to our Stockholders

For Grupo Lamosa, 2018 was a complicated year, characterized by a high level of uncertainty that manifested itself in a contraction of the tile industry in Mexico.

Grupo Lamosa’s vocation to innovate constantly has been a key element that has enabled it to adapt to the latest demands of the ceramics industry.

Some of the factors that affected the performance of the year were an atmosphere of uncertainty resulting from the process of renegotiating the North American Free Trade Agreement, swings in the foreign exchange rate, and the electoral process and its results. Consequently, end consumers showed greater caution, deferring their purchasing decisions for a later time under more favorable conditions.

The lack of growth in the domestic market and the increase in the cost of some of the company’s main inputs were reflected in results. In 2018, Grupo Lamosa posted sales of $ 17,727 million pesos and an EBITDA of $ 3,314 million pesos, 1% and 3% lower year-over-year, respectively.

Efforts to grow organically and inorganically, both in Mexico and abroad, enabled the continued consolidation of profitability and growth, with the size of the company having doubled over the past four years.

Grupo Lamosa confirmed once again in 2018 the importance and success of its diversification strategy, as can be seen in the expansion of operations throughout the American continent as a result of the acquisition of Cerámica San Lorenzo in South America at the end of 2016. The contribution of this company’s results offset to a large extent the impact of reduced demand in the domestic market.

During the year, the process of integrating the operations of Cerámica San Lorenzo in South America was successfully completed. Since the acquisition, Grupo Lamosa’s values and corporate culture have effectively permeated the San Lorenzo operations; objectives and measurement criteria have been standardized; and synergies have been leveraged, with results superior to those expected. A third of the company’s revenues currently comes from markets outside Mexico, significantly reducing the level of risk.

One of the outstanding achievements of 2018 was the improved positioning of Grupo Lamosa brands with construction professionals. Diverse initiatives implemented by the different businesses in their markets resulted in renowned architects and interior designers fully appreciating the high quality and competitive advantages of the company’s different products and recognizing that they satisfy the most demanding expectations of the market, thereby strengthening the company’s presence in the institutional market.

Grupo Lamosa’s vocation to innovate constantly has been a key element that has enabled it to adapt to the latest demands of the ceramics industry. The development of innovative technologies that widen the possibilities for new uses of ceramic products, combined with the production of increasingly avant-garde and sophisticated product lines, will undoubtedly open up avenues of growth that the company will leverage in the near future.


Federico Toussaint Elosúa
Chairman of the Board of Directors and Chief Executive Officer