“Our success is founded on the strong and enduring relationship we’ve built with our customers. Our continued investment in the business is all about answering their needs and supporting and serving them in better ways.”

Alex Mestres, Divisional CEO Americas
Alex Mestres, Divisional CEO Americas
Alex Mestres

Divisional CEO, Americas

Customer intimacy is absolutely central to our success.

Across Canada, the US, and large parts of Latin America, the insight we get from close customer collaboration means we can meet their evolving needs, developing solutions that are directly relevant to them, underpinned always by a commitment to great service.

It continues to drive our product development and the significant investment we are making both in our operations and through strategic acquisitions.

This customer-centric approach continued to serve us well in 2023, particularly in North America where we turned in another powerful performance.

We achieved strong growth in profitability, despite a slowdown in housing starts, and saw satisfaction ratings from our North American customers soar from 47 to a new high of 60 mainly due to improved product availability and customer support.

Investment in growth

We continue to invest heavily in internal and external growth in North America and these investments are already boosting our ability to serve our customers effectively.

In October, we opened our new injection moulding plant in Pineville, North Carolina, Aliaxis’ biggest ever industrial investment, creating an ultra-modern facility that sets a new standard in manufacturing excellence for our industry.

We also acquired two new plants and a distribution centre in the states of Arizona and Washington from the Valencia Pipe Company. Following the rapid expansion of our distribution centres across the United States in recent years, this transaction increases our footprint in the west of the country and strengthens our distribution network from coast-to-coast.

Harco, the Virginia-based business, which serves municipal, agricultural and irrigation end-markets was acquired in 2022. It is achieving higher than expected growth – which demonstrates our ability to identify and successfully leverage strategic acquisitions.

Navigating a more turbulent market

Strong commercial management in North America continues to support our performance and allowed us to achieve higher profitability in 2023 despite reduced demand.

We were able to capture new market share in the US thanks to our focus on customer service and the growing strength of our market-leading IPEX brand. We increased sales despite the decline in housing starts.

Offsetting this great performance, severe economic challenges hit our Latam businesses in Chile, Peru and Colombia where we saw a sharp market decline, although our customer satisfaction score stayed at a consistently high level, with a net promotor score of 54, thanks mostly to our product quality and brand reputation.

We moved quickly to restructure our Latin American operations, creating a leaner business better suited to current market conditions.

Overall, Americas revenue was down 6.7% at €2 billion, while recurring EBITDA was €511.1 million, down 6.7% on a like-for-like basis1, making 2023 our second-best year after an all-time high record year in 2022.

Revenue

-6.7%

on a like-for-like1 basis vs. 2022

Recurring EBITDA

-6.7%

on a like-for-like1 basis vs. 2022

Product development and research

Our focus on bringing new products to market faster to create added value for customers continues, fully in line with our Growth with Purpose strategy.

2023 saw several market-leading products launched on the market, including an expanded TerraBrute® range of large diameter PVC pipes for use in sewage and water supply systems – an important market first.

Our research capabilities will be bolstered in mid-2024 with the full completion of our new, expanded Research & Development hub in Toronto, where our teams are focusing on advanced materials science.

Advancing diversity and inclusion

Our teams in the Americas have been at the forefront of several Diversity, Equity & Inclusion (DE&I) initiatives, most notably on gender equality, with a focus on workshops and partnerships with organizations with a mission to empower women.

In Latin America we held several DE&I workshops tailored to leadership, including how to be an inclusive leader, fostering gender diversity, how to be an ally and how women can support each other in the workplace. We also held our second annual cross-region mentoring programme for women.

In Costa Rica, we are the first construction company to join the Gender Parity Initiative, which commits us to reducing the gender gap in terms of opportunity, career development and pay. And in Colombia, we’ve partnered with Inspiring Girls, an initiative to encourage girls in the last years of college to study STEM subjects.

In North America, we ran various Diversity, Equity and Inclusion (DE&I) trainings. To mark International Women’s Day (IWD), we held several enlightening events such as ‘Leading with Empathy: Knowledge Burst’ and ‘Running More Inclusive Meetings’.

1 2022 adjusted on a pro-forma basis to reflect the impact of the acquisition of Harco Fittings LLC in April 2022, Aquarius Spectrum in August 2022, OptiRTC Inc. in November 2022, Lareter in December 2022, Zypho in May 2023, Valencia Fittings LLC in June 2023 and the discontinued operations in Russia in June 2022. Impact of FX excluded to reflect underlying performance at constant exchange rate.

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