“U.S. DRIVES GROWTH IN GRUMA’S NET SALES AND EBITDA OF 21% AND 13% IN Q322”.

• Sales Volume increased 4% compared to the same period in 2021.
  
  
• Net Sales and EBITDA in the quarter reached USD 1.438 billion and USD 208 million, respectively.
  
  
• Net Sales and operating EBITDA outside Mexico represented 75% and 86% of the total, respectively.
  
  
• The company invested USD 95 million in Q3 2022, primarily allocated to its operations in the United States and Mexico.
  
  
• Gruma’s net sales in the United States, Europe, and Central America increased 25%, 18%, and 24%, respectively.
  
  

Mexico City, October 19, 2022. Today Gruma reported its financial results for the third quarter of the year (Q3 2022), highlighting that its sales volume and net sales were up 4% and 21%, respectively, thanks to the growing increase in the consumption of tortillas globally and the company’s innovations to meet consumer demand for healthy products adapting to new food trends.

The company also highlighted a solid performance in its tortilla business in the United States thanks to the continuous and stable growth of its “Better for You” product line and the launch of new healthy options. As for its corn flour division in the United States, the company reports that the demand for this product continues to gain followers thanks to consumers’ preference for preparing meals at home.

During the third quarter of the year in the United States, Gruma Corp. recorded increases in sales volume of 4%, of 25% in net sales to stand at USD 826 million; of 33% in EBITDA, and the EBITDA margin was up 110 basis points.

In Europe, the multinational continues its strong expansion in the tortilla market driven primarily by supermarkets and food service outlets. 

In the quarter reported, Gruma's subsidiary in Europe recorded an 18% increase in net sales, reaching USD 105.3 million.

Net Sales and EBITDA for operations outside Mexico represented 75% and 86% of the total, respectively, in the third quarter of the year.

Q3 2022 Financial Results compared to Q3 2021

At the end of Q3 2022, Gruma's Sales Volume increased 4% compared to the same period in 2021, standing at 1.093 billion metric tons.

Net Sales in the aforementioned quarter were up 21% compared to the same period in 2021, to stand at USD 1.438 billion, primarily driven by the growth in sales volume in the United States. 

Gruma’s Cost of Sales as a percentage of net sales increased from 64% to 64.5% due to increased costs of raw material, energy, and fuel, as well as higher labor costs in the United States.

The Gross Profit of the company, the world’s leading producer of nixtamalized corn flour, tortillas, and wraps, was USD 511.3 million in third-quarter 2022, 20% higher than that of the same period in 2021, which was USD 427 million. The gross margin stands at 35.5%.

The Operating Income of the Mexican multinational in the aforementioned quarter stood at USD 159.3 million dollars, an increase of 16% from Q3 2021. The operating margin stood at 11.1%.

Gruma’s consolidated EBITDA recorded an increase of 13% to stand at USD 208 million. The EBITDA margin was 14.5% in the third quarter of the year.

Net Income reported for the period was USD 77.1 million, 5% higher than that reported for the same period of the immediately preceding year.

The company held USD 1.886 billion in debt at the end of Q3 2022. The net debt/EBITDA ratio is 2.2. 

On October 11, Gruma successfully executed a public offering of Long-Term Stock Exchange Certificates in the local debt market for MXN 4.5 billion. The 5-year certificates, accruing annual interest at the 28-day Interbank Equilibrium Interest Rate (TIIE) +29 basis points, received a rating of “AAA(mex)” on a local scale by Fitch Mexico and “mxAA+” by S&P Global Ratings.

The resources obtained from the public offering will be used to pay for Gruma 18 Stock Certificates and to refinance short-term debt, which will optimize the company’s debt maturity profile.

During the third quarter of the year, the multinational made Capital Investments in the amount of USD 95 million dollars, which were allocated to:

1. Acquisition of the property where the tortilla plant is located in Monterrey, Mexico.
   
   
2. Construction of its new tortilla plant in Indiana.
   
   
3. Expanding the capacity of the tortilla plants in Tijuana and Monterrey, Mexico.
   
   
4. Expanding the capacity of the tortilla plant in Dallas, Texas.
   
   
5. Upgrading plant equipment in the Technology division.
   
   
6. General upgrades and maintenance throughout the company, particularly in GIMSA.

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