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MEXICO CITY, Feb. 22, 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 fourth quarter and full year 2020. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.
Strengthened operations and financial discipline, coupled with business resilience and flexibility, resulted in continued Mexico margin stability and a stronger financial position
+10.0% YOY constant currency Sales growth driven by Mexico and Brazil
13.0% reported EBITDA margin for Mexico, +450 bps YOY expansion
One-time impacts from Central America operations
$616m in normalized (1) Net Income, +300 bps net margin improvement YOY
-0.8% Consolidated Working Capital to Sales; a 140 bps YOY decrease driven by improvements in all regions
Leverage ratio: reported 3.1x Net Debt / EBITDA
The following chart provides an abridged Income Statement, in millions of pesos. The margin for each figure represents its ratio to net sales for the quarter and the year ended December 31, 2020 as compared to the same period in 2019. Operating Income, EBITDA and Net Income information related has been presented on a "normalized" basis (1).
MXN$ in millions
Operating Income (1)
Net Income (1)
Normalized excludes: Q4'20 CR Closure and NIC Impairment, Q3'20 MX one-time tax expense, Q2'20 US accrual cancellation, Q1'20 BR tax benefit, and Q4'19 BR tax benefit
MESSAGE FROM MANAGEMENT
Arquímedes Celis, Grupo LALA's CEO, commented:
"We´ve lived through a year of unprecedented circumstances since I rejoined LALA - a year which underscored the resilience, flexibility and adaptability of our team and our business. Our employee and consumers' health and well-being remain our priority while we further build out our strategy to ensure our Company prevails through the pandemic and emerges optimally positioned for the future. Despite significant headwinds, we delivered strong results against our stated priorities and initial objectives. Our successful Mexico business turnaround has resulted in a stabilized, leaner and substantially more viable operation."
He continued, "While we took bold steps to strengthen the profitability of our Mexico operations, we simultaneously made difficult decisions to ensure our Central America business is aligned with our expectations and value potential, based on our strategic priorities of focusing on core markets, delivering financial discipline, and achieving profitable and sustainable growth. This will further drive our decisions in the year ahead, as we navigate towards to a post-pandemic economy and nimbly adapt to capitalize on evolving trends. As we begin 2021, our Company is now stronger and better positioned to turn to the next phase to build sustainable value for all LALA stakeholders."
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Please click on the following link for a PDF file containing the full text of the press release in Spanish:
Tuesday February 23, 2021, at 11:00am EST / 10:00am CST
Led by: Arquímedes Celis (CEO), Alberto Arellano (CFO) and David González (IRO)
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SOURCE Grupo LALA, S.A.B. de C.V.