About Genomma Lab
Genomma Lab is a prominent Mexican manufacturer and distributor of pharmaceutical and personal care products. The company has established a strong presence in the market, offering a wide range of health and beauty solutions. Genomma Lab’s product portfolio includes well-known brands such as Suerox, Néctar de Aguacate, and Cade. The company’s commitment to innovation and quality has earned it a reputable position within the industry.
Bond Offering Details
Genomma Lab recently announced the successful issuance of two bonds in Mexico’s stock market, raising a total of 1,200 million pesos (approximately 62.6 million USD). The bonds have maturities of six and seven years, providing the company with long-term financing to support its growth initiatives.
- Bond 1: The first bond, with the code ‘LAB 25’, has a maturity date of May 27, 2031. Genomma Lab raised 700 million pesos through this instrument, which features a variable interest rate based on the Tasa de Interés Interbancaria de Equilibrio (TIIE) for 28-day periods, plus an additional 70 basis points.
- Bond 2: The second bond, ‘LAB 25-2’, matures on May 25, 2032. Genomma Lab secured 500 million pesos through this instrument, which also has a variable interest rate based on the TIIE for 28-day periods, plus an additional 77 basis points.
Purpose of Funds
Genomma Lab stated that the funds obtained from these bond issuances will be used for the early redemption of certificates identified with the code ‘LAB-23’. This strategic move aims to improve the company’s debt maturity profile and optimize the average life of its liabilities.
Market Demand and Ratings
The bond offering experienced a significant demand, with a coverage ratio of 1.25 times the total amount offered. This demonstrates strong investor confidence in Genomma Lab’s financial health and growth prospects.
Credit rating agencies Fitch Ratings and HR Ratings assigned the bonds ‘AA+(mex)’ and ‘HR AA+’ respectively, placing them in the second-highest investment-grade category nationally.
Intermediary Role
Actinver Casa de Bolsa acted as the intermediary broker for Genomma Lab’s bond issuance, facilitating the successful placement of these securities in the Mexican stock market.
Q1 Financial Performance
Genomma Lab reported a 12% and 5% increase in its operating cash flow (EBITDA) and sales, respectively, for the period of January to March 2025 compared to the same period in 2024. However, these results were slightly below analysts’ expectations from Infosel, which had forecasted 3.7% and 4.6% growth for EBITDA and sales, respectively.
Genomma Lab attributed the Q1 2025 sales performance to strong growth in Suerox sales in key markets, offset by lower-than-expected winter seasonality and a loss of market share for flu brands in the United States.
Key Questions and Answers
- What is Genomma Lab? Genomma Lab is a leading Mexican manufacturer and distributor of pharmaceutical and personal care products, offering popular brands like Suerox, Néctar de Aguacate, and Cade.
- How much did Genomma Lab raise through the bond issuance? Genomma Lab raised a total of 1,200 million pesos (approximately 62.6 million USD) through the issuance of two bonds with maturities of six and seven years.
- What will the funds be used for? The funds will be allocated towards early redemption of existing certificates, improving the company’s debt maturity profile and optimizing its average liability life.
- What were Genomma Lab’s Q1 2025 financial results? Genomma Lab reported a 12% increase in operating cash flow (EBITDA) and a 5% rise in sales for the period of January to March 2025, though these results were slightly below analysts’ expectations.
- What factors influenced Genomma Lab’s Q1 2025 sales performance? The company attributed its Q1 2025 sales growth to strong Suerox sales in key markets, offset by lower-than-expected winter seasonality and a loss of market share for flu brands in the United States.
