Global economic weakness, driven largely by the effects of China and the United States, made 2019 another year of important challenges for Grupo Lamosa. These were faced according to the particular situation in the different markets where the company operates.
The environment was particularly complex for the housing- and building-construction industries in Mexico, which declined significantly 5.0% and 3.0%, respectively. During the year, the beginning of the new administration of the Mexican federal government created a high level of uncertainty that resulted in the postponement or suspension of investments, projects and works. This, in turn, affected activity in remodeling and building completion, one of the main segments in which the company participates.
In Latin America, where Grupo Lamosa has a significant presence through its operations in Argentina, Chile, Colombia and Peru, results were affected by political events, as well as by levels of economic growth lower than initially anticipated.
Despite these conditions, the company’s geographical diversification and operational flexibility to rapidly adapt to complex environments enabled it to post satisfactory results for the year, including growth and improvement in profit margins.
Total annual sales were $17,928 million pesos, 1% above the previous year, while EBITDA was $3,523 million pesos, 6% more than in 2018 and 20% of sales.
During 2019, the company continued its efforts to constantly reinvent itself and remain at the forefront of technology, strengthening the positioning of its products in the market through the use of new technologies. This has enabled Grupo Lamosa to develop innovative alternatives and applications for ceramic and offer possibilities that were non-existent just a short time ago.
One of the outstanding achievements of the year was the favorable financial position that Grupo Lamosa gained by refinancing its entire debt in advance and thereby obtaining better credit conditions. This initiative enhanced the company’s financial structure, positioning it to continue supporting future progress.
In accordance with Grupo Lamosa’s growth and diversification strategy, at the end of 2019 a new adhesives plant was started up in Chile. This new facility expands the operations of the Adhesives Business, facilitates its entry into new markets and, given the company’s significant presence in South America, will enable the leveraging of synergies in the region.
The actions that Grupo Lamosa has implemented in recent years to expand its operations inside and outside Mexico have positioned it as one of the main benchmarks and consolidating agents of the global ceramics industry.
Federico Toussaint Elosúa
Chairman of the Board and
Chief Executive Officer
Federico Toussaint Elosúa
Chairman of the Board and
Chief Executive Officer