Mexico-based dairy company Grupo Lala saw sales and profits rise in the first half of 2014 – but CEO Arquimedes Celis said macro-economic conditions had weighed on the business.
Lala booked a 37.5% jump in net income from continuing operations in the first six months of 2014, operating income that was up just short of 10% and a 5.3% increase in sales.
However, Celis said the economic landscape in Mexico had affected the business. “The current macroeconomic climate, characterised by slow economic growth and a deceleration in consumption, was an important factor impacting results in the first half of the year,” the Lala chief said. “This has also translated into low sales growth, affecting our results and overall profitability.”
Lala posted first-half net income from continuing operations of MXN1.64bn (US$126m), up from MXN1.19bn in the first half of 2013. Operating income reached MXN2.15bn, compared to MXN2bn a year earlier.
Net sales grew to MXN22.08bn, against MXN20.96bn a year ago. Compared to the 5.3% increase in net sales in the first half, Lala’s top-line growth did slow a touch to 4% in the second quarter.
Click here for the detailed statement from Lala.
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