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In 2016, Grupo FAMSA faced a challenging economic environment, characterized by uncertainty resulting from the political changes in the United States, the volatility in the exchange rate between the Mexican peso and the U.S. dollar, higher energy prices and inflationary pressures on a global level. These adverse economic conditions affected consumption levels in our neighbouring country and the commercial sector in Mexico.

In this context, the Company endorsed its trajectory of almost half a century in the Mexican retail industry fulfilling the dual objectives of driving the economy of the nation’s working families and consistently generating value for the Company’s investors.

In 2016, in accordance with its commitment to responsibly manage resources, Grupo FAMSA reinforced its determination to continue developing its competitive advantages, emerging even stronger despite the difficult market conditions.

With the solid support of its main stockholder, in 2016 Grupo FAMSA implemented a series of transformations to reinforce its operating platform in order to maintain and enhance its market leadership in Furniture, Appliances and Banking Services.

Thanks to the professionalism of its associates, Grupo FAMSA achieve a dynamic level of sales, recording an increase in Consolidated Net Sales for the year. This expansion, combined with the responsible management of costs and expenses, positioned the Company to leverage its competitive advantages.

Grupo FAMSA’s 2016 Consolidated Net Sales rose 9.5% year-over-year, to $17,544 million pesos. The operations in Mexico recorded a particularly outstanding year-over-year growth in Net Sales of 9.2%, largely driven by Personal Loan origination and the marketing of durable goods such as Mobile Phones, Electronics, Appliances and Seasonal Goods.

The floor space of the retail area in Mexico increased with the opening of three new stores during the year, bringing the total to 380, with a total sales floor of 452,294 square meters. With regard to the space dedicated to banking operations, Banco FAMSA branches totaled 399 as of year-end 2016, and with 53 non-banking branches after the decision to close 35 of such business units during the third quarter of 2016, compared to 88 that had at the beginning of the year.

During 2016, the main strategy to drive operating indicators in Mexico was to focus on growing the origination of higher payroll credits and the participation of more clients from the formal sector of the economy. Both actions make the Company’s loan portfolio more resistant to adverse economic cycles and mitigate the credit risk.

As a result, payroll credits represented 29.5% of Grupo FAMSA’s consolidated accounts receivable as of December 31, 2016, 710 basis points above the 22.4% reached at the close of 2015. Furthermore the consolidated client´s participation from the formal sector of the economy increased from 54.7% at the end of 2015 to 61.0% as of December 31, 2016.

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.

Because of the changes in client’s profile, the enhancement of the internal control mechanisms for credit origination and the efforts to make collection more agile, Banco FAMSA’s Non-performing Loans Ratio (IMOR) declined in 2016, to 8.5% at the close of the year, compared to 9.8% in 2015.

Additionally, throughout 2016 Grupo FAMSA’s management team focused on preserving the Company’s book value, thus giving continuity to the guarantee of the provisions for the accounts receivable that resulted from the accounting reclassification in 2015.

Therefore, Grupo FAMSA determined the optimal structure to ensure that the accounts receivable guaranteed by Mr. Garza González and his real estate companies will be amortized. The implementation process of said structure will be duly completed before the established term limit of June 2017.

The constitution of the Guarantee Management and Payment Sourse Trust (MPST), which will be established by the real estate companies of Mr. Garza González, towards a cession of rights, to properly contribute the collection of future incomes from the leases of certain properties until the account receivable be settled in its entirety. The beneficiary in first position of the MPST will be FAMSA Mexico. Consequently, the account receivable from related parties in Grupo FAMSA’s Consolidated Statement of Financial Position will be amortized in line with the disbursement of leases. Additionally, the aforementioned real estate companies will jointly contribute real estate properties whose value will add to the guaranteed amount of collection rights, and whose primary beneficiary will also be FAMSA Mexico.

During 2016, the vocation of Grupo FAMSA, its main stockholder and Management remained focused on generating value, through responsible actions, administrative efficiency and a long-term vision. All of this underscores the quality of the Company as an attractive investment alternative, today with a strengthened structure that will enable it to face the challenges of the coming years and satisfy the dynamic needs of its customers and the markets it serves.

Consolidated Net Sales By Country

Consolidated Net Sales By Product Mix

Portfolio of Loans

NPL Ratio


Financial Highlights






Banking Branches


1.2 Mill.

Active Accounts