“At the end of the year’s third quarter (Q321), Gruma maintains positive growth trends in its operations outside of Mexico.”.

• Sales volume in Q321 was 1.054 million metric tons
  
  
• Net sales and EBITDA in Q321 reached MXN 23.903 billion and MXN 3.694 billion, respectively.
  
  
• Net sales and EBITDA from operations outside of Mexico represented 74% and 76% of the Company’s consolidated figures.
  
  
• In Q321, the Company invested USD 110 million, primarily in its operations in the U.S. and Europe.
  
  
• Gruma volumes in Europe grew 16%, beating pre-pandemic levels and breaking tortilla sales records.
  
  
• Gruma’s debt in Q321 stands at USD 1.478 billion. Its net debt-to-EBITDA ratio is 1.6x.
  
  

Mexico City, October 20, 2021.-At the end of the year’s third quarter (Q321), Gruma maintains positive growth trends in its operations outside of Mexico. In the United States, the Company reports growth in sales volume in U.S. dollars. In Asia and Oceania, it reports increases in sales and EBITDA. In Europe, it beat pre-pandemic levels in terms of volume and broke its tortilla sales record.

During the third quarter of the year, the Company identified a positive evolution of the tortilla retail channel in the United States and Europe. After seeing their products gain ground in consumer preferences in Asia and Oceania, these regions have become a great business opportunity the Company has capitalized on effectively.

Gruma maintains its growth estimates at pre-COVID-19 pandemic levels, based on its business strategy, innovations in its global food production processes, and growing demand for its products in the countries and regions where the Company does business, primarily in the United States, Gruma’s top market outside of Mexico.

At the end of the third quarter of 2021, the Company’s Sales Volume remained stable at 1.054 billion metric tons compared to Q320.

The Company’s Net Sales grew 2% compared to the same period of 2020, to stand at MXN 23.903 billion, due to the growth in sales volume in the United States, rising corn flour prices in the U.S. and Mexico, and stronger net tortilla sales in the U.S. and Europe, as these economies continue to reopen post-pandemic activities.

The growth in net sales was partially offset by the strength of the Mexican peso compared to the U.S. dollar for operations outside of Mexico when measured in pesos. Without the foreign currency effect, Gruma’s net sales would have grown 9% compared to Q320.

In Q321, sales from operations outside of Mexico represented 74% of the multinational corporation’s total.

Gruma’s Cost of Sales as a percentage of net sales grew from 61% to 64% due to the higher cost of corn and other raw materials and higher labor costs in the United States and Europe.

Gruma reported MXN 8.610 billion in Gross Profit in the third quarter of 2021, 6% below the amount reported in Q320, and 15.6% growth compared to Q319. The gross margin stands at 36.0%.

The Operating Income of the world leader in the production of nixtamalized corn flour, tortillas, and wraps in Q321 stood at MXN 2.778 billion, 7% below Q320, with a 12.3% growth compared to Q319. The operating margin in Q321 is 11.6%.

The multinational corporation’s EBITDA at the end of Q321 stood at MXN 3.694 billion, 7% below the amount reported in Q320, with a 12% growth compared to Q319. The EBITDA margin in Q321 is 15.5%. EBITDA from operations outside of Mexico represented 76% of the Company’s consolidated figures.

Gruma reported MXN 1.478 billion in Net Income in Q321 with a 13.3% growth in Net Profits compared to Q319. Majority Net Income stood at MXN 1.478 billion, 13.4% above the figure reported in Q319.

Gruma’s debt at the end of this year’s third quarter stands at USD 1.478 billion, USD 24 million below the figure reported in June this year. Debt / EBITDA ratio is 1.6x.

In Q321, Gruma spent USD 65 million (MXN 1.309 billion) on capital investments for:

1)    Construction and capacity expansion at its new plants in Indiana, in the U.S., and Spain.

2)    Maintenance of its tortilla plant in Omaha, Nebraska in the United States.

3)    Wastewater treatment systems at the corn flour plant in Evansville, Indiana in the United States.

4)    Capacity expansion of the tortilla plant in Malaysia.

5)    The purchase of distribution vehicles for the tortilla plants in Mexico.

The Company also invested USD 45 million (MXN 910 million) to purchase the property housing one of its tortilla plants in the State of California in the U.S., which the Company used to lease.

Q319 vs. Q321 Indicators

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