Message to our SHAREHOLDERS 2016

Message to our SHAREHOLDERS 2016
"We remain firmly committed to our clients with the aim of establishing lasting business relationships in an environment of respect and strict adherence to Corporacion Moctezuma's values."

FROM THE CHAIRMAN OF THE BOARD AND THE CHIEF EXECUTIVE OFFICER

During 2016, growth in the construction and cement sectors in Mexico remained the same as that of the previous year. The internal market, consumption and investment performed well despite a 19.2% depreciation of peso with respect to the US dollar. For Corporación Moctezuma, this was a major step forward in our Continuous Sustainable Evolution.


SOLID FINANCES

Uncertainty dominated the domestic and international economic environment during 2016. An increase in the price of the US dollar with respect to other major currencies, the fall in international oil prices in the early months of the year and the partial recovery later on, the UK´s referendum decision to leave the European Union, the election results in the United States and a number of armed conflicts resulted in a high degree of volatility which affected the situation of many countries but mainly that of the emerging markets. In Mexico, the adverse factors described above prompted the Federal Government to cut public spending and, as a result, to cancel major infrastructure projects which had been announced earlier.

After the convergence of factors in 2015 which permitted record results for our Company, we knew that it would not be easy to improve on them in 2016, and even less so in such a complex environment. However, major private sector investments led to a high demand for cement, and a price recovery, were reflected in a 14.2% sales increase with respect to the previous year.
 

During the first semester of 2016 energy costs remained low and in the second half of the year increased to earlier levels resulting in a 34.3% growth in the annual variation in our gross profit. Our operating profit increased by 34.7% in 2016 compared with the previous year. The EBITDA increased 34.4% in 2016 with respect to the previous year. The factors described above and our low levels of cost-generating liabilities were reflected in a 41.7% increase in our net profits for 2016 compared with those reported in 2015.

We paid our shareholders two dividend payments totalling $3,521.2 million or $4.00 pesos per share, while making the scheduled investments in a timely manner, thus maintaining a solid financial position and the highest profit margins in the sector.


NEW PRODUCTION LINE

In May 2014 the Board approved the construction of the second cement production line in the Apazapan Plant, Veracruz, a project that was totally financed with our own resources.

In keeping with the project schedule, at the end of 2016 the operation of this new line with a production capacity of approximately 1.4 million tons began with the production of clinker. This new line will help us lighten the load on the other production lines which were working at practically full capacity in order to respond to the needs of the market.

The new cement production line has important advantages the most outstanding of which are: a highly efficient cost per ton, good technical performance, strategic location with easy access to marine transport and the exportation of cement through the
port of Veracruz, along with access to the national railway network allowing for low transport costs within Mexico.


A SUSTAINABLE BUSINESS

We took important measures in the field of workplace safety aimed at making each of our workers aware that they are responsible for safety. This year we started the programme “Seguridad en el Trabajo a través de la Observación Permanente” (Safety Training Observation Program, STOP) in which each employee becomes a safety inspector, aiming to generate a culture of safety at work.

The Company is working to create a safer environment and with the collaboration of our employees we hope to make progress in this area. However, we will never be entirely satisfied with our efforts towards safety in the workplace and we know that there will always be more to do.

During this year we paid more attention to the issues that are most important to our Stakeholders. We followed up on the materiality studies we have carried out and opened the doors of our cement plants to the surrounding communities which elicited a favourable and enriching response.

With respect to social responsibility, we increased our activities to benefit the health, education and job training of the disadvantaged groups in the communities near our main plants, working with them to achieve a better quality of life for their inhabitants.

Corporación Moctezuma’s commitment to the environment, reflected in our modern plants, was strengthened with programmes to optimize our processes and to increase the use of clinker per ton of cement with the resulting benefit to the environment.

We maintain low energy consumption levels both for thermal and electrical energy and carry out high maintenance standards on our transport equipment and continue to renew our mixing trucks. During 2016, the Board approved new investments that will improve the environmental efficiency of the Tepetzingo cement plant in the coming year.


FOCUS ON THE CLIENT

We remain firmly committed to our clients with the aim of establishing lasting business relationships in an environment of respect and strict adherence to Corporación Moctezuma’s values.

In 2016 we established closer ties with our clients, we invested in technology that allows us to provide them with attention in real time, to communicate directly with them and reduce our response time. We work to constantly improve of our client services, listening so that our clients know they have our Company’s permanent support.


ETHICS AS A CENTRAL VALUE

Corporación Moctezuma has made important long term investments the impact of which will be felt for several decades as we trust in the future of Mexico and the markets we supply here. It is our conviction that all our dealings with our stakeholders must be transparent, upholding principles and values and always aimed at ensuring mutual benefits. We aim to ensure these criteria of honesty, continuity and relevance of the Company for the satisfaction and benefit of the shareholders, clients, suppliers, employees, communities and authorities that we interact with every day.

For this reason the Code of Ethics is, and will always be, what guides the behaviour of all of us at Corporación Moctezuma and those who have any kind of relationship with our Company.


LOOKING TOWARDS THE FUTURE

We ended the year 2016 with important achievements in the institutionalization of the Company, with outstanding financial results and a more direct dialogue with our audiences.

We began 2017 with unusual political and economic events which had not been seen for a long time, with a trend towards an increase in energy prices and foreseeable changes in the current balance of supply and demand for cement and concrete.

At Corporación Moctezuma we will continue to strive for the continuous improvement of our operations, working honestly to make prime quality products and getting them to our consumers by means of a solid network of distributors. To achieve this, we trust in our magnificent team of employees who make all the difference in a competitive market.

We repeat our thanks to our shareholders and all those who made the results and achievements of 2016 possible and Corporación Moctezuma a company in Continuous Sustainable Evolution.
 

Juan Molins Amat
Chairman of the Board


Fabrizio Donegà
Chief Executive Officer

 

We release the second Production Line in Apazapan!

We release the second Production Line in Apazapan!

Now our plant has an installed capacity of 2.75 million tons of cement per year.

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GUIDE OF CODE OF ETHICAL CONDUCT

GUIDE OF CODE OF ETHICAL CONDUCT

Available only in Spanish. English language is accepted if you want to use the complaint channel.

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Cement

Cement

We provide the industry with the best quality cement.

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Concrete

Concrete

We manufacture concrete of the highest quality.

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Introducing the new image of Cemento Moctezuma

Introducing the new image of Cemento Moctezuma

Pre-Hispanic motifs for its packaged product.

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AUG 10,2017

Message to our SHAREHOLDERS 2016

We remain firmly committed to our clients with the aim of establishing lasting business relationships in an environment of respect and strict adherence to Corporacion Moctezuma's values.

Message to our SHAREHOLDERS 2016 Message to our SHAREHOLDERS 2016

We remain firmly committed to our clients with the aim of establishing lasting business relationships in an environment of respect and strict adherence to Corporacion Moctezuma's values.

+ information


JAN 26,2017

The second Production Line in Apazapan Plant is ready!

With this second Production Line, Apazapan Plant has an installed capacity of 2.75 million tons of cement per year.

The second Production Line in Apazapan Plant is ready! The second Production Line in Apazapan Plant is ready!

With this second Production Line, Apazapan Plant has an installed capacity of 2.75 million tons of cement per year.

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AUG 14,2015

Guía rápida del Código de Conducta Ética

Available only in Spanish. English language is accepted if you want to use the complaint channel.

Guía rápida del Código de Conducta Ética Guía rápida del Código de Conducta Ética

Available only in Spanish. English language is accepted if you want to use the complaint channel.

+ information