Vitro, a leading North American glass producer, reported robust sales growth in Q4 2018 but faced challenges in profitability, prompting strategic divestments and an intensified focus on innovative, high-value products.

Information on the Target

Vitro, S.A.B. de C.V. (BMV: VITROA), headquartered in San Pedro Garza García, Nuevo León, Mexico, is a leading glass manufacturer in North America. The company specializes in the production of various glass products, catering to multiple sectors including automotive, construction, and packaging. Vitro has established a reputation for quality and innovation, continuously striving to enhance its product offerings and operational efficiencies.

As of the fourth quarter of 2018, Vitro reported solid sales growth despite facing challenges in its profitability. The Company achieved consolidated net sales of US$540 million, representing a 2.6% year-over-year increase. The notable growth in revenue was primarily driven by the Flat Glass division, which benefited from a resurgence in the Mexican market and a favorable product mix across its business segments.

Industry Overview in Mexico

The glass manufacturing industry in Mexico has shown resilience in recent years, driven by demand from key sectors such as construction and automotive. The surge in activities within the residential and commercial construction industries has