“Gruma maintains a solid operating performance and positive growth trend, primarily in its operations outside of Mexico.”.

• Net sales and EBITDA in the 4th quarter of 2021 reached MXN 25.718 billion and 4.105 billion, respectively.
  
  
• Net Sales and operating EBITDA outside of Mexico represented 74% and 81% of the total.
  
  
• During the last quarter of 2021, the company invested USD 70 million, primarily allocated to its operations in the United States and Europe.
  
  
• Gruma’s volumes in Europe and Oceania grew 17% and 9%, respectively.
  
  
• Gruma's debt in the fourth quarter stands at USD 1.511 billion dollars. Its net debt/EBITDA ratio is 1.7.
  
  

Mexico City, February 23, 2022.- Gruma maintains a solid operating performance and positive growth trend, primarily in its operations outside of Mexico. Thanks to the strong demand for its products, especially its healthy line, it achieved sales and EBITDA growth in most of its subsidiaries in the fourth quarter of 2021.

The increase in prices in the United States and the strict discipline in costs and expenses drove global growth of 5% in EBITDA in the fourth quarter of 2021 vs. the same period of 2020, and 29% compared to the same period of 2019.

In Europe, Asia and Oceania, the intense momentum of our products generated impressive results, which are reflected in sales volume growth of 17% and 9%, respectively, in the fourth quarter of 2021 compared to the same period in 2020.

During the fourth quarter of the year, the company identified a positive evolution of the tortilla retail channel both in the United States and in Europe.

And, after seeing its products gain ground in consumer preference in Asia and Oceania, these regions have become a great business opportunity upon which it has been capitalizing effectively.

Meanwhile, net sales achieved a growth of 17% in the last quarter of 2021 compared to the same period of 2020, and 32% compared to the same quarter of 2019. Net sales grew in all regions: Europe 32%, United States 15%, Mexico 14%, Asia/Oceania 12% and Central America 10%.

Gruma’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, the company’s most important market.

Financial Results 4th Quarter 2021 compared to 4th Quarter 2020

At the end of the fourth quarter of 2021, the Company’s Sales Volume compared to the same period in 2020 remained stable at 1.081 billion metric tons.

The company's Net Sales increased 17% compared to the same period in 2020, to stand at MXN 25.718 billion, due to the growth in sales volume in the United States, Europe, Asia and Oceania, and the strengthening of the U.S. dollar against the Mexican peso on the figures for operations outside of Mexico when measured in terms of pesos.

In the fourth quarter of 2021, sales from operations outside of Mexico represented 74% of the multinational's total.

Gruma's Cost of Sales as a percentage of net sales rose to 64.3% from 63.4% due to higher raw material costs, as well as higher labor costs in the United States.

Gruma reported MXN 9.186 billion in Gross Profit for Q421, 14% greater than the same period in 2020, which was MXN 8.041 billion pesos; registering a growth of 27% compared to the 4th quarter of 2019. The gross margin stands at 35.7%.

The Operating Profit of the world's leading producer of nixtamalized corn flour, tortillas, and wraps, in the quarter mentioned above was MXN 3.124 billion, 19% higher than the same period in 2020; compared to the same quarter, an even greater profit (30%) may be observed when compared to 2019. The operating margin stood at 12.1% in the fourth quarter of 2021. 

The EBITDA of the multinational, at the end of the 4th quarter of 2021, stood at MXN 4.105 billion pesos, 5% above that reported in the same quarter of 2020. If we compare it with the same period of 2019, it registers an increase of 29%. The EBITDA margin is 16% in the fourth quarter of the previous year. EBITDA from operations outside of Mexico represented 81% of the Company’s consolidated figures.

Gruma's Majority Net Income reported in the period was MXN 1.814 billion pesos, 29% higher than the same quarter of 2020.

The company held USD 1.511 billion in debt in the fourth quarter of the year. Its net debt/EBITDA ratio is 1.7.

During the 4th quarter of 2021, Gruma made capital investments of USD 70 million dollars (that is, MXN 1.464 billion), which were destined mainly for its operations in the United States, Europe, and Mexico.

In all of 2021, Gruma's investments amounted to USD 286 million.

RELEVANT EVENT

Beginning in the first quarter of 2022, Gruma has decided to report its financial statements to the Mexican Stock Exchange 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.

This change will allow for easier 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.

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