“Gruma, the Mexican multinational company and world’s leading producer of corn flour, tortillas, and wraps, posted second-quarter 2019 (Q2 2019) results”.

• Net sales were MXN 19.314 billion, and operating profit stood at MXN 2.362 billion in Q2 2019.
  
  
• EBITDA was MXN 3.178 billion, while the EBITDA margin stood at 16.5%.
  
  
• Net sales and EBITDA of operations outside of Mexico represented 73% and 74% of its consolidated figures, respectively.
  
  
• During Q2 2019 the company invested USD 20 million (equivalent to MXN 379 million) mainly on its plants in Malaysia, Puebla, and Tijuana.
  
  
• The company reported strength in sales volume, net sales, and margins when compared to Q1 2019, driven primarily by its operations in the United States.
  
  

Mexico City, July 24, 2019 — Gruma, the Mexican multinational company and world’s leading producer of corn flour, tortillas, and wraps, posted second-quarter 2019 (Q2 2019) results. Notably, the company had year-over-year increases during the quarter in sales volume (4%), net sales (4%), and margins (11%), driven primarily by its operations in the United States.

The company’s positive results occurred thanks to an improved mix of sales, especially in tortillas to retailers, an increase in sales volume of corn flour and tortillas to foodservice companies, as well as internal efficiencies. This upwards trend is expected to continue throughout 2019.

At the close of Q2 2019, the company’s Sales Volume stood at 1.02 million metric tons. Compared to Q1 2019, the consolidated sales volume was up 4%, which was led by Gruma USA.

Net sales increased 2% compared to 2Q18 to stand at MXN 19.314 billion. This increase was driven by improved sales volume and higher average prices in the United States, and price increases by GIMSA in Mexico.

Sales from operations outside of Mexico accounted for 73% of total sales in Q2 2019.

Cost of Sales as a percentage of the company’s net sales increased from 62.2% to 62.4%, driven by Gruma Central America, and to a lesser extent, Gruma USA and Gruma Europe. In absolute terms, the cost of sales increased by 2% to MXN 12.051 billion, due to the rising cost of supplies, particularly in Mexico and the United States.

The company’s EBITDA was up 3% year-over-year to stand at MXN 3.178 billion in Q2 2019. The EBITDA margin improved from 16.4% to 16.5%. EBITDA was up 11%, and the EBITDA margin improved 100 base points to 16.5% when compared to Q1 2019.

Net Profits reported by Gruma for the period stood at MXN 1.269 billion and Net Profit Less Minority Interest stood at MXN 1.268 billion, the latter up 23% compared to Q1 2019 due primarily to lower taxes.

Meanwhile, Operating Profit stood at MXN 2.362 billion, up 15% compared to Q1 2019, while the profit margin improved 120 base points.

In Q1 2019, the company made USD 20 million in capital investments (equivalent to MXN 379 million) mainly towards:

• Expanding capacity in the following plants:

1)  Flour tortillas in Malaysia
2)  Corn planitas (flat tostadas) in Puebla, Mexico
3)  Snacks in Tijuana, Mexico

• General maintenance and technology updates throughout the company

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