Gruma, S.A.B. de C.V. Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for 2018
February 23, 2018 at 06:01 am EST
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Gruma, S.A.B. de C.V. announced consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net sales of MXN 18,331 million against MXN 18,819 million a year ago. Operating income was MXN 2,484 million against MXN 2,478 million a year ago. Majority net income was MXN 1,845 million or MXN 4.26 per share against MXN 1,703 million or MXN 3.94 per share a year ago. EBITDA was MXN 3,010 million against MXN 3,041 million a year ago. Capital expenditure was $61 million against $107 million a year ago. EBITDA show a 1% reduction due to the one week less of operations in the U.S. and the peso appreciation impact also [indiscernible] operations. Majority net income was 8% higher due mainly to lower taxes and the ownership increase of GIMSA from 85% to almost 100%. The cash generated also allow company to reduce debt by $88 million during the quarter.
For the year, the company reported net sales of MXN 70,581 million against MXN 68,206 million a year ago. Operating income was MXN 9,319 million against MXN 9,122 million a year ago. Majority net income was MXN 6,218 million or MXN 14.37 per share against MXN 5,922 million or MXN 13.68 per share a year ago. EBITDA was MXN 11,344 million against MXN 10,964 million a year ago. Capital expenditure was $275 million against $295 million a year ago.
For 2018, the company expects to continue improving profitability in each of the regions by volume growth and margin expansions. On a consolidated basis, the company expects sales volume to rise 2.5% to 3%; net sales about 5%, assuming a stable exchange rate; and EBITDA margin improvement from 20 to 30 basis points. The company expects an average tax rate of about 26% while representing annual cash savings of around $30 million beginning in 2018 based on the new corporate tax rate in the U.S. The company in the way to finish its plants in Dallas, Russia and Mexico, wherein CapEx is expected to be reduced to about $200 million to $220 million, including maintenance and upgrades to CapEx.
Gruma, S.A.B. de C.V. is a Mexico-based food holding company. The Company is engaged in corn and flour tortilla production across the world. The Company produces wheat flour and its derivatives, such as flatbreads, wraps, chapatti, and pizza bases plus other food products. Its segments include: Corn flour and packaged tortilla division, which manufactures and distributes approximately 20 varieties of corn flour that are used mainly to produce and distribute different types of tortillas and tortilla chip products in the United States; Corn flour division, which engages principally in the production, distribution and sale of corn flour in Mexico under MASECA brand; and Other segments, which focuses on corn flour, hearts of palm, rice and other products. The Company has operations in the Americas, Europe, Asia and Oceania.
Gruma, S.A.B. de C.V. Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for 2018
GRUMA, S.A.B. DE C.V. 
