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Genomma Lab Faces Challenges Amidst Economic Pressures

Genomma Lab Faces Challenges Amidst Economic Pressures

Genomma Lab Internacional SAB de CV Class B ( (GNMLF) ) has released its Q3 earnings. Here is a breakdown of the information Genomma Lab Internacional SAB de CV Class B presented to its investors.

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Genomma Lab Internacional, S.A.B. de C.V. is a leading Mexican company in the pharmaceutical and personal care sectors, known for its premium branded products and extensive retail distribution network. In its third quarter of 2025, Genomma Lab faced a challenging environment, with net sales declining by 12.8% compared to the same period last year. This decrease was primarily due to a weak summer season in Mexico and significant currency depreciation in Argentina. Despite these challenges, the company maintained a strong EBITDA margin of 23.7%, highlighting its operational resilience and effective cost management strategies.

The company’s financial performance was marked by a 2.9% decrease in like-for-like sales, largely due to external economic pressures in Mexico. However, Genomma Lab saw robust growth in regions such as Brazil, Chile, and Central America. The EBITDA margin remained stable, supported by manufacturing efficiencies and a favorable sales mix. Additionally, the company’s productivity program, launched in 2023, has already secured significant savings, which are being reinvested to drive future growth.

Regionally, Genomma Lab experienced varied performance. In Mexico, net sales fell by 6.4%, impacted by a tough consumption environment, while the Latin American region, excluding Argentina, saw a 10.6% increase in net sales. The U.S. market faced a 24.3% decline in net sales, reflecting ongoing disruptions in the Hispanic retail landscape. The company’s strategic initiatives, including distribution expansion and product innovation, are aimed at restoring growth momentum by the first half of 2026.

Looking ahead, Genomma Lab remains focused on strengthening its market position through strategic investments in product development and distribution. The management anticipates a challenging end to 2025 but is optimistic about resuming growth in the first half of 2026, supported by solid business fundamentals and a clear strategic roadmap.

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