Our efforts over the past years to optimize FAMSA’s commercial model in the United States have focused on making operations more profitable. To this end, in 2014 we enhanced the quality of our customer service there and continued to build an innovative product portfolio.

The timely rollout of specific commercial initiatives and a close follow-up of their execution drove the profitability of this business unit to a superior level, which contributed positively to Grupo FAMSA’s consolidated results.

During 2014, the Furniture category performed outstandingly, representing 52.7% of Grupo FAMSA’s total 2014 sales volume in the United States, increasing 8.1% in annual terms and growing a notable 14.3% in the final quarter of the year.

In addition, sales of Home Appliances rose 8.4% year-over-year and this category represented 12.3% of total sales during the year.

As a result, FAMSA USA posted annual Net Sales of Ps$1,749 million, 6.4% more than in 2013, while Same Store Sales grew 2.4%, excluding the foreign exchange effect.

In 2014, FAMSA USA consolidated its position as a modern and effective alternative to support the economic wellbeing of the families of Mexican workers in the U.S.

Moreover, the option allowing these customers to acquire products for their families and friends in Mexico increased 14.5% during the year, as a result of the improving economy in the United States and the trust we have developed over the past years in this important segment of the U.S. population.

The Personal Loans granted by our U.S. business unit rose 35.0% in 2014 compared to the previous year and 10.4% in the fourth quarter, and represented as of December 31, 2014 5.7% of FAMSA USA’s Net Sales. This growth reflects the strengthening of our financial service offer north of the border.

This good performance, combined with a disciplined administration of costs and expenses, drove profitability in the United States. At the close of 2014, FAMSA USA posted an EBITDA of Ps$88 million, 57.7% above the previous year, with an EBITDA Margin of 5.0%, compared to 3.4% in 2013. The results of 2014 consolidated the operations of this business unit as an alternative for enhancing profitability and its expansion as a platform to continue leveraging growth opportunities.

In 2015, we will continue to support the economic progress of Hispanic families in the United States, with more branches, products tailored to their needs, and continued innovation on the sales floor and in our offer of commercial and financial services.