Grupo LALA Reports First Quarter 2021 Results

MEXICO CITY, April 26, 2021 /PRNewswire/ — Grupo LALA, S.A.B. de C.V., a Mexican Company focused on healthy and nutritious foods,…

MEXICO CITY, April 26, 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 first quarter of 2021. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.

Quarter Highlights:

  • +5.7% YOY increase in constant currency sales driven by Mexico and Brazil
  • 10.5% consolidated EBITDA margin; +110 bps YOY improvement
  • 12.8% reported EBITDA margin for Mexico; +180 bps YOY increase
  • $519 m in Net Income; +130 bps net margin improvement YOY
  • -0.8% Consolidated Working Capital; a -110 bps YOY improvement
  • Leverage ratio: reported 3.0x Net Debt / EBITDA
  • ESG Operating Committee created

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, 2021 as compared to the same period in 2020.

MXN$ in millions

Q1’20

% Sales

Q1’21

% Sales


Var. %

Var. bps

Net Sales

19,405

100%

20,043

100%


3.3%


Gross Profit

6,389

32.9%

6,681

33.3%


4.6%

40 bps

Operating Income

1,045

5.4%

1,322

6.6%


26.4%

120 bps

EBITDA(1)

1,831

9.4%

2,103

10.5%


14.9%

110 bps

Net Income

258

1.3%

519

2.6%


100.8%

130 bps

(1)

EBITDA is defined as operating income before depreciation and amortization.

MESSAGE FROM MANAGEMENT

Arquímedes Celis, Grupo LALA’s CEO, commented:

«We began the year with continued strong performance despite COVID headwinds in certain markets, underscoring the particular resilience of LALA’s Mexico business to drive growth, profitability, and enable us to further deleverage. Our differentiated results prove the strength of our business model, the value of our products and brands, and our capabilities as a company, reflected in sustained improvement in operational and financial metrics on a consolidated basis. The breadth and reach of our portfolio differentiate LALA, enabling us to swiftly leverage our omnichannel access to capitalize on ever-evolving consumer behaviors and preferences – particularly at-home categories. As the world gradually transitions to a post-COVID era – with each region progressing at its own pace – the successful execution of our strategies will continue to drive long-term sustainable growth. Further, we remain focused on safeguarding our employees and partners to ensure consumers’ seamless access to nutritious and affordable high-quality products.»

He continued, «We have also taken important steps to strengthen our environmental, governance, and social practices (ESG). Therefore, LALA’s fundamentals, momentum and growth outlook remain strong. Our operational capabilities and our focus on performance, talent and on our quality product offering, enable us to drive future growth and build long-term value for our 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/9/2021/04/Earnings-Release-Q121-v5-1.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/2021/04/Reporte-Resultados-T121-v4-1.pdf

CONFERENCE CALL

Tuesday April 27, 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=144328

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 #: 13718668

CONTACT – INVESTOR RELATIONS

David González Peláez and Israel Rentería, CFA

Tel.: +52 (55) 3993 7193

Investor.relations@grupolala.com

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