“GRUMA NET SALES AND PROFITS UP AT THE END OF Q121”.

• Net sales were up 3%, while Net Profits rose 135%.
  
  

• EBITDA fell 1% due to rising costs in Mexico and a surge in international corn prices..
  
  

• The current EBITDA margin is 15.7%.
  
  

• Net sales and operating EBITDA outside of Mexico represented 75% and 84% of consolidated figures, respectively.
  
  

• Gruma invested USD 43 million in Q121, primarily in its operations in Asia, Europe, the United States, and Mexico.
  
  

• Gruma held USD 1.540 billion in debt in Q121, with a 1.5 net debt/EBITDA ratio.

Mexico City, April 21, 2021. Gruma, the world’s leading nixtamalized corn flour, tortilla, and wraps production company, published its financial results for the first quarter of the year (Q121), highlighting its 3% growth in sales standing at MXN 22.179 billion and 135% growth in net profit for a total of MXN 1.321 billion. Net sales and operating EBITDA outside of Mexico represented 75% and 84% of its consolidated figures, respectively.

The effects of the pandemic boosted food product sales around the world, making 2020 a great year. The Company’s favorable growth in EBITDA, Net Sales, and Net Profit between Q119 and Q121 show a clearer picture of the Company’s performance trend. While EBITDA grew 21% (10% annual average), Net Sales increased by 19% (9.1% annual average), and Net Profit was up 28% (13% annual average).

In this sense, Gruma President and CEO Juan González Moreno said, “We are witnessing an accelerated recovery of the food industry worldwide, mainly in Food Service, to levels recorded before the pandemic, which makes us very happy."

He added that consumer preferences for the consumption of tortillas worldwide, mainly in the United States, our most important market and main source of income, continue to gain ground as a healthy and versatile product in the diet of non-Hispanic and Hispanic families, which is positive for Gruma.

Financial Results

At the end of Q121, the Company reported 1,014,000 metric tons in Sales Volume, an indicator influenced by the severe frosts affecting operations and distribution in the United States and Mexico during the quarter.

The Company’s Net Sales stood at MXN 22.179 billion, for a 3% increase over the same period of 2020, driven by increased sales of more profitable products in the retail channel in the United States and Europe, and price increases implemented by GIMSA in Mexico.

When measuring sales outside of Mexico, it is important to note that Gruma’s net sales were affected by the strengthening of the Mexican peso against the U.S. dollar.

Gruma continues to establish itself as a global company. In Q121, sales from operations outside Mexico represented 75% of the total.

Gruma’s Cost of Sales as a percentage of net sales rose to 63.8% from 62.3%, due to a higher demand for raw materials and ingredients to produce value-added products in the United States, higher international corn prices as a result of Chinese demand for grain that impacted GIMSA in Mexico, and rising costs due to winter frosts in the United States and Mexico. 

Gruma reported MXN 8.025 billion in Gross Profits in Q121 with a 36.2% gross profit margin. 

The Operating Income of the world’s leading producer of nixtamalized corn flour, tortillas, and wraps stood at MXN 2.576 billion in Q121, with an 11.6% operating margin.

The multinational’s EBITDA at the end of Q121 stood at MXN 3.472 million, with 15.7% EBITDA margins. EBITDA from operations outside of Mexico represented 84% of the Company’s consolidated figures.

Gruma reported MXN 1.321 billion in Net Income, which is 135% higher than the amount reported in the same quarter last year. Majority Net Income totaled MXN 1.321 billion, for a 135% increase compared to the amount reported in Q120.

Gruma held USD 1.540 billion in debt in Q121, with a 1.5 net debt/EBITDA ratio.

In Q121, Gruma took out a USD 200-million loan it will use to refinance different liabilities in U.S. dollars and Mexican pesos. The Bank of Novia Scotia and Bank of America México, S.A., a multi-purpose bank, with a five-year term at the London Interbank Offered Rate () granted the loan LIBOR) plus a premium of 100 base points, payable in one lump sum upon maturity.

This loan will allow Gruma to improve the cost and maturity structure of its debt.

During the first quarter of the year, Gruma’s capital investments totaled USD 43 million (MXN 894 million), which were used to:

1)    Expand the capacity of the Company’s tortilla plant in Malaysia

2)    Pay for renovations and maintenance for the reopening of the tortilla plant in Omaha, Nebraska, USA.

3)    Make progress on the construction of the new plant in Indiana, USA.

4)    Purchase equipment and transportation for distribution in Mexico.

5)    Pay for general maintenance and technology updates for the entire Company.

GRUMA SALES 1T21	GRUMA EBITDA 1T21

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