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Gruma: reports third quarter 2019 results

San Pedro Garza García / MX. (gr) Gruma S.A.B. de C.V. reported Q3/2019 financial results. On a consolidated basis sales volume rose 3 percent resulting from a 20 percent surge at Gruma Europe and 5 percent at Gruma USA.

Net sales increased 8 percent mostly in connection with a 6 percent rise at Gruma USA, the Mexican Peso (MXN) weakness effect versus the U.S. Dollar (USD), a 4 percent increase at Gimsa, and 10 percent at Gruma Europe. Sales from non-Mexican operations represented 74 percent of consolidated figures.

Consolidated Ebitda rose 9 percent, and Ebitda margin improved to 16.5 percent from 16.4 percent due to the adoption of International Financial Reporting Standard 16 (IFRS 16), effective January 2019. In 3Q19, the benefit to Ebitda from the adoption of IFRS 16 was MXN 237 million on a consolidated basis. Ebitda from non-Mexican operations represented 75 percent of consolidated figures.

Majority net income grew 2 percent to MXN 1,304 million due primarily to lower taxes.

Gruma’s debt declined USD 72 million during the quarter to USD 1.38 billion, including USD 217 million from the adoption of IFRS 16, representing an annualized net debt/Ebitda ratio of 1.8x.

For additional information please read Gruma’s PDF file below (1355 KB):