San Pedro Garza García / MX. (gr) Despite global disruptions due to the coronavirus pandemic (Covid-19), Mexico’s Gruma S.A.B. de C.V. has continued to grow its operations with a strong rise in net sales and record margins. On a consolidated basis sales volume rose 4 percent, reflecting strong growth at all operations other than Gruma Asia-Oceania.
Net sales increased 25 percent due mostly to volume growth, higher average prices in Gruma USA and Gimsa, coupled with the weakness of the Mexican Peso (MXN), which benefited Gruma’s foreign operations when measured in peso terms. Sales from non-Mexican operations represented 77 percent of consolidated figures.
Ebitda rose 27 percent, and Ebitda margin improved 20 basis points to 16.7 percent from 16.5 percent driven by better performance at all subsidiaries other than Gruma Europe and, to a greater extent, when measuring Ebitda in absolute terms, by the benefit of MXN weakness. Ebitda from non-Mexican operations represented 79 percent of consolidated figures.
Ebitda includes costs and expenses related to Covid-19 totaling approximately MXN 370 million, of which MXN 260 million were at Gruma USA, MXN 50 million at Gimsa, MXN 10 million at Gruma Europe, and MXN 50 million at the remaining operations.
Majority net income rose 38 percent to MXN 1,751 million as a result of better operational performance and the benefit from peso weakness.
Gruma’s debt increased USD 90 million during the quarter to USD 1.5 billion, representing a net debt/Ebitda ratio of 1.9 times.
For additional information please read the Company’s PDF file below (1815 KB):
20200729-GRUMA-Q2-2020.