TILE BUSINESS
2024 was a challenging year for the Tile Business due to its resizing and geographic expansion, combined with an environment with normalized demand. Additionally, a slowdown in the construction industry and an influx of Asian products were key factors affecting most of the markets in which the business operates.
Tile Business sales in 2024 totaled $24,115 million pesos, reflecting an annual growth of 9%. One of the key challenges successfully addressed during the year was the seamless integration of the Spanish company Baldocer, acquired at the end of 2023, with Baldocer celebrating its 30th anniversary during the year. Throughout 2024, action plans were implemented across the different areas of Baldocer and Roca Spain, in order to capitalize on operational and commercial synergies, enabling a more effective approach to markets managed from Spain, including Europe and Asia.
During the year, the Tile Business continued investing in cutting-edge technology to maintain its competitive edge and differentiation, developing innovative ceramic products for applications beyond traditional uses. Examples include ceramic applications for dining tables, kitchen countertops and bathroom fixtures.
One notable capital expenditure of 2024 was the expansion of production capacity in Argentina, with the incorporation of state-of-the-art technology. This investment will enable the production of high-end products with superior designs and finishes, and the largest formats available in the market, while also enhancing export capacity to other South American countries.
Throughout 2024, the Tile Business participated in various trade fairs and exhibitions in Mexico and internationally, showcasing its diverse product lines aligned with market trends and demands. These included "Expo Obra Blanca" in Mexico, "Coverings" in the United States, "Revestir" in Brazil, "Cevisama" in Spain and "Cersaie" in Italy. Additionally, in 2024, the business held the eighth edition of the "Premio Firenze Entremuros," a competition recognizing the work of leading architects and interior designers in Mexico while promoting the use of sophisticated and innovative ceramic products to transform spaces and create unique environments.
Once again, the Tile Business demonstrated its ability to navigate complex environments, integrate new acquisitions in and outside Mexico, leverage synergies and, most importantly, reinvent itself to continue offering cutting-edge, high-value-added products in the various markets where it operates.
ADHESIVES BUSINESS
Grupo Lamosa’s Adhesives Business closed the year with a performance surpassing that of the domestic market, strengthening its leadership position, expanding operations in Guatemala and Chile, and posting results above expectations.
Despite a challenging construction environment with a significant decline in new project volumes, the Adhesives Business posted sales of $9,831 million pesos, reflecting an annual growth of 5%.
In 2024, the segment focused on optimizing input usage and implementing strategies to increase market share in specific regions and with key customers.
A significant achievement during the year was the full implementation of the Industrial Safety Model across all the plants of the business, including Fanosa, which was integrated in 2022. This model, directly involving senior management, enables the timely identification, classification and correction of unsafe conditions and actions, positively impacting business performance indicators.
Among the most notable investments in 2024, the Adhesives Business inaugurated a new Fanosa plant in Rosarito, Baja California. This facility will expand production capacity to serve both the local market and the southwestern part of the United States.
To continue providing high-value technical solutions, the business launched new specialized products during the year. Notable releases included "Crestuco Aplana," a wall coating that corrects misalignments and levels surfaces in a single application, and "Crest Blue Fence," an acrylic waterproofing membrane designed for damp areas and as a system for ceramic tile installations.
Throughout the year, the Adhesives Business actively participated in trade fairs and exhibitions, such as "Obra Blanca" in Mexico City. Additionally, national campaigns such as Nobody Installs Floors Like Crest and events such as Installer Day were carried out to promote products and reinforce loyalty among professional installers.
The business will continue implementing strategies to capitalize on market opportunities and expand operations both within and outside Mexico.
FINANCIAL PERFORMANCE
In a period of economic slowdown and low growth, reflected in a weaker overall market performance, Grupo Lamosa maintained its solid financial structure with appropriate debt levels. As of year-end, consolidated net debt was $16,723 million pesos, with a net debt-to-EBITDA ratio of 2.7x.
Prudent financial management and strong relationships with the company’s different financing sources enabled it to close the year with a well-structured debt profile, with gradual and manageable maturities that will facilitate continued investment in business growth and market positioning.
During the first quarter of 2024, Grupo Lamosa’s annual General Stockholders’ Assembly approved, among other matters, a cash dividend of $1.80 pesos per share, an increase of 24% compared to the dividend declared in 2023.
In 2024, Grupo Lamosa continued executing its capital expenditure plan to support business growth and enhance production processes with the market’s most advanced technology. Additionally, resources were allocated for new information technologies to optimize business processes and better support the company’s expansion. The year’s total capital expenditures amounted to $1,282 million pesos.
A significant event during the year was Grupo Lamosa’s first-ever corporate credit rating assessment by Moody’s, which assigned a favorable long-term rating of AA+.mx on the local scale, consistent with HR Ratings’ 2024 revised rating. This assessment reflects the company’s strong fundamentals, including its competitive position, profitability and cash-flow generating capacity.
Responsible financial management has consistently supported the company’s growth and expansion strategy, including acquisitions such as Baldocer in 2024. These acquisitions have allowed Grupo Lamosa to capitalize on synergies and enhance operating efficiency.
