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Grupo LALA, S.A.B. de C.V. 2 nd Quarter, 2016 Earnings Conference - - PowerPoint PPT Presentation
Grupo LALA, S.A.B. de C.V. 2 nd Quarter, 2016 Earnings Conference - - PowerPoint PPT Presentation
Grupo LALA, S.A.B. de C.V. 2 nd Quarter, 2016 Earnings Conference Call July 26, 2016 1 DISCLAIMER This material does not constitute an offering document. This material was prepared solely for informational purposes and is not to be construed
DISCLAIMER
This material does not constitute an offering document. This material was prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities. Any offering of securities will be made solely by means of an offering memorandum, which will contain detailed information about the Company and its business and financial results, as well as its financial statements. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended. This presentation includes forward-looking statements or statements about events or circumstances which have not yet occurred. We have based these forward-looking statements largely on our current beliefs and expectations about future events and financial trends affecting our businesses and our future financial performance. These forward-looking statements are subject to risk, uncertainties and assumptions, including, among other things, general economic, political and business conditions, both in Mexico and in Latin America as a
- whole. The words “believes”, “may”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar words are intended
to identify forward-looking statements. We undertake no obligations to update or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Therefore, our actual results could differ substantially from those anticipated in our forward-looking statements. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. We and our affiliates, agents, directors, employees and advisors accept no liability whatsoever for any loss or damage of any kind arising out of the use
- f all or any part of this material.
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This material does not give and should not be treated as giving investment advice. You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any information in this material.
MACRO ECONOMIC REVIEW 1H-2016
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POSITIVE VARIABLES
- Nominal Wage grew 4.4% in June, 2016
- Mexican Annual Inflation reached 2.5% in June, 2016
- Remittances in MXN terms, growing 28.3% during
the first half of 2016.
NEGATIVE VARIABLES
- Consumer Confidence declined 1.3% in June, 2016
- Exchange Rate (Peso/Dollar) depreciated by 17.9% YoY.
SECOND QUARTER RESULTS HIGHLIGHTS
- 1. Company Data, in Mexican Pesos. (´000)
- 2. EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.
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3 MONTHS ENDED JUNE 30, 2016
62.8% 31.0% 6.2%
NET SALES
(MXN$mm)
11,847 12,903 2Q-15 2Q-16 8.9%
100.0% 100.0%
Margin
YoY 6.2% YoY 12.4% YoY 21.9%
SALES BY SEGMENT
SECOND QUARTER RESULTS HIGHLIGHTS
- 1. Company Data, in Mexican Pesos. (´000)
- 2. EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.
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3 MONTHS ENDED JUNE 30, 2016
NET SALES
(MXN$mm) 11,847
12,903 2Q-15 2Q-16 8.9%
100.0% 100.0%
EBITDA
(MXN$mm)
NET INCOME
(MXN$mm)
Margin 1,672 1,888 2Q-15 2Q-16 12.9%
14.1% 14.6%
999 1,101 2Q-15 2Q-16
10.1%
8.4% 8.5%
Margin Margin
LALA 2016 STRATEGIC PRIORITIES
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Accelerating Organic Growth in Mexico Developing Internal Capabilities Expand & Consolidate Central America Operations M&A and Alliances
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LALA 100 Fresh Milk
Nano and Ultrafiltration patent pending process concentrates protein and calcium, and removes lactose.
ACCELERATING ORGANIC GROWTH IN MEXICO
“Organic Growth Through Disruptive Innovation”
- 70% more Protein
- 30% more Calcium
- Lactose free
- 35% less Carbohydrates
Innovative aseptic PET packaging with extended shelf life and capacity to maintain the flavor of fresh pasteurized milk.
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ACCELERATING ORGANIC GROWTH IN MEXICO
“Organic Growth Through Better Go-To-Market Execution”
National consumer promotions bring excitement to the fresh milk category and extend the reach of other product categories. Enhanced selling procedures and handheld technology implemented in more than 4,800 distribution routes in Mexico.
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DEVOLOPING INTERNAL CAPABILITIES
Strategic Procurement Sales & Operational Planning Shared Service Structure ERP Upgrade
10 MXN $1,226mm
CAPEX investment for the 6 months ended june 30, 2016
DEVOLOPING INTERNAL CAPABILITIES
Our 2016 CAPEX will:
Add +22.0% production capacity to Mexico´s Manufacturing Footprint
Automated Industrial Warehouse Cheese Production Capacity New Tetra Pak Equipment of 1.5L UHT Products Nano Filtration – Lala 100 Milk Water Treatment Plant
EXPAND & CONSOLIDATE CENTRAL AMERICA OPERATIONS
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Production Plant San Ramón Alajuela, Costa Rica
On July 6, Grupo LALA announced a strategic agreement with Florida Bebidas, S.A. to start operations in the Costa Rican market.
- The agreement provide LALA access to a platform that includes:
This strategic agreement is subject to the corresponding closing conditions and regulatory approvals
Distribution Capacity Raw milk Supply assurance Production Capacity
OMAHA, NEBRASKA
M&A AND ALLIANCES
“Building brands to grow the business”
FLORESVILLE, TEXAS SINTON, COLORADO
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On May 30, Grupo LALA announced an agreement to acquire the branded business of Laguna Dairy company in the United States.
3 Production Facilities
TRANSACTION KEY DATA
US$246 Million 1 ~US$200 Million 2 5 Value-Added Brands
- 1. Value Transaction, Estimated to Consolidate by August 1st, 2016.
- 2. Estimated Sales FY 2016.
2Q-2016 P&L RESULTS
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- 1. Company Data, in Mexican Pesos. (´000)
- 2. EBITDA=Earnings Before Interest, Taxes, Depreciation and Amortization.
3 MONTHS ENDED JUNE 30, 2016
11,847 12,176 12,530 12,509 12,903 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16
SALES BY QUARTER
YoY 8.9%
Income Statement(1) 2Q-15 % 2Q-16 % Growth Net Sales $ 11,847 100.0% $12,903 100.0% 8.9% Gross Profit 4,702 39.7% 5,050 39.1% 7.4% Operating Income 1,381 11.7% 1,543 12.0% 11.8% EBITDA(2) 1,672 14.1% 1,888 14.6% 12.9% Net Income 999 8.4% 1,101 8.5% 10.1%
STRONG FINANCIAL POSITION
AS OF JUNE 30,
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Key Metrics 2Q-15 2Q-16 Net Debt / EBITDA (1.3)x (1.2)x EBITDA / Interest Paid 542.3x 509.8x Earnings Per Share $1.37 $1.69 Financial Position 2015 2016 Total Assets $32,041 $36,484 Cash 7,914 8,824 Total Liabilities 8,059 9,855 Shareholder Equity 23,982 26,628
Source: Company Information Ratios are calculated in local currency Figures in Mexican Pesos (´000)
2Q-15 2Q-16
Total Debt (MXN$mm) Cash (MXN$mm) $65 $260 $8,824 $7,914
1,000 2,000 3,000 4,000 5,000 6,000 7,000
2Q-15 2Q-16
CASH FLOW FROM OPERATIONS (LTM)
MXN$mm
3,505 6,125
SOLID CASH FLOW
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Company Data, in Mexican Pesos. Source: Company Information.
0.135 pesos per share
Ago 25th, 2016
- 3rd. Installment of the cash dividend
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CONTACT INFORMATION
Investor Relations Enrique González +52 (55) 9177 5900
investor.relations@grupolala.com
Forward-looking statements
This document contains certain assumptions, projections and forward-looking statements regarding the Company’s financial situation, operative results and information, Grupo LALA’s business and that of its subsidiaries as well as with regards to the Company’s related plans and objectives. This executive summery does not constitute a public securities offering on behalf of LALA and is intended to be used for informational purposes only.
Stock Information Grupo LALA has been traded under the ticker ‘LALA B’
- n the Bolsa Mexicana de Valores (BMV) since
October 16, 2013. For more information: www.grupolala.com