Gruma S.A.B. de CV Reports Consolidated Earnings Results for the First Quarter Ended March 31, 2017
April 25, 2017
Share
Gruma S.A.B. de CV reported consolidated earnings and sales results for the first quarter ended March 31, 2017. For the quarter, the company's sales volume were 973,000 metric tons against 946,000 metric tons a year ago. Sales volume growth came mostly from GIMSA and Gruma USA, where the company sees markets for its products expanding, giving GRUMA consolidated sales volume growth of 3%, while net sales and EBITDA improved 12% and 9%, respectively, supported especially by the strength of the dollar at the U.S. operations. For the quarter, the company's net sales were MXN 17,677 million against MXN 15,831 million a year ago. Operating income was MXN 2,180 million against MXN 2,031 million a year ago. EBITDA was MXN 2,697 million against MXN 2,475 million a year ago. Majority net income was MXN 1,282 million against MXN 1,267 million a year ago. GRUMA's capital expenditures totaled USD 58 million during first quarter 2017, allocated mostly to United States, in connection with the construction of a tortilla plant in Dallas, the expansion of the corn flour plant in Indiana, and the expansion of the tortilla plant in Florida; Mexico, related to the expansion of a tortilla plant near Monterrey, the reopening of a corn flour plant in central Mexico, and general technology upgrades; Europe, in connection with the construction of a tortilla plant in Russia and technology upgrades for packaging automation, especially at a flatbread plant in England; and Asia, in connection with the expansion of the tortilla plant in Malaysia.
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.