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2Q09 Highlights (vs. 2Q08)
(1) EBITDA is calculated by adding pre-operative expenses, depreciation and amortization to the operating income.
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(2) Earnings per share are for the last 12 months and were calculated using the weighted average number of shares outstanding for the period.
(3) As defined later in the document.
(4) As defined later in the document.
(5) As defined later in the document.
Comments from the Chairman and CEO
Mr. Rodrigo Herrera, Chairman of the Board and Chief Executive Officer, stated: "We are pleased to report our second quarter 2009 results, which showed a sound growth. We are currently experiencing a challenging economic environment, which has made difficult the Global Economy's performance; therefore, we will continue to proceed with caution. We were, once again, pleasantly surprised by the net sales level registered during this quarter; which proves that both the Company's business model, as well as its advertising strategies, continue to be successful. We expect to continue in this manner so as to continue gaining market share, increasing net sales and profitability, and thus, creating value for our shareholders.
During the second quarter of 2009, we acquired several brands, some of them are expected to strengthen our presence in certain categories, whereas others will allow us to enter new categories. We continue analyzing new initiatives, and remain committed to the growth-by-acquisitions strategy established in our Initial Public Offering. We believe that adverse economic conditions can contribute to finding attractive expansion opportunities for the Company."
For the complete version of this earnings report, please visit: www.genommalab.com
Company Description
Genomma Lab Internacional, S.A.B. de C.V. is one of the fastest growing over-the-counter pharmaceutical and personal care products companies in Mexico. Genomma Lab develops, sells and markets a broad range of premium branded products, many of which are leaders in the categories in which they compete in terms of sales and market share. Through a combination of a successful new products development process, consumer-oriented marketing, a broad retail distribution network and a low-cost, highly flexible operating model, the Company had net sales of Ps. 2,629.4 million and EBITDA of Ps. 691.1 million in 2008.
Genomma Lab's shares are listed on the Mexican Stock Exchange under the ticker symbol "LAB.B"
(Bloomberg: labb.mx).
Note on Forward-Looking Statements
This report may contain certain forward-looking statements and information relating to the Company that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like "believe," "anticipate," "expect," "envisages," "will likely result," or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
-- Net Sales reached Ps. 985.5 million, an increase of 50.7%. -- Gross Profit was Ps. 724.8 million, an increase of 46.1%. -- EBITDA(1) reached Ps. 256.9 million, an increase of 36.5%. -- Consolidated Net Income of Ps. 122.9 million, an increase of 3.3%. -- Earnings per Share(2) increased 16.8% to Ps. 1.03. -- International Net Sales rose to Ps. 130.1 million, an increase of 220.9%. -- During the second quarter, Genomma Lab successfully launched three products under three existing brands (Base Brands(3) and Prior Year Launches(4)) as part of the line extension strategy. -- The Company also launched, during the second quarter, six products under six New Brands(5) as part of its new product launch plan. -- As of June 30, 2009 the Company had a net cash position of Ps. 1,214.4 million. -- During the second quarter of 2009, the Company acquired the brand of lotions Flor de Naranja Sanborns(MR), the brand of creams Teatrical, the brand of hair coloring Henna Egipcia, and a 99 year license for the use of Sanborns(MR) brands for the acquired brands. -- Additionally, during the second quarter, the Company acquired the Jockey Club brand of men's personal care products. All of these brands are well-recognized brands in their respective markets and have been very popular among Mexican consumers for several decades.
SOURCE Genomma Lab Internacional, S.A.B. de C.V.
