Genomma Lab Internacional SAB de CV Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Antonio Hernandez - Actinver - Analyst : Yes, hi, good morning. Thanks for taking my question and congrats on your results. . Very, very positive. Just a quick one regarding Chile and Peru that you mentioned that these 2 countries were being challenged. I mean, you're not the first company telling that to the market, so just wanted to hear a little bit more on your side. You mentioned that you expect them to improve soon, if you're seeing any gradual improvement or recovery? Thnaks.

Question: Antonio Hernandez - Actinver - Analyst : That's very helpful. Just could you please remind us, Chile, how much of sales they represent?

Question: Antonio Hernandez - Actinver - Analyst : Okay, perfect. Thanks a lot and have a nice day.

Question: Alvaro Garcia - BTIG - Analyst : Hi guys. Thanks for the space for questions and Congrats on results. Two questions. On Argentina, we saw 17% revenue growth in pesos. There was, obviously, a lot of noise because of the hyperinflationary accounting. But I was wondering if you could maybe expand on what you saw from a volume standpoint in some of your key brands. And then on the M&A in Argentina, how is this funded? Is this capital that you're maybe taking from abroad and plugging that into Argentina? Or is that being funded with cash that you already have from your operations in Argentina?

Question: Alvaro Garcia - BTIG - Analyst : Yeah. I think it makes sense to -- at least logically, it makes sense that Tafirol would bounce back after a couple of weak quarters with just lower elasticity than in other consumer products.

Question: Alvaro Garcia - BTIG - Analyst : Very clear. Thank you.

Question: Alvaro Garcia - BTIG - Analyst : I'd ask another one, if that's okay.

Question: Alvaro Garcia - BTIG - Analyst : Sure. On the M&A in the US, I was just wondering if maybe you could expand on sort of the strategic rationale in the US I'm assuming that there's third parties that produce these products. They're probably smaller brands. Is the idea to eventually maybe produce this in Mexico? What sort of synergies do you see? What type of product is it? I don't know the product that well, so any sort of color on that would be helpful.

Question: Alvaro Garcia - BTIG - Analyst : Okay. Great.Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 25, 2024 / 5:00PM, LABB.MX - Q2 2024 Genomma Lab Internacional SAB de CV Earnings Call

Question: FernandoHerrera - Compass Group - Analyst : First of all, congrats on the strong results. Here, I was just wondering if you can provide any more color regarding the brands that have been lagging? And what are your expectations going into second half with these categories?

Question: FernandoHerrera - Compass Group - Analyst : Okay. Perfect. So we should start to see something of that impact going to 4Q, right?

Question: FernandoHerrera - Compass Group - Analyst : Thanks and congrats once again.

Question: Froylan Mendez - JPMorgan - Analyst : I guys this is actually Froylan from JPMorgan. We got confused there and the registration. But thank you for taking my question. Regarding the sale of non-core brands. Can you remind where we are? How much is left? And when can we see additional portfolio cleanup, let's say? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 25, 2024 / 5:00PM, LABB.MX - Q2 2024 Genomma Lab Internacional SAB de CV Earnings Call

Question: Froylan Mendez - JPMorgan - Analyst : Any time line that you can share?

Question: Froylan Mendez - JPMorgan - Analyst : Thank you so much.

Question: Froylan Mendez - JPMorgan - Analyst : Thank you.

Question: Sara Maldonado - Santander - Analyst : Yes, thank you for taking my question and congrats for the results. My question is about Mexico. If you can share about your outlook for the second half of the year? Historically, do you see some slowdown in the electoral year? And what have you seen for the first part of the third quarter? Thank you. Thank you, Sara, for your question. We expect to stay in the levels of growth in terms of sell-out that we have seen in the first half, which has been low double digits. We have not seen a slowdown. What you're seeing is maybe a slowdown in sell-in in the second quarter. But when you look at the sell-out data for Mexico, we still -- we're still growing in the range of 11% to 12%. So now I mean, obviously, most of it will depend on how strong the winter season comes in the second half, but we are expecting to have a strong winter season. Plus, we are seeing COVID cases up trending lately, and that helps a lot our OTC business. So right now, if you ask me, I would say that we should be staying in the levels of 11% to 12% growth in sell-out. Thank you very much.