Lala sees sales and earnings growth in Q2

Lala sees sales and earnings growth in Q2

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. 

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".