To enhance our leadership in the retail commercialization of durable and personal goods, and specialized financial services in Mexico and the Hispanic segment in the USA.
To be the best option for our clients in the retail commercialization of durable and personal goods, and specialized financial services fitting all our clients’ needs. To assure that our stockholders receive expected yields.
The values that distinguish us in the market and are an integral part of our company’s activities are: simplicity, business sense, commitment, a customer focus, quality and trust.
Responsible for operating 380 retail stores in Mexico and focused on providing consumer goods to the Mexican population.
Established in 2007, provides a complementary portfolio of savings and credit services to retail customers in 452 branches, as well as microcredit and financing to small and medium-sized enterprises.
Operates a network of 26 retail stores and 28 branches that offer personal loans in the United States, attending to the growing hispanic community.
Stores
Banking Branches
Active Accounts
Employees
Net Sales : $17,554
EBITDA : $1,411
Operating Income: $994
Assets: $42,490
The Furniture and Appliance marketing business consolidated its industry leadership during the year, growing Net Sales by 9.2% to a total of $15,157 million pesos, compared to $13,884 million pesos in 2015.
At the close of 2016, Bank Deposits provided 67.8% of Grupo FAMSA’s source of funding. Interest to Bank Depositors recorded $844 million pesos, 23.2% higher the previous year given the higher balance of deposits received and the increase in the cost of funding.
Famsa USA implemented specific initiatives to expand its customer base and drive consumption. Combined with the appreciation of the U.S. dollar vis-à-vis the Mexican peso, this resulted in an 11.8% year-over-year increase in Net Sales.
- Humberto Garza Valdez-
CEO
The 9.5% growth in consolidated sales is just one outstanding reflection of the Company’s efforts to improve its performance, even in challenging environments, throug customer loyalty, and the implementation of successful and continuous advertising campaigns and discounts.
On a consolidated level, annual EBITDA reached $1,411 million pesos in 2016. EBITDA growth was limited during the year, mainly due to the natural gap between the expenses applies to the credit portfolio origination, the recognition of the income of payroll credits and an additional allowance for doubtful accounts that was recorded during 4Q16 since the Company's Management carried out certain adjustments to its reserve estimation methodology, seeking a more conservative approach in its recovery criteria.
FAMSA Mexico’s sales growth was largely driven by the categories of Mobile Phones, Electronics and Appliances, as well as the leveraging of Seasonal campaigns, both in summer and at Christmas.
“46 Aniversario” (46th Anniversary) was among the year’s most successful campaign, designed to increase sales through attractive promotions.
Moreover, the average cost of funding as of year-end 2016 was 4.5%, having grown less than the TIIE (Mexican reference rate) during the year.
Moreover, Grupo FAMSA continued to center its commercial portfolio on productive loans, which totaled $3,691 million pesos as of year-end 2016. Loans to MySMEs (Micro, Small and Medium-sized Enterprises) represented 14.3% of the Company’s consolidated credit portfolio and also contributed to diversifying the credit risk.
Meanwhile, FAMSA USA’s operations during the second half of the year were complicated due to the election campaigns and an expectation of uncertainty among the business unit’s target market for sales, to which FAMSA USA directed its advertising and marketing efforts.
FAMSA USA’s operations during the second half of the year were complicated due to the election campaigns and an expectation of uncertainty among the business unit’s target market for sales, to which FAMSA USA directed its advertising and marketing efforts. Consequently, it implemented specific initiatives to expand its customer base and drive consumption. Combined with the appreciation of the U.S. dollar vis-à-vis the Mexican peso, this resulted in an 11.8% year-over-year increase in Net Sales.
Accumulated 2016 EBITDA in pesos for FAMSA USA was $297 million pesos as of December 31st, 2016, contributing to the consolidated result.
During 2016, Grupo FAMSA sought to lower operating expenses and enhance sales-floor
without affecting quality and customer service.
The Furniture and Appliance marketing business
its industry leadership during the year, growing Net Sales by 9.2% to a total of $15,157 million pesos, compared to $13,884 million pesos in 2015.
Banco FAMSA also
mainly because of the decline in the Non-Performing Loans Ratio to 8.5%, 130 basis points below that of 2015.
FAMSA USA it implemented
to expand its customer base and drive consumption. Combined with the appreciation of the U.S. dollar vis-à-vis the Mexican peso, this resulted in an 11.8% year-over-year increase in Net Sales.
The solid support of Grupo FAMSA’s Board of Directors to guarantee the rights of its stockholders has been, without doubt, one of the basic pillars for the Company’s growth during its 47 years of offering, to consumers in Mexico and the United States, financing alternatives to acquire consumer goods.
In accordance with the highest principles of ethics and transparency, the Board of Directors defines the Company’s general strategy and supervises its performance. It also ensures that the actions of Grupo FAMSA’s executives and the decisions that the Company makes are based on the best interests of its stockholders, in accordance with its Mission, Vision and Values, monitoring the approval of related party transactions and any other operations that might digress from the business objectives.
The Board of Directors and its different committees work together in compliance with the “Code of Best Corporate Practices” recommended by the Mexican Stock Market Law and National Banking and Securities Commission.
In 2016, Grupo FAMSA continued to enhance the Risk Prevention Program that has been in place since 2013. This program establishes standardized safety and contingency response protocols, a culture of prevention across the Company’s work centers and business units, and also first response, and search and rescue brigades.
During 2016, 514 preventive visits were made to Grupo FAMSA’s branches and offices to inspect and guarantee the correct functioning of all the equipment and installations needed for avoiding and responding to contingencies, as well as to detect any situations of risk or danger in advance.
In addition, Risk Committees were set up and upgraded at 401 work centers, exceeding the goal of 387 planned for 2016. These Committees are made up of operations and administrative managers, HR leaders, area coordinators and members of the Internal Support Brigades.
In 2016, a total of 132,976 man-hours of training were provided for approximately 6,000 employees (1/3 of the total Grupo FAMSA workforce), both in Mexico and the United States. Courses offered covered topics such as technical training, general knowledge and individual skills.
It is important to highlight the impartation of 9,588 man-hours of training in preventing money laundering and the Code of Conduct for bank personnel, 70% more than in 2015. This important effort is evidence of the institution’s commitment to excellence and the execution of best banking practices.
With regard to community support programs, during the year diverse donation campaigns were launched through Banco FAMSA’s ATM machines. Thus, in partnership with its customers, Grupo FAMSA was able to support different charity institutions, such as Hogar de la Misericordia, the Mexican Red Cross and the “Bécalos” Scholarship Program. The latter initiative was carried out in conjunction with the Mexican Banking Association and the Televisa Foundation to provide support for low-income students.
In a year characterized by complex economic conditions across Grupo FAMSA’s markets, the Company reiterated its commitment to society in partnership with its customers and different institutions, promoted the contribution of its associates to the environment, and enhanced the safety of its facilities for the benefit of employees, customers and the general public.
Preventive
visits
Work
centers
Evacuation
simulations
Man-hours
of training
