The year of 2020 was very significant for Grupo Lamosa. It represented, on the one hand, completing 130 years of presence in the construction market, a milestone that few companies can boast, and on the other hand, posting record figures in results in one of the most uncertain and complicated environments in recent history.

COVID-19 caused a health emergency that led to a global economic recession, putting governments, institutions, companies and families to the test, with everyone having to think differently in order to adapt and move forward. Grupo Lamosa faced one of the most important challenges in recent years, confronting changing situations and scenarios throughout the year, which in some cases implied closing down operations, but always acting in accordance with the measures that governments implemented in the different countries where the company operates.

In order to safeguard the integrity of staff and other stakeholders, Grupo Lamosa implemented a series of prevention measures and protocols across its facilities. Actions carried out included the formation of a COVID Committee comprising senior management for making appropriate and timely decisions, assuring the proper management of density in work areas through remote work, and supporting and guiding customers and distributors on how to reopen and continue their operations safely and in accordance with regulations.

The lockdown in response to the contingency made families refocus their consumption priorities, triggering their interest in making improvements to their homes and creating greater demand for the company’s products during the second half of the year. The ability of Grupo Lamosa’s businesses to adapt to changing environments, together with their operational flexibility, enabled them to react in a timely manner to meet the new market requirements. This offset the impact of the pandemic, particularly during the second quarter, and even positioned them to exceed the expectations of the beginning of the year.

Grupo Lamosa’s 2020 total sales amounted to $19,473 million pesos, an annual growth of 9%. Operating income and EBITDA were $3,549 and $4,227 million pesos, figures that represented annual growths of 26% and 20%, respectively.

One of the important successes of the year was the timely implementation of information technologies for remote work, enabling the company’s businesses to continue their activities normally. Another outstanding achievement of the year was an improvement in Grupo Lamosa’s risk rating, reflecting factors such as improved results, increased operating margins and enhanced cash-flow generation.

In accordance with its growth and diversification strategy, during the fourth quarter of the year Grupo Lamosa acquired the Colombian company Eurocerámica. This transaction positions it to expand tile production capacity and capitalize on synergies in Colombia, underpinning the operations that currently exist in that country through Cerámica San Lorenzo.

The company’s 2020 achievements largely reflect the trust of our stockholders, the efforts of our people, and the solidarity and commitment of Grupo Lamosa’s distributors, suppliers and customers. To all of you, our deepest thanks.

Federico Toussaint Elosúa
Chairman of the Board and Chief Executive Officer

The ability of Grupo Lamosa’s businesses to adapt to new environments, combined with their operational flexibility, enabled them to react in a timely manner to meet market requirements.