The business’s positive results were achieved despite a complicated business environment, where uncertainty and foreign exchange rate volatility resulted in a perceptible slowdown in the Mexican construction industry, particularly during the second half of the year.
The segment’s 2017 growth was driven by the more than $140 million dollars invested over the past three years to enhance production capacity and technology and to adapt the product mix to new market trends and current consumer demands. Annual results were also positively impacted by the successful integration of Cerámica San Lorenzo.
The business’s South American operations similarly faced a complex environment, with most markets posting economic growth below that of previous years. However, operations in countries such as Colombia and Peru performed well, despite being affected by political issues and natural phenomena. In Chile and Argentina, results recovered gradually during the year, mainly reflecting the company’s plan to leverage synergies. For example, in Argentina, production was transferred and concentrated in two of the four previously operating plants, thereby growing efficiency in the nation.
In 2017, the Wall and Floor Tiles Business continued to implement important initiatives in the American continent in order to continue enhancing product positioning and brand value across all its markets.
In Mexico, the segment partnered with the distribution network to introduce programs to come even closer to the end consumer. An example of such efforts was the establishment of the first edition (2017) of the National Firenze Entremuros Prize, presented in a ceremony in Mexico City in the third quarter of the year. The award was instituted to foster domestic talent by recognizing the best Mexican architects and their works, and promote the use of high value added porcelain products.
During the year, the Wall and Floor Tiles Business continued to participate in both domestic and international fairs and exhibitions. In the second quarter of the year, it took part in Expo Coverings in the city of Orlando, Florida, and was designated “Best in the Show” for the seventh consecutive year. This recognition of product design and presentation is one of the main awards of the event, which is the largest coverings show in North America and one of the most important worldwide. In 2017, more than 1,100 companies from 90 different countries took part.
The business also participated in Expo CIHAC in Mexico City during the fourth quarter of the year, capitalizing on the opportunity to present the new 2018 product lines. Launches included Ellier marble porcelain tile marketed under the Lamosa brand, with a contemporary style ideal for interior floors and walls, and sizes up to 60 by 90 centimeters. In addition, Grupo Lamosa’s premium Firenze brand rolled out its Cardinal Collection, inspired by the four cardinal points, in four different marble finishes and sizes of up to 60 by 120 centimeters.
Without doubt, one of the segment’s most important achievements in 2017, carried out as a result of the recent acquisition of Cerámica San Lorenzo, was the implementation of initiatives to create a new organizational culture, combining best practices in Mexico and the other nations where it operates. This produced outstanding results in a relatively short time.
Growth perspectives for the Wall and Floor Tiles Business are currently favorable, both in Mexico and abroad. Going forward, the segment will leverage its strength and new size, characteristics that underpin its position as a regional presence across the Americas and a consolidating agent in the industry, to take full advantage of market opportunities.