Earnings release
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THIRD QUARTER 2026
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Q3 2026 Results Genomma Lab Internacional Announces Results for the Third Quarter 2026 Mexico City, October 21, 2026 – Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B) (“Genomma” or “the Company”), today announced its results for the third quarter 2026. 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 “Q3 2026 confirms that our recovery plan is working. Mexico improved for the third consecutive quarter and sell-out returned to growth, while market share held or grew across every business unit despite a soft market. Our late-June innovation is already driving +39% sell-out growth at clients carrying the new product, and Suerox reached a record 12.6% value share at our leading retailer. Consolidated net sales grew +1.3%, with Latin America up +12.2%. We protected profitability with a 21.0% EBITDA margin while reducing SG&A, and net income rose +18.6% on lower financing costs and a favorable FX result, with free cash flow also improving versus last year. We enter the fourth quarter with momentum, a stronger innovation pipeline and a solid balance sheet. On December 3rd in New York, we will present our new operating model, our execution commitments and our artificial intelligence platform in action, with measurable results and the ability to replicate winning playbooks across brands, functions and countries.” Q3 2026 Financial Summary The following table provides a summary of the Company’s Income Statement, in millions of Mexican pesos. Q3 2026 % sales Q3 2025 % sales var % Net Sales 4,497.6 100.0% 4,441.4 100.0% 1.3% Gross Profit 2,762.1 61.4% 2,836.2 63.9% -2.6% Operating Income 863.6 19.2% 967.8 21.8% -10.8% EBITDA(1) 944.9 21.0% 1,053.6 23.7% -10.3% Net Income 514.9 11.4% 434.1 9.8% 18.6% EPS 0.51 0.43 18.6% (1) EBITDA defined as operating income before depreciation and amortization Net Sales: increased +1.3%, reflecting the ongoing recovery in Mexico, where sell-out is back to positive, and a +12.2% increase in Latin America, partially offset by continued disruption in the US Hispanic retail market. Gross profit: reached 61.4% margin, representing a -244 basis-point contraction, mainly reflecting destruction of returned products in the U.S. market and higher promotional investment, incl uding the fully absorbed impact of Mexico's new tax on non -caloric sweetened beverages. EBITDA: Reached 21.0% margin, in line with the Company’s expectations. The -271 basis-point year-over-year change reflects our deliberate decision to invest more in th e business, in both promotional activity and commercial spending, to accelerate growth. The Company’s operating savings significantly offset operating expenses and inflation, resulting in a -1.1% decrease in SG&A expenses. Net Income: Increased +18.6%, driven by lower financial expenses and a non-recurring favorable foreign exchange result.
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Q3 2026 Results Regional & Business Unit Review The following review compares regional and business unit year-over-year growth during Q3 2026 in MXN unless otherwise stated. Q3 2026 Q3 2025 Δ% Mexico 2,181.8 2,234.9 (2.4)% Latam 2,055.3 1,831.9 12.2% USA 260.5 374.6 (30.5)% Total Net Sales 4,497.6 4,441.4 1.3% Beverages 699.1 440.3 58.8% OTC 2,390.4 2,515.9 (5.0)% Personal Care 1,200.9 1,330.4 (9.7)% Infant Nutrition 207.3 154.8 33.9% Total Net Sales 4,497.6 4,441.4 1.3% Mexico: Recovery accelerated in Q3 2026, marking the third consecutive quarter of improvement, with the net sales trend recovering nearly 20 percentage points from the Q4 2025 low of -22.1% to -2.4%, supported by strong growth in Beverages and Infant Nutrition. More importantly, sell-out returned to positive territory, signaling improving consumer demand. Genomma outperformed its categories in OTC, Personal Care, and Infant Nutrition, with market share stable or growing across all busin ess units despite continued market softness. Innovation launched in late June is emerging as a key growth driver, fueling 39% sell -out growth among customers carrying the new product, while Suerox achieved record-high value market share at the Company’s leading retailer. Building on this momentum, we are accelerating launches and stepping up investment to expand market share. EBITDA margin stood at 20.0% ( -705 bps), reflecting deliberate upfront investment ahead of the anticipated sales ramp -up, partially funded by administrative savings. Latam (ex Arg): Net sales grew 1.6%, as continued strong performance in Central America and the Andean Region more than offset lower sell-in in Brazil. Growth in these regions was driven by market share gains in OTC and Beverages in key markets and expansion in the traditional channel. In Brazil, customers reduced inventory levels ahead of the country’s tax reform: during t he transition, inventory-related tax credits constrain their working capital, encouraging leaner inventories through year -end 2026. The Company expects Brazil sell-in to normalize in 1Q27, once the new tax rules take effect. Argentina: Net sales increased 39.2%, driven by solid unit share gains in OTC and Beverages and a favorable hyperinflationary effect. Latam: Net sales increased 12.2%, as growth in Argentina more than offset the decline in Brazil. EBITDA margin, including Argentina, expanded 190 basis points to 23.7%, reflecting operating leverage from higher sales. U.S.: Net sales decreased -30.5%, reflecting distribution gaps amid continued weakness in the U.S. Hispanic retail market, while sell-out decreased -8.8% in local currency. Suerox sell-out maintained double-digit growth, while the e-commerce channel continued to expand. The Company is realigning its commercial footprint and distribution model to stabilize performance and support a gradual recovery. EBITDA margin decreased -492 basis points to 8.6%, primarily reflecting operational deleverage and the destruction o f returned products.
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Q3 2026 Results Cash Flow Generation Operating cash flow grew +12.5% to Ps. 496 million, even after a planned Ps. 476 million investment in working capital ahead of the winter season, fully covering capex, interest, debt repayment and dividends. The 36-day increase in the cash conversion cycle versus Q2 2026 is temporary: 9 of the 12 additional receivable days come from non-cash hyperinflationary accounting in Argentina. Excluding Argentina, receivable days rose 3 days, with no material increase in overdue balances. Cash Conversion Cycle (CCC): Increased 36 days from Q2 2026. Two temporary effects explain the increase: a non -cash hyperinflationary accounting effect in Argentina of 13 days and a planned inventory build in Mexico of 15 days. The Company expects the Cash Conversion Cycle to decline to approximately 140 days in Q4 2026, a reduction of about 25 days, as winter-season inventory in Mexico sells through and the Argentine non- cash effect normalizes. Receivables: Increased 12 days from Q2 2026. Of this increase, 9 days come from Argentina and reflect a non -cash effect of hyperinflationary accounting, magnified by sales concentrated in the last month of the quarter. Excluding Argentina, receivable days had a 3 -day s equential increase to 116 days . Overdue balances showed no material increase across regions. Inventories: Increased 21 days from Q2 2026, mainly in Mexico, reflecting earlier preparation for the winter season, including Cough & Cold launches in Q4 2026 an d Q1 2027, and anticipated purchases ahead of potential price increases. Inventory days are expected to normalize as winter-season products ship to customers. Payables: Decreased 3 days, reflecting upfront payments to secure raw materials. Free Cash Flow: Increased +52% to Ps. 470 million, from Ps. 309 million in Q3 2025. Over the last twelve months, free cash flow totaled Ps. 1,420 million. Net Debt: Ps. 5,242 million, down Ps. 94 million from Q2 2026. Following the long-term refinancing, short-term debt fell 63% to Ps. 1,185 million and is covered 2.3 times by cash and equivalents of Ps. 2.76 billion. Capital Allocation Dividends. On September 30, 2026, the Company paid a cash dividend of MXN $0.200000 per common share, totaling MXN 194.7 million. Genomma Lab intends to continue paying quarterly dividends. Key Debt Ratios Debt Service Coverage Ratio: 5.5x Net Debt / EBITDA: 1.4x
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Q3 2026 Results Relevant Events SAVE THE DATE – GENOMMA INVESTOR DAY 2026 (Please Register) Genomma Lab Announces CEO Transition; Company Begins a New Stage of Acceleration Genomma Lab Internacional Announces Seventeenth Dividend Payment Conference Call Date: Thursday, October 22, 2026 Time: 1:00 p.m. ET | 11:00 a.m. Mexico City Time Webcast Registration: Genomma’s Q3 2026 Earnings Call Contact Information: Sell-side Analyst Coverage As of October 21, 2026, “LABB” is covered by 9 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, Jefferies Financial Group 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 co mbination of a successful new product development process, 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 “believ e,” “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 report and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these for ward-looking statements, which speak only as of their dates. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; macroeconomic conditions in Argentina, including high inflation, currency devaluation, foreign exchange controls and the effects of hyperinflationary accounting; changes in trade policies, including the imposition of tariffs, trade restrictions and the outcome of the USMCA review; changes to applicable laws and regulations, including tax laws such as the implementation of Brazil’s consumption tax reform and changes to Mexico’s Special Tax on Production and Services (IEPS); competition, including technological advances and new products attained by competitors; ch allenges inherent in new product development; the ability of 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 in behavior and spending patterns of purchasers of products and services; and 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 fil ings with the Bolsa Mexicana de Valores. Any forward -looking statement made in this report speaks only as of the date of this report. The Company undertakes no obligation to upda te 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 barbara@inspirgroup.com
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Q3 2026 Results GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME For the three and nine months ended September 30, 2026 and 2025 Thousands of Mexican pesos 2026 % Sales 2025 % Sales Δ% 2026 % Sales 2025 % Sales Δ% Net Sales 4,497,634 100.0% 4,441,430 100.0% 1.3% 13,085,294 100.0% 13,524,191 100.0% (3.2)% Cost of goods sold (1,735,503) (38.6)% (1,605,273) (36.1)% 8.1% (4,826,988) (36.9)% (4,951,298) (36.6)% (2.5)% Gross Profit 2,762,131 61.4% 2,836,157 63.9% (2.6)% 8,258,306 63.1% 8,572,893 63.4% (3.7)% Selling, general and administrative expenses (1,824,662) (40.6)% (1,844,579) (41.5)% (1.1)% (5,411,516) (41.4)% (5,448,712) (40.3)% (0.7)% Other income (expense) 7,393 0.2% 62,055 1.4% (88.1)% 13,003 0.1% 90,201 0.7% (85.6)% EBITDA 944,862 21.0% 1,053,633 23.7% (10.3)% 2,859,793 21.9% 3,214,382 23.8% (11.0)% Depreciation and amortization (81,215) (1.8)% (85,865) (1.9)% (5.4)% (244,525) (1.9)% (255,354) (1.9)% (4.2)% Income from operations 863,647 19.2% 967,768 21.8% (10.8)% 2,615,268 20.0% 2,959,028 21.9% (11.6)% Interest expense (130,173) (2.9)% (191,646) (4.3)% (32.1)% (484,613) (3.7)% (606,020) (4.5)% (20.0)% Interest income 28,393 0.6% 29,635 0.7% (4.2)% 93,491 0.7% 91,178 0.7% 2.5% Foreign exchange result 41,063 0.9% (122,666) (2.8)% (133.5)% (32,807) (0.3)% (389,555) (2.9)% (91.6)% Inflationary result from monetary position (103,611) (2.3)% (75,536) (1.7)% 37.2% (313,183) (2.4)% (189,069) (1.4)% 65.6% Comprehensive financing income (cost) (164,328) (3.7)% (360,213) (8.1)% (54.4)% (737,112) (5.6)% (1,093,466) (8.1)% (32.6)% Associated company 0 0.0% 0 0.0% n.a. 0 0.0% 0 0.0% n.a. Income before income taxes 699,319 15.5% 607,555 13.7% 15.1% 1,878,156 14.4% 1,865,562 13.8% 0.7% Income tax expense (184,386) (4.1)% (173,489) (3.9)% 6.3% (494,083) (3.8)% (577,811) (4.3)% (14.5)% Consolidated net income 514,933 11.4% 434,066 9.8% 18.6% 1,384,073 10.6% 1,287,751 9.5% 7.5% Q3 9M
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Q3 2026 Results GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of September 30, 2026 and 2025 and December 31, 2025 Thousands of Mexican pesos 2026 2025 Δ% 2025 Δ% ASSETS Current assets Cash and equivalents and restricted fund 2,760,883 2,395,557 15.3% 3,073,169 (10.2)% Clients - Net 5,933,174 5,029,708 18.0% 4,496,071 32.0% Fiscal Receivables 1,501,209 1,670,999 (10.2)% 1,677,040 (10.5)% Other accounts receivable* 990,930 717,832 38.0% 1,016,387 (2.5)% Inventory - Net 2,355,513 2,097,999 12.3% 1,840,214 28.0% Prepaid expenses 693,898 908,892 (23.7)% 741,837 (6.5)% Total current assets 14,235,607 12,820,987 11.0% 12,844,718 10.8% Non-current assets Trademarks 5,628,373 5,505,889 2.2% 5,529,886 1.8% Investment Portfolio 211,811 0 n.a. 144,187 46.9% Building, properties and equipment – Net 3,930,788 3,673,566 7.0% 3,840,450 2.4% Deferred income tax, assets and others 1,259,161 1,555,721 (19.1)% 1,279,152 (1.6)% Assets by right of use 52,224 52,217 0.0% 52,119 0.2% Total non-current assets 11,082,357 10,787,393 2.7% 10,845,794 2.2% TOTAL ASSETS 25,317,964 23,608,380 7.2% 23,690,512 6.9% LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Short-term debt and Current portion of long-term debt 1,185,153 2,422,338 (51.1)% 2,799,290 (57.7)% Suppliers 1,650,387 1,726,852 (4.4)% 1,580,930 4.4% Other current liabilities 2,505,586 2,609,006 (4.0)% 2,550,817 (1.8)% Income tax payable 325,497 220,579 47.6% 214,442 51.8% Total current Liabilities 5,666,623 6,978,775 (18.8)% 7,145,479 (20.7)% Non-current liabilities Long-term debt securities 3,391,456 3,384,708 0.2% 3,391,027 0.0% Long-term loans with financial institutions 3,426,744 1,535,771 123.1% 1,378,678 148.6% Deferred income tax and other long term liabilities 597,939 703,567 (15.0)% 657,287 (9.0)% Payable dividends to shareholders 0 0 n.a. 0 n.a. Total non-current Liabilities 7,416,139 5,624,046 31.9% 5,426,992 36.7% TOTAL LIABILITIES 13,082,762 12,602,821 3.8% 12,572,471 4.1% Stockholders' equity Contributed Capital 1,825,350 1,825,350 0.0% 1,825,352 (0.0)% Retained earnings 13,074,574 12,221,794 7.0% 12,354,786 5.8% Cumulative translation effects of foreign subsidiaries (763,378) (1,193,887) (36.1)% (1,214,075) (37.1)% Repurchased shares - Net (1,903,682) (1,850,036) 2.9% (1,850,360) 2.9% Fair value through OCI 2,338 2,338 0.0% 2,338 0.0% Total Stockholders' Equity 12,235,202 11,005,559 11.2% 11,118,041 10.0% TOTAL EQUITY AND LIABILITIES 25,317,964 23,608,380 7.2% 23,690,512 6.9% As of September 30, As of December 31, *Includes warranty deposits, deferred income tax, investment projects, software and sanitary registries.
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Q3 2026 Results GENOMMA LAB INTERNACIONAL, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS For the three months ended September 30, 2026 and 2025 Thousands of Mexican pesos 2026 2025 Δ% 2026 2025 Δ% Cash and cash equivalents beginning of period 2,435,120 2,587,887 (5.9)% 3,073,169 2,379,112 29.2% Consolidated Net Income 514,933 434,066 18.6% 1,710,321 1,117,062 53.1% Charges to results with no cash flow: Depreciation and amortization 81,215 85,865 (5.4)% 330,468 363,877 (9.2)% Income tax 184,386 173,490 6.3% 736,022 749,670 (1.8)% Accrued interest and others 190,777 (64,508) (395.7)% 1,238,049 1,362,001 (9.1)% Changes in Working Capital: Clients - Net (693,261) 98,819 (801.5)% (1,085,915) (600,158) 80.9% Recoverable VAT 155,978 (89,280) (274.7)% 173,214 (141,791) (222.2)% Inventories (377,864) (67,151) 462.7% (236,775) (167,052) 41.7% Suppliers (24,234) (66,003) (63.3)% (55,288) 2,820 n.m Other current assets 124,620 73,951 68.5% 341,739 295,451 15.7% Paid income tax (88,427) (115,126) (23.2)% (759,269) (834,513) (9.0)% Other current liabilities 427,463 (23,793) n.m (487,295) (63,843) 663.3% Net cash generated (used) in operating activities 495,586 440,330 12.5% 1,905,271 2,083,524 (8.6)% Investing activities: Investment in fixed assets (24,782) (130,694) (81.0)% (484,900) (490,831) (1.2)% Resources from financial instruments 922 (10,356) (108.9)% (14,012) (53,550) (73.8)% Sales of equipment (23,596) 119 n.m 36,947 12,338 199.5% Other asset acquisitions (9,132) (3,485) 162.0% (205,141) (62,872) 226.3% Interest collected 28,620 29,617 (3.4)% 115,750 127,795 (9.4)% Net cash generated (used) in investing activities (27,968) (114,799) (75.6)% (551,356) (467,120) 18.0% Financing activities: Payments of borrowings with financial institutions (2,187,446) (985,296) 122.0% (4,212,671) (4,299,451) (2.0)% Loans with financial and securities institutions 2,400,000 1,149,446 108.8% 4,847,312 5,126,665 (5.4)% Interest paid (126,578) (186,454) (32.1)% (657,842) (826,524) (20.4)% Net Stock repurchase (22,065) (28,761) (23.3)% (53,646) (64,411) (16.7)% Payment of liabilities for lease (12,741) (14,195) (10.2)% (62,276) (68,923) (9.6)% Dividends paid to shareholders (194,698) (391,025) (50.2)% (780,396) (769,572) 1.4% Net cash used in financing activities (143,528) (456,285) (68.5)% (919,519) (902,216) 1.9% Net increase in cash and cash equivalents before foreign exchange adjustments coming from international operations and inflationary effects on cash 324,090 (130,754) (347.9)% 434,396 714,188 (39.2)% Foreign exchange and inflationary effects from international operations 1,673 (61,576) (102.7)% (69,070) (169,827) (59.3)% Accumulated cash flow at the end of the period 2,760,883 2,395,557 15.3% 3,438,495 2,923,473 17.6% Less - restricted fund 18,475 19,177 (3.7)% 18,475 19,177 (3.7)% Cash and cash equivalents at end of period balance for operation 2,742,408 2,376,380 15.4% 3,420,020 2,904,296 17.8% 12MQ3Note: In 2Q, damaged equipment was sold for Ps. 52 million; the amount was adjusted in 3Q upon final settlement with the insurer.
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Q3 2026 Results ANNEX EXCLUSION OF IAS 29 AND IAS 21 EFFECTS For the three and nine months ended September 30, 2026 and 2025 Q3 2026 Q3 2025 Δ% Inflation Effect Conversion Effect Inflation Effect Conversion Effect Q3 2026 Q3 2025 Δ% (IAS 29) (IAS 21) (IAS 29) (IAS 21) Net Sales 4,497.6 4,441.4 1.3% 143.9 7.5 79.7 (269.5) 4,346.2 4,631.2 (6.2)% EBITDA 944.9 1,053.6 (10.3)% 39.0 2.7 24.5 (82.7) 903.2 1,111.9 (18.8)% EBITDA Margin 21.0% 23.7% 20.8% 24.0% Net Income 514.9 434.1 18.6% (183.6) 1.4 (119.8) (26.2) 697.1 580.1 20.2% Net Margin 11.4% 9.8% 16.0% 12.5% 9M Q3 2026 9M Q3 2025 Δ% Inflation Effect Conversion Effect Inflation Effect Conversion Effect 9M Q3 2026 9M Q3 2025 Δ% (IAS 29) (IAS 21) (IAS 29) (IAS 21) Net Sales 13,085.3 13,524.2 (3.2)% 145.1 (79.9) 134.5 (473.9) 13,020.0 13,863.5 (6.1)% EBITDA 2,859.8 3,214.4 (11.0)% 39.0 (24.7) 35.8 (143.9) 2,845.4 3,322.5 (14.4)% EBITDA Margin 21.9% 23.8% 21.9% 24.0% Net Income 1,384.1 1,287.8 7.5% (599.7) (13.4) (355.8) (55.9) 1,997.2 1,699.4 17.5% Net Margin 10.6% 9.5% 15.3% 12.3% 2026Reported 2025 Excl. IAS 29 & 21 Excl. IAS 29 & 21Reported 2026 2025