“Gruma published its financial results for the first quarter 2022, highlighting that it began the year with a strong demand for its products globally, mainly in the United States and Europe”.

• Sales Volume versus the same period in 2021, increased 3% to 1,043 million tons.
  
  
• Net Sales and EBITDA in the first quarter of 2022 reached USD 1.264 billion and 165 million, respectively.
  
  
• Net Sales and operating EBITDA outside of Mexico represented 75% and 79% of the total, respectively.
  
  
• During the quarter, the company invested USD 63 million, primarily in its operations in the United States and Mexico.
  
  
• Gruma’s volumes in the United States and Europe grew 5% and 19%, respectively.
  
  
• Gruma held USD 1.644 billion in debt in Q122. Its net debt/EBITDA ratio is 1.8.
  
  

Mexico City, April 20, 2022.- Today, Gruma published its financial results for the first quarter 2022 (Q122), highlighting that it began the year with a strong demand for its products globally, mainly in the United States and Europe, which provides solid foundations for growth.

The Sales Volume of the multinational during the first three months of the year registered a growth of 3% to reach 1.04 million metric tons, driven mainly by its subsidiary in the United States. The beginning of the return to normality following the COVID-19 pandemic has generated a greater demand for products by food service chains, as well as the high demand and successful launch in that country by the “Better for You” line of healthy products.

Additionally, nixtamalized corn flour in the United States also registered a growth in sales volume, mainly driven by customers that make corn-based foods. 

In Europe, having overcome the pandemic, the demand for tortillas continues to be a success for Gruma’s subsidiary in the old continent. As a result, sales volume growth in the region was 19%.

Gruma’s Net Sales in the period were USD 1.264 billion dollars, up 17% compared to the same quarter of 2021, thanks to the aforementioned sales volume and the increase in prices in most of its subsidiaries to compensate for the rising grain prices and, in particular, the conflict in Ukraine, which caused inflation in the cost of various raw materials at a global level.

In the first quarter of the year, the company’s Operating Income was USD 116 million, EBITDA was USD 165 million and Net Income was USD 61 million. It is worth mentioning that if the non-recurring extraordinary income of USD 10 million that the company obtained in Q121 is eliminated, EBITDA would reflect a growth of 4% and Net Income an increase of 13%.

It should be recalled that starting this quarter, Gruma will report its financial statements in US dollars. This change is based on the current composition of income and profits of the multinational derived from its operations outside of Mexico, especially the United States, its most important market. Net Sales and EBITDA from operations outside of Mexico represent 75% and 79%, respectively, of the company’s consolidated figures in the first quarter of the year.

This change allows for a streamlined analysis of the company’s results among audiences and facilitates the comparison of its results with other global companies in the Food and Beverage industry.

The company’s expectations for growth remain high thanks to its business strategies and innovation in its global food production, as well as the growing demand for its products in the countries and regions where it has a presence, primarily in the United States, Gruma's most important market. 

Financial Results Q122 compared to Q121

At the end of Q122, Gruma's Sales Volume increased 3% compared to the same period in 2021, standing at 1.043 million metric tons.

Net Sales in the aforementioned period increased 17% compared to the same period in 2021, reaching USD 1.264 billion, primarily driven by the growth in sales volume in its subsidiaries in the United States, Europe, Asia, and Oceania.

Gruma's Cost of Sales as a percentage of net sales rose to 65.3% from 63.8% due to higher raw material costs, as well as higher labor costs in the United States.

The company's Gross Profit in the first quarter of 2022 was USD 438 million, 12% higher than the same period in 2021, which was USD 390 million. The gross margin stands at 34.7%.

The Operating Income of the world’s leading producer of nixtamalized corn flour, tortillas and wraps in Q122, stood at USD 116 million, with a 9.2% operating margin.

The multinational’s EBITDA for first quarter of the year is USD 165 million. The EBITDA margin is 13.1%.

Gruma's Net Income reported for the period was USD 61 million.

Gruma held USD 1.644 billion in debt in Q122, with a 1.8 net debt/EBITDA ratio.

During the first three months of the year, Gruma made capital investments of USD 63 million, primarily allocated to its operations in the United States and Mexico.

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