To our stockholders


2016 was an outstanding year for Grupo Lamosa, with double-digit expansion in operating results for the second consecutive year despite the environment of low economic growth and significant increases in the prices of some of the company’s main inputs.


Grupo Lamosa’s vision of making significant and timely investments to expand installed capacity, assuring its use of world-class technology and focusing on satisfying consumers’ needs and preferences positioned it to leverage the recovery of the Mexican building sector during the year.
Total 2016 sales were $13,619 million pesos, 28% above 2015. Operating income was $2,441 million pesos and EBITDA $3,124 million pesos, growths of 37% and 34%, respectively.
Market activity in Mexico was driven by increased job creation, which had a favorable effect on domestic consumption. This boosted the remodeling market and the conclusion of building works, great motors for generating demand for the company’s products.
In accordance with Grupo Lamosa’s growth strategy and efforts to diversify revenue sources and expand operations outside Mexico, during the fourth quarter of the year the company announced its acquisition of Cerámica San Lorenzo, one of South America’s most important ceramic producers. This company has a 60-year track record in the market and manufactures well-positioned brands such as San Lorenzo and Cordillera.
Through the transaction, Grupo Lamosa has expanded its production activities in the Americas and grown its tile production capacity by 40% as a first step in the internationalization of its operations, which now encompass Argentina, Chile, Colombia and Peru, as well as Mexico.
It is important to note that Grupo Lamosa’s robust financial performance and gradual reduction of leverage over the past years were key factors for its organic and non-organic growth strategy in 2016.
Moreover, the redimensioning of activities makes it today the world’s third largest manufacturer of ceramic products, commanding the size necessary to compete on a global level and a platform to continue consolidating its market position across the Americas.
Grupo Lamosa would like to thank its stockholders once again for their trust, its people for their efforts, and its creditors, suppliers, distributors, customers and friends for their vital support.
FEDERICO TOUSSAINT ELOSÚA
Chairman of the Board of Directors
and Chief Executive Officer
FEDERICO TOUSSAINT ELOSÚA
Chairman of the Board of Directors
and Chief Executive Officer