Grupo Lala, the Mexican dairy firm, said new products, a higher proportion of value-added sales and pricing helped lift both sales and earnings in 2014.
The company said that sales increased 4.3% to MXN44.99bn (US$3bn). “The increase in sales was primarily due to pricing strategy exercised during the year, to non-organic growth as a result of new products and brands in the portfolio, as well as the mix of products with higher added value.” Lala said gains were “partially offset” by lower volumes.
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EBITDA for the full year increased by 3.6% to MXN5.47bn, compared with MXN5.28bn in 2013. The company said higher gross margin – the result of its sales initiatives – was offset by increased expenses as a percentage of sales. Operating margin therefore remained steady at 12.2%.
Net income grew 10.4% to MXN3.12bn as higher taxes were more than offset by increased income from associated companies and higher financial income.
