Good day, ladies and gentlemen. Thank you for joining Genomma Lab's third quarter 2026 earnings conference call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. As a reminder, this meeting is being recorded and will be available for replay from the investor relations section of Genomma's website following the call. I'll now turn the call over to Christianne Ibáñez, Genomma's Head of Investor Relations. Please go ahead.
Thank you, Daniel, and welcome everyone. On today's call are Marco Sparvieri, Chief Executive Officer, and Antonio Zamora, Chief Financial Officer. Before we get started, I'd like to remind you that the remarks today will include forward-looking statements such as the company's financial guidance and expectations, including long-term objectives and forecasts, as well as expectations regarding Genomma's business, products, strategies, demand, and markets. These statements are subject to risks and uncertainties that could cause actual results to differ materially. They are also based on assumptions as of today, and the company undertakes no obligation to update them as a result of new information or future events. Let me now turn the call over to Mr. Marco Sparvieri.
Thank you, Grace, and thank you everyone for joining our third quarter 2026 earnings call. Let me open with the quarter highlights. First, our recovery plan is reversing the trend as we anticipated. Mexico improved for a third quarter consecutive. Sell-out returns to growth, and market share is recovering, with Suerox reaching a historic high at the leading retailer. Second, EBITDA margin reached 21%, in line with our expectations. This reflects our deliberate decision to invest more in the business in promotional activity and commercial spending to accelerate growth. Third, net margin expanded 168 basis points to 11.4%, and net profit grew 18.6%, driven by lower financial expenses and unfavorable foreign exchange results. Last quarter, we told you we expected a continued gradual recovery during the second half of 2026. The third quarter confirms that the recovery is underway.
Turning to Mexico, net sales declined -2.4%, a third consecutive sequential improvement from -4.4% in the second quarter, -8.6% in the first quarter, and -22.1% in the fourth quarter of 2025. That is nearly 20 percentage points of recovery in three quarters, supported by strong growth in beverage and infant nutrition. More importantly, sell-out returns to growth, a sign that consumer demand for our brands is improving. We held or grew market share across all business units, and the innovation we launched in late June is already accelerating growth. This view shows the sell-out across our monitored retailers in Mexico, our acid test. Last quarter, we shared that monitored sell-out turned positive in the first two weeks of July. The full quarter confirmed it, +2.7% in July, +7.4% in August, and +8.6% in September, for +5.8% in the third quarter.
That is a 24-point improvement since April and 27 points above the low point of Q2 2025. Month after month, the recovery is holding. At the leading retailer, our largest client, the recovery remains ahead of the curve. Sell-out grew +20% in July, +30% in August, and +22% in September, +24% for the quarter and 41 points above the low point of the second quarter of 2025. Last quarter, we said this client is a leading indicator of what our strategy can deliver. We continue to execute the same strategy with each of our clients. A key driver of that acceleration is innovation. Since the launch of Suerox, sell-out at the leading retailer moved from -25% in late May to +81% in August.
Over the same period, Suerox value share climbed from 6.6% to 12.6%, a new historic high, up six percentage points in the three months. These results are at a single retailer, so we remain measured, but they show that innovation is pulling the brand up, and it is why we are accelerating our launches. Let me put our sell-out in the context of the market. In OTC, personal care, and infant nutrition, we grew ahead of our categories. OTC sell-out grew 5.2% in a category that declined -3%. Personal care grew 5.8% against a category down -9.3%. Infant nutrition grew 7.4% in a flat category. In isotonic beverages, our total sell-out still declined -9.7%, while the category grew 2.9%. But where our innovation is on the shelf, sell-out grew 39% on average between June and August.
That is the gap our innovation is designed to close. Turning to our consolidated results, net sales grew 1.3%, reflecting the ongoing recovery in Mexico and 12.2% growth in Latin America, partially offset by continued weakness in the U.S. Hispanic retail market. Gross margin was 61.4%, a 244 basis point contraction, mainly reflecting the destruction of return products in the United States and higher promotional investment, including the fully absorbed impact of Mexico's new tax on non-caloric sweetened beverages. EBITDA margin reached 21%, down 271 basis points, while our productivity savings reduced SG&A by 1.1%, despite higher OpEx and inflation. Net margin expanded 168 basis points to 11.4%, driven by lower financial expenses and non-recurring favorable foreign exchange results. Let me be direct about margins. Last quarter, we said EBITDA pressure was a deliberate choice to prioritize market share.
This quarter, we choose to step up that investment in promotion, commercial spending, and launches because the returns are now visible in sell-out and market share. EBITDA came in line with our expectations. In Latin America, net sales grew 12.2% and EBITDA margin expanded 190 basis points to 23.7%. Central America and the Andean region continued to grow on market share gains and traditional channel expansion, more than offsetting lower sell-in in Brazil, where customers are reducing inventories ahead of the country's tax reform. We expect Brazil sell-in to normalize in the first quarter of 2027, once the new tax rules take effect. Argentina grew 39%, driven by unit share gains in OTC and beverages, and a strong favorable hyperinflation effect. In the United States, net sales declined 30%, reflecting distribution gaps amid continued weakness in Hispanic retail market, where sell-out declined -8.8% in local currency.
Suerox sell-out maintained double-digit growth and e-commerce continued to expand. We are realigning our commercial footprint and distribution model to stabilize performance and support a gradual recovery. We added one slide, because there is a significant increase in our cash conversion cycle, that I wanted to explain. I will let Tony get into further explanations and details. What I wanted to highlight is that mostly, the increase in the cash conversion cycle is driven by two effects. One is the Argentine non-cash effect, that is driven by inflation and currency devaluation. We have, in the ways, a massive devaluation of the Argentine peso that is causing this effect, number one. Number two is a deliberate increase in the inventory buildup in Mexico.
This has been a very complicated year throughout the quarter since January, and because of everything that is going on in the world, with the wars and shortages that we were potentially facing, we made a conscious decision of purchasing in advance, more than what we normally do, of the APIs that we require to produce the winter season brands that we expect to be a very strong season in Mexico. We have early signs in this quarter that that's going to happen. We purchased in advance of very massive price increases because of the oil price. That led to an increase of inventories in Mexico. That coupled with five new launches that we have in OTC and the launch of Suerox Mineral, that we needed the inventory, to make sure that we can respond to the demand that is coming forward. Okay?
I wanted to provide that perspective. That is what took our conversion cycle from 129 days to 165. One commitment that we are making is that by the end of the fourth quarter, we are going to at least take that number down to 140 days. Obviously, the non-cash or inflationary or currency depreciation in Argentina is not going to impact us in the fourth quarter, so that's going to be gone. The inventory, we should expect to sell most of it in the fourth quarter and the first quarter of 2027. Okay? One note that I added in this slide, because I know this is a recurring concern from investors, shareholders, is the accounts receivables. Okay? I wanted to explain how accounts receivables is being impacted by the Argentine non-cash effect. If you exclude that, our accounts receivables remain very much in line with the last quarter.
We expect to maintain that level going forward. There's nothing affecting the receivables right now. This is mostly driven by the Mexico buildup of the inventory and the non-cash effect in Argentina. We will answer any questions you guys have after the presentation. Before I close, let me leave you with four messages. First, Mexico delivered what we anticipated, a third consecutive quarter of sales improvement and sell-out back to growth. Second, we are growing ahead of our categories in OTC, personal care, and infant nutrition, with market share stable or growing across all business units. Third, innovation is working. Our late June launch took Suerox to a historic high share at the leading retailer, and we are accelerating launches and stepping up investment to expand market share.
Fourth, we enter the fourth quarter with momentum, a stronger innovation pipeline, and a solid balance sheet, with working capital expected to improve as the quarter's temporary effects unwind. To close, this quarter confirms that our recovery plan is working. On December 3rd, in New York, at our Investor Day, we will present the new operating model, the company's future strategy, and the new artificial intelligence platform in action. I look forward to seeing many of you there. Before I hand over to Toño, allow me a personal note. As we announced in September, this is my last earning call as CEO of Genomma Lab. I will support the transition through the end of the year. On January 1st, Rodrigo Herrera, our founder and chairman, will become the interim CEO. I am proud of what we have built together. We kept our financial discipline through a difficult consumption cycle.
We defended our market share. Today, we are seeing the recovery we worked for. I leave confident in what comes next. Genomma's greatest strength, powered by artificial intelligence. I want to thank our team for their disciplined execution, their commitment, Rodrigo and the board for their trust, and you, our investors and analysts, for your support and your candid questions during my time as CEO. Genomma is in very good hands, and I will follow its next chapter very closely. Thanks so much. Toño, please go ahead.
Thank you, Marco. Thank you for all these years. Good morning, everyone. Our third quarter results reflect two realities. Mexico is recovering, and we're choosing to invest behind that recovery. At the same time, the U.S. remains a difficult market, and part of this quarter's net income growth came from a positive forex result. I will address both of these topics. Three points frame this quarter. First, sales. Mexico is improving. Net sales trend improved for the third consecutive quarter, and sell-out returned to growth. Latin America grew 12.2% in Mexican peso terms, and the U.S. declined 30% and remains a principal challenge. Second, margins. Margins declined partly by design. We increased promotional and commercial investment and fully absorbed Mexico's new tax on non-caloric sweetened beverages. The effect of returned products in the U.S. from the past winter season also weighted on our margins.
Operating savings significantly offset inflation, and SG&A declined 1.1%. Third, cash. Cash generation and liquidity are sound. Operating cash flow rose 12.5%, free cash flow rose 52%, and 85% of our debt is now long-term. Working capital increased, and I will explain why in a moment. Net income grew 18.6% with a significant contribution from a forex exchange gain, and we will go into the details a little bit later. Let me now turn to the results. Revenues, net sales were MXN 4 billion 497 million, up 1.3%. Latin America grew 12.2%, which more than offset declines of 3% in the U.S. and 2.4% in Mexico. The 7.3% appreciation of the Mexican peso against the US dollar created a translation headwind on our international results. Gross margin was 61.4%, down 244 basis points. Two factors drove the decline.
The effect of returned products in the U.S. and higher promotional investment, including the full absorption of Mexico's new tax on non-caloric sweetened beverages. The second was a conscious decision to support growth. The first was not. It was the result of a past milder-than-expected winter season in the U.S. EBITDA was MXN 945 million, a 21% margin, in line with our expectations, and 271 basis points below last year. We are accepting lower margins in the near term to invest in growth. The trade-off is justified only if it produces sustained improvement in sell-out and market share. That is the standard against which we will evaluate these investments. Cost discipline was maintained, operating savings significantly offset inflation, and SG&A declined 1.1%. Net income rose 18.6% to reach MXN 550 million, and net margin expanded 168 basis points to 11.4.
Lower financial expenses and a foreign exchange gain more than offset a lower EBITDA margin and a higher inflationary loss on our monetary position in Argentina. The FX gain is non-recurring, and without it, we have to acknowledge this, net income growth would have been lower. Over time, earnings growth has to come from operations. Let's move now into Mexico. In Mexico, net sales declined 2.4%. It is still a decline, but it is the third consecutive quarter of improvement and nearly 20 percentage points better than the low, -22%, in the fourth quarter of 2025. Beverages and infant nutrition grew strongly. In Mexico, a market that, as we all know, remains soft, we outperform our categories in OTC, personal care, and infant nutrition, and market share was stable or growing in every business unit. Sell-out returned to positive territory, which is an encouraging signal of consumer demand.
The product we launched in late June drove 39% sell-out growth among customers carrying it, and Suerox achieved a record high value market share at our leading retailer. These are early indicators, and we will need to see them sustained. We are accelerating launches and increasing investment to expand market share. As a result, Mexico's EBITDA margin was 20%, down versus last year, and this reflects investments ahead of the sales ramp-up we anticipate, partly funded by administrative savings. A word on currency before turning to the U.S. The Mexican peso averaged 17.27 pesos per dollar. Now it's changing, but that was during the quarter. This represented a 7.3% stronger peso than a year ago, which reduced our U.S. results when translated into Mexican pesos. The U.S., as we said before, remains our most challenging market.
In the U.S., net sales declined 30%, reflecting distribution gaps amid continued weakness in the Hispanic retail market. Sell-out declined less, but still, it was a decline of 8.8% in local currency. On the other hand, there are positives. Suerox sell-out maintained double-digit growth, and e-commerce continued to expand in that country. We are realigning our commercial footprint and distribution model to stabilize performance. We expect the recovery to be gradual. EBITDA margin was 8.6%, down 492 basis points, primarily reflecting operating deleverage and the impact of returned products from the past winter season, which as we mentioned, was very mild. In Latin America, most countries depreciated against the Mexican peso, creating as well a translation headwind for the region. Latin America net sales grew 12.2%. Argentina grew 39.2%, driven by unit share gains in OTC and beverages, and a favorable hyperinflation effect. Excluding Argentina, Latin America grew 1.6%.
Central America and the Andean region performed well, with market share gains in OTC and beverages in key markets, and expansion in the traditional channel. Brazil, on the other hand, declined as customers reduced inventory ahead of the country's tax reform. We expect Brazil's sell-in to normalize in the first quarter of 2027, once the new tax rules take effect. Regional EBITDA margin, including Argentina, expanded 190 basis points to 23.7%, reflecting operating leverage from higher sales. The foreign exchange result that we mentioned was a gain of MXN 41 million, compared with a loss of MXN 122 million in the third quarter of 2025. During the quarter, we paid down intercompany balances to reduce the amount of exposure to different currency movements. Also, the Mexican peso is now getting to more normal levels. So this was one of the drivers for the net income growth during this quarter.
Turning to the balance sheet, as of June 30th, MXN 1,880,000,000 of our debt was due in 2026. During the quarter, we replaced most of that short-term debt with a long-term bank credit. We drew on a 10-year amortizing term loan with Bancomext, and we announced last quarter that we also closed a MXN 1 billion unsecured loan with Bancomext, maturing in 2029. As you can see, this is our maturity profile today. As of September 30th, short-term debt decreased 63% to MXN 1,195,000,000, over 2.3 times by cash and equivalents of MXN 2.76 billion. 85% of our gross debt is now long-term, and the net debt closed at MXN 5,242,000,000, MXN 94 million lower than in the second quarter. As you can see in this graph, 2027 remains our largest maturity year.
We continue with our plans to extend maturities and lower our cost of funding as we will present in the coming quarters. Working capital is the area that requires the most attention this quarter, as Marco mentioned earlier. Our cash conversion cycle reached 165 days, up 36 days from the second quarter. Receivables increased 12 days, inventories increased 21 days, and payables decreased three days. There are two temporary effects that explain 28 of the 36 days, which are a non-cash inflationary accounting effect in Argentina of 13 days, that Marco explained earlier, and a planned inventory build in Mexico of 15 days ahead of the winter season. There is a lot of innovation coming, including Cough & Cold launches in the fourth quarter of 2026 and the first quarter of 2027. If we exclude Argentina from these figures, receivable days rose only three days, with no material increase in overdue balances.
We expect the cycle to decline to approximately 140 days in the fourth quarter as the winter inventory in Mexico sells through and the Argentine effect normalizes. Even at that level of 140 days, it would remain above where it was a year ago, and improving cash conversion cycle is a priority. Operating cash flow grew 12.5% to MXN 496 million after a planned MXN 776 million investment in working capital, and we also covered CapEx, interest payments, debt repayment, and dividends. Free cash flow increased 52% to reach MXN 470 million during the quarter from MXN 309 million a year ago, and totaled MXN 1,420,000,000 over the last 12 months. Our capital allocation, as we all know, seeks to balance three objectives. First, investing in the business, maintaining a sound balance sheet, and also returning cash to shareholders.
On September 30th, we paid our 17th consecutive quarterly dividend of $0.20 per common share, totaling almost MXN 195 million. CapEx totaled close to MXN 25 million, including MXN 21.2 million invested in our manufacturing plant and distribution center. Net debt to EBITDA is 1.4 times, and our debt service coverage is 5.5 times. This gives Genomma the flexibility to keep investing in the business while meeting our commitments to shareholders. To conclude, this was a quarter of mixed results, and we want to be clear about both sides. On one side, Mexico continues to improve. Sell-out has returned to growth, cost discipline helped, operating cash flow increased, and our debt maturity profile is longer. On the other side, the U.S. remains difficult. Margins declined, working capital increased, and part of our net income growth may not repeat.
Our task now is to convert the improvement in sell-out into sustained sales growth, bring the cash conversion cycle down to approximately 140 days in the fourth quarter, and maintain the financial discipline that underpins long-term value creation. Finally, just a reminder that on December 3rd, we will host an Investor Day in New York, where the company will present the new strategy and a demonstration of the artificial intelligence agents that will help the company accelerate results. Please register to attend. Here you have a QR to do so if you haven't done it yet. It will be worth it. It's very important that everybody knows that being there, it's not the same as attending remotely. It's worth attending in person. We encourage you, again, to register. With that, I will hand the call back to the operator for your questions.
Thank you, Antonio. We will now begin the question and answer session. To ask a question, you may raise your hand using the raise your hand icon located at the bottom of your screen. To withdraw your question, press the same icon at any time. This will be required in order to allow you to then turn on your microphone and ask your questions. One moment, please, while we hold for questions. Thank you. Our first question will come from Alvaro Garcia from BTG Pactual. Alvaro, please turn on your microphone and proceed with your question.
Hey, Marco. Hope you're doing great. Obviously, a lot to get into on the working capital front, but I wanted to start off with a question for Marco, as you hand over the key, I was curious if you could maybe talk about what you're proudest of in your tenure as CEO, and maybe what you'd see as unfinished business, again, as you hand over the keys. Thank you.
Thank you, Alvaro. I think that over the past years, the company has made a huge amount of progress in several fronts, which I am very proud of to see and will continue to be proud as we embark on the new phase of the company. I would say number one, obviously, is the commercial expansion of this company. If you look back, 10, 12 years ago, this was a company that was mainly focused on the pharmacy channel. And now, the pharmacy channel today is one of several channels, and it doesn't represent the majority of the business, on the contrary. That has been a massive achievement for this company. We went from having two customers, two retailers in the U.S., to now be serving more than 80 customers in the U.S.
In Latin America, we went from having a bunch of customers, no more than 10, 15 customers in total, in the sum of all the markets. Today, we serve more than 180 customers in total in Latin America. In Mexico, we were very dependent on the pharmacy channel and Walmart, and today we have a traditional channel that represents almost 28% of the business. That was built from scratch. This was a very hard work that was done by the entire team throughout the years. So that's one thing. Second, I would say the startup and the build of all the manufacturing facilities that the company has. If you go back, seven, eight years ago, everything we did was manufactured by third parties. Today, more than 68% of our business is manufactured in our own facilities, and the greenfield startup of all these plans.
It was very exciting, and I think it brought a massive amount of savings in COGS and improvements in quality for the company. I think the team that the company was able to build over the years, today, wherever you look in the different functions, markets, areas, whatever, you see top-level people leading the functions. People with extraordinary careers from other companies that came to the company trusting they could continue to grow and to add value with us as a company. And finally, I would say that the very strong relationship that we have with suppliers and customers, I think that's something that we have built. And I expect a lot of that, all these things.
It's like, I don't know if you guys know or read the book that is called, Standing on the Shoulders of Giants, which is basically this Chinese story, in which everything in life has a cycle. And every cycle that comes after the one that is finishing, needs to build on top of what is being left. I am 100% confident that under the leadership of Rodrigo, and the current leadership team, the company will continue to build on everything that we have done as a company in the past several years.
Yeah, no doubt. Thanks for that, and all the best going forward. It has been a pleasure, and thanks for all your help over the years. All the best.
Thank you, Alvaro.
Thank you. Our next question comes from Antonio Hernández, from Actinver. Antonio, please go ahead, turn on your microphone, and proceed with your question.
Hi, good morning, Marco. That was a great round of highlights, and congrats, and thanks for all your support throughout these years. My question is regarding Suerox profitability. How did profitability turn around throughout these last couple of quarters with the IEPS effect and, of course, you taking advantage of that in terms of, from a competitive standpoint, having better prices versus competitors. Now, what about margins? How was profitability throughout these quarters?
I don't want to brag too much about this, but I think that this is a world-class way of managing the situation by the company and the team. First, when we started working on how to improve Suerox COGS, that was back by the end of 2023. We were purchasing the preforms and the labels and the caps from third parties. On a brand that is so large, the cost of doing that is very high. It was by chance that we started working on a very large project to acquire the manufacturing machinery that we needed to manufacture our own preforms. That got us to a massive improvement in COGS, because we were purchasing, just to give you the numbers, we were purchasing the preforms at MXN 1.19 from our suppliers, and today we're manufacturing the preforms at MXN 0.83 cents of a peso.
That's a huge amount of COGS saving. Same thing with the labels. We purchased the line to do our own labels, and we managed to get to a great negotiation with the caps manufacturer. When you look at the Suerox, I'm going to quote some COGS numbers here, but you need to double-check this with Christianne later on. When you look at our COGS of Suerox, basically, the impact of the COGS was in the range of one point. After absorbing all the IEPS, and getting more aggressive in pricing, most of that investment was absorbed by the savings that we got in the pros on the, as I said, the preforms, the labels, and the caps. It ended up very well for us.
Perfect. Thanks a lot. Have a nice day.
Thank you.
This is Antonio Zamora. Just expanding on Marco's comment, to give you a sense of the huge impact of this productivity in our Suerox business. If I compare the COGS for manufacturing one Suerox bottle today versus the cost that we used to pay back in 2021, today our cost is 21% lower than what we used to pay back in 2021. And obviously, from that point in time, you would need to have a lot of inflation that we were able to offset and create significant productivity. All of these initiatives that Marco described about the preforms, internalizing into our plant, launching the second line, the labels, et cetera, that created massive productivity that obviously helps the Suerox business. Do we like the tax? Of course not. Of course, that is adding cost that we did not have.
Fortunately, we had all these initiatives, and we were able to offset them. We know it is a very competitive market, and we will continue expanding on productivity initiatives to become even more competitive. A lot has been done in that business, and I think it is remarkable. Thank you, Marco, for all the work that has been done, as well as the team that made all these productivity gains a reality.
Perfect. That is a great achievement. Thanks.
Thank you so much. Our next question will be from Froylan Mendez with JP Morgan. Froylan, go ahead, turn your microphone on.
Hello, guys. Can you hear me?
Yes.
Marco, thank you so much for your help and support. The best on your next journey. Going into my question, and sorry if you touched upon this, I arrived a little bit late to the call, but could you just help us understand the 3Q non-recurring impacts on top line and costs from the To-Go inventory returns? If you already answered, I can then check with Christianne and do not lose your time on answering that if you already did. The second and probably the most important one on Mexico margin recovery. EBITDA contracted almost 7 percentage points. You did have some sequential improvement in sales. How much of that compression was deliberate investment versus operating the leverage? Going forward, what needs to happen for Mexico margins to recover from current levels? Thank you so much.
The second question, thank you, Froylan Mendez, for your words. The second question is on Mexico's margin or-
Yes, in Mexico.
Yeah. Okay. To call it is very simple. In the U.S., we had a very soft season this past year, and normally this is the time when you start getting the returns from customers. It was a very large amount of product that we put out there in the stores. As you know, to be very competitive, you have to have the product at the stores. Not only to have the product, so if someone asks, they can take it, but also to have displays, you need volume and the presence of the brand at the stores is very important, and for that, you need the volume put out there. Okay? That's what we did, and that's what we will continue to do.
As I said in the discussion, we are preparing here in Mexico and in the U.S. for a very aggressive commercial competitiveness at the stores, at the point of sales with product. We are shipping a lot of products to the stores, expecting to have a very strong season and expecting to grow market share and win against our competitors. That's what we are going to do, and we'll do it in the past. This is the time when normally, we start getting returns, from customers that didn't sell the product because of the tame season. Okay? That's basically what's happening in the U.S. It's a one-off, and it won't repeat in the next quarters. That's to what I don't know if that clarifies.
Yes. If you have the exact number on impact in revenues and impact in COGS, it would be very useful to normalize going forward if that's not going to happen. But again, I can check with Christianne later on.
Yeah, I don't have the numbers by heart, but you can follow up with Christianne.
Perfect. Mexico is the one that
No, Mexico. Let me give you the full picture of Mexico because it's important. Mexico went from a very low margin. I'm talking, like, four, five, maybe a little bit more, six years ago. We were running a business in Mexico with basically sometimes no margin or very low margins, in the high single digits or low double digits. In the last, I would say four to six years, working on the COGS, working on the spending, working on the SG&A, everything, we managed to take the Mexican margin to the range of 26%-27%, which was extremely healthy, and we were able to sustain that for many years.
But obviously because of how soft our business got last year, especially in Mexico, we lost market share in some categories. Our consumption got really soft in some channels and customers. I made the conscious decision of investing back in the business strongly. What you guys are seeing today in terms of the sell-out recovery is actually the result of that. Whether that was 100% perfect, the deployment execution and the ROIs of all those investments, I don't know. I don't think so. But I, in particular, decided to err more on the risky side of investing more, but secure the market share recovery and the sell-out. Going forward, I think that the company has the fundamentals.
Once we see that our brands are getting more traction, like what is happening right now with Suerox, and what is going to happen in other brands after we see the results of the new innovation launches and communication models and so on, I think that the company has everything to gravitate back. I don't know if all the way back to 27%, but it will get closer to that number throughout next year for sure. All in all, what I can say right now is that the way the financials are structured in the company as a whole, not just Mexico, but as a whole, is that our EBITDA margin will gravitate back to where we were before the decision to invest back in the business, which was the levels of 23%-24%. Overall, as a corporation.
Mexico, I'm not sure will get back to 27%, but it will for sure be higher than 20.
Marco, if I may, from the innovation initiatives, which you are pushing into the market and probably reflective of this, let's say, investment in margins to put out a strong campaign around the new innovations, which is the one that excites you the most, the one that you're betting the most? I know you have Suerox Mineral, you have some on the PioNatural side. Can you tell us a little bit which one is the one most exciting, the one that has to go right to go back to the 27% margin?
No, for sure, because of the size of the brand, not because of the quality of the initiative, but because of the size of the brand and how good the product is. If you guys tried it, I think Suerox Mineral has a massive potential of adding a huge amount of top line to the company. I can give you some numbers that are off the record, but in the customers where the product has been launched, more than 80% of the sales of Suerox Mineral is incremental to the brand. When you look at the total brand sales, the growth levels are extremely high. In Walmart, we hit more than 80% growth on the brand at some point in the past few months. In Oxxo, we are seeing very high levels of growth already, more than 30%.
When you look at the traditional channel, which is the channel that is the biggest channel for beverages, when you talk to the mom-and-pop owners and when you talk to consumers and so on, in the stores where you have Suerox Mineral, the Suerox Mineral is selling 3X or 4X than what the old Suerox was selling before, especially when it is located in the fridge. So every sign, everywhere you talk to consumers, people love it. You talk to customers, they like it. So that, I think is, from a top-line point of view, the biggest one. Now, we have very strong initiatives coming, already deployed and being executed in many OTC categories, that I am very excited. They have differentiation, they have the power of the brand, and I'm very confident that they will work really well, as well as PioNatural and so on.
Excellent. Thank you so much, Marco. My best to you. Thank you so much.
Thank you, Froylan, and we'll see you soon.
Froylan, just expanding on Marco's answer. I think it would be, let me emphasize this again, it would be very interesting for everybody to attend the Investor Day on December 3. Because what Marco described are the initiatives that we currently have in place. On December 3, you will see new tools that you haven't seen yet, and you will see how the future will look like in terms of innovation, new product launches, new formulations, et cetera. Again, we expect to see you, Froylan and Joe, and obviously everybody here, but it's very important for everybody. If you want to understand what comes for Genomma in 2027 and beyond, it's very important to attend Investor Day in person.
Thank you very much.
Thanks.