The company argued that this decision was made as a result of an evaluation of the geographic footprint, performance and compatibility within the future strategy, and in line with the company’s strategy to focus on its key markets, increase profitability and improve return. of invested capital.
The closing will have a benefit of 3 million dollars in the annualized EBITDA of the Central American operations.
Arquímedes Celis, CEO of Grupo LALA, commented: “After having carried out a detailed analysis and review of LALA’s operation in Costa Rica, we determined that the related resources have more solid allocation alternatives within the Company to generate profitability and value. for shareholders ”.
“Likewise, we remain focused on ensuring that all of LALA’s businesses achieve performance levels aligned with our goals and expectations,” added Celis.
Additionally, the capital released with this closure will be reallocated to the company’s businesses in Nicaragua and Guatemala, where there is more potential to achieve sustainable and profitable growth, according to the company.
Grupo LALA’s operation in Costa Rica represents 0.4% of the company’s consolidated annual sales.
Its main assets are made up of a production plant, a distribution center and 12 distribution routes.
The related assets will be put up for sale or reallocated within the region.
The closing will have an impact of 126 million pesos on Grupo LALA’s EBITDA and 480 million pesos on Net Profit in the fourth quarter of 2020.
The non-recurring effects on Net Income are made up of the following: 404 million pesos for the purging of balance sheet accounts and impairment of goodwill.
LALA operates 31 production plants and 173 distribution centers in Mexico, Brazil, the United States and Central America, and has a workforce of more than 40,000 employees.
Grupo LALA operates a fleet that exceeds 7,500 units for the distribution of its more than 600 products, which reach more than 628,000 points of sale. In its portfolio of brands, LALA, Nutri and Vigor stand out.