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Grupo LALA Reports Third Quarter 2019 Results

News Provided by PR Newswire2019-10-21

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Grupo LALA Reports Third Quarter 2019 Results

[21-October-2019]

MEXICO CITY, Oct. 21, 2019 /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 third quarter 2019. The following information has been presented based on International Financial Reporting Standards (IFRS) and in nominal terms.

Quarter Highlights:

+2.9% YOY Branded Net Sales increase
+28.0% YOY comparable EBITDA growth, to MXN $2,306m (includes one-time payment from Lactalis settlement)
+240bps YOY comparable EBITDA margin expansion
Controlling Net Income expanded +213% YOY to MXN $641m, due to Operating Income increase and optimized tax rate
-290bps YOY Working Capital improvement, to 1.6% of sales, driven by negative WC in Mexico
Leverage ratio improvement to 2.9x

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 ended on September 30, 2019 as compared to the same period in 2018. Net Sales and EBITDA information related to Q3'18 has been presented on "comparable" basis. Comparable Q3'18 figures will include the effect of IFRS 16 and the deconsolidation of Elopak.

*MXN$ in millions*	Q3´18	% Sales	Q3'19	% Sales	Var. %	Var. bps
Branded Sales ⁽¹⁾	18,192		18,723		2.9%
Raw Materials and Others Sales	292 ⁽²⁾		261		(10.7%)
Net Sales	18,484 ⁽²⁾	100%	18,984	100%	2.7%
Gross Profit	6,425	34.3%	6,687	35.2%	4.1%	+90bps
Operating Income	1,157	6.2%	1,507	7.9%	30.3%	+170bps
EBITDA ⁽³⁾	1,802 ⁽²⁾	9.7%	2,306	12.1%	28.0%	+240bps
Controlling Net Income	205	1.1%	641	3.4%	212.9%	+230bps

(1) Branded Sales exclude raw materials sales
(2) Comparable figures, including IFRS 16 adjustments and the deconsolidation of Elopak JV
(3) EBITDA is defined as operating income before depreciation and amortization

MESSAGE FROM MANAGEMENT

Mauricio Leyva, Grupo LALA's CEO, commented:
"Through impactful top line creation, operational discipline and a motivating working culture, this quarter we continued to evolve in our Virtuous Cycle to extract value for all stakeholders and keep the Company on track of accomplishing our targets."

Please click on the following link for a PDF file containing the full text of the press release: https://www.lala.com.mx/pdf/docs/Earnings%20release%20Q3'19%20v7%20sv.pdf

Please click on the following link for a PDF file containing the full text of the press release in Spanish:
https://www.lala.com.mx/pdf/docs/Reporte%20Resultados%203T'19%20v5%20sv.pdf

CONFERENCE CALL
Tuesday, October 22, 2019 at 11:00am EST / 10:00am CST
Led by: Mauricio Leyva (CEO), Alberto Arellano (CFO) and David González (IRO)
Webcast: http://public.viavid.com/index.php?id=136355

To participate, please dial-in ten minutes ahead of the scheduled time.
Mexico: 01 800 522 0034
United States: +1 877 705 6003 (Toll-free)
International: +1 201 493 6725

To access the replay service (7 days), please dial:
United States: +1 844 512 2921 (Toll-free)
International: +1 412 317 6671
PIN #: 13695144

CONTACT – INVESTOR RELATIONS
David González Peláez and Elías Rangel
Tel.: +52 55 5814 - 7192
Investor.relations@grupolala.com

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