Gruma: reports fourth quarter 2018 results

San Pedro Garza García / MX. (gr) Gruma S.A.B. de C.V. reported Q4/2018 financial results. Highlights:

  • Consolidated sales volume declined 1 percent driven mainly by Gimsa and Gruma Europe, while the remaining subsidiaries continued to expand. Net sales grew 4 percent in connection with price increases at Gimsa along with the Peso weakness effect, despite a negative impact of MXN 341 million resulting from the adoption of International Financial Reporting Standard 15 (IFRS 15), effective January 2018, by which some selling expenses were reclassified as a deduction to net sales.
  • While Ebitda rose at all subsidiaries other than Gruma Europe, consolidated Ebitda fell 3 percent primarily due to charges at corporate services related to information technology initiatives, and in particular a project called G+, and accounting eliminations. Ebitda margin decreased from 16.4 percent to 15.4 percent.
  • Majority net income declined 44 percent to MXN 1,025 million, affected by lower other income, higher interest expense, and higher taxes. Reductions in other income and higher taxes were mostly related to non-recurring events in 4Q17.
  • Sales and Ebitda from non-Mexican operations represented 73 percent and 77 percent, respectively, of consolidated figures. The company reported USD 1.1 billion of debt at quarter-end, USD 68 million more than at the end of 4Q17. Net Debt/Ebitda ratio was 1.5x.

For additional information please read Gruma’s PDF file below (1318 KB).

20190227-GRUMA-Q4-2018.

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