Genomma Lab Internacional SAB de CV

BMV:LABB

Earnings Call Transcript 2019-Q4

[Operator]

Ladies and gentlemen, thank you for standing by, and welcome to the Genomma Lab Fourth Quarter and Full Year 2019 Earnings Call. My name is Omar, and I will be your conference operator today. [Operator Instructions] Please also be advised that today's conference is being recorded.

I will now turn the conference over to Enrique Gonzalez, IRO of Genomma Lab. Please go ahead, sir.

We are experiencing technical difficulties. Thank you for your patience.

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[Enrique González, executive]

Thank you, operator, and thank you all for joining us today on today's call. Jorge Brake, Genomma's CEO, will begin today's call with remarks related to the company's operational progress and results; then Antonio Zamora, our Chief Financial Officer, will then provide a review of our financial performance. This will be followed by brief closing comments and Q&A session with Jorge and Antonio.

As a reminder, before we begin, today's discussion could contain forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risk and uncertainties. Factors that could cause actual results to differ materially are included in our reports on file with the Mexican Stock Exchange.

With that, let me turn the discussion over to Mr. Jorge Brake. Jorge, please go ahead.

[Jorge Brake Valderrama, executive]

Thanks, Enrique, and hello to everyone. Thank you for joining us today. 2019 has been an exciting and dynamic year for Genomma Lab, and for me, in particular, as my first full year as Genomma's CEO.

As you know, we have 4 priorities that guide our evolution as part of our profitable growth and innovation strategy we outlined late last year. These are: To deliver transformational products through innovation and portfolio optimization, while we perfect our best-in-class go-to-market execution; to develop world-class manufacturing and supply chain capabilities; and finally, create a corporate culture focused on consumers, partners and employees, while we ensure we have the organizational structure and right talent throughout our organization.

Genomma's results during the year reflected tangible success in this regard. Our renewed strategy enabled us to reignite business growth and profitability after several stagnant years and successfully closing full year results with the strongest top line growth in more than 6 years.

2019 was also a year of achieving important milestones for Genomma. We reconnected with important external stakeholders and rekindled commercial relationships with major client companies in the U.S. and Latin America previously not within our model.

During the year, we began an aggressive company-wide program of establishing important associations with key pharmacy chains and known pharmacy retail outlets accounts in Mexico, Chile, Peru, Colombia and Brazil. We have also been revitalizing the relationships with analysts, investors and other members of the financial community to continue rebuilding our credibility and reputation as a management team and a company. And during the year, we built relationships with important external influencers and opinion leaders in the countries where we operate, including government authorities, regulators, business leaders and journalists to further improve our corporate image and educate external stakeholders about Genomma's compelling competitive advantage and future vision.

Along these lines, we continue optimizing our media strategy, which today includes traditional TV, digital and in-store advertising. Our Instagram presence has proven to be very successful, ending the year with more than 2 million followers with almost 40 top Latin America influencers. We plan to expand and invest rationally to start promoting these types of communication channels.

Innovation and portfolio optimization are the catalysts of Genomma's future. During the year, we established related supporting pillars within our company to support and demand innovation. Creating our company's first centers of innovation, or COIs, which are teams comprised of 5 to 6 Genomma employees from different business areas, functions, levels and geographies, expressing their respective topics or who share experiences and perspective and can contribute to innovation through idea generation We review these content proposals and ideas each month as a team and our performance during the year demonstrates that Genomma's COIs are already producing demonstrable results.

Additionally, today, we work in clusters versus country-based silos. These site clusters are led by highly qualified professionals and leverage best practices and synergies across the organization.

In 2019, we have strengthened Genomma's key brands to be more relevant and on trend with staging, redesigning, modernizing and entering new businesses; in other words, sharpening and focusing our portfolio with examples such as Tio Nacho, vanart hair care, Teatrical skin cream, Cicatricure, Tukol cold liquids, Suerox isotonic beverages and Alliviax pain medicine, to name a few.

In the third quarter of 2019, we introduced our Revie premium shampoo line through an exclusive launch with Lojas Americanas retail chain in Brazil, having since achieved significant market share gains. In early 2020, we expanded release within other Brazilian retailers.

Our mid-September announcement that we signed an exclusive license agreement to market UPI's full range of Novamil brand infant nutrition products within Mexico represents an important transition and exciting new frontier for our company. While currently, fine-tuning and improving the supply chain we took over from Bayer, our first quarter 2020 will be Genomma's first complete quarter with this new brand. This is an opportunity for us to expand market share within Mexico, to then potentially replicate our success to the other markets in which Genomma has a presence.

Our team is intensely focused on building up on its strengths and making our products exceptionally relevant to today's consumer with an attractive, vibrant and exciting brand and product portfolio.

As innovation is deeply embedded within Genomma's DNA, we are also innovating with our go-to-market capabilities and expanding into distribution channels where Genomma products have not been present. This includes Mexico's traditional channels where, in 2019, we expanded points of sale to meet our target of nearly 250,000 stores in Mexico while replicating this model throughout Latin America. We are confident we have the muscle and right strategy to continue growing within this channel, aligned with our focus on targeting the right channels with the right portfolio and the right visibility strategies.

Turning to the evolution of our corporate culture. Foundation of the Genomma success is our customer-centric philosophy, fueled by our team members' common purpose. United in our belief in our customer health and wellness, we are building a great place to work for the more than 1,000 Genomma employees across the Americas, who today feel more integrated and connected as a multinational company, focused on our shared goals.

We have spent 2019 optimizing the structure of our organization, from R&D to marketing, sales, supply chain and finance. Models and processes are now aligned with future achievements behind our strategic vision and related pillars. We plan to continue making progress in this regard to drive continued evolution of the culture while we shore up Genomma's talent.

As we work to strengthen our business, leverage our meaningful competitive advantages and increase awareness of our powerful global brand, we feel good about the progress we are making. We believe we are positively transforming our company with a superior value proposition that keeps our customers at the center of everything we do. As we continue to execute and reignite innovation, we will stay close to the markets we serve and respond to the needs of our clients.

Our performance in this regard remains well balanced. As a result, our vision to become one of the best and most respected OTC and personal care companies in the Americas, creating the opportunity of a better future for our consumers, customers and team members.

To support our vision, we are continuing our strategy to relentlessly pursue operational excellence becoming a more valued partner with our key clients in creating an environment for healthy people, quality products and positive attitudes.

Now I would like to hand over the call to Antonio, who will walk through the numbers on some other areas of our progress in 2019. I'll be back. Thank you.

[Antonio Zamora Galland, executive]

Thank you, Jorge, and good morning, everyone. As Jorge mentioned, we achieved strong consolidated net sales for the full year, reaching MXN 12.8 billion, with significant macro and ForEx headwinds during the fourth quarter, notably, currency devaluations in Argentina, Brazil, Chile and Colombia.

Despite these obstacles, Genomma delivered good operational results with fourth quarter EBITDA reaching MXN 662 million and a 170 basis point EBITDA margin expansion to close at 20.3%. As Jorge mentioned, we have been strengthening our position in Mexico, which resulted in a net sales increase of 11% during the quarter to reach MXN 1.3 billion. This strong performance was a reflection of continued improvement in our go-to-market and in-store visibility initiatives, our new sales and operation planning system, additional points of sale as well as the increased presence within the traditional channel.

The product portfolio reconfiguration strategy, expanding the reach of certain brands to a broader consumer base as well as new marketing and commercial initiatives also continued to play a key role in our strong performance combined with successful winter season sales initiative.

Let's now discuss the key highlights of our results by region. Let's start with Mexico. Mexico fourth quarter EBITDA reached MXN 261 million, with a 19.8% margin, which represents a 510 basis point year-on-year expansion, resulting from the increased operational leverage associated with our double-digit top line growth as well as savings from operational efficiencies that were achieved during the quarter. This was partially offset by expenses related to our manufacturing facility during the same quarter.

Along these lines, I'd like to comment that Genomma's manufacturing facility stands ready for the visits of the GMP's certification process from the health authorities in Mexico. We continue collaborating with the authorities and regulators to soon have the first certification granted for our solid products manufacturing line at Genomma's OTC plant. However, as we discussed, we continue to successfully improve our relationship with Genomma's supplier base to further improve fill rates and service levels.

Going to the U.S. U.S. net sales decreased during the quarter by nearly MXN 27 million to close at MXN 308 million, as we continue reconfiguring our portfolio and operations in this market; and also reflected the U.S. dollar-to-Mexico currency conversion effect, which impacted our consolidated figures. We are also seeing the effect of online retailer competition on traditional pharmacy chain sales, which resulted in decreased traffic. As Jorge mentioned, Genomma's U.S. operation is making significant progress, and we believe 2020 is off to a strong start.

Turning to Latin America. Net sales for the quarter increased by almost 2% year-on-year and by 5.6% for the full year. As can be expected, the region was, again, highly impacted by ForEx and macro headwinds during the quarter as well as some social unrest in key Latin American markets.

Stronger market, in-store visibility, product launches and innovation as well as an increased store base resulting from our new relationships with important retailers drove top line growth during the quarter to partially offset hyperinflation in Argentina and ForEx headwinds in other markets.

EBITDA for the region reached MXN 378 million as compared to MXN 348 million in the fourth quarter of 2018 with a 23.1% EBITDA margin, which represented a 140 basis point year-on-year increase. This was mainly driven by the faster growth of higher-margin operations as well as by operational efficiencies to our organization. Brazil, Ecuador, Uruguay and Central America showed strong performance during the fourth quarter, partially offset by decreased demand due to social unrest in Chile, Colombia and Bolivia during the same period.

Consolidated gross profit increased by 2.5% to MXN 2.1 billion in the fourth quarter of 2019 compared to MXN 2 billion during the fourth quarter of 2018 with a 120 basis point margin contraction, again, due to the foreign exchange and product mix effect.

The tight control of cost and expenses, to which I previously referred, also translated in a decrease of SGM&A for the fourth quarter 2019, which decreased year-on-year by 430 percentage -- basis points as a percentage of net sales. Decreased SGM&A was also due to increased top line growth driven operational leverage.

Excluding the MXN 626 million CapEx investment, mainly allocated to Genomma's new manufacturing facility, adjusted free cash flow for the full year reached MXN 791 million.

Finally, during the fourth quarter, Genomma successfully placed MXN 600 million through a number of short-term unsecured local bonds in the Mexican market. This is a first for the company. These issuances were significantly oversubscribed and closed with the lowest interest spread of all recently short-term unsecured local bond issuances of Genomma. The cash obtained through these issuances has been allocated to restructuring and improving our financial debt profile. As many of you know, Genomma will be placing a new long-term unsecured local bond to further refinance and improve our debt structure.

In closing, our financial and operating results during 2019 demonstrate our ability to execute against our strategic plan and provide strong momentum as we look ahead to 2020.

With that, I will turn the call over to the operator for questions, and we'll return for Q&A. Operator?

[Operator]

[Operator Instructions] Our first question is from Alex Falcao, HSBC.

[Alexandre Falcao, analyst]

I wanted to know on your different platforms and your different markets that you're there, you saw the dollar basically strengthening against local currencies. Just wanted to know if there's any effect on margins? And how much you can pass through that into your product mix And the second question is regarding the innovation, can you -- do you have any pipeline or any plan that you can share in terms of some of the product lines? We saw some of the examples that you guys put out there, but something that we can quantify on how much the innovation and the new products could add to revenues going forward.

[Antonio Zamora Galland, executive]

Thank you, Alex. This is Antonio Zamora. Regarding your question about ForEx, there's always transaction and translation effect. I guess your question was more related to transaction effects. There's some impact. So whenever the U.S. dollar moves against the local currencies, that is not something that is specific to Genomma. That affects all our competitors as well. So there is a market and if costs happen to go higher for whatever reason, the market usually adjusts.

What we were referring mostly in the Q4 report was more related to the translation effect because whatever we generate in the different subsidiaries, especially those countries where there were major FX impact like Uruguay, Chile, Colombia, besides the obvious control, which is Argentina, that created a headwind in terms of reporting. Had that not happened, our numbers would have been better.

But we are not concerned. This is just something that is happening on a macro scale for everyone. So no major impact.

And talking about the profitability of our businesses, what I can tell you, and I will use the example of Argentina. Argentina even having experienced severe devaluations this year and the year before, our Argentina subsidiary still remains highly profitable. Its profit margin is actually higher than the average of the company. So we've been able to cope with these macro headwinds. So the -- my comments or remarks during this conference call were mostly related to translation effects. Again, our results would have been better if that hasn't happened. We are not concerned about ForEx in the midterm.

[Jorge Brake Valderrama, executive]

Alex, this is Jorge Brake. Going to your question and complementing Antonio's answer on the innovation pipeline, I just wanted to mention it first, that in these countries where we have external impacts that are not -- we cannot influence like ForEx or political situation or social situations, et cetera, et cetera, we'll have to make sure that we keep very focused on the main fundamentals of the business because history says that all companies that do that get out of the crisis or the difficult situations stronger than before. So that is exactly what we did in 2019, in all these countries besides Argentina because, as you know, in the second semester, we were impacted by ForEx exchange rate issues in several other countries. So that's the first thing.

And to be able to truly say that we are focusing on the fundamentals, we have to make sure that we are recovering pricing as soon as possible, whenever it's needed, to recover inflation produced by the relations, that we have the right portfolio for the specific socioeconomic situation to be able to remain competitive and attractive to the consumer.

And finally, we have to continue with our perfect in-store execution because that makes sure that we are accessible and reachable by the consumers.

So that's -- those are the fundamentals that all our organizations continue focus on regardless of the macroeconomic situation of the country.

Now going to the innovation pipeline question. Definitely, as we discussed a few weeks ago when we met, we have an innovation model now and that innovation model that has been working for 2019 already is producing some positive initial results. And you saw some examples of that. I mentioned some examples of that in my remarks. But that includes the identification of new potential businesses for the company, like the Novamil case, which we are just starting with very good initial results and trends. And the restage renewal modernization of our key brands, complemented by the big project that we are managing, which includes completing our portfolio in the different countries.

And all of this is done behind the Innovation Committee and behind the Centers of Innovation, or COIs, that we created as part of this new innovation model. So these teams have also already brought, and it is your question, new ideas for the future. Some of them will be implemented in 2020, some of them are ideas for the next 2 or 3 years. But of course, I cannot be more specific on this because of obvious reasons. But I can assure you that the pipeline of initiatives that we have in both our big categories, OTC and PC, is very interesting and solid for the next few years.

Next month, you will be hearing about the first one that will carry us in a new business, too. That will be an example of the type of pipeline that today we have, looking at the future, before we didn't. This innovation model is bringing discipline, is bringing a structured efforts behind building a pipeline of niche initiatives that is reliable, efficient, that can be secured with quality that is in line. We're taking advantage of our own capabilities and current capabilities, et cetera, et cetera.

So -- and one more thing that I'd like to say here is that we are very focused also on creating a very strong pipeline of initiatives in OTC. As you know, OTC is very attractive because of profitability. That is an area in which we recognize that we are still underdeveloped in several countries in South America and in the U.S., and that is a big umbrella category in which we want to grow more aggressively. It takes more time because it requires registrations and licenses. But as you build a solid pipeline, soon you will enter a cycle in which you will have initiatives every year behind a model that is sustainable and solid.

[Operator]

Our next question is from Nicolas Larrain, JPMorgan.

[Nicolas Larrain, analyst]

I had a couple here. The first one is on the plant. I know like everything, regarding timing is very uncertain. But I wanted to like to get from you your base case in terms of timing. And also, once the plant is already up and running, I wanted to understand what's then the normal ramp-up period we should see, especially in OTC. And also, on a different matter, I wanted to get some color from you guys on how are you seeing inventories and sourcing from China and India now, given the coronavirus outbreak. I wanted to get your sense here on how our inventories, how is sourcing behaving and then for how long does your inventory will last, let's say, in the case of a more adverse outlook for sourcing.

[Antonio Zamora Galland, executive]

Thank you for your questions, Nicolas. Again, this is Antonio Zamora. I'll start with the last one first because we've heard -- we've had a number of calls asking about the impact from China, Wuhan coronavirus, et cetera. Fortunately, we don't source anything from China, perhaps with the exception of a small container for a couple of SKUs that represent 0-point-something percent of our sales. So it's almost nothing. So directly, there's no impact, okay?

Now having said this, obviously, the world is interconnected in terms of global supply chain, et cetera. So eventually, there might be an impact, yes. I don't think, unlike other companies or like other industries, like the auto industry, et cetera, that they are extremely hit because of what is happening. In the case of Genomma, we -- so far, we haven't found anything that could impact us. Eventually, as I said, if the world gets impacted, we would be impacted as well. But that's going to be something at a much more larger scale. So far, no impact whatsoever. So thank you for the question because it's -- since this issue is on the news every day, there's always calls about that.

Now going back to the plant. As you know, there's 2 manufacturing facilities in the same complex, OTC and personal care. For personal care, we continue building the plant. Actually, the civil works is already completed. We are now at the stage of installing the new equipment. The new equipment will be starting operations during the second -- the beginning of the second half of this year. And for that plant, as you know, we don't need the GMP, the good manufacturing practices, so we expect everything to be running according to our plan for personal care.

In the case of OTC, as all of you know, the plant is ready. What we did for the first phase of the OTC plant is ready. It has been ready for a number of months. We were ready for the COFEPRIS visit, which is the Mexican health regulator. And unfortunately, the times are not the same that we would like them to have. We just had a visit starting actually this week, and there's a couple of other visits that are scheduled. So in the next 2 to 3 weeks, there's going to be another one. So I mean the process is going according to their standards, not according to our standards in terms of timing. But other than that, in these visits, they come, they find a couple of minor thing that need to be fixed. We fix them. No major challenges. I think the challenge is, again, the timing, okay? We are now focused on the semisolid line for OTC. And up until we get the GMPs, we cannot sell the product that we manufacture there. The good news, again, as I said before, is that for the personal care plant, we don't need GMPs. Everything is going well. It's going smooth. And as I said, in the second half of the year, probably August, we will start operations there. So that's a little bit of the status.

[Jorge Brake Valderrama, executive]

I just want to complement, 1 minute, what Antonio said. And I've said this several times in our one-to-one meetings in the past few months. The fact that the plant is still delaying -- not the start of operations because it's already operating, it's producing already. But the fact that we cannot sell what we are producing is one of the risks that is being an issue here. But that situation is not preventing us to go ahead with our plans as part of our company's strategy to be more effective and efficient in everything we do.

So you may remember, Nicolas, that we have as part of pillar 3 of our strategy, which is world-class supply chain, to have intervened and restructure our whole supply chain as of October 1 of last year. And that includes a small team that is fully focused on costs, for instance, reduction. We are working relentlessly with our key suppliers, which is a group of 19 external manufacturers and are working with us hand in hand very collaboratively to reduce costs as part of normal business.

So -- and the fact that we have developed strategic relationships with them in the last 12 to 14 months is making a difference.

And I'll remind the group of one example, the example of fill rates. Fill rates have been reduced from the low -- improved, I'm sorry, from the low 80s to the mid-90s throughout 2019. And that has done -- has been done with the help of our current suppliers. That's been done with the help of the new structure, especially in the last quarter of the year, where we have seen also a very healthy optimization and less reduction of inventories. Because now the system and the processes are in place to be able to provide good service while reducing costs and working capital.

[Operator]

Our next question is from Andreas (sic) [ Andres ] Ortiz, Crédit Suisse.

[Andrés Ortiz, analyst]

Jorge, Antonio, Enrique, I have two questions, if I may. The first one is regarding the U.S. business. Margin contraction was quite severe, with roughly 1,000 bps down. And you said that some of this was as a result of nonrecurring investments. Could you help us understand what you're referring with this? And what will be a normalized EBITDA margin level for these operations going forward? And the second question will be regarding cash conversion cycle. It appears to have been normalized or stabilized at around 100 days, but what are your plans going forward? Have you expected this number to trend downwards for 2020, 2021?

[Antonio Zamora Galland, executive]

Thank you, Andres. This is Antonio. Thank you for your questions. Regarding the U.S., as you know, the Mexican peso strengthened against the U.S. So whatever we export from Mexico to the U.S. obviously became more expensive locally. And -- but the U.S., as we have mentioned in earlier quarters, is now in the middle of a restructuring, a turnaround. We are trying different initiatives in -- with different strategies that we described earlier -- and Jorge may expand a little bit in a couple of moments. Basically, to take the U.S. business to a different level with a higher scale, very focused in specific segments and markets, and I will let Jorge describe that.

So whatever you see today as the profitability of the U.S. does not represent what we envision the U.S. to be once the strategy is being implemented. But as we said, trying to change the strategy or to expand or refine the strategy takes some time, especially in a big country like the U.S., and I will let Jorge explain that a little bit later. So the U.S. is going to be flattish for a couple of quarters more, up until the benefits of the new strategy will take place.

Let me move on to the cash conversion cycle that is around 100 days. As we all know, Genomma used to have in 2018 and before fill rate issues with some of our suppliers. So we used to have customer orders that we could not fulfill. So what we decided, as part of the new strategy, is that our service levels to our customers was a key priority. So what we did initially is we increased inventory. And if you look at the trend for the first half of 2019, you would see that our inventory levels were higher basically because we wanted to have enough inventory of the high-volume SKUs, okay, so that we could fulfill the orders. That helped us drive top line growth. That was one of the drivers as well as others that Jorge mentioned before, but that was key to help us grow as well.

Now once that has been achieved, and I'm talking around mid-2019, then we decided, okay, now we have the service levels that we wanted, now it's time to start optimization of the inventory levels. And if you look at the trend from Q2 to Q4, you will see an improvement in terms of inventory. So the investment was a short-term investment that had a good payoff because sales grew and now inventories are coming down.

A similar effect happened with accounts receivables, okay? Because as you grow the business, as you sell more, your accounts receivables grow in line with that. But you sell faster than you collect. So at the end of the year, and I'm talking about Q4, there were still some accounts receivables outstanding as part of the winter season. But if you look accounts receivables in terms of numbers of days, I mean, it's within reason. I mean -- and obviously, comparisons are always horrible, but there's a couple of other companies in Brazil where they grow by doing channel staffing and other things that we would never do. So our working capital is solid, it's sustainable and accounts receivable will be improving. So the 100 days, basically, again, because we have to pay -- we didn't have to pay. We decided to pay a little bit faster to get benefits from our existing relationships with suppliers. And also, we had outstanding balances of some contractors of the plant, et cetera. And so that's what kept us at the 100 level.

In 2019, by the -- sorry, in 2020, by the end of 2020, you will see an improvement in the cash conversion cycle. Having said this, I just want to say that in the case of inventories, as the plant starts operations, there's going to be an initial spike in inventories, basically in raw materials, that are required for the new plant and a little bit of finished product goods inventories, just to make sure that we don't have any disruption in the supply chain system, so that we don't have any stock outs. But as the plant has completed its ramp-up process, then the cash conversion cycle will improve. I don't know if this answered your question.

[Andrés Ortiz, analyst]

Very clear.

[Jorge Brake Valderrama, executive]

I can -- just a couple of minutes. I can complement on the U.S. point that Antonio has mentioned. As you know, we are -- we started a restructure of our business in the U.S. in late 2019. You may remember that in late 2018, I mentioned -- in the first quarter of 2019, I mentioned a couple of times that we were challenging our business model in the U.S. because the vision has to be one that takes us to a different level in our business in the U.S. because of the type of the markets, because of the potential in the country. And we started challenging our business model there in early 2019 and developed a project that ended in the last quarter of the year with a new approach, a new approach that was led by our U.S. team and, obviously, complemented by our teams here in Mexico, that we believe produce a plan that makes us feel very comfortable with what we can see as a great future for our business in the U.S. And basically, what we have done is that, basically, we aligned our team in the U.S. together with the strategy to be able to focus on the Hispanic consumer, also on the non-Hispanic consumer in a specific, very relevant states in the U.S. so that we can -- we stopped trying to eat the whole elephant in one bite, and we eat the elephant in several bites gradually and chose -- and we have chosen a few states that will make a difference in our business. And also making sure that we redesigned our portfolio, including brands that are not in the market yet that has huge potential to develop in the market. And also restaging a few of those that are already in market. And one example of that is Bufferin. Bufferin was relaunched just a couple of months ago, Silka Medic is also going through that process. Those are 2 examples of 2 brands that have gone through the redesign process and are already producing very good initial results after the relaunches. So you will hear more of this in terms of portfolio, in terms of what is happening in the key states of the U.S. and in terms of things that we are doing that are specific for the Hispanic consumers, but are also targeted to the non-Hispanic consumers in different ways.

And to be able to execute this, we have formed four teams, four teams that have their own P&L that are responsible for delivering what I just explained in terms of the model and the strategy and that will be responsible for the full execution of this. So I'm very optimistic about what we are doing starting 2020 in the U.S., and I hope to be providing better news as we go during this year.

[Operator]

This concludes the question-and-answer session. And I will now turn the call back over to Mr. Jorge Brake for closing remarks.

[Jorge Brake Valderrama, executive]

Thank you for joining our fourth quarter and full year 2019 earnings conference call. We continue to focus on maximizing value for shareholders as we build on our strong results and strive to realize the company's full potential.

Given Genomma's world-class attributes and a strong and advantaged portfolio, we believe 2020 will be another year of success in executing against our plan to deliver value. We have set a clear and bold path for Genomma Lab to be the most consumer-centric OTC and personal company in the Americas. We will continue to take deliberate actions to drive a healthier, more sustainable and profitable business for the future. And we believe our actions are bearing fruit.

As always, we are available to answer any follow-up questions. Thank you for your time and your continued support of Genomma. Bye.

[Operator]

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.