Genomma Lab Internacional Sab De Cv Class B · BMV:LAB/B
Genomma Lab Internacional Sab De Cv Class B — Q4 2024 Earnings Presentation
64 slides from Genomma Lab Internacional Sab De Cv Class B's earnings presentation, March 2025
Slide 1: Genomma Lab Investor Relations
Genomma Lab.°® Internacional GENOMMA LAB INVESTOR RELATIONS
Slide 2: Forward-looking statements
This presentation 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 limit
Slide 3: Slide 3
Slide 4: About Genomma Lab
ABOUT GENOMMA LAB GENOMMA LAB pevetops, MANUFACTURES AND MARKETS A PORTFOLIO OF 60 PREMIUM BRANDED PRODUCTS FOR MASS CONSUMPTION, MANY OF WHICH ARE LEADERS IN THEIR CATEGORIES BUSINESS UNITS REGIONS 42% 48% 52% 48% PR MEXICO PC + oTc BEVERAGES 5 10% us
Slide 5: Healthy Product Mix
HEALTHY PRODUCT MIX OVER-THE-COUNTER 52% OF TOTAL SALES COUGH & COLD ANALGESICS DERMA OTC INFANT NUTRITION (Novamir Novamil
Slide 6: Healthy Product Mix: Personal Care + Beverages
HAIRCARE HEALTHY PRODUCT MIX PERSONAL CARE + BEVERAGES ISOTONIC BEVERAGES BLADES & RAZORS OTHER SKINCARE
Slide 7: Proven Track Record
Slide 8: Net Sales and EBITDA in MXN million
Net Sales in MXN million EBITDA in MXN million
Slide 9: Gross margin trend
67. 0% 65. 0% 63. 0% 61. 0% 59. 0% 57. 0% 55. 0%
Slide 10: EBITDA margin trend
24. 0% 23. 0% 22. 0% 21. 0% 20. 0% 19. 0%
Slide 11: Financial metric trend
$2.1 0 $1.9 0 $1.7 0 $1.5 0 $1.3 0 $1.1 0 $0.9 0 $0.7 0 $0.5 0
Slide 12: CAPEX in MXN million
25. 0% 24. 0% $80 1 23. 0% $70 1 22. 0% $60 1 21. 0% $50 1 20. 0% $40 1 19. 0% $30 1 18. 0% $20 1 17. 0% $10 1 16. 0% $1 15. 0% CAPEX in MXN million
Slide 13: Margin trend
16. 0% 15. 0% 14. 0% 13. 0% 12. 0% 11. 0% 10. 0%
Slide 14: Free Cash Flow and Dividend per Share
Free Cash Flow in MXN million, Dividend per Share in MXN
Slide 15: Strategy
Slide 16: Shareholder Value Creation
SHAREHOLDER VALUE CREATION FOCUS ON CORE BRANDS NARROW RESOURCE DEPLOYMENT DIVEST NON CORE ASSETS UNLOCK WORKING CAPITAL PRODUCTIVITY IN OUR DNA GTM COST OPTIMIZATION AUTOMATION OF CORE PROCESSES MANUFACTURING ECONOMIES OF SCALE AND LOWER COGS REENGINEERING PRODUCTS AND PACKAGING
Slide 17: MXN 1,800 M savings progress
MXN 1,800 M 180 0 1600 160 0 140 0 1200 120 0 100 0 800 800 MXN 1,018 M 600 57% of progress 400 400 200 0 0 2022 2023 2024 2025 2026 2027
Slide 18: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES 1. INVEST IN THE CORE BUSINESS IN STORE EXHIBITION, MARKETING & INNOVATION 2. DIVIDENDS & BUYBACKS TOTAL SHAREHOLDER RETURN 7 } 3. BOLT-ON M&A STRENGTHEN CORE CATEGORIES
Slide 19: A Stronger Business Model
Slide 20: Innovation and Core Capabilities
INNOVATION ROBUST GO-TO-MARKET PROVEN SUPERIOR INNOVATION CAPABILITIES | +300K POINTS OF SALE MULTICHANNEL DISTRIBUTION ESG COMPREHENSIVE i CORE =t, COMMUNICATION & MARKETING “Rh” MSCI ESG RATING = CAPABILITIES #1 TV ADVERTISERS IN LATAM DIVERSIFIED MARKETING STRATEGY MANUFACTURING & SUPPLY STRONG C
Slide 21: Superior Product Innovation
Superior Product Innovation
Slide 22: Superior Product Innovation
Superior Product Innovation Masstige Affordable Luxury Hi-quality Performance
Slide 23: Superior Product Innovation: Recycled Shampoo
Superior Product Innovation Recycled Royal Jelly Shampoo Healthy Hair, Healthy Planet Eco-friendly Recycled Conscious communication 100% 100% recycled sustainable and recyclable packaging PETE bottle Recycling meeting points High quality ingredients
Slide 24: Robust Go-to-Market: Traditional Channel
ROBUST GO-TO-MARKET TRADITIONAL CHANNEL 37% OF TOTAL SALES REACHING UNATTENDED COMMUNITIES ACCESSIBLE PRODUCT FORMATS OWN FLEET AND EXCLUSIVE SALES FORCE LEVERAGING SUEROX ¢ Independent pharmacies * Mom & pop stores * Wholesale pharma & grocery distributors
Slide 25: Robust Go-to-Market: Modern Channel
ROBUST GO-TO-MARKET MODERN CHANNEL 63% OF TOTAL SALES DIVERSIFIED CLIENT BASE INCREASED DIRECT DISTRIBUTION EFFICIENT DELIVERIES * Supermarkets Department stores Pharmacy chains * Convenience stores E-commerce
Slide 26: Comprehensive Communication
COMPREHENSIVE COMNUNICATION Understanding Market Design Experts Effective Across all Consumer Research communication media platforms Behavior vehicles
Slide 27: Comprehensive Communication: In-house Content Studio
s* \ COMPREHENSIVE COMNUNICATION IN-HOUSE CONTENT STUDIO ¥ +25 YEAR EXPERIENCE #1 ADVERTISERS IN LATAM 70% CHEAPER & 4X FASTER EXECUTION MULTIMEDIA CAPABILITES FASTER EXECUTION
Slide 28: Diversified Marketing Strategy: In-store as Media
DIVERSIFIED MARKETING STRATEGY IN-STORE AS MEDIA OWN IN-STORE FURNITURE WORKSHOP 3X CHEAPER & FASTER EXECUTION INCREASING STOPPING POWER AT POS INCREASING COVERSION OPPORTUNITIES
Slide 29: Diversified Marketing Strategy: Gen Expertos
DIVERSIFIED MARKETING STRATEGY GEN EXPERTOS AVAILABILITY, VISIBILITY & RECOMMENDATION ALIGNED INTERESTS WITH PHARMA STAFF INCREASING COVERSION OPPORTUNITIES
Slide 30: Diversified Marketing Strategy: Perfect Store
DIVERSIFIED MARKETING STRATEGY PERFECT STORE Fert Ali-Tnpie] Tnple} WT ri see net Pca Al nple} | Se" (} (ee STANDARIZED EXECUTION STRATEGIES EFFECTIVE KPIs FOR TRADE MARKETING PRODUCT AVAILABILITY CONTROLS EFFICIENT MONITORING
Slide 31: Strong Geographical Footprint
STRONG GEOGRAPHICAL FOOTPRINT UNITED STATES CARICAM Guatemala Honduras El Salvador Belice Costa Rica Panama Nicaragua MEXICO ——, \ ANDEAN CLUSTER oy Colombia Peru Ecuador Bolivia SOUTHERN REGION — Argentina Chile Paraguay Uruguay BRAZIL
Slide 32: Manufacturing & Supply Chain
MANUFACTURING & SUPPLY CHAIN International Finance Corporation WORLD BANK GROUP SUPERIOR PRODUCT QUALITY 4 ENHANCED VALUE EQUATION B_ us$ 100 mm S:YEAR LOAN HIGHER GROSS MARGIN RELIABLE PRODUCT SUPPLY Edge CERTIFICATE fa a Rhee =
Slide 33: MSCI ESG Rating
MSCI ESG RATING | THIRD CONSECUTIVE | RATING IMPROVEMENT Jun-19 Apr-20 May-21 May-23 Feb-24
Slide 34: Productivity Program
Slide 35: MXN 1,800 M productivity program progress
MXN 1,800 M 180 0 1600 MXN 1,018 M 160 0 57% of progress 140 0 1200 120 0 100 0 800 800 600 400 400 200 0 0 2022 2023 2024 2025 2026 2027
Slide 36: SG&A savings
SG&A MXN $277 million ANNUAL SAVINGS MEDIA More efficient media * More point of sale marketing PAYROLL Headcount optimization Increased automation
Slide 37: Go-to-Market productivity project
GO-TO-MARKET PRODUCTIVITY PROJECT MXN $207 million ANNUAL SAVINGS * Effictive price indexing * Optimization of promotions * Efficient comercial terms and conditions * returns and costs serving efficiencies
Slide 38: Raw Materials
RAW MATERIALS PRODUCTIVITY PROJECT MXN $120 million ANNUAL SAVINGS * New tensoactive and fragrance providers * Ingredient substitution * Risk management and cost optimization * Global bidding for APIs ¢ Paracetamol and Naproxeno
Slide 39: Suerox Redesign
SUEROX REDESIGN MXN $100 million ANNUAL SAVINGS * Weight optimization: 30gr > 26.5gr PREFORMS * Cost renegociation SLEEVES * Volume leverage & cost reduction * Cap redesign based on preform specs CAPS * New supplier development ¢ Line efficiencies
Slide 40: Vanart Redesign
VANART REDESIGN PRODUCTIVITY PROJECT MXN $93 million ANNUAL SAVINGS * Packaging reengineering * Standarization * Vertical integration of bottle production * Plastics injection and blowing line * Packaging and raw materials renegociation
Slide 41: Suerox Line
SUEROX LINE PRODUCTIVITY PROJECT MXN $63 million ANNUAL SAVINGS ¢ +96 million bottles per year * Leveraging volumen for better terms and conditions
Slide 42: Logistics Discount-SLOG
LOGISTICS DISCOUNT-SLOG PRODUCTIVITY PROJECT MXN $45 million ANNUAL SAVINGS * Centralized delivery * Route optimization * Higher order for farther deliveries
Slide 43: Suerox Sleeves
SUEROX SLEEVES PRODUCTIVITY PROJECT MXN $30 million ANNUAL SAVINGS ¢ New label equipment * Vertical integration of label production ¢ Economies of scale ¢ Production line efficiencies
Slide 44: Carton Standarization
CARTON STANDARIZATION PRODUCTIVITY PROJECT MXN $25 million ANNUAL SAVINGS * Reduction from 23 to 2 suppliers * Leveraging volumen for lower costs ee skUs * Reduction from 72 to 12 SKUs * Standarizing carton packaging size and thickness across brands
Slide 45: Label Cost Optimization
LABEL COST OPTIMIZATION PRODUCTIVITY PROJECT MXN $25 million ANNUAL SAVINGS SUPPLIERS * Reduction from 16 to 2 suppliers ee scAc * Leveraging volumen for lower costs
Slide 46: Polypropylene Injection
POLYPROPYLENE INJECTION TEATRICAL JARS & CAPS MXN $16 million ANNUAL SAVINGS * Direct feed to Teatrical facial and lanolin lines * Reduced inventories * 20K units per year * Acretive investment * 90% IRR, 0.9 years to payback
Slide 47: Tio Nacho Bottle Blowing
TIO NACHO BOTTLE BLOWING PRODUCTIVITY PROJECT MXN $12 million ANNUAL SAVINGS PWERTICALIZATION | * Vertical integration of bottle production * Integrating size variants in same line [PROcEss ¢ Plastics injection and blowing line
Slide 48: International Logistics
INTERNATIONAL LOGISTICS MXN $11 million ANNUAL SAVINGS ¢ Freight and forwarding optimization BIDDING ° 9 different participants FORWARDERS * 2 Forwarders selected ROUTES * 10 ocean routes quoted
Slide 49: Aluminum Foil
ALUMINUM FOIL PRODUCTIVITY PROJECT MXN $10 million ANNUAL SAVINGS * Bidding process executed ¢ Ink reduction and standarization
Slide 50: Supplemental Package Q4 2024
Slide 51: Q4 2024 key results
32.4% 13.0% $ 18,607 M 3.5% 5.9% 24.0% +351bps 23.3% +235bps $ 473 M (na) $ 2,137 M +97.0% $ 0.47 (na) $ 2.14 +101% 110 d +27 d $ 2,793 M +35.5% 68% 85% Below target In-line with target Exceeded target
Slide 52: YTD Portfolio Performance
YTD PORTFOLIO PERFORMANCE 68% OF SALES GROWING OR MAINTAINING SHARE ISOTONIC BEVERAGES SKINCARE COUGH & COLD HAIRCARE e@ DERMA OTC ANALGESICS GASTRO INFANT NUTRITION BLADES & RAZORS 20%
Slide 53: YTD Market Performance
YTD MARKET PERFORMANCE 85% OF SALES GROWING ABOVE INFLATION 30% 20% 10% 20% 30% 50% 170% F crown |
Slide 54: Isotonic beverages brand performance
Leads the world hydration trend 8 ions, no sugar, no calories 2018 2019 2020 2021 2022 2023 2024 As of 2023 & 2024, sales figures expressed in LFL terms.
Slide 55: Cough and cold brands
Tukol #2 cough segment XL3 (MX) #2 flu segment Next Global C&C Brand 2018 2019 2020 2021 2022 2023 2024 As of 2023 & 2024, sales figures expressed in LFL terms.
Slide 56: Analgesics brands
Tafirol (Arg) #1 OTC brand Alliviax (Mx) #3 Analgesics brand Xray (Col) #3 Analgesis brand 2018 2019 2020 2021 2022 2023 2024 As of 2023 & 2024, sales figures expressed in LFL terms.
Slide 57: Natural products brand performance
Leads the natural products trend 100% sustainably-sourced packaging 2018 2019 2020 2021 2022 2023 2024 As of 2023 & 2024, sales figures expressed in LFL terms.
Slide 58: Gastro brands
Nikzon hemorriod leader in Latam QG5 #3 in pain and bloating segment 2018 2019 2020 2021 2022 2023 2024 As of 2023 & 2024, sales figures expressed in LFL terms.
Slide 59: Footcare and Lomecan brands
Silka + Unesia #1 (Latam) footcare OTC Lomecan #1 (Arg) and #2 (Mx) 2018 2019 2020 2021 2022 2023 2024 As of 2023 & 2024, sales figures expressed in LFL terms.
Slide 60: Brand sales performance
2020 2021 2022 2023 2024 As of 2023 & 2024, sales figures expressed in LFL terms.
Slide 61: Infant nutrition category size
it CAT size N ova m J | pating markets excluding US) FORMULA —
Slide 62: Brand sales performance
2018 2019 2020 2021 2022 2023 2024 As of 2023 & 2024, sales figures expressed in LFL terms.
Slide 63: Asepxia Relaunch
ASEPXIA RELAUNCH PRODUCT EXECUTION v Expanded from facial to full-body use V Shifted from acne treatment to daily care V Reformulated: hydrating serum + salicylic acid Y¥ Moved from pharmacy to general soap aisle Vv Priced below category leader Vv Expanded shelf presence
Slide 64: Genomma Lab
Genomma Lab.°® GENOMMA LAB
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