Genomma Lab Internacional B de C : Q1 2022 Earnings Release

Genomma Lab Internacional Reports

HIGHLIGHTS

First Quarter 2022 Results

Mexico City, April 27, 2022 - Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B)

Q1-2022 Sales increased by

Ps. 467.2 million; +13.2% year-on-year

("Genomma Lab" or "the Company"), today announced its results for the first quarter ended March 31, 2022. All figures included herein are stated in nominal Mexican pesos and have been prepared in accordance with International Financial Reporting Standards (IFRS).

The following tables provide an abridged Income Statement, in millions of Mexican pesos. The margin for each figure represents its ratio to net sales and the percentage change in the first quarter 2022 as compared with the same period in 2021:

Q1-2022 EBITDA

closed at

Ps. 826.6 million;

a +14.1% increase

year-on-year

Q1 2022	% Sales	Q1 2021	% Sales	Var. %
Net Sales	4,104.8	100.0%	3,547.7	100.0%	13.2%
Gross Profit	2,513.2	62.6%	2,180.5	61.5%	15.3%
Operating Income	775.2	19.3%	686.8	19.4%	12.9%
EBITDA(1)	826.6	20.6%	724.7	20.4%	14.1%
Net Income	339.2	8.4%	319.4	9.0%	6.2%

1)

EBITDA defined as operating income before depreciation and amortization

Cash & Equivalents closed at

Comments from the CEO

Ps. 1.55 billion as of March 31, 2022

Mr. Jorge Luis Brake, Genomma Lab's Chief Executive Officer, commented:

Q1-2022 Net Debt to EBITDA ratio closed at 1.17x

"This quarter's record quarterly sales and profit reflecting Genomma's consistent progress against the themes and pillars we've established as our guidepost for sustainable growth. We continue identifying and achieving new frontiers capitalizing on business opportunities which leverage our unique manufacturing and commercial capabilities. During the quarter we also executed on client-focused strategies, particularly related to consumer brand value, communication and strategic alliances, enabling us to capture opportunities related to today's evolving consumer trends and their needs."

Capex Investments for the three months ended March 31, 2022 reached

Ps. 59.7 million.

He added: "Our focus on execution across our well-diversified business will drive our success, building upon this strong start to 2022. While we expect macroeconomic and political headwinds, we are confident we will continue managing them, also with the support of our partners, suppliers and clients. Importantly, work in this regard is driven by the unwavering commitment of Genomma's collaborators present throughout our organization."

Business Review

Genomma Lab delivered solid first quarter 2022 results, also with another consecutive quarter of growth and profitability.

First quarter of 2022 Net Sales closed at Ps. 4.01 billion; a 13.2% year on year increase reflecting continued strong execution of Genomma's growth strategy. These results were partially offset by macroeconomic headwinds, particularly depreciation of some local currencies in those countries where Genomma operates.

EBITDA margin reached 20.6%; a 14.1% year on year increase, and a 20 bps margin expansion primarily attributed to a favorable product mix effect, cost and expense efficiencies and savings, and price increases which successfully mitigated macroeconomic headwinds.

Below first quarter 2022 updates related to the six pillars of Genomma's strategy:

Product Innovation and Portfolio Optimization

*Points of Sale

Continued innovation and portfolio optimization strategies including new product launches and line extensions throughout those regions where Genomma operates. Noteworthy examples included: 1) Mexico launch of Tio Nacho® "Purificación", a shampoo and conditioner line extension including plant stem cells which purify and detoxify while balancing excess oils.

2) Argentina launch of Tafirolito® chewable acetaminophen tablets for children; in Brazil the launch of the Lakesia® Pro line extension for athlete's foot treatment, and 3) US introduction of Tukol® Sinus through a portfolio of three new SKUs (tablets, syrup and nasal spray) for the nasal congestion segment.

Strengthened Marketing and Perfect Go-To-Market Execution

Genomma further improved in-store media performance with strong commercial strategy execution, reflected in increased traditional channel distribution and e-Commerce channel sales, and increased visibility within the pharmaceutical channel. Key brands such as Suerox®, Cicatricure® and Groomen® again performed well across all regions where Genomma has a presence.

New Tafirolito®

Children's chewable tablets within Latam market

Genomma successfully launched a new e-commerce pilot for Novamil® within the Mexico market focused on end consumer direct marketing through the novamil3.com website, which has since gone live. Genomma continues to see strong sales from this channel and expects to broadly launch an aggressive digital marketing campaign in the quarters ahead.

Manufacture & Supply Chain

Digital platform for

Novamil®

(Visit Website)

Genomma's personal care manufacturing plant's shampoo and ointment lines began production, reaching approximately 500 thousand bottles of shampoo and 400 thousand units of ointments produced per month, in addition to the seven million bottles produced within the plant's isotonic beverage manufacturing line, which achieved an 88% efficiency rate during first quarter of 2022.

Q1-2022 Results

Genomma's pharma semi-solids manufacturing line achieved 85% efficiency during the first quarter 2022, running at a more than 5,000 tube per hour rate of production.

Investments related to Genomma's manufacturing plant reached Ps 59.7 million for the first quarter 2022.

Superior Brand Value & Communication

New TV Campaign for

Cicatricure(watch video)

Genomma launched several aggressive external media campaigns to improve new line extension and product launch performance among all regions where the Company has a presence. Specific examples include the launch of a Tío Nacho® Purificación ad campaign, introducing this brand within the Mexican market; the introduction of more than 10 new television commercials (TVCs) in Argentina to drive growth in Genomma's

Tafirol®, Teatrical® and Cicatricure® power brands; and 10 new TVCs introduced in Chile related to the Cicatricure® Gold Lift campaign, introducing and positioning the new Cicatricure® Gold Serum product within this market.

Sustainability and Corporate Culture

Genomma presented its "Our Progress 2025 Sustainability Strategy" report, updating the financial community and general public on the Company's sustainability-related achievements and progress to date and how Genomma's various stakeholders are contributing to achieving said goals.

2025 Sustainability

Results by Region for the First Quarter of 2022

Strategy Update(See document)

Mexico

MEXICO

Sales in MXN: 1.57 billion EBITDA Margin: 20.2%

First quarter 2022 Mexico net sales increased by 3.0% year on year, to close at Ps. 1.57 billion. Sales performance was undermined by challenges in global commodity sourcing which prevented Genomma from capturing unexpectedly high Cough & Cold and infant formula category demand. These effects were partially offset by successful new line extensions and strong in-store media communication within the region.

Examples of said strategies are new marketing campaigns for Tío Nacho® and Groomen®, and Cicatricure® Gold Lift introduction to the serum segment as previously described, among others.

EBITDA margin for the quarter closed at 20.2%; the EBITDA margin was adversely effected by one-time investments made during the quarter to increase in-store visibility to support new product launches. These were partially offset by decreased non- recurring expenses associated with Genomma's new Industrial Cluster.

U.S.

U.S.

Sales in MXN: 412.5 million EBITDA Margin: 7.3%

U.S. Net Sales increased by 22.5%, to Ps. 412.5 million driven by solid Beverage business sales, also with benefit of cold and flu season-related demand within this market. Suerox® continues to deliver strong growth, with a more than double increase in sales, year on year. Tukol®, Cicatricure®, Tio Nacho® and Dragon® also presented double digit growth. First quarter 2022 US sales also benefitted from strong e-commerce channel performance, doubling our market share in Amazon.

First quarter 2022 U.S. EBITDA margin closed at 7.3%; a 360 bps year on year increase due to efficient cost and expense control as well as increased higher-margin product sales during the quarter and a favorable operating leverage and sales mix effect. This was partially offset by raw materials price increases as well as additional expenses to expedite delivery of key input variables in order to meet increased demand for Genomma products across all categories and retailers.

LATIN AMERICA

Latin America

Sales in MXN: 2.04 billion EBITDA Margin: 23.5%

Latin America first quarter 2022 net sales reached Ps. 2.04 billion; a 20.4% year on year increase primarily due to solid top-line growth in Argentina, Colombia, Brazil and Peru resulting from successful product launches and line extensions with strong digital channel performance. This was partially offset by local currency depreciation in some countries where Genomma operates.

Latin America EBITDA margin closed at 23.5%; a 40 bps year on year decrease primarily attributed by raw materials price increases and local currency depreciation. This was partially offset by a favorable sales mix with higher operating leverage resulting from incremental sales during the first quarter.

Genomma's New Industrial Cluster

Shampoo Manufacturing Line

Ointments Manufacturing Line