Vitro Reports 7.9% YoY Increase in Sales and 16.2% in EBITDA in Mexican Pesos

Vitro, S.A.B. de C.V. (BMV: VITROA), hereinafter “Vitro” or the “Company”, the leading glass producer in Mexico, today announced its unaudited results for the third quarter of 2016 (“3Q’16”).

 Third Quarter 2016 Highlights

  • Consolidated Net Sales in peso terms rose 7.9 percent year-on-year (“YoY”) to Mexican Pesos (MXN) $4,170 million, driven by increases of 15.5 percent in Glass Containers and 5.1 percent in Flat Glass. By contrast, measured in US$, revenues decreased 5.7 percent YoY to US$219 million, mainly impacted by the 14.6 percent YoY peso depreciation (quarterly average).
  • EBITDA rose 16.2 percent YoY to MXN$1,081 million, driven by increases of 5.9 percent in Glass Containers and 29.1 percent in Flat Glass reflecting a more favorable price mix and the continued implementation of cost savings and efficiency measures. In US$ terms, EBITDA increased 1.6 percent YoY to US$57 million
  • During the quarter the Company secured the debt financing required to finance a portion of its acquisition of the PPG flat glass business. As a result, total debt at the close of 3Q16 rose to US$497 million, in turn bringing the cash position to US$924 million as the transaction was closed after the end of the quarter.

Commenting on Vitro’s performance and outlook, Mr. Adrián Sada Cueva, Chief Executive Officer, said: “I am pleased that we continue to report solid underlying results this quarter despite the ongoing volatile exchange rate environment. Measured in pesos, net sales rose 7.9 percent during the period, driven by continued growth in Flat Glass and Glass Containers.”

“As anticipated early in the year, this quarter we began the repair and capacity expansion of our Mexicali float glass furnace which is expected to be completed by the end of the year. Despite the reduction in capacity for the month of September, we achieved a 16.2percent increase in EBITDA in pesos and a modest improvement in EBITDA in US dollars this quarter mainly driven by a better priced mix and our commitment to deliver cost reduction measures.”

Mr. Sada further noted, “The acquisition of PPG’s flat glass manufacturing and coatings business in the US and Canada, including its research-and-development center which closed earlier this month, is a key milestone for Vitro. In addition to strengthening our Flat Glass business in the construction segment and increasing our focus on glass technologies, it positions the Company as the leader in the commercial construction glass segment in North America.”

Commenting on the balance sheet, Mr. Claudio Del Valle, Chief Administrative and Financial Officer, noted: “We continue to deliver year over year EBITDA growth, up 16.2 percent in the quarter in Mexican Peso terms, while also lowering working capital needs therefore improving significantly our cash from operations. Towards the end of the quarter we secured a US$ 500 million 7-year loan to finance a portion of the US$750 million acquisition of the PPG flat glass business. We closed the quarter with a cash position of US$924 million (includes US$ 500 million from finance loan to be used on Flat Glass acquisition) as this transaction was completed on October 1, 2016. Maintaining a healthy balance sheet is one of our key priorities and we seek to maintain conservative debt ratios.”

"We remain committed to driving profitable growth while capitalizing on the opportunities we see ahead. Vitro is now a stronger, more productive and innovative company with significantly larger international operations able to offer a broader range of value-added products to our customers and deliver increasingly better results for all our stakeholders," concluded Mr. Sada.

J.v.G. Thoma GmbH is delivering a DESERT turnkey production line to Brazil, the first of its kind and hopefully the first in many breakthroughs to leave the factory floor on their way to the largest country in South America. With a capacity of 30 MW, this is a small semi-automatic DESERT production line, but still a flagship in terms of DESERT solar module production and electricity generation in the country, now fully functional and ready to start with operation.

The machinery consists of DESERT production machines for high-efficiency DESERT solar modules built specifically for extreme hot climate, such as can be seen in deserts or in tropical areas. Made solely in Germany and built using the latest in DESERT and TROPIC module production, the systems inlcudes all cutting-edge technology.

Certified DESERT solar modules, DESERT containers, DESERT power plants and DESERT manufacturing machinery built using pioneering DESERT and TROPICS technology are now fully set up, and ready to perform. But powering on the machinery has been a long time coming. Up until recently, this advanced piece of equipment had been waiting for clearance at a port in Brazil. Now that the formalities have been dealt with, both J.v.G. Thoma and its customer in Brazil can get production under way.

J.v.G. Thoma GmbH is a company whose vision has always been to harness the infinite power of the sun and convert it into an inexhaustible supply of energy. But a vision such as this requires global reach, and this project has opened new doors. Brazil is not only a gateway to South American cooperation, but also the launchpad to international reach and expansion.

Following the delivery of this initial order, J.v.G. Thoma GmbH will be looking forward to an ongoing collaboration with the Brazilian company. From setup and initial training to setting the scene for a ramp up, J.v.G. Thoma will be there to provide expertise and assistance. Moreover, the company will be jointly responsible, along with the client, for the successful integration of the DESERT solar module factory.

In the future, bigger DESERT power plants will be set up on Brazilian soil, and together with existing turnkey production systems, they intend to take up a large share of the products and assets this sector will possess locally. J.v.G. Thoma plans to build up a local network of sales agents that can extend a premium offering to neighbouring countries in South America. Eventually, the company hopes to be able to expand its customer base to clients in North America.

Hans Thoma, general manager from the Thoma-group, is eager to acquire a substantial market share in Brazil, a growing country with tremendous potential for solar energy output. Having complied with local official procedures (Inmetro, TÜV, Fraunhofer CSP) and cleared the way for future business collaboration, he expresses his hope that the solar industry will henceforth expand quickly.

”Being able to introduce Brazil to the infinite opportunities of a solar industry is a privilege for J.v.G. Thoma GmbH, and one that we are extremely grateful for. At the same time, this placed the ball squarely in our court, and the pressure to get the ball rolling quickly was high. Now that the lengthy initial formalities are out of the way, we can focus on making this project a success.“

The first DESERT solar module production in BRAZIL! Lets go ....
J.v.G. Thoma GmbH is delivering a DESERT turnkey production line to Brazil, the first of its kind and hopefully the first in many breakthroughs to leave the factory floor on their way to the largest country in South America. With a capacity of 30 MW, this is a small semi-automatic DESERT production line, but still a flagship in terms of DESERT solar module production and electricity generation in the country, now fully functional and ready to start with operation.

The machinery consists of DESERT production machines for high-efficiency DESERT solar modules built specifically for extreme hot climate, such as can be seen in deserts or in tropical areas. Made solely in Germany and built using the latest in DESERT and TROPIC module production, the systems inlcudes all cutting-edge technology.

Certified DESERT solar modules, DESERT containers, DESERT power plants and DESERT manufacturing machinery built using pioneering DESERT and TROPICS technology are now fully set up, and ready to perform. But powering on the machinery has been a long time coming. Up until recently, this advanced piece of equipment had been waiting for clearance at a port in Brazil. Now that the formalities have been dealt with, both J.v.G. Thoma and its customer in Brazil can get production under way.

J.v.G. Thoma GmbH is a company whose vision has always been to harness the infinite power of the sun and convert it into an inexhaustible supply of energy. But a vision such as this requires global reach, and this project has opened new doors. Brazil is not only a gateway to South American cooperation, but also the launchpad to international reach and expansion.

Following the delivery of this initial order, J.v.G. Thoma GmbH will be looking forward to an ongoing collaboration with the Brazilian company. From setup and initial training to setting the scene for a ramp up, J.v.G. Thoma will be there to provide expertise and assistance. Moreover, the company will be jointly responsible, along with the client, for the successful integration of the DESERT solar module factory.

In the future, bigger DESERT power plants will be set up on Brazilian soil, and together with existing turnkey production systems, they intend to take up a large share of the products and assets this sector will possess locally. J.v.G. Thoma plans to build up a local network of sales agents that can extend a premium offering to neighbouring countries in South America. Eventually, the company hopes to be able to expand its customer base to clients in North America.

Hans Thoma, general manager from the Thoma-group, is eager to acquire a substantial market share in Brazil, a growing country with tremendous potential for solar energy output. Having complied with local official procedures (Inmetro, TÜV, Fraunhofer CSP) and cleared the way for future business collaboration, he expresses his hope that the solar industry will henceforth expand quickly.

”Being able to introduce Brazil to the infinite opportunities of a solar industry is a privilege for J.v.G. Thoma GmbH, and one that we are extremely grateful for. At the same time, this placed the ball squarely in our court, and the pressure to get the ball rolling quickly was high. Now that the lengthy initial formalities are out of the way, we can focus on making this project a success.“

The first DESERT solar module production in BRAZIL! Let
Source: Vitro, S.A.B. de C.V