Gruma: Unprecedented Growth Driven By U.S. Demand

Mexico City / MX. (gr) During the second quarter of the year (see bakenet:eu on 2020-07-30), the outstanding results of Mexico’s Gruma S.A.B. de C.V. in net sales and Ebitda were driven by its subsidiaries outside of Mexico, primarily in the United States, which represented 61 percent and 70 percent, respectively, of the Company’s consolidated figures.

In the U.S. market, the Mexican multinational saw a 5 percent sales volume increase to 383,000 tons. Corn flour sales were up 5 percent, while tortilla sales volumes grew 6 percent, driven primarily by consumer purchases in supermarkets and convenience stores nationwide during the Covid-19 pandemic.

It should be noted that in the retail channel the highest sale of corn tortillas, wheat tortillas and wraps MISSION was recorded in all its presentations, above sales to foodservice.

The Company announced an extraordinary increase in the sale of its MASECA corn flour package presentation as a result of the pandemic.

Net sales in the United States were up 14 percent in Q2 2020, compared to Q2 2019, to stand at MXN 14,536 million, while operating income was up 14 percent to stand at MXN 2,141 million. Ebitda grew 15 percent to stand at MXN 2,798 million.

It is worth mentioning that in Q2 2020, the Company reported a considerable increase in demand for Mission and Maseca products in the United States, which it was able to effectively meet with the help of its plants south of the border in Mexicali, Tijuana, and Monterrey, to ensure that consumers in the United States did not suffer for lack of these products.

Gruma has a solid distribution platform in the United States of America that allows it to supply its direct customers or points of sale, through its 19 strategically located plants, in which more than 12 thousand employees work in a committed manner.

The Company expects to see a continued positive impact on its business growth once the health contingency is over, thanks to its strength and production and distribution platform, and because it belongs to the food sector, one of the industries that has continued to gain momentum during the pandemic.