Monterrey / MX. (dj) Mexican corn flour and tortilla maker Gruma S.A.B. de C.V. reported a third consecutive quarterly profit after price increases in Mexico and the United States. Fourth-quarter net income was 631 million MXN compared with a loss of 11,1 billion MXN in the year-ago period. Sales fell 0,1 percent to 12,7 billion MXN. Gruma is profitable now – partly – because it did not repeat last year´s derivative currency losses.
The drop in sales was caused mainly because falling revenue in Venezuela, the company said in a press release. Gruma´s two largest markets are the U.S. and Mexico, where the company sells corn and wheat flour and tortillas under the brand names Maseca, Mission and Guerrero. Highlights in Q4/2009:
- Sales volume decreased one percent due mainly to lower sales volume in Gruma Venezuela.
- Net sales were mainly flat, as higher net sales in Gimsa, due to higher prices, were offset by lower net sales in Gruma Corporation, Gruma Centroamerica, and Gruma Venezuela.
- EBITDA decreased 22 percent, and EBITDA margin declined to 10,5 percent from 13,6 percent. Lower margins, mainly in Gruma Corporation and Gimsa, drove the consolidated decrease in EBITDA.
- Debt increased to 1’702 million USD as of December 2009. The increase came from accounts payable that were converted into debt once the financing of the currency derivative obligations was completed in October 2009.
1’000’000 Euro (EUR) = 17’432’232,122 Mexican Pesos (MXN)
1’000’000 Mexican Pesos (MXN) = 57’365,000 Euro (EUR)
Consolidated results of operations – Q4/2009 versus Q4/2008
Sales volume decreased one percent to 1’090 thousand metric tons, due mainly to lower sales volume in Gruma Venezuela.
Net sales were flat at 12’770 million MXN. Higher net sales in Gimsa were offset mainly by lower net sales in Gruma Corporation, Gruma Centroamerica and Gruma Venezuela. Sales from non-Mexican operations constituted 70 percent of consolidated net sales during the quarter.
Cost of sales as a percentage of net sales improved to 65,8 percent from 66,0 percent driven by Gruma Corporation and Gruma Venezuela. In absolute terms, cost of sales fell slightly to 8’401 million MXN as higher cost of sales in Gimsa was offset by reductions in Gruma Corporation, Gruma Venezuela, and Gruma Centroamerica.
Selling, general, and administrative expenses (SG+A) as a percentage of net sales increased to 26,7 percent from 23,7 percent, driven mainly by Gruma Corporation and Gruma Venezuela. In absolute terms, SG+A rose twelve percent to 3’410 million MXN due primarily to Gruma Corporation and Gimsa.
Operating income decreased 27 percent to 959 million MXN, and operating margin declined to 7,5 percent from 10,3 percent; both results were driven by Gruma Corporation and Gimsa.
Other expense, net, was 39 million MXN, 89 million MXN lower than in the same period of 2008.
Comprehensive financing income, net, was 71 million MXN versus a cost of 11’808 million MXN in Q4/2008. The variation resulted mainly from the losses on currency derivative instruments in Q4/2008. Gruma´s share of net income in unconsolidated associated companies (primarily Banorte) totalled 127 million MXN, seven percent higher than in Q4/2008.
Taxes amounted to 268 million MXN, 328 million MXN higher than in Q4/2008 in connection with higher pre-tax income.
Gruma´s total net income was 850 million MXN versus a net loss of 11’102 million MXN in Q4/2008; the difference came mainly from the losses on currency derivative instruments in Q4/2008. Gruma´s majority net income was 631 million MXN, compared with a majority net loss of 11’172 million MXN in the same period of 2008.
Info: Fourth-quarter 2009 results (complete press release; PDF).
