Genomma Lab Internacional, S.A.B. de C.V.

Net sales were MXN 4.397 billion, down 6% year over year; like-for-like sales declined 3.6%. Gross margin rose 106 basis points to 64.6%. EBITDA was MXN 959 million, with EBITDA margin of 21.8%, down 200 basis points year over year. Net income increased 5.5% to MXN 375 million, with net margin at 8.5%. Mexico net sales declined 4.5%, while Latin America like-for-like sales grew 3.9% and the U.S. declined 21.3% in local currency. Management expects gradual recovery in the second half of 2026, but said it is prioritizing market share and does not expect higher margins for the rest of 2026; it also expects working capital to normalize as launches mature.

Marco Sparvieri framed the quarter as confirmation that the company’s recovery strategy is starting to work, especially in Mexico. He emphasized that sell-out trends are improving, channel health is better, and the company is defending or gaining share even in contracting categories. His tone was cautious but increasingly confident, with repeated references to being “measured” on early data yet “cautiously optimistic” and “very optimistic” about the second half.

Antonio Zamora highlighted that productivity is structurally supporting margins, offsetting higher promotional investment and the full effect of Mexico’s IEPS tax on non-caloric sweetened beverages. He cited MXN 4.397 billion in net sales, MXN 959 million in EBITDA, gross margin of 64.6%, and net income of MXN 375 million, while noting the 10.8% peso appreciation as a translation headwind. He also pointed to a cash conversion cycle of 129 days, trailing 12-month free cash flow of MXN 1.259 billion, dividend payments of MXN 0.20 per share totaling MXN 200 million, CapEx of MXN 120 million, net debt to EBITDA of 1.38x, and a new MXN 1.5 billion 10-year amortizing term loan that improves maturity structure and flexibility.

Analysts focused on Mexico receivables, Latin America growth pockets, OTC competition, second-half innovation, inventory levels in isotonic beverages, and leverage/free cash flow. Management said higher receivables were driven by a deliberate push to be more aggressive in the market, including Suerox Mineral launches and larger in-store displays, and stressed that the incremental inventory was a choice to support share gains. On inventories and margins, Marco said trade inventory in isotonic beverages is relatively high after the World Cup push and could require adjustment, but he expects sell-out to remain the key metric and sees margin recovery as a 2027 story once consumption improves.