Investor Presentaiton
October 12, 2021
VITROMEX: THE ROAD TOWARDS A STABLE AND PROFITABLE OPERATION
GBM
A failed attempt and execution to redesign the Vitromex brand coupled with a strategy addressed to larger and premium formats, missing the focus on its best value proposition across Mexico, ended up affecting
the business as a whole and drove it to report operating losses. Consequently, GISSA's board of directors decided to change the company's management, which in turn outlined a strategy to reincorporate technical
talent, rationalize operations, and go back to basics. This operational turnaround has proven successful, taking profitability to historical levels in 2021 (~12% EBITDA Mg.). As a result, GISSA's management thinks
there is room for further improvement and believes the margin could stabilize at a 14-18% range in the future. To us, the company's challenge remains to demonstrate the operation can run smoothly and profitably
in the long term. If they succeed, Vitromex's strong cash-generating profile would allow for additional organic growth and gain more relevance within GISSA.
Process:
2018
2019
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Reincorporation of Technical and Managerial Talent
Phase I
Recover Key Customer Trust
Product Portfolio Rationalization
Capacity Rationalization
Product Renewal and Launch of Vitroker
S&OP Implementation - Customer Service
Inventory Rationalization
Operational Discipline and Rightsizing
Source: Company data
Focus on Best Value Products
Showroom Update
50% Product Portfolio Reduction
Design and Development
Phase II
Cost Reduction Focus
Modular Showrooms
2020
2021
22
Q2
Q3
Q4
Q1
LAMOSA/CERAMIC: THE ROAD TO GROWTH IS PAVED WITH TILES. | 55View entire presentation