“Notably, the company’s sales volume, net sales, and EBITDA increased due mainly to its operations in Europe, Mexico, and the United States.”.

• Net sales were MXN 21.544 billion and operating profit stood at MXN 2.662 billion in Q1/20.
  
  
• EBITDA was MXN 3.505 billion, while EBITDA margins stood at 16.3%.
  
  
• Net sales and EBITDA of operations outside of Mexico represented 75% and 77% of its consolidated figures, respectively.
  
  
• During Q1/20, the company invested USD 26 million (MXN 543.6 million) mainly in its operations in Europe, Mexico, and the U.S.
  
  
• Gruma held USD 1.4 trillion in debt in Q1/20 and its net debt-to-EBITDA ratio is 2.

Mexico City, April 22, 2020.-  Today, Gruma published its 2020 first-quarter results (Q1/20). Notably, the company’s sales volume, net sales, and EBITDA increased due mainly to its operations in Europe, Mexico, and the United States. The report also highlights the company’s growth in its operating profit.

The world’s leading producer of corn flour, tortillas, and wraps increased its Sales Volume by 6% in Q1/20 compared to the same period in 2019, to stand at 1,041 metric tons. This increase was mainly driven by an increase in Gruma’s operations in the United States (9%), Europe (17%), and an increase in the operations of Grupo Industrial Maseca in Mexico (3%).

In the United States, the volume of sales of corn flour increased 12% and tortillas 8%, while in Europe, corn flour and other derivative products increased 26% and the sale of tortillas and flatbreads remained the same. In Mexico, the volume of sales of corn flour and tortillas and value-added products increased 3% and 4%, respectively, while in Central America there was an 8% increase.

Furthermore, Gruma’s Net Sales stood at MXN 21.544 billion, a 16% increase in respect of Q1/20. This increase was driven by a growth in the volume of sales and higher average prices in the United States, an increase in the volume of sales of Grupo Industrial Maseca in Mexico, and the increase in the volume of sales recorded in Europe and Central America, which was also affected by a stronger dollar against the peso.

In Q1/20, sales from operations outside of Mexico accounted for 75% of total sales.

The Cost of Sales as a percentage of the company’s net sales improved from 62.3% to 63.4%, driven by improved sales in the United States and by efficiencies in production and costs in Europe and Central America. In absolute terms, the cost of sales increased by 14% to MXN 13.425 billion.

The Gross Profit reported by Gruma in Q1/20 was MXN 8.119 billion, a 19% increase from the amount reported in Q1/19, and the gross margin increased 110 basis points to 37.7%.

Operating Profits increased by 30% in respect of the same period in 2019, to stand at MXN 2.662 billion. Gruma’s reported Net Profit for the period was MXN 562 million.

The company’s EBITDA at the Q1/20-closing was up 22% in respect of the same quarter in 2019 to stand at MXN 3.505 billion, and the EBITDA margin improved from 16.3% to 15.5%.

In Q1/20, the company decreased its debt by USD 46 million compared to December of 2019, to stand at USD 1.4 billion, and has a net debt-to-EBITDA ratio of 2.

In Q1/20, the company made capital investments of USD 26 million (equal to MXN 543.6 million) mainly in:

1. Expanding the capacity of the tortilla plant in the UK.
2. Expanding the capacity of the tortilla plant in Dallas, Texas.
3. Expanding the capacity of the tortilla plant in Spain.
4. General maintenance and technology updates.

Gruma sales Q1/19 VS Q1/20

Gruma EBITDA Q1/19 VS Q1/20