Genomma Lab Q3 2021 Earnings Release

Q3-2021 Results

HIGHLIGHTS

Q3-2021 Sales increased by

Ps. 556.0 million; +16.2% year-on-year

Q3-2021 EBITDA closed at Ps. 819.0 million; +6.5% year-on-year

Ps. 1.76 billion

in Cash & Equivalents

as of September 30, 2021

Q3-2021 Net Debt to EBITDA

ratio of 1.49x

The Company received

Good Manufacturing

Practices (GMP)

certification

during 3Q-2021

12th

Consecutive Quarter of

top-line growth

Record EBITDA in absolute terms

Genomma Lab Internacional Reports

Third Quarter 2021 Results

Mexico City, October 27, 2021 - Genomma Lab Internacional, S.A.B. de C.V. (BMV: LAB B)

("Genomma Lab" or "the Company"), today announced its results for the third quarter

ended September 30, 2021. 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 third quarter 2021 as compared with the same period in 2020:

	Q3 2021	% Sales	Q3 2020	% Sales	Var. %
Net Sales	3,983.9	100.0%	3,427.9	100.0%	16.2%
Gross Profit	2,454.9	61.6%	2,189.9	63.9%	12.1%
Operating Income	783.5	19.7%	731.7	21.3%	7.1%
EBITDA(1)	819.0	20.6%	769.4	22.4%	6.5%
Net Income	393.2	9.9%	409.1	11.9%	(3.9%)

1. EBITDA defined as operating income before depreciation and amortization

Comments from the CEO

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

"We recently celebrated Genomma's 25-year anniversary of delivering value to our many important stakeholders. The commemoration was also an opportunity to reflect on our Company's commitment to strong sustainable growth through innovation and disruption. This long-term vision enabled another consecutive quarter of exceptional top-line, operational and profitability results despite the challenging operating environment, driven by an increased market presence with exciting line extensions, new formulations, and product launches during the quarter. Genomma's success in this regard underscores our Company's resilience, and our ability to flexibly adapt to consumers' needs. However, it's also testament to our operating management team's considerable skill and experience, particularly our strengthened supply chain team, and their ability to maximize our potential by leveraging and expanding our innovation, portfolio and brands' success throughout new channels and markets."

He added: "The GMP certification we were granted for our solids and semi-solids manufacturing facility during the third quarter was another important milestone in optimizing our supply chain- one of the four pillars of Genomma's growth strategy. Our new fully-operational industrial cluster enables us to improve product quality and our overall value proposition while reducing manufacturing costs and inventory levels, with an improved cash conversion cycle."

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Q3-2021 Results

KEY DATA

• Sales by Segment: OTC 59.0% PC 41.0%

18 Countries

&

+400,000 POS*

*Points of Sale

Tío Nacho®

with sustainable packaging launched in Mexico, Chile, and Costa Rica

Outstanding

Communications and Go-to-

Market with Brazil launch of

Liris® eye drops

Business Review

Third quarter 2021 net sales reached Ps. 3.98 billion; a 16.2% year-on-year increase. Accumulated net sales for the first nine months of 2021 reached Ps. 11.40 billion; a 9.6% year-on-year increase. The sequential sales increase reflects continued strong execution of Genomma's operating strategy during the quarter, specifically new innovative and profitable products, as well as channel and points of sale extensions in the different regions where the Company operates.

In absolute terms, EBITDA amounted to Ps. 819.0 million setting a new record for the Company. EBITDA margin for the quarter closed at 20.6%; a 180 bps year-on-year decrease which reflected FX headwinds and raw materials and packaging inflation, as well as increased marketing and advertising expenses. Third quarter 2021 EBITDA margin was also adversely impacted by a challenging year-on-year comparison due to elevated hand sanitizer demand in the third quarter 2020.

Third quarter 2021 performance reflected the following four pillars of Genomma's strategy:

Product Innovation and Portfolio Optimization

Genomma Lab remained focused on innovation, supported by continued operating discipline. This included important line extensions, new formulations, and new product launches which strengthened the portfolio during the quarter, as well as new environmentally sustainable packaging. These included the simultaneous Mexico, Chile, and Costa Rica launch of a new environmentally sustainable Tío Nacho® shampoo packaging integrating both recycled and recyclable materials, neutralizing this product's carbon footprint, as well as the launch within key Mexico retailers of Karboon by Groomen® razors with a more than 100-day cartridge life. During the quarter, Genomma further expanded its Novamil® presence in Mexico and completed several line extensions throughout Latin America including the launch of a new Cicatricure® Serum VIT C; the launch of Asepxia® GEN skin facial cleanser, which is Genomma's first specialized line dermatologically tested for oily skin; the launch of Next®-AB antibacterial liquid soap; and the Argentina launch of Tafirol® Flex in an ibuprofen/acetaminophen formulation with both analgesic and anti-inflammatory properties. US sales of Suerox® also grew sequentially during the third quarter 2021.

Strengthened Marketing and Perfect Go-To-Market Execution

The Company continued to expand within the regions where it operates through an increased presence of new and innovative brands, also within new channels and points of sale. Examples include: the launch of Groomen® and Suerox® in Chile and the Brazil launch of Liris®, Genomma's new lubricating eye drop brand, all of which were driven by strong marketing strategies which increased market share and product visibility during the quarter. This strategy enables Genomma to further expand high- growth brands through strategic partners in key countries where the Company is present.

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Q3-2021 Results

Genomma manufacturing

facility received GMP

certification for solids and semi-solidsproduct lines(See document)

Genomma builds alliances to strengthen institutions, foundations, and civil associations

Supply Chain

During the third quarter 2021, the Mexican health agency (COFEPRIS) granted Genomma Lab Good Manufacturing Practices (GMP) certification for the Company's Medicinas y Medicamentos Nacionales, S.A. de C.V. solids and semi-solids manufacturing facility in the State of Mexico. GMP certification enables Genomma to strengthen its competitive advantage and consumer appeal through an improved product value equation, specifically related to price, quality, and performance. This represents the achievement of an important goal related to the Company's four pillar strategy, in addition to establishing Genomma's Global Logistics Center and initiating its Personal Care manufacturing plant operations.

Genomma's Personal Care manufacturing plant's isotonic beverage production line reached production levels which exceeded 6,500,000 bottles during the month of September. The Plant also began test batches of its shampoo manufacturing line for its Vanart® and Tío Nacho® brands.

Genomma further improved service levels and fill-rates during the third quarter 2021, to reach levels which exceeded 90% despite global supply chain disruptions.

During the first nine months of 2021, investments related to the manufacturing plant reached Ps. 510.0 million, with pre-operating and production expenses of approximately Ps. 38.1 million for the third quarter 2021.

Sustainability and Corporate Culture

Genomma Lab was recognized within Expansión CEO Magazine's annual ranking of Mexico's top 'responsible companies' for its November 2021 issue. The ranking recognizes companies which have demonstrated successful social responsibility strategies based on the triple bottom line: environmental, social, and economic impact.

Genomma donated more than 100,000 products to local institutions supporting vulnerable children, adolescents, and the elderly, and donated more than 143,000 personal hygiene products, infant formulas and medicines to families affected by Haiti's earthquake. Further, more than 300 employees and family members who form a part of Genomma's GEN Contigo volunteer program participated in more than 35 activities to support more than 30 institutions in 10 countries throughout Latin America and the US.

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Q3-2021 Results

Launch of premium

Karboon by Groomen® razors within the Mexican market

Suerox®

New sugar-free coconut

flavor with Zinc

Asepxia® GEN

First specially created line for

oily skin, tested and

developed with

dermatologists

Mexico

Third quarter 2021 Mexico net sales reached Ps. 1.67 billion, a 12.3% year-on-year increase, primarily due to strong new category performance by products such as Novamil® and Groomen®, as well as successful new line extensions and synergies achieved in the traditional channel through new products and presentations.

Third quarter 2021 EBITDA closed at Ps. 334.6 million, with a 20.1% EBITDA. The

270 bps year-on-year decrease was primarily due to COGS inflation that was partially offset by pricing during September and October.

U.S.

Net sales at Genomma's U.S. operation decreased by 11.6% reflecting a difficult year- on-year comparison due to extraordinary hand sanitizer sales as well as abnormally high pandemic-driven sales overall during the third quarter 2020. Adjusted for the third quarter 2020 hand sanitizer non-recurring effect in the U.S., consolidated net sales would have increased by double-digit growth. The new operational model in the U.S. shows early positive signs in Puerto Rico (under a focused team for that market), the launch of Suerox® in California and the performance of the e-commerce channel.

Third quarter 2021 EBITDA margin reached 12.7%; a 50 bps year-on-year increase reflecting strong cost and expense controls, as well as operational leverage in the e-commerce channel. This was partially offset by a slight decrease in sales of those products with a more significant margin contribution.

Latin America

Third quarter 2021 Latin America net sales reached Ps. 1.98 billion; a 26.7% year-on- year increase. This was primarily due to increased points of sale within the traditional channel with increased visibility of key products, as well as new product launches and line extensions throughout the region. Top-line growth on a local currency basis exceeded 30% but was partially offset by FX headwinds in the key countries where Genomma operates.

Third quarter 2021 EBITDA reached Ps. 442.0 million; a Ps. 76.9 increase compared to Ps. 365.1 million for the same quarter of 2020. EBITDA margin reached 22.3%; a 230 bps year-on-year contraction primarily due to inflation of certain raw materials. This was partially offset by favorable sales mix with higher operating leverage resulting from incremental sales during the third quarter 2021, and to a lesser extent by productivity and pricing initiatives that continued in October (Q4).

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Q3-2021 Results

Genomma's New Industrial Cluster

+6,500,000 bottles

of Suerox® produced during September 2021

Genomma's manufacturing

plant produced more

Suerox® during the first

seven months of 2021 than any of Genomma's third- party suppliers

Highly trained team at the shampoo manufacturing line

Pomada de La Campana® line commissioning scheduled for

November 2021

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