Grupo Lala, the Mexican dairy company, reported higher second-quarter sales and earnings on the back of organic growth in Mexico and Central America and expansion in the US.
The company revealed second-quarter revenue rose 16% year-on-year to MXN14.97bn (US$843.3m). “Commercial initiatives, product mix, and pricing added 9.7 points; while the acquisition of the US branded business contributed 6.3 points of inorganic growth,” Lala noted.
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Last year, Lala acquired the US branded assets of dairy business Laguna Dairy.
Lala said its value-added portfolio also delivered “important growth” that enabled it to “enrich our mix sales”. This improvement was demonstrated by the 27.5% growth in the firm’s “other dairy products” category, which was driven by innovation, new installed capacity and acquisitions.
Operating income increased 5.9% to MXN1.63bn while net earnings were up 4.3% to MXN1.15bn.
Scot Rank, Grupo Lala’s CEO, stressed the “positive performance” of Lala’s “operation in Mexico”, which saw “sales growth and productivity improvements”.
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