July 28, 2021 | 7:09 pm
Sales of Genomma Lab, founded by businessman Rodrigo Herrera, grew for the eleventh consecutive quarter thanks to the expansion of its portfolio of pharmaceutical products.
In the second quarter of 2021, Genomma Lab’s revenues increased 6.3%, to reach 3,865 million pesos, compared to the same period last year, according to your financial report sent to the Mexican Stock Exchange.
Net sales in Mexico amounted to 1,646.3 million pesos, something that the company attributed to the launch of new categories such as Suerox and Novamil, in addition to the relaunch of the Sistema GB brand for scalp care.
During the period, Genomma Lab introduced the new line of intimate shampoos from the Lomecan brand and reformulated the XL-3 antibacterial gel.
The quarter was characterized by initiatives focused on repositioning and modernization of our brands, with new and better formulas and packaging, as well as line extensions
said Jorge Luis Brake, CEO of Genomma Lab
The Latin American market, which includes Argentina, Brazil, Bolivia, Chile and Colombia, had the best performance, as revenues in the region increased 15.7% annually, to 1.9 billion pesos.
The United States did not have the same luck, where the company’s sales fell 33.4%, closing at 318.7 million pesos, due to a low comparison base in relation to the second quarter of 2020, when the demand for antibacterial gel skyrocketed to cause of the pandemic.
The drop was also due, to a lesser extent, to a weak performance of the OTC product portfolio as a consequence of a historical decrease in influenza cases, while the traffic in pharmacy chains decreased due to the increase of competitors in e-commerce channels .
The operating cash flow (EBITDA, for its acronym in English) of Genomma Lab registered a rise of 2.9%, to 776 million pesos, despite the fact that the company cited effects due to the impact of inflation on sales costs, depreciation of local currencies, and the negative effect on the sales mix in certain key countries.
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Net income increased 5.1%, to 379 million pesos, as a result of a lower reported effective rate compared to the same quarter of the previous year.