“Gruma’s U.S. operations continue to benefit from sales to snack producers, food service providers, and restaurants, sustained by the ongoing popularity of Mexican food in the country.”.

• At the close of the period, Gruma’s net sales were up 14% to stand at MXN 16.348 billion, with sales volume rising by 2% to 981 million tons.
   
• The company’s net sales and EBITDA from operations outside of Mexico accounted for 74% and 71% of consolidated results, respectively
   
• Its operating profit increased by 19%, reaching MXN 2.191 billion during Q216, with EBITDA reaching MXN 2.642 billion.
   
• Gross margin and EBITDA stood at 38.2% and 16.2% in Q216, respectively.
   
• At the close of Q216, the multinational company’s debt stood at USD 704 million. Its gross debt/EBITDA ratio is 1.3
   

Mexico City, July 20, 2016 – Gruma, S.A.B. de C.V. posted excellent operating results at the close of the second quarter of 2016. During this period, the company posted a Net Profitof MXN 1.501 billion, up MXN 345 million (30%) from the results reported in Q215. The Mexican Multinational’s Net Majority Profit was up 31%, from MXN 1.081 billion in Q215 to MXN 1.417 billion in Q216. This increase was mainly due to the improved performance of Gruma Corporation, the group’s subsidiary in the United States.

Operating Profitat the world’s leading corn flour and tortilla producer, was up 19% during this period to stand at MXN 2.191 billion, mainly due to the positive effect produced by the depreciation of the Mexican peso, the enhanced performance of Gruma Corporation, and improvements in the Asia & Oceania Gruma operations.

At the close of Q216, the company’s Sales Volume stood at 981,000 metric tons (T), 2% higher than the amount reported for the same period in 2015.

The multinational’s Net Sales grew to MXN 16.348 billion for a 14% increase over Q215. This growth was mainly driven by the Gruma Corporation operations and the increase in sales volume of its Mexican subsidiary Grupo Industrial MASECA. In Q216, sales from operations outside of Mexico accounted for 74% of total sales.

The Cost of Sales as a percentage of the company’s net sales improved from 62.0% to 61.8%, as a result of improved performance by Gruma Corporation and Gruma Central America. In absolute terms, the cost of sales increased by 14% to MXN 10.097 billion.

Gruma’s U.S. operations continue to benefit from sales to snack producers, food service providers, and restaurants, sustained by the ongoing popularity of Mexican food in the country.

Gruma’s EBITDA increased by 18% in Q216 compared to the same period in 2015, reaching MXN 2.642 billion.

Gruma reported debt of USD 704 million in Q216, with a gross debt/EBITDA ratio of 1.3.

During Q216, the company’s total capital investments stood at USD 79 million, including investments in the U.S. to build a new tortilla plant in Dallas, expand production capacity at the company’s corn flour plant in Indiana, and technical improvements at other facilities. In Europe, investments included an expansion of the company’s production capacity in the Ukraine, the U.K., and Spain, and in the new plant in Russia. Investments in Mexico focused on the construction of a new tortilla plant in Monterrey and the re-opening of a corn flour factory located in central Mexico, as well as technical improvements for the rest of the company’s facilities across the country.

Key events in Q216

Gruma donates USD 4 million to create the Mission Foods Texas-Mexico Center

This important center will begin researching and promoting policy-based discussion to improve strategic ties between Mexico and Texas in the United States.

Gruma Chairman of the Board and CEO Juan González-Moreno, and Gerald Turner, President of the Southern Methodist University (SMU) in Dallas, signed an agreement to createThe Mission Foods Texas-Mexico Center, whose primary objective will be the study and improvement of the relationship between Mexico, Texas, and the United States through research, annual events, and public forums.

Gruma/Mission Foods decided to support the creation of the Center after seeing a great opportunity to contribute to the improvement of Texas-Mexico relations, and upon discovering that there has never been an academic center dedicated to the specific analysis of this vital relationship throughout the long history of economic, social, political, and family relations between Texas and Mexico.

Gruma invests more than USD 7 million in new plant for production of balanced livestock feed

The Agromas plant, located in the state of Tlaxcala, has an installed production capacity of more than 10,000 tons per month, and will primarily serve clients in the states of Guerrero, Hidalgo, Mexico, Morelos, Oaxaca, Puebla, Queretaro, Tlaxcala, and Veracruz, as well as Mexico City.

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