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Grupo Lala lowers its sales in the United States by 8%

Grupo Lala recorded sales of 3,158 million pesos in the United States in 2021, which represented a reduction of 7.8% compared to 2020.

In the United States, LALA is the leading brand in the category of Drinkable Yoghurt for adults, with a significant presence in the main self-service stores in the country, while Promised Land and Skim Plus are super-premium milks with high recognition at the regional level and Skim Plus is the number one regional brand in the reduced-fat milk category.

There, production takes place in two production plants located in: Omaha, Nebraska, with facilities to produce Drinkable and Shaken Yoghurt, as well as Sour Cream; and Colorado Springs, Colorado, with installed capacities to produce shelf-stable milk and derived products such as cottage cheese, sour cream and dips.

As part of the strategy to streamline operations in the United States, Grupo Lala relocated the operations of the plant in Floresville, Texas in 2018, causing its closure, which has shown, together with a reengineering of the Promised Land portfolio, an agreement of maquila in Virginia to produce and distribute Promised Land products, in addition to improvements in the utilization of the Colorado plant, a recovery in the results of that region.

Grupo Lala

The company‘s operation in the United States reported 823 million pesos in net sales for the fourth quarter of 2021, an increase of 4% in constant currency and 4.4% in Mexican pesos.

This increase was a consequence of the increases applied to mitigate the impact on our main inputs and an improvement in sales of Drinkable Yogurt.

Likewise, Grupo Lala’s operation in the United States reported a negative EBITDA margin of 3.9% in the fourth quarter of 2021. The EBITDA for the year 2021 for this operation was a marginal loss of 17 million pesos.

In mid-2016, the company acquired Laguna Dairy’s branded business in the United States. Its business in the United States includes premium products in segments with high development potential, such as: Drinkable Yoghurt under the LALA and Frusion brands, as well as the Specialized Milk segment under the Promised Land and Skim Plus brands, and some other dairy products such as cheese, sour cream and desserts.

In all of 201, the company’s total sales were 81,944 million pesos, an increase of 1.4% year-on-year.

Grupo Lala is a Mexican company focused on the food industry, with more than 70 years of experience in the production, innovation and marketing of milk, dairy products and beverages under the highest quality standards. LALA operates 29 production plants and 172 distribution centers in Mexico, Brazil, the United States and Central America, and has the support of more than 40,000 employees.

 

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