current situation is also aligned with our strategy of stabilizing operations and restoring profitability in Mexico, which ensures we are well positioned to serve our customers' increased needs and related opportunities in the market. Our balance sheet is solid and we have an experienced leadership team that will take action to help us not only weather this crisis, but continue to transform our business for the better."

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/2020/04/Earnings-release-Q120-v9.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/2020/04/Reporte-Resultados-1T20-v4.pdf

CONFERENCE CALL
Tuesday, April 21, 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=139023

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 #: 13701696

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

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