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Grupo Lala reports company growth during pandemic

Mexico City, Mexico — Grupo Lala has reported a 14.9 percent growth in its operating cash flow during the first quarter of the year.

“We started 2021 with a solid performance despite the challenges that COVID-19 still presents, however, the strength of our business in Mexico stands out, which continues to drive the growth, profitability and financial deleveraging of Grupo Lala,” said Arquímedes Celis, CEO of Grupo Lala, in a financial report.

Lala’s operating cash flow grew 14.9 percent in the first quarter of the year, compared to the same period of the previous year, according to its latest quarterly report. Celis said that he positive result was due mostly to the operations in Mexico derived from “solid operational management” adding that the results demonstrate the solidity of the company business model supported by the value of their brands and execution capabilities, resulting in improvements in consolidated financial and operating metrics.

By the end of March 2020, net sales reached just over 20 million peso, which meant a growth of 3.3 percent despite the fact that it was a high affordable base. The increase, Celis said, was due to panic purchasing at the beginning of the pandemic.

The company’s highest sales were registered in the Mexican and Brazilian markets, driven by the increase in prices that sought to adjust cost inflation in the regions. Both countries account for around 92 percent of the company’s total sales.

Regarding the company’s net profit, it reached 519 million peso, more than double what was reported last year, due to an improvement in operating profit and lower financial expenses during the period. “Our operational capabilities, focus on execution, talent and product offerings will allow us to continue growing and generating value for all our stakeholders,” said Celis.