San Pedro Garza García / MX. (gr) Gruma S.A.B. de C.V. reported Q4/2019 financial results. On a consolidated basis sales volume rose 3 percent, arising from a 28 percent surge at Gruma Europe and 3 percent at Gruma USA.
Net sales increased 2 percent mostly in relation to a 7 percent rise at Gruma USA, 5 percent at Gimsa, and 13 percent at Gruma Europe, which were partially offset by the strength of the Mexican Peso (MXN), which negatively impacted Gruma’s foreign operations when measured in peso terms. Excluding the negative impact from the peso strength, net sales would have increased about 5 percent. Sales from non Mexican operations represented 72 percent of consolidated figures.
Consolidated Ebitda rose 9 percent, and Ebitda margin improved to 16.4 percent from 15.4 percent due to the adoption of International Financial Reporting Standard 16 (IFRS 16), effective January 2019. In Q4/2019, the benefit to Ebitda from the adoption of IFRS 16 was MXN 273 million on a consolidated basis. Ebitda from non-Mexican operations represented 75 percent of consolidated figures.
Majority net income grew 12 percent to MXN 1,235 million due primarily to foreign exchange gains on intercompany loans.
Gruma’s debt decreased USD 9 million during the quarter to USD 1.15 billion. When considering the adoption of IFRS 16, debt was USD 1.42 billion, representing an annualized net debt/Ebitda ratio of 1.8 times.
For additional information please read Gruma’s PDF file below (1798 KB):20200303-GRUMA-Q4-2019