GRUMA CONSOLIDATES ITSELF IN EUROPE WITH THE PURCHASE OF AZTECA FOODS (EL ECONOMISTA pp-22)

In the interest of consolidating its position in Europe, Gruma has announced the purchase of Azteca Foods Europe in Spain for EUR 45 million (approximately USD $48 million). The Mexican company issued a press release explaining that it has purchased the production and marketing business for tortillas, wraps, tortilla chips, salsas and ready-made foods of Fat Taco and Azteca Foods in Spain, in a deal that will see it receive all shares in Azteca Foods Europa. Azteca Foods has a modern plant in Spain, and markets and distributes its products in more than 19 European countries, as well as the Middle East and North Africa. According to information on the Azteca Foods Europe website, the company was founded in 1999 from a joint venture between two leading companies: North American firm Azteca Foods, with more than 30 years in the market; and Azteca del Maíz, one of the pioneers of this business in the Spanish market. The company has achieved sustained double-digit annual growth, with an export value that represents 50% of its business.

THE FIVE WINNING AND LOSING ISSUERS ON THE MEXICAN STOCK EXCHANGE IN 1Q15. (EL FINANCIERO PP-21)

Affected by the volatility of financial markets, weakness of the economy and high valuations, the primary share index of the Mexican Stock Exchange rose by just 1.3% during the first quarter of 2015. However, five IPC Index issuers easily surpassed this performance. The most outstanding was Gruma, with a return of 23%; followed by Walmart at 20%, then Liverpool at 17%; IEnova at 13%; and Alsea at 9%...

THE ACCOUNTANT. (EXCÉLSIOR 1-2)

Gruma, led by Juan Antonio González Moreno, is undergoing full expansion through purchases related to its core business: corn flour and tortillas. This time it was the turn of Azteca Foods, Inc., led by Arthur R. Velasquez. The Mexican company has acquired the Spanish operations for the production and marketing of tortillas, wraps, tortilla chips, salsas and ready-made foods in exchange for EUR 45 million. The deal will also see Gruma receive shares in the capital stock of Azteca Foods Europe, whose Spanish plant merchandises and distributes its products across 19 countries.

IRASEMA ANDRÉS DAGNINI / CLEAR ACCOUNTS. (LA RAZÓN 22)

Gruma purchases Fat Taco and Azteca Foods. The purchase involved an outlay of approximately EUR 45 million for Gruma (corn flour and tortilla producer) and the purchase of Fat Taco’s and Azteca Foods’ operations for the production and marketing of tortillas, wraps, tortilla chips, salsas and ready-made foods in Spain, in addition to the entirety of shares in the capital stock of Azteca Foods Europe, S.A. and AFIFT Azteca, S.L.

ABRAHAM SAUCEDO AND SILVIA OLVERA / REGIO PULSE. (EL NORTE 0)

In line with its strategy to focus on its core business, and as part of the investment plan for this year, Gruma yesterday agreed to purchase Fat Taco’s and Azteca Foods’ operations for the production and marketing of tortillas, wraps, tortilla chips, salsas and ready-made foods in Spain. Through its Spanish subsidiary Gruma International Foods, the Mexican firm will purchase all shares in Azteca Foods Europe for approximately EUR 45 million.

NINE MONTERREY COMPANIES FEEL EFFECTS OF MARKET STORM. (EL NORTE 0)

Nine of the 17 Monterrey companies listed on the Stock Exchange suffered from a market storm during the first quarter with their market value falling over this period, according to an analysis from El Norte. The most noticeable of the winners was Gruma, due to the upward direction of its share price since last year. This trend led the company to exceed the MXN 200 per share barrier in 2015, reaching a historic high of MXN 206 per unit and closing the first quarter with growth of 23%.

REGIO INDEX GROWS 4.03% IN FIRST QUARTER OF 2015. (EL HORIZONTE ONLINE 0)

The Regio Index recorded a rise of 4.03% during the first quarter of 2015, which is above the IPC Index of the Mexican Stock Exchange, which increased by 1.34%, according to a Banco Monex report. During the first quarter, the best performing companies were Axtel, Lamosa and Gruma, with increases of 44.1%, 23.9% and 23.1% respectively... 

BÁRBARA ANDERSON: GRUMA PURCHASES AZTECA FOODS EUROPE.   (MILENIO NOTICIAS (16:00 A 20:00 HRS)

Bárbara Anderson: The business news I bring you today concerns Gruma, one of the largest Mexican companies in the food sector, which announced the purchase of Azteca Foods Europe in Spain, a company for which it will pay EUR 45 million, just over USD $48 million, in a deal that will see it acquire the entire production and marketing operation of tortillas, wraps, tortilla chips, salsas and ready-made foods in Spain... This purchase is consistent with the company’s core business strategy as it continually aims to increase value creation, a vital part of its 2015 investment plan, in order to focus on what it does best: tortillas. In this case, it is purchasing a tortilla production company in Spain. 

S&P UPGRADES GRUMA’S CREDIT RATING (EL ECONOMISTA 18)

Credit-rating agency Standard & Poor’s (S&P) has upgraded Gruma’s credit and debt rating from “BB+” to “BBB-” with a stable outlook. The Mexican multinational’s rating reflects the expectation that it will maintain a moderate financial policy and discretionary cash flow to debt of around 15%, the rating agency underlined. Before upgrading Gruma’s credit rating, S&P considered its core business approach, focusing on profitable, value-added products. It also expects the company to continue its strong financial performance over the next two years that does not require external financing for the payment of dividends or other investment.

PORTFOLIO / RATING UPGRADED (EL NORTE 0)

Standard & Poor’s has upgraded Gruma’s credit and debt rating from “BB+” to “BBB-” with a stable outlook on account of its strong profitability and low debt levels. The rating agency explained that the valuation reflects the expectation that the Monterrey company will continue its moderate financial policy.

GRUMA GAINS 1.89% AFTER RATINGS UPGRADE (EL ECONOMISTA 20)

The shares of Gruma increased by up to 2.91% during the Monday trading session, following the announcement of the upgrade of its credit rating by Standard and Poor's Ratings, ending the day up 1.89% to MXN 200.24 per share, making it among the most traded issuers of the day on the Stock Exchange...

GRUMA TO CONTINUE STRONG FINANCIAL PERFORMANCE (MILENIO NOTICIAS (12:00 A 16:00 HRS)

Tania Díaz:Standard & Poor’s has upgraded Gruma’s credit and debt rating from “BB+” to “BBB-” with a stable outlook. The rating agency explained that the company’s valuation reflects the expectation that it will maintain a moderate financial policy and discretionary cash flow to debt of around 15%. The upgrade is also due to its core business approach, focusing on profitable, value-added products.

GRUMA PRICE SHARES SHOOT UP. (EL NORTE 0)

The share price of Grupo Maseca (Gruma) has rocketed from April 2011 to the close of yesterday’s trading, from MXN 23.56 to MXN 200.24. According to a press release, the growth in the value of Gruma’s shares far exceeds that of the Mexican Stock Exchange IPC Index, which has risen 6.49% so far this year.

A MENU FOR INVESTMENT. (EXPANSIÓN 82-90)

In 2009, a refried beans exporter hired Martín Ramírez to remove plagues from a shipment without leaving any chemical waste. The owner of Agro-Operadora de Silos y Bodegas only offered pesticides containing toxic compounds such as methyl bromide, which are restricted by international environmental laws.  Pesticides are damaging to health and the planet. However, plagues finish off 25% of foodstuffs in Mexico per year, according to the Ministry of Agriculture. The agronomist found a solution a year later, when he developed an ozone generator for grain stores. Ozone asphyxiates insects in 11 hours without damaging foodstuffs. Using ozone for fumigation costs 20% less than other products. Bimbo, Maseca and PepsiCo already use Ramírez’s technology, and he has also designed a truck to transport his product to warehouses.

GRUMA MAKES AMENDS FOLLOWING CRISIS FROM DERIVATIVES DISASTER (EL FINANCIERO 23)

Gruma, the world’s largest tortilla producer, has succeeded in its seven-year battle to make amends in the eyes of credit rating agencies. For bondholders, however, the company has still not obtained what it deserves. Despite recovering its investment-grade rating from Standard & Poor’s on March 27, Gruma’s benchmark borrowing costs suggest that this rating should be even higher. Its USD $400,000,000 of promissory notes expiring in 2014 yield 0.85 percentage points less than the average for firms from emerging markets that share its BBB- rating. The tortilla producer has sold assets in order to reduce its leverage to its lowest levels in 18 years and half of the figure from 2008, when the 20% devaluation of the Mexican peso produced losses in derivative contracts. After teetering on the brink of bankruptcy in 2008, it now has high credit ratings from S&P and Fitch Ratings, making it the only one of Mexico’s ‘three fallen angels’ to achieve this feat since they were reduced to junk status in 2008.

MEXICAN STOCK EXCHANGE CLOSES THE DAY OVER 45,000 POINTS. (EL UNIVERSAL 4)

The IPC Index ended yesterday’s trading above the psychological threshold of 45,000 units for the first time in five months, since November 5 of last year. The Mexican Stock Exchange’s primary index had exceeded this level on five previous occasions before falling by the close of trading. “We are at the point where the 45,000 level must be consolidated”, said Areli Villeda, Analyst at Multiva, who highlighted Alfa, GFNorte and GMéxico as the issuers that had boosted the index. Of the 35 issuers included in this index, 19 have reported gains in their share price. Gruma is the company that made the greatest gain during the year, at 26.8%, followed by Walmex at 23.8% and Liverpool at 14.4%...

MEXICAN BUSINESS COUNCIL STRENGTHENS (EL FINANCIERO 10)

The Mexican Business Council (CMDN) will see eight new business leaders join its ranks, said Claudio X. González Laporte, President of the association. The new members are Santiago Álvarez Vega of Laboratorios Pisa de Guadalajara; María Asunción Aramburuzabala of Tresalia Capital; Carlos Daniel of Grupo Compartamos; Jorge Esteve of Grupo Esteve;Juan González Moreno of Gruma; Ángel Losada of Grupo Gigante; José Antonio Pérez Antón of Grupo ADO and Laura Zapata of Envases Universales. The President of the organization previously known as the Mexican Businessmen’s council, which changed its name following the inclusion of Blanca Treviño, President and CEO of Softtek, stated that the group will now be composed of 50 senior business leaders. He indicated that the business leaders joining the CMDN will contribute their experience and efforts to the tasks developed by the Council.

TENDENCIES AND TRENDS. (EL ECONOMISTA 7) GRUMA.

The issuer will post a strong 49% gain in its net profits, a 5% increase in sales for the first semester of 2015, and an EBITDA margin growing to 130 basis points, it was estimated in an analysis by financial firm Santander. 

CONSUMPTION FEEDS REVENUES. (EXCÉLSIOR 15)

The reporting season is upon us and the Mexican Stock Exchange begins from a neutral position overall, with an annual pesos return of just 4.3%. However, if we bear in mind the depreciation of the Mexican currency, its return becomes less than 2%. Nevertheless, on Friday the IPC Index, the principal stock market indicator, closed at 45,012.37 points, taking it just 2.9% from its record high posted in September of last year.  In fact, the four best-performing companies in the IPC Index of the year so far belong to the consumption sector. Gruma, with a gain of 32%, and Walmart de México, with a gain of 22%, belong to the basic consumption sector, whereas Liverpool, rising 21%, and Alsea, with growth of 16%, are both in the consumer discretionary sector. The case of Gruma, the world’s largest tortilla producer, is nothing new. In fact, it is the best-performing company in the period from December 2012, in which time its share price has increased by 430%...

ALBERTO AGUILAR/NAMES, NAMES AND...NAMES (EL UNIVERSAL) (MILENIO DIARIO DE MONTERREY 0)

The eight entrepreneurs recently invited to join the Mexican Business Council presided by Claudio X González, raised the number of members in this exclusive group to 50. This club had only 30 members 20 years, although the country has changed since then. The new members are María Asunción Arámburuzabala, Laura Zapata, Ángel Losada, Santiago Álvarez Vega, Carlos Danel, Jorge Esteve,Juan González Moreno, and José Antonio Pérez Antón.

GRUMA’s NET PROFITS INCREASED NEARLY 60% IN THE FIRST QUARTER OF 2015 (EL ECONOMISTA 1-5) (EL UNIVERSAL 3) (LA JORNADA 27) (EXCÉLSIOR 11) (EL SOL DE MÉXICO 1-2) (EL FINANCIERO 21) (REFORMA 6) (EL NORTE 0)

In the first quarter of 2015, the cornmeal product manufacturer,Gruma, reported a 58% increase in its net profits to MXN 983 million compared to the same period last year. In its quarterly report sent to the investing public of the Mexican Stock Exchange,Gruma announced that the increase in earnings is due to an improvement in the Company’s operating performance and a lower net financing cost. At the consolidated level, the Company’s sales volume grew 4% to 926,000 tons during said period. Most of the increase was in Gimsa andGruma Corporation.Gruma’s operating income increased 19% to MXN 1.615 billion during the first quarter of 2015, which is mainly due to the fact thatGrumaCorporation improved its operating performance in the U.S. The Company’s operating cash flow (EBITDA) increased 16% to MXN 1.995 billion in the period from January to March 2015, while the EBITDA margin grew to 14.8% from 14.3%. The cost of sales as a percentage of net sales increased from 64.3% to 62.9%, due primarily toGrumaCorporation’s great performance, while in absolute terms, the cost of sales increased 10% to MXN 8.512 billion in the first quarter of 2015, compared to the same period in 2014.

PULSO REGIO (EL NORTE 0)

Foreign Impulse/As a result of the improvement in its foreign operations and a favorable exchange rate, Gruma reported an operating cash flow (EBITDA) of MXN 1.995 billion in the first quarter of the year; a 16% increase compared to 2014. In its first quarter report, the Company announced that it obtained a 4% increase in its sales volume and increased its revenue to MXN 13.522 billion, for a 12% increase over Q115. Most of its sales, which were mainly in the U.S., Asia, and Oceania, as well as the positive effect of the depreciation of the Mexican peso, allowed Gruma to obtain an increase of 19% in its operating income.

GRUMA’S NET PROFITS INCREASED IN Q115 (MILENIO NOTICIAS (16:00 A 20:00 HRS)

Josué Becerra: Today,Grumaannounced its operating results at the close of the first quarter of 2015, in which the Company reported net profits of MXN 1.051 billion, which is 62% more than the amount obtained in Q114.

The Company reported that its improvement is mainly due to better operating performance and a lower net financing cost…

JULIO PILOTZI / FINANCIAL SPLIT (CAPITAL DE MÉXICO 25)

Gruma shows strength. As a clear reflection of the profitability of the investments used to expand its production capacity, Gruma, the world leader in the manufacture of cornmeal and tortilla products, reported a net profit of MXN 1.51 billion in the first quarter of the year, which represents a 62% increase compared to the same period in the previous year. This increase was driven mainly by the Company’s operations in the U.S., Asia, and Oceania, as well as the positive effect of the depreciation of the Mexican peso. The Company that is managed by Juan González Moreno continues to demonstrate that it has strong operations.

GRUMA TENDENCIES AND TRENDS (EL ECONOMISTA 7).

The cornmeal processing Company reported a 62.4% inter-annual increase, to MXN 1.051 billion, in the first three months of the year. The Company’s operating income increased 19% to MXN 1.614 billion compared to the first quarter of 2014.

THE U.S. DOLLARHELPS BIMBO, GRUMA, AND RASSINI (EL UNIVERSAL 3)

According to the analysts consulted on this matter, the companies that benefited the most from the strength of the U.S. dollar in the first quarter of 2015 included Bimbo,Gruma, Rassini, Alpek, Alfa, and Genomma Lab, while the companies most affected by the increasing exchange rate include América Móvil, Alsea, FEMSA, and Coca-Cola FEMSA.

SELLS, MAINTAINS, PURCHASES (FORBES MÉXICO 20)

On the cover. The expectation that Gruma will maintain a moderate financial policy and the geographical diversification of its operations increases its profitability expectations.

ABRAHAM SALVADOR MAJLUF CRUZ: DEFICIENCY ANEMIA(RADIO 13 NOTICIAS (VESPERTINO)

In a telephone interview, Dr. Abraham Salvador Majluf Cruz, head researcher of the Bureau for the Medical Research Unit on Thrombosis, Hemostasis, and Atherogenesis of the Gabriel Mancera” Regional Hospital of the Mexican Social Security Institute (IMSS), explained that the term “anemia” includes both benign and malignant illnesses. Of these, the most frequent is due to the deficiency of certain nutrients in the patient’s diet, the most frequent is iron, as it is not able to be incorporated into the production of red blood cells, causes anemia, giving rise to low poor performance at school and work, as well as alterations in our body and thus, it is necessary to avoid this deficiency.

Regarding the nutrients that we must include in our daily diet in order to prevent anemia, Dr. Majluf recommended the consumption of iron-rich foods of animal origin, such as liver, blood, and red meat, three or four times a week, and iron-rich vegetables, such as beans, lentils, watercress, and other green plants; however, we fully absorb iron from animal sources, while we only absorb 10% of the iron from vegetable sources.

Lastly, regarding certain foods that have been fortified with iron, Dr. Majluf mentioned that a few years ago, products such asMaseca, which is widely used by many Mexicans who eat tortillas, started to be fortified with folic acid, which are important fortifying elements that, for the most part, have been included to increase the level of certain nutrients that are unavailable to certain sectors of the population. However, María cookies have been fortified with a certain type of iron that is easily absorbed by our body, and that help us supplement our daily iron needs.