“Today Gruma published its financial results for the second quarter of the year (Q222), highlighting that its fundamentals remain positive in all its subsidiaries”.

• Sales Volume increased 2% compared to the same period in 2021.
  
  
• Net Sales and EBITDA in the quarter reached USD 1.337 billion and USD 186.6 million, respectively.
  
  
• Net Sales and operating EBITDA outside Mexico represented 75% and 79% of the total.
  
  
• During Q222, the multinational invested USD 67 million, primarily allocated to its operations in the United States and Europe.
  
  
• Gruma’s net sales in the United States and Europe grew 20% and 33%, respectively.
  
  

Mexico City, July 20, 2022. Today Gruma published its financial results for the second quarter of the year (Q222), highlighting that its fundamentals remain positive in all its subsidiaries and that its volumes continue to grow steadily, with a focus on continuing to expand its tortilla production globally and increasing profitability.  

In addition, it highlights that the demand for tortillas and corn flour continues to gain preference worldwide, primarily in the United States and Europe, driving Gruma’s growth in sales volume of 2% and net sales of 19% at the end of the quarter mentioned above compared to the same period in 2021.

In the United States, sales volume grew 5% due to a constant increase in the demand for corn and wheat tortillas, in addition to the stable growth of its “Better for You” healthy product line.

In terms of net sales, in the United States, its most important market outside of Mexico, the subsidiary registered a growth of 20% to stand at USD 755.2 million.

In Europe, the multinational reported increases of 13% in sales volume and 33% in net sales due to the strong demand that the tortilla market maintains in retail stores and food service chains due to the full opening of businesses in the region following the pandemic.

Gruma’s Net Sales in Q222 were USD 1.337.4 billion, up 19% compared to the same quarter in 2021, thanks to the above sales volume.

In the year’s second quarter, the company’s Operating Income was USD 138.7 million, EBITDA was USD 186.6 million, and Net Income was USD 68.3 million.

The company’s report noted that if it excluded the extraordinary income reported in the second quarter of 2021, EBITDA would have recorded a 3% increase.

The company’s expectations for growth remain high thanks to its business strategies, innovation in its global food production, and the growing demand for its products worldwide.

Financial Results Q222 compared to Q221

At the end of Q222, Gruma’s Sales Volume, compared to the same period in 2021, increased by 2% and stood at 1.078 million metric tons. 

Net Sales in the period mentioned above increased 19% compared to the same period in 2021, to stand at USD 1.337 billion, primarily driven by the growth in sales volume in the United States and Europe.

Gruma’s Cost of Sales as a percentage of net sales increased from 64% to 65.2% due to higher raw material costs, as well as higher labor costs, primarily in the United States.

The Gross Profit in the second quarter of 2022 of the company, the world’s leading producer of nixtamalized corn flour, tortillas and wraps, was USD 465.3 million, 15% higher than that of the same period in 2021, which was USD 406 million. The gross margin stands at 34.8%.

The Mexican multinational’s operating income in the abovementioned quarter was USD 138.7 million. The operating margin stood at 10.4% in Q222.

The multinational’s EBITDA remained stable, standing at USD 186.6 million. The EBITDA margin is 14% in the second quarter of the year.

Gruma’s Net Income reported for the period was USD 68.3 million.

The company held USD 1.713 billion in debt at the end of Q222. The net debt/EBITDA ratio is 2.0.

During the second quarter of the year, Gruma made Capital Investments of USD 67 million allocated to:

1. Construction and expansion of its new tortilla plant in Indiana.

2. Upgrades at the tortilla plant in Dallas, Texas.

3. Capacity expansion at the tortilla plant in Australia.

4. General upgrades and maintenance throughout the company, particularly in GIMSA.

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