{"id":391018,"date":"2020-12-01T14:03:25","date_gmt":"2020-12-01T19:03:25","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=391018"},"modified":"2020-12-01T14:03:25","modified_gmt":"2020-12-01T19:03:25","slug":"grupo-lala-announces-closure-of-costa-rica-operation","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/grupo-lala-announces-closure-of-costa-rica-operation\/","title":{"rendered":"Grupo LALA Announces Closure of Costa Rica Operation"},"content":{"rendered":"
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Aligned with Optimization Strategy<\/h2>\n

Results in a USD $3 million annual savings<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n MEXICO CITY<\/span>, Dec. 1, 2020<\/span> \/PRNewswire\/ —\u00a0Grupo LALA, S.A.B. de C.V., a Mexican company focused on the healthy food industry (“LALA”) (BMV: LALAB), today announced that the Company will close its Costa Rica<\/span> operation on December\u00a011, 2020 following a comprehensive evaluation of its geographic footprint and a careful analysis of performance and future strategic fit, aligned with the Company’s strategy to focus on its core markets, increase profitability and improve the return on invested capital.<\/p>\n

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The announced closure will have a USD $3 million<\/span> favorable impact on 2021 full year EBITDA for the Company’s Central America<\/span> operations.<\/p>\n

Arqu\u00edmedes Celis, LALA’s CEO commented: “After a detailed analysis and review of LALA’s Costa Rica<\/span> operation, we determined that related resources and focus are better allocated towards stronger paths to profitability and shareholder value within the Company, while we also remain focused on ensuring that all of LALA’s businesses achieve performance targets closely aligned with our goals and expectations. Moreover, the capital freed up with this closure will be re-allocated to our businesses in Nicaragua<\/span> and Guatemala<\/span> where there is more potential to achieve sustainable and profitable growth.”<\/i><\/p>\n

LALA’s Costa Rica<\/span> operation represents 0.4% of the Company’s consolidated sales, with assets comprised primarily of one production plant, one distribution center and 12 distribution routes. Assets associated with the operation will be sold or reassigned within the region.<\/p>\n

The closure will result in a $126 million<\/span>-peso impact on Grupo LALA’s EBITDA and $480 million<\/span>-peso impact on Net Income for the fourth quarter 2020. Net Income one-off items are comprised as follows:<\/p>\n