“This Wednesday, Gruma posted its 2019 fourth-quarter results (Q419).”.

• Net sales totaled MXN 19.442 billion, and operating profit stood at MXN 2.397 billion in Q419.
  
  
• EBITDA was MXN 3.180 billion, while EBITDA margins stood at 16.4%.
  
  
• Net sales and EBITDA of operations outside of Mexico represented 72% and 75% of its consolidated figures, respectively.
  
  
• The company invested USD 25 million in Q419 to bring total 2019 investments to USD 91 million, mainly allocated to plants in Russia; Puebla in Mexico; Malaysia; and Henderson, KY, and Dallas, TX in the U.S.A.
  
  
• Gruma held USD 1.4 billion in debt in Q419. The company’s net debt-to-EBITDA ratio is 1.8.
  
  

Mexico City, February 26, 2020 — This Wednesday, Gruma posted its 2019 fourth-quarter results (Q419). Notably, the company’s net sales and sales volume increased, especially in Europe and the United States. Gruma’s net profits also increased, standing at MXN 1.235 billion, with EBITDA of MXN 3.18 billion.

The world’s leading producer of corn flour, tortillas, and wraps increased its Sales Volume by 3% in Q419 compared to the same period in 2018, to stand at 1,055 metric tons. Sales volume growth was driven primarily by Gruma Europe, which posted a 28% increase, and United States operations, with 3% growth.

Gruma’s Net Sales also stood at MXN 19.442 billion, up 2% year over year. This increase was driven by a growth in sales volume and higher average prices in the United States, increased prices in Grupo Industrial Maseca in Mexico, and growth in sales volume in Europe.

In Q419, sales from operations outside of Mexico accounted for 72% of total sales.

Cost of Sales as a percentage of the company’s net sales improved from 63.2% to 62.9%, helped by lower raw material costs in Central America, improved absorption and production efficiency, and lower input costs in Europe. In absolute terms, cost of sales was up 2% to MXN $12.234 billion.

EBITDA of the Mexican multinational was up 9% year over year to stand at MXN 3.180 billion in Q419, and EBITDA margins were up 16.4% to 15.4%, driven by MXN 273 million in profits resulting from the adoption of International Financial Reporting Standard 16, as of January 2019.

Notably, Gruma’s annual EBITDA was MXN 12.528 billion, up 7% from 2018.

Gruma’s reported Net Profit for the quarter stood at MXN 1.235 billion, up 12% YoY.

The company’s Majority Net Profit in Q419 was MXN 1.235 billion, up 12% YoY.

Operating Profits were also up 3% in the fourth quarter to stand at MXN 2.397 billion.

The Mexican multinational reduced its debt in Q419 by USD 9 million and has a net debt-to-EBITDA ratio of 1.8.

In 2019, the company made capital investments of USD 91 million; in Q419 alone, this was USD 25 million. Fourth-quarter investments were allocated to:

1. Equipment for corn chip production in the Russian tortilla plant.
   
   
2. Expanding capacity for baked tostadas, corn chips, and corn crackers in the Puebla, Mexico plant.
   
   
3. Purchasing land for corn storage and water treatment at the corn flour plant in Henderson, Kentucky, in the U.S.A.
   
   
4. Equipment for tortillas and pizza discs in the plant in Malaysia.
   
   
5. Expanding capacity in the tortilla plant in Dallas, Texas.

Q419 Highlights:

Gruma Obtains USD 250 Million Loan to Improve Debt Conditions

The Bank of Novia Scotia authorized the six-year loan at an annual fixed rate of 2.789%.

The loan will allow the Mexican multinational to improve the cost and maturity structure of its debt.

The loan is proof of the fact that the company is strengthening its long-term financial structure.

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Mexico City, February 26, 2020 — This Wednesday, Gruma posted its 2019 fourth-quarter results (Q419). Notably, the company’s net sales and sales volume increased, especially in Europe and the United States. Gruma’s net profits also increased, standing at MXN 1.235 billion, with EBITDA of MXN 3.18 billion.

The world’s leading producer of corn flour, tortillas, and wraps increased its Sales Volume by 3% in Q419 compared to the same period in 2018, to stand at 1,055 metric tons. Sales volume growth was driven primarily by Gruma Europe, which posted a 28% increase, and United States operations, with 3% growth.

Gruma’s Net Sales also stood at MXN 19.442 billion, up 2% year over year. This increase was driven by a growth in sales volume and higher average prices in the United States, increased prices in Grupo Industrial Maseca in Mexico, and growth in sales volume in Europe.

In Q419, sales from operations outside of Mexico accounted for 72% of total sales.

Cost of Sales as a percentage of the company’s net sales improved from 63.2% to 62.9%, helped by lower raw material costs in Central America, improved absorption and production efficiency, and lower input costs in Europe. In absolute terms, cost of sales was up 2% to MXN $12.234 billion.

EBITDA of the Mexican multinational was up 9% year over year to stand at MXN 3.180 billion in Q419, and EBITDA margins were up 16.4% to 15.4%, driven by MXN 273 million in profits resulting from the adoption of International Financial Reporting Standard 16, as of January 2019.

Notably, Gruma’s annual EBITDA was MXN 12.528 billion, up 7% from 2018.

Gruma’s reported Net Profit for the quarter stood at MXN 1.235 billion, up 12% YoY.

The company’s Majority Net Profit in Q419 was MXN 1.235 billion, up 12% YoY.

Operating Profits were also up 3% in the fourth quarter to stand at MXN 2.397 billion.

The Mexican multinational reduced its debt in Q419 by USD 9 million and has a net debt-to-EBITDA ratio of 1.8.

In 2019, the company made capital investments of USD 91 million; in Q419 alone, this was USD 25 million. Fourth-quarter investments were allocated to: