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San Pedro Garza García, Nuevo León, Mexico, February 22, 2017 – 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 fourth quarter of 2016 (“4Q’16”).
Fourth Quarter 2016 Highlights
Commenting on Vitro’s performance and outlook, Mr. Adrián Sada Cueva, Chief Executive Officer, said: "This quarter Vitro achieved great results even though the exchange rate continued to be volatile. In Mexican pesos, sales increased significantly by 93.8 percent thanks to a good performance in the Flat Glass and Container segments, as well as the integration of the Flat Glass and Coatings business from PPG in the United States.”
“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 in the quarter, we achieved a 116.7percent increase in EBITDA in pesos and 81.5 percent in US dollars mainly driven by the acquisition of the Flat Glass and coating business of PPG, a better priced mix and our commitment to deliver cost reduction measures.”
Mr. Sada further noted, “As announced on December 19, the acquisition of PGW's OEM business will allow us to create a company with greater growth potential. This business features state-of-the-art technology for the production of automotive glass, which will give us strong participation and leadership in the industry. That, coupled with the great talent of the staff of both businesses will result in a company with better growth expectations.”
Commenting on the financial information, Mr. Claudio Del Valle, Chief Administrative and Financial Officer, noted: “The company's EBITDA rose 116.7 percent to MX$1,780 million. The company closed the quarter with US$240 million in cash, resulting in a very healthy ratio of Net Debt to Ebitda of 1.05 times. Vitro remains committed to maintaining a conservative debt profile combined with a healthy balance sheet. "
"With the previous acquisition of the Flat Glass business in the United States, we confirm that Vitro continues on the path of profitable growth. However, the company now also differentiates by having a higher innovation component in its product mix in addition to the productivity gains with which we have worked for years. Further to the expansion of our international operations, we are setting up a strong company with the capacity to offer solutions of greater added value to our clients while continuing to deliver good results for our shareholders and all our stakeholders" concluded Mr. Sada.
Financial statements were prepared according to International Financial Reporting Standards (IFRS). The Peso figures included in the document are presented in nominal Pesos which could affect its comparability. Dollar figures are in nominal US dollars and are obtained by dividing nominal pesos for each month by the end of month fixed exchange rate published by Banco de México. In the case of the Balance Sheet, US dollar translations are made at the fixed exchange rate as of the end of the period. Certain amounts may not sum due to rounding. All figures and comparisons are in US dollar terms, unless otherwise stated, and may differ from the peso amounts due to the difference in exchange rates.
According to IFRS, the F&B business sale to O-I meet the criteria identified in IFRS 5, therefore, its financial information is accounted for as a discontinued operation and presented accordingly to comply with such requirements.