Gruma S.A.B. de CV Reports Consolidated Earnings Results for the Third Quarter and Nine Months of 2016
October 18, 2016
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Gruma S.A.B. de CV reported consolidated earnings results for the third quarter and nine months of 2016. For the third quarter, the company reported net sales of MXN 17,209 million compared to MXN 15,313 million a year ago. Net sales rose 12%, due principally to (1) the weakness of the peso, which especially benefitted sales from Gruma USA when stated in peso terms; (2) the aforementioned sales volume growth; and (3) price increases, implemented to reflect higher raw material costs, especially at GIMSA. Operating income was MXN 2,423 million compared to MXN 1,990 million a year ago. Operating income grew 22%, driven primarily by better performance at Gruma USA and GIMSA and, the positive effect of peso weakness. Operating margin rose to 14.1% from 13.0%, led mostly by Gruma USA. Net income was MXN 1,620 million or MXN 3.55 per share compared to MXN 1,469 million or MXN 3.20 per share a year ago. EBITDA was MXN 2,806 million compared to MXN 2,412 million a year ago. Majority net income was MXN 1,535 million, 11% more compared to MXN 1,383 million a year ago, driven mostly by better operating performance, gains on hedging, and the reversal on an impairment loss from the reopening of a plant in Central México. The peso weakness also contributed to the improvement in absolute terms. Capital expenditures were USD 58 million compared to USD 58 million a year ago. During the quarter, capital expenditures were allocated mostly to (1) the United States, in connection with the expansion of the tortilla plant in Florida and the corn flour plant in Indiana; (2) Europe, in relation to the new tortilla plant in Russia; (3) Asia, resulting from the new tortilla plant in Malaysia; and (4) Mexico, related to a new tortilla plant, the reopening of a corn flour plant in Central Mexico, and technical upgrades at GIMSA.
For the nine months, the company reported net sales of MXN 49,388 million compared to MXN 43,115 million a year ago. Operating income was MXN 6,644 million compared to MXN 5,444 million a year ago. Net income was MXN 4,437 million or MXN 9.75 per share compared to MXN 3,676 million or MXN 7.97 per share a year ago. EBITDA was MXN 7,923 million compared to MXN 6,649 million a year ago. Majority net income was MXN 4,219 million compared to MXN 3,447 million a year ago. Capital expenditures were USD 187 million compared to USD 157 million a year ago.
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. 
