Genomma Lab Reports Mixed Q2 2025 Results

Genomma Lab Internacional SAB de CV Class B ( (GNMLF) ) has released its Q2 earnings. Here is a breakdown of the information Genomma Lab Internacional SAB de CV Class B presented to its investors.

Genomma Lab Internacional, S.A.B. de C.V. is a leading company in the pharmaceutical and personal care sectors in Mexico, known for its premium branded products and a growing international presence. The company leverages a consumer-oriented marketing strategy and a flexible operating model to maintain its market position.

In the second quarter of 2025, Genomma Lab reported a modest increase in net sales by 0.5%, with a significant growth of 5.5% when excluding the impact of Argentina’s economic challenges. The company’s EBITDA grew by 4.4%, and its EBITDA margin expanded to 23.8%, showcasing strong profitability despite macroeconomic headwinds.

Key financial highlights include a 16.6% increase in proforma net income, driven by improved operating income and lower net interest expenses. The company’s free cash flow surged by 64.6% over the trailing twelve months, attributed to a more efficient cash conversion cycle and productivity initiatives. However, the reported net income saw a decline of 43.8% due to non-cash foreign exchange and inflationary losses.

Regionally, Genomma Lab experienced varied performance, with robust growth in the US and Latin America, excluding Argentina. The company faced challenges in Mexico due to a weak beverage season but saw gains in OTC and personal care segments. The company’s strategic focus on core brands resulted in 75% of sales growing above inflation, and 67% maintaining or gaining market share.

Looking ahead, Genomma Lab remains focused on executing growth projects and maintaining a stable EBITDA margin of around 24% through ongoing productivity programs. The company is committed to navigating economic challenges while continuing to deliver value to its shareholders through dividends and share buybacks.