Earnings release
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THIRD QUARTER 2025
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Q3 2025 Results Genomma Lab Internacional Announces Results for the Third Quarter 2025 Mexico City, October 22, 2025 – Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B) (“Genomma” or “the Company”), today announced its results for the third quarter of 2025. All figures included herein are stated in nominal Mexican pesos and have been prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted. Comments from our CEO, Marco Sparvieri “Genomma Lab reported a challenging third quarter, with like-for-like sales decreasing -2.9%, primarily due to a weak summer season impacting beverage sales in central Mexico and a softer overall consumption environment in the country. Despite topline pressure, Genomma Lab maintained a healthy 23.7% EBITDA margin, underscoring the strength of our business fundamentals, disciplined execution and cost containment throughout our organization. The Company’s productivity program, launched in 2023, is expected to generate MXN 3.0 billion in cumulative savings by 2026 including MXN 1.1 billion secured this year. These resources will be reinvested into the business to accelerate topline growth through focused initiatives in product innovation, distribution expansion, pricing, communication and e-commerce, while maintaining an average 24% EBITDA margin. With solid fundamentals and a clear roadmap, Genomma Lab is well-positioned to emerge stronger from this cycle—rebuilding momentum and laying the groundwork for our next phase of sustained growth expected to resume in 1H 2026 following what we anticipate to still be a challenging end of 2025.” Q3 2025 Financial Summary The following table provides a summary of the Company’s Income Statement, in millions of Mexican pesos. Q3 2025 % sales Q3 2024 % sales % var Like-for-like Sales -2.9% Net Sales 4,441.4 100.0% 5,092.5 100.0% -12.8% Gross Profit 2,836.2 63.9% 3,272.0 64.3% -13.3% Operating Income 967.8 21.8% 1,128.8 22.2% -14.3% EBITDA(2) 1,053.6 23.7% 1,207.3 23.7% -12.7% Net Income 434.1 9.8% 660.1 13.0% -34.2% Proforma Net Income(3) 632.3 14.2% 651.7 12.8% -3.0% Proforma EPS(3) 0.63 0.65 -3.0% (1) Like-for-like (“LFL”) Sales are Net Sales expressed in constant currency and excludes the hyperinflationary subsidiary (2) EBITDA defined as operating income before depreciation and amortization (3) Proforma Net Income = Net Income – Foreign Exchange Result – Inflationary Result from Monetary Position Like-for-like Sales: Decreased by -2.9% primarily due to a tough consumption environment in Mexico and a weak summer season impacting the beverage category in the country, which was partially offset by robust growth in Brazil, Chile, Central America and the Andean cluster. Net sales decreased by -12.8% primarily due to non -cash accumulated hyperinflationary accounting effects related to a -35% Argentine peso depreciation. EBITDA: Reached a 2 3.7% margin; a +2 basis-point increase driven by manufacturing cost efficiencies, a favorable sales mix and successful company-wide productivity initiatives—reflecting strong operational resilience despite deleveraging pressures. Proforma Net income: When excluding non-cash FX related effects, proforma net income decreased by -3.0% reflecting a strong EBITDA margin and lower net interest expenses. Net income decreased by -34.2% primarily due to non -cash accumulated hyperinflationary accounting effects related to a -53% depreciation of the Argentine peso. Proforma EPS: When excluding non-cash effects, proforma EPS stood at MXN 0.63 per share; a -3.0% increase.
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Q3 2025 Results Regional & Business Unit Review The following table provides a summary of regional sales and business units for the three-month period ended September 30, 2025. Net sales Like-for-like Net sales Like-for-like Q3 2025 Q3 2024 Δ% Δ% YTD YTD Δ% Δ% Mexico 2,234.9 2,386.7 (6.4)% (6.4)% 6,460.6 6,582.0 (1.8)% (1.8)% Latam 1,831.9 2,193.6 (16.5)% +13.7% 5,796.8 6,005.6 (3.5)% +3.5% USA 374.6 512.3 (26.9)% (24.3)% 1,266.8 1,353.6 (6.4)% (13.4)% Total Net Sales 4,441.4 5,092.5 (12.8)% (2.9)% 13,524.2 13,941.3 (3.0)% (1.5)% Q3 2025 Q3 2024 Δ% Like-for-like Δ% YTD YTD Δ% Like-for-like Δ% Beverages 440.3 671.2 (34.4)% (35.4)% 2,138.5 2,087.2 2.5% +3.9% OTC 2,515.9 2,715.9 (7.4)% +6.6% 6,469.5 6,828.1 (5.3)% +4.4% Personal Care 1,330.4 1,574.3 (15.5)% (7.1)% 4,459.0 4,605.5 (3.2)% (4.8)% Infant Nutrition 154.8 131.1 18.1% 18.1% 457.1 420.6 8.7% +8.7% Total Net Sales 4,441.4 5,092.5 (12.8)% (2.9)% 13,524.2 13,941.3 (3.0)% (1.5)% The following sales review compares results of the current quarter with the same quarter of the prior year in MXN, unless otherwise stated: Mexico: Net sales decreased by -6.4% during the quarter due to a tough consumption environment and a weak summer season in the country. This was partially offset by a solid increase in OTC sales , driven by gains in Cough & Cold and Infant N utrition market share. While Personal Care and Beverages remained under pressure from higher competition and a softer consumption environment which is expected to continue for the rest of the year. Growth initiatives are underway to restore sales momentum by 1H26. Genomma Lab’s traditional -channel expansion plan targets a 28% route increase within 12 months, with 6% added during the quarter. In OTC, in-store medicine displays in hard discount stores increased significantly, reinforcing the Company’s presence in this fast -growing channel. In Personal Care, Asepx ia and Vanart delivered double-digit growth, supported by successful rebranding efforts. The EBITDA margin expanded by +297 basis points to 27.0%, despite consumption headwinds and deleveraging pressures, reflecting the accelerated progress of the Company’s productivity initiatives and a favorable product mix. Latam (ex Arg): Net sales increased by +10.6% during the quarter driven by a robust sales increase in Brazil, Chile, Central America and the Andean cluster. Genomma Lab continued expanding its traditional -channel network during the quarter. The company significantly improved its execution in Chile’s largest pharma retail while successfully launching Nikzon in Colombia. Argentina: Local currency sales increased by +35% for the quarter, in line with inflation, with solid unit share gains in Ibu 400, Treg, and Suerox, partly offset by a tough comparison from the prior-year Tarifol 1-gram government subsidy. Net sales declined by -48.6% to MXN 516.8 million, due to accumulated hyperinflationary accounting adjustments following a -53% depreciation of the Argentine peso. Groomen was successfully launched in Argentina during the quarter. Latam: EBITDA margin including Argentina reached 21.7%; a -358-basis point decrease primarily due to hyperinflation accounting related effects. Latam ex Argentina EBITDA margin increased 90 basis points. US: Sell-out decreased -8% reflecting continued disruption in the U.S. Hispanic retail landscape . Net sales declined by -24.3% in US-dollars reflecting returns from a weak 2024 - 2025 winter season. However, Suerox sell-out continues to grow with share gains across a disrupted market reflecting the Company’s distribution expansion efforts. The EBITDA margin reached 13.6%, a -148 basis- point decrease reflecting operational deleverage and higher advertising spend.
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Q3 2025 Results Q3 2025 Q3 2024 Q2 2025 Mexico 110 98 116 Latam 96 106 91 US 62 65 63 Consolidated 100 98 100 Days of Accounts Receivable (DSO) Working Capital & Free Cash Flow The following tables provide a summary of the Company’s working capital. Q3 2025 Q3 2024 Δ Q2 2025 Δ Receivable days 100 98 +2 100 0 Payable days 93 107 -14 96 -3 Inventory days 113 126 -13 111 +2 CCC 120 117 +3 115 +5 Cash Conversion Cycle (CCC): reached 120 days, a three-day increase primarily due to a 14-day decrease in payable days offset by a 13 -day decrease in inventory days. Both metrics have been affected by non-cash hyperinflationary accounting effects in Argentina. Sequential improvement in Mexico receivable days was offset by non - cash hyperinflationary accounting effects in Argentina resulting in a two- day increase in consolidated receivables. Free Cash Flow (FCF): decreased by -31.5% to MXN 1,814.6 million during the trailing-twelve months (TTM) compared to the same period of last year primarily due to lower net income and higher CAPEX associated with growth projects . Genomma Lab converted 8.8% of the TTM Net Sales into free cash flow. Capital Allocation Dividends. On September 19, 2025, the Company paid a cash dividend of $0.200000 Mexican pesos per share on common stock paid during the quarter, totalin g MXN 200 million. Genomma Lab intends to continue quarterly dividend payments. Share buybacks. 1.4 million shares were repurchased during the quarter totaling MXN 29.5 million. CAPEX: Investments in manufacturing equipment totaled MXN 130.7 million in Q3 2025. Investments related to the commissioning of the Company’s manufa cturing capabilities totaled MXN 68.5 million for the last three months ended September 30, 2025. Key Debt Ratios EBITDA / Debt Service: 5.0x Net Debt / EBITDA: 1.2x
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Q3 2025 Results Relevant Events Genomma Lab Internacional Announces Thirteenth Dividend Payment Conference Call Date: Thursday, October 23, 2025 Time: 1:00 p.m. ET | 11:00 a.m. Mexico City Time Webcast Registration: Genomma’s Q3 2025 Earnings Call Contact Information: Sell-side Analyst Coverage As of October 22, 2025 “LABB” is covered by 8 sell-side analysts at the following brokerages: Actinver Casa de Bolsa, Banco Itaú BBA, BBVA Bancomer, BTG Pactual US Capital, GBM Grupo Bursátil Mexicano, Grupo Financiero Banorte, J.P. Morgan Securities and Monex Grupo Financiero. About Genomma Lab Internacional, S.A.B. de C.V. is one of the leading pharmaceutical and personal care products companies in Mexico with an increasing international presence. 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. Genomma Lab relies on the combination of a successful new product development process, a consumer-oriented marketing, a broad retail distribution network and a low-cost, highly flexible operating model. Genomma Lab’s shares are listed on the Mexican Stock Exchange under the ticker “LAB B” (Bloomberg: LABB:MM). 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 Compa ny. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Risks and uncertainties include, but are not limited to: risks related to the impact of the COVID19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays, supply chain disruptions and other impacts to the business, or on the Company’s ability to execute business continuity plans as a result of the COVID-19 pandemic, economic factors, such as interest rate and currency exchange rate fluctuations; competition, includin g technological advances, new products attained by competitors; challenges inherent in new product development; the ability o f the Company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws; changes in behavior and spending patt erns of purchasers of products and services; financial instability of international economies and legal systems and sovereign risk. A further list and descriptions of these risks, uncertainties and other factors can be found within the Company’s related filings with the Bolsa Mexicana de Valores. Any forward-looking statement made in this release speaks only as of the date of this release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Participants: Marco Sparvieri, CEO Antonio Zamora, CFO Christianne Ibanez, IRO Investor Relations Christianne Ibanez Daniel Suarez Tel: +52 (55) 5081-0075 investor.relations@genommalab.com InspIR Group Barbara Cano Tel: +1 (646) 452-2334 barbara@inspirgroup.com
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Q3 2025 Results Thousands of Mexican pesos 2025 % Sales 2024 % Sales Δ% 2025 % Sales 2024 % Sales Δ% Net Sales 4,441,430 100.0% 5,092,514 100.0% (12.8)% 13,524,191 100.0% 13,941,329 100.0% (3.0)% Cost of goods sold (1,605,273) (36.1)% (1,820,513) (35.7)% (11.8)% (4,951,298) (36.6)% (4,951,957) (35.5)% (0.0)% Gross Profit 2,836,157 63.9% 3,272,001 64.3% (13.3)% 8,572,893 63.4% 8,989,372 64.5% (4.6)% Selling, general and administrative expenses (1,844,579) (41.5)% (2,081,576) (40.9)% (11.4)% (5,448,712) (40.3)% (5,805,807) (41.6)% (6.2)% Other income (expense) 62,055 1.4% 16,863 0.3% 268.0% 90,201 0.7% 25,068 0.2% 259.8% EBITDA 1,053,633 23.7% 1,207,288 23.7% (12.7)% 3,214,382 23.8% 3,208,633 23.0% 0.2% Depreciation and amortization (85,865) (1.9)% (78,474) (1.5)% 9.4% (255,354) (1.9)% (239,286) (1.7)% 6.7% Income from operations 967,768 21.8% 1,128,814 22.2% (14.3)% 2,959,028 21.9% 2,969,347 21.3% (0.3)% Interest expense (191,646) (4.3)% (230,255) (4.5)% (16.8)% (606,020) (4.5)% (639,427) (4.6)% (5.2)% Interest income 29,635 0.7% 25,346 0.5% 16.9% 91,178 0.7% 69,314 0.5% 31.5% Foreign exchange result (122,666) (2.8)% 88,408 1.7% (238.7)% (389,555) (2.9)% 130,233 0.9% (399.1)% Inflationary result from monetary position (75,536) (1.7)% (80,054) (1.6)% (5.6)% (189,069) (1.4)% (177,545) (1.3)% 6.5% Comprehensive financing income (cost) (360,213) (8.1)% (196,555) (3.9)% 83.3% (1,093,466) (8.1)% (617,425) (4.4)% 77.1% Associated company 0 0.0% 0 0.0% n.a. 0 0.0% 0 0.0% n.a. Income before income taxes 607,555 13.7% 932,259 18.3% (34.8)% 1,865,562 13.8% 2,351,922 16.9% (20.7)% Income tax expense (173,489) (3.9)% (272,199) (5.3)% (36.3)% (577,811) (4.3)% (628,122) (4.5)% (8.0)% Net income from continous operations 434,066 9.8% 660,060 13.0% (34.2)% 1,287,751 9.5% 1,723,800 12.4% (25.3)% Results from discontinuous operations (Marzam) 0 0.0% 0 0.0% n.a. 0 0.0% (59,989) (0.4)% (100.0)% Consolidated net income 434,066 9.8% 660,060 13.0% (34.2)% 1,287,751 9.5% 1,663,811 11.9% (22.6)% Q3 9M GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME For the three and nine months ended September 30, 2025 and 2024
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Q3 2025 Results GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of September 30, 2025 and 2024 and December 31, 2024 Thousands of Mexican pesos 2025 2024 Δ% 2024 Δ% ASSETS Current assets Cash and equivalents and restricted fund 2,395,557 1,829,131 31.0% 2,379,112 0.7% Clients - Net 5,029,708 4,764,136 5.6% 4,444,414 13.2% Recoverable Taxes 1,670,999 1,535,937 8.8% 1,492,538 12.0% Other accounts receivable* 717,832 788,219 (8.9)% 702,175 2.2% Inventory - Net 2,097,999 2,219,621 (5.5)% 2,176,087 (3.6)% Prepaid expenses 908,892 1,057,238 (14.0)% 872,205 4.2% Total current assets 12,820,987 12,194,282 5.1% 12,066,531 6.3% Non-current assets Trademarks 5,505,889 5,869,345 (6.2)% 5,926,549 (7.1)% Investment in shares 0 0 n.a. 0 n.a. Discontinoued Operations 0 538,000 (100.0)% 0 n.a. Building, properties and equipment – Net 3,673,566 3,458,785 6.2% 3,526,885 4.2% Deferred income tax, assets and others 1,555,721 1,403,614 10.8% 1,466,152 6.1% Assets by right of use 52,217 44,233 18.0% 31,686 64.8% Total non-current assets 10,787,393 11,313,977 (4.7)% 10,951,272 (1.5)% TOTAL ASSETS 23,608,380 23,508,259 0.4% 23,017,803 2.6% LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Short-term debt and Current portion of long-term debt 2,422,338 1,317,436 83.9% 1,364,832 77.5% Suppliers 1,726,852 1,892,074 (8.7)% 1,738,018 (0.6)% Other current liabilities 2,609,006 3,324,027 (21.5)% 3,277,059 (20.4)% Income tax payable 220,579 185,613 18.8% 158,509 39.2% Total current Liabilities 6,978,775 6,719,150 3.9% 6,538,418 6.7% Non-current liabilities Long-term debt securities 3,384,708 3,185,808 6.2% 3,187,798 6.2% Long-term loans with financial institutions 1,535,771 2,085,010 (26.3)% 1,877,012 (18.2)% Deferred income tax and other long term liabilities 703,567 365,247 92.6% 529,719 32.8% Payable dividends to shareholders 0 0 n.a. 0 n.a. Total non-current Liabilities 5,624,046 5,636,065 (0.2)% 5,594,529 0.5% TOTAL LIABILITIES 12,602,821 12,355,215 2.0% 12,132,947 3.9% Stockholders' equity Contributed Capital 1,825,350 1,861,857 (2.0)% 1,825,350 0.0% Retained earnings 12,221,794 11,972,505 2.1% 11,511,687 6.2% Cumulative translation effects of foreign subsidiaries (1,193,887) (861,523) 38.6% (653,102) 82.8% Repurchased shares - Net (1,850,036) (1,822,133) 1.5% (1,801,417) 2.7% Fair value through profit OCI 2,338 2,338 0.0% 2,338 0.0% Total Stockholders' Equity 11,005,559 11,153,044 (1.3)% 10,884,856 1.1% TOTAL EQUITY AND LIABILITIES 23,608,380 23,508,259 0.4% 23,017,803 2.6% As of September 30, As of December 31,
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Q3 2025 Results GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS For the three months ended September 30, 2025 and 2024 Thousands of Mexican pesos 2025 2024 Δ% Cash and cash equivalents beginning of period 2,587,887 1,233,360 109.8% Consolidated Net Income 434,066 660,060 (34.2)% Charges to results with no cash flow: Depreciation and amortization 95,274 88,528 7.6% Income tax 173,490 272,199 (36.3)% Accrued interest and others (73,917) 238,778 (131.0)% Changes in Working Capital: Clients - Net 98,819 194,353 (49.2)% Recoverable VAT (89,280) 57,088 (256.4)% Inventories (67,151) (67,199) (0.1)% Suppliers (66,003) 86,208 (176.6)% Other current assets 73,951 (138,819) (153.3)% Paid income tax (115,126) (286,443) (59.8)% Other current liabilities (23,793) 358,662 (106.6)% Net cash generated (used) in operating activities 440,330 1,463,415 (69.9)% Investing activities: Investment in fixed assets (130,694) (41,173) 217.4% Resources from financial instruments (10,356) 1,969 (626.0)% Sales of equipment 119 1,983 (94.0)% Other asset acquisitions (3,485) (583,534) (99.4)% Interest collected 29,617 25,418 16.5% Net cash generated (used) in investing activities (114,799) (595,337) (80.7)% Financing activities: Payments of borrowings with financial institutions (985,296) (1,128,633) (12.7)% Loans with financial and securities institutions 1,149,446 1,260,629 (8.8)% Interest paid (186,454) (226,759) (17.8)% Net Stock repurchase (28,761) (671) 4186.3% Payment of liabilities for lease (14,195) (22,214) (36.1)% Dividends paid to shareholders (391,025) (195,671) 99.8% Net cash used in financing activities (456,285) (313,319) 45.6% Net increase in cash and cash equivalents before foreign exchange adjustments coming from international operations and inflationary affects cash (130,754) 554,759 (123.6)% Foreign exchange and inflationary effects from international operations (61,576) 41,012 (250.1)% Accumulated cash flow at the end of the period 2,395,557 1,829,131 31.0% Less - restricted fund 19,177 16,325 17.5% Cash and cash equivalents at end of period balance for operation 2,376,380 1,812,806 31.1% Q3
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Q3 2025 Results ANNEX EXCLUSION OF IAS 29 AND IAS 21 EFFECTS For the three months and last nine months ended September 30, 2025 and 2024 Q3 2025 Q3 2024 Δ% Inflation Effect Convertion Effect Inflation Effect Convertion Effect Q3 2025 Q3 2024 Δ% (IAS 29) (IAS 21) (IAS 29) (IAS 21) Net Sales 4,441.4 5,092.5 (12.8)% 79.7 (269.5) 199.4 20.4 4,631.2 4,872.7 (5.0)% EBITDA 1,053.6 1,207.3 (12.7)% 24.5 (82.7) 65.4 7.2 1,111.9 1,134.7 (2.0)% EBITDA Margin 23.7% 23.7% 24.0% 23.3% Net Income 632.3 651.7 (3.0)% (119.8) (26.2) (108.6) 4.7 778.3 755.7 3.0% Net Margin 14.2% 12.8% 16.8% 15.5% 9M Q3 2025 9M Q3 2024 Δ% Inflation Effect Convertion Effect Inflation Effect Convertion Effect 9M Q3 2025 9M Q3 2024 Δ% (IAS 29) (IAS 21) (IAS 29) (IAS 21) Net Sales 13,524.2 13,941.3 (3.0)% 134.5 (473.9) 357.3 44.4 13,863.5 13,539.6 2.4% EBITDA 3,214.4 3,208.6 0.2% 35.8 (143.9) 111.5 15.5 3,322.5 3,081.7 7.8% EBITDA Margin 23.8% 23.0% 24.0% 22.8% Consolidated Net Income 1,287.8 1,607.1 (19.9)% (355.8) (55.9) (272.0) 10.6 1,699.4 1,868.6 (9.1)% Net Margin 9.5% 11.5% 12.3% 13.8% Excl. IAS 29 & 212025Reported 2024 Reported 2025 2024 Excl. IAS 29 & 21