April 2

GRUMA IS SOLID: BOFA AND GOLDMAN SACHS. (EL UNIVERSAL ONLINE 0)

Given the fact that its operational growth is visible through a defensive product portfolio, revenue in foreign currency of 62%, and a solid financial position (since its Net Debt/EBITDA ratio in 2019 was 1.5x), the Bank of America (BofA) has reiterated its Purchase rating for Gruma. In this sense, in its monthly update (as of March 21) of the Nielsen US Fresh Baked Goods and Tortillas data regarding sales, volume, price, promotion, and market share trends for Gruma and Bimbo’s operations in the United States, Goldman Sachs highlights that Gruma’s year-on-year sales in the U.S. totaled +47.8%.

MASECA GIVES AWAY BAGS OF FLOUR IN JALAPA AND TABASCO. (DIARIO PRESENTE.MX ONLINE (TABASCO) 0)

Through social networks, residents of the municipality of Jalapa, Tabasco have shared images showing Maseca employees giving away products to every home. According to the articles, Maseca employees delivered two packages of flour per household, to help families cope with the quarantine caused by the health emergency.

A WOMAN IN YUCATÁN GIVES AWAY FOOD THROUGH RAPPI. (LA VERDAD ONLINE (SONORA) 0)

As a charitable gesture in support of the families experiencing the quarantine in Yucatan due to the coronavirus, a woman has given away food through Rappi.  Images of this gesture are circulating on social media. Likewise, there are other images on social media showing Maseca employees going from house to house to give away packages of corn flour to support the families who need it the most during the contingency.

April 3

CORPORATE MINUTE/BY ROBERTO AGUILAR (EL SOL DE MÉXICO 18) (EL SOL DE MÉXICO ONLINE 0)

Winners in the U.S. For Gruma, led by Juan González Moreno, the U.S. market is vital since it generates 55% of the company’s total sales, where the position of the tortilla has already gone beyond the Hispanic market...Goldman Sachs considered the monthly Nielsen US Fresh Baked Goods and Tortilla study with information as of March 21, which revealed that Gruma reported a 47.8% increase in annual sales growth, a 33.8% increase in shipped volumes, and a 10.5% increase in the price of its products, while Bimbo sales grew 24.5%, volumes increased 23.9%, and prices barely increased 0.5%.

CORPORATE MINUTE / BY ROGELIO VARELA (EL HERALDO DE MÉXICO 22)(EL HERALDO DE MÉXICO ONLINE 0)

The money route…Throughout the health contingency, the two Mexican companies that shine in the U.S. are: Gruma, led by Juan González, and Bimbo, led by Daniel Servitje. The latest Nielsen US Fresh Baked Goods reports a 47.8% increase in the company’s sales, while Bimbo’s sales increased 24.5% in March alone.

OPPORTUNIST TORTILLA MAKERS WILL BE FINED MXN 3 MILLION. (LA PRENSA 2-7)(MILENIO ONLINE 0)(LA JORNADA ONLINE 0)(EL HERALDO DE MÉXICO ONLINE 0)(EL UNIVERSAL ONLINE 0)(NOTIMEX ONLINE 0)

With a guaranteed supply of white corn and with no increase in wholesaler prices of the main source of nixtamalized corn flour, Maseca, there is no excuse for the price of tortillas to be increased, said the head of the Federal Consumer Protection Bureau, Ricardo Sheffield Padilla. The white corn was harvested from November 2019 to January this year and more than 16,000 tons of this product has been collected, which ensures its supply in Mexico, where more white corn is produced than what Mexicans eat. However, after summons and warning issued to Grupo Maseca, the largest nixtamalized corn flour producer, with 17 plants in Mexico, the Federal Consumer Protection Bureau (Profeco, acronym in Spanish) has evidence that the price has not been increased, nor will it be increased. Consequently, there is no excuse for the more than 25,000 tortilla makers in Mexico to increase the average maximum price of MXN 15.50 per kilogram.

MASECA GIVES AWAY KILOS OF FLOUR IN LOW-INCOME NEIGHBORHOODS. (GOOGLE NOTICIAS MEXICO 0) A Maseca company truck was spotted this morning driving through the streets of the Echeverría neighborhood of Ciudad Victoria, Tamaulipas, with two employees on foot giving away two kilos of corn flour per household. Social media users said that this distribution began in the illegal settlement Constitución del 17 located at the foothills of the mountain. The Maseca company has been providing this support in low-income neighborhoods in other cities throughout Mexico, as it did a few days ago in Jalapa, Veracruz, as a way to help the people whose income has been affected by the current health contingency due to COVID-19.

April 4

PROFECO ANNOUNCED THAT IT WILL FINE ALL THOSE WHO INCREASE PRODUCT PRICES (PANORAMA INFORMATIVO (MATUTINO) (PANORAMA INFORMATIVO (MATUTINO) (AMANECE EN ENFOQUE)

Alejandro Villalvazo: The Federal Consumer Protection Bureau (PROFECO, acronym in Spanish) said it will fine opportunist tortilla makers with up to MXN 3 million and, depending on the case, would close the establishments. The Bureau said that the supply of white corn in Mexico is guaranteed, that the main wholesaler of nixtamalized corn flour that is Maseca will not increase its wholesale prices and, therefore, there is no excuse for the 25,000 tortilla-making establishments in Mexico to increase the price per kilo of tortillas.

April 6

TRENDS. (EL ECONOMISTA 29) (EL ECONOMISTA ONLINE 0) GRUMA. The shares of the flour and tortilla producer, Gruma, had the second-best weekly return at the BMV, with a 10.43% increase, reaching MXN 192.77 per share for a total profit of MXN 7.523 billion.

April 8

THIS MORNING, MEXICAN PRESIDENT AMLO SAID: MASECA OWNER WILL NOT INCREASE THE PRICE OF THE RAW MATERIAL USED TO MAKE TORTILLAS.

The President said that yesterday during his meeting with businessmen from Nuevo León, the owner of Maseca offered not to increase the price of corn flour. “Yesterday I met with a businessman from Monterrey and I highlight something that is in the public interest. The owner of Maseca, Juan González, offered not to increase the price of corn flour, which is the raw material to make tortillas, I appreciate it.”

AMLO REVEALS THAT MASECA COMMITTED TO NOT RAISE THE PRICE OF CORN CONTRALINEA

Andrés Manuel López Obrador, President of Mexico, announced that, as a result of his meeting with a group of businessmen from Monterrey, Nuevo León, Juan González Moreno, leader of Gruma and owner of Maseca agreed that the company will not increase the price of corn. AMLO stated that, since this product is the base in the tortilla-making process, this commitment will be very helpful for both tortilla producers and customers. “Yesterday I met with businessmen from Monterrey and I would like to highlight the fact that the owner of Maseca committed to not increasing the price of corn tortillas [flour] (sic), which is the raw material to make tortillas.”

PRIVATE SECTOR COMPANIES FROM MONTERREY ASK AMLO TO PROTECT EMPLOYMENT. (REFORMA 14)(MILENIO DIARIO PP-6-7)(MILENIO ONLINE 0)(EL ECONOMISTA 27)(EL ECONOMISTA ONLINE 0)(SIN EMBARGO.MX ONLINE 0)(REPORTE ÍNDIGO ONLINE)(DIARIO CONTRARÉPLICA ONLINE 0)(AZUCENA EN MILENIO)

The businessmen from Monterrey who comprise the “Group of 10” strongly urged President Andrés Manuel López Obrador to enact a public policy focusing on zero layoffs and zero company closings, so that the current crisis can be soon overcome. Yesterday, the leaders of large companies in Nuevo León met with the President to express their differing opinions on how to address the health and economic contingency due to COVID-19. The attendees to the meeting included Juan Ignacio Garza Herrera, from Xignux; Armando Garza Sada, from Alfa; Enrique Zambrano, from Proeza; Rogelio Zambrano, from Cemex; Adrián Sada Cueva, from Vitro y President of Caintra NL; and Eduardo Garza T. Junco, from Frisa Industrias. Remote attendees included: Eduardo Garza T. Fernández, from Frisa; Federico Toussaint, from Lamosa; José Antonio Fernández, from Femsa; Juan González Moreno, from Gruma; Raúl Gutiérrez Muguerza, from Deacero; Ricardo Martín Bringas, from the Soriana Organization; Tomás González Sada, from Cydsa; and Jesús Viejo González, from Arca Continental.

April 9

MASECA CEO WILL NOT INCREASE PRICES: AMLO. (PUBLIMETER 7)

Maseca CEO, Juan González, agreed with the federal government that the company will not increase the price of corn flour so that the cost of the tortilla will not skyrocket during the health emergency caused by COVID-19. “I met with a group of businessmen from Monterrey and I highlight something that is in the public interest. Juan González, the owner of Maseca, made the offer,” said Mexican President Andrés Manuel López Obrador.

AMLO: 15 CONSORTIUMS OWE MXN 50 BILLION TO THE FEDERAL TAX AUTHORITIES. (LA JORNADA PP-2-3)(MILENIO DIARIO PP-9)(EL HERALDO DE MÉXICO PP-4)(NOTIMEX ONLINE 0)(MILENIO NOTICIAS (11:00 TO 12:00)(NOTICIAS MVS)

Mexican President López Obrador dismissed the criticism of Carlos Salazar Lomelín, leader of the Business Coordination Council, who considered that the doors of the Presidency had been closed to them. Although he stated that he understands Salazar's position as a business leader, “he must understand ours in favor of the public interest. He emphasized that there is another sector among the businessmen who have shown their solidarity, referring to the lunch he had at the National Palace with some businessmen from Nuevo León. He explained that the owner of Maseca, Juan González, “offered not to increase the price of corn flour, which is the raw material to make tortillas.” I appreciate it”.

April 10

JESÚS RANGEL / ESTIRA Y AFLOJA (Give and Take) (MILENIO DIARIO PP-18) (MILENIO ONLINE 0)

In 2019, Juan González Moreno, president and CEO of Gruma, purchased the raw materials necessary, including native corn from farmers in Guerrero, Oaxaca, and Puebla, to guarantee that the price of flour produced during the health pandemic will not be increased in Mexico. But that is not all. He has taken out USD 1.2 billion in lines of credit to strengthen the company’s liquidity. The world leader in corn flour and tortilla production processes 2.5 million tons of corn in Mexico and has coverage for the entire year. According to Nielsen US Fresh Baked Goods, in the U.S., demand for tortillas due to the pandemic exceeded that of bread. At the end of March, Gruma's year-on-year sales rose 47.8%, while Bimbo’s increased by 24.5%. Other companies have obtained loans to strengthen their liquidity or modify their dividend and share repurchase policy...

THE AMOUNTS THAT THE CONSORTIUMS OWE THE FEDERAL TAX AUTHORITIES WILL BE USED TO GRANT MICROLOANS: AMLO. (LA JORNADA PP-15)(LA JORNADA ONLINE 0)(DIARIO CONTRARÉPLICA ONLINE 0)(EL UNIVERSAL ONLINE 0)(OMNIA ONLINE (CHIHUAHUA) 0)(MILENIO ONLINE 0)(REPORTE ÍNDIGO ONLINE 0)(RÍODOCE ONLINE (SINALOA) 0)

Mexican President López Obrador assured that with the MXN 50 billion that 15 large companies owe to the federal tax authorities, the government will be able to grant 3 million loans to small businesses, instead of the one million that is considered initially due to the economic crisis caused by COVID-19. The government is prepared for the health contingency and “the more we act with discipline [and follow] preventive [measures], the less disease problems we will have. (COVID-19) is not out of control and we expect that the hospitals will not be saturated,” since there are sufficient hospital beds. He assured that there will be no food supply problems and highlighted Maseca’s commitment not to increase the price of corn flour, while egg, chicken, and beef producers, as well as importers, also offered their support and "there is no limit if we need to import food.”

April 11

PROFECO ANNOUNCED THAT IT WILL FINE ALL THOSE WHO INCREASE PRODUCT PRICES (PANORAMA INFORMATIVO (MATUTINO) (PANORAMA INFORMATIVO (MATUTINO) (AMANECE EN ENFOQUE)

Alejandro Villalvazo: The Federal Consumer Protection Bureau (PROFECO, acronym in Spanish) said it will fine opportunist tortilla makers with up to MXN 3 million and, depending on the case, would close the establishments. The Bureau said that the supply of white corn in Mexico is guaranteed, that the main wholesaler of nixtamalized corn flour that is Maseca will not increase its wholesale prices and, therefore, there is no excuse for the 25,000 tortilla making establishments in Mexico to increase the price per kilo of tortillas.

April 12

ACCESS TO NANCHITAL MOUNTAIN IS CLOSED. (ONLINE PRESENCE (VERACRUZ) 0)

The Nanchital Mountain congregation and surrounding communities joined the coronavirus prevention initiative by closing access to their town as of last Thursday, not allowing outsiders to enter and they only go out for essential cases. These common land leaders in Minatitlán reached the following agreements: All Diconsa stores will be informed that they will only sell Maseca, rice, beans, corn, and sugar to everyone in small quantities, to avoid hoarding the merchandise, “whether you are poor or rich, everyone will be treated the same.”

April 15

THERE IS NO REASON TO INCREASE THE PRICE OF THE TORTILLA: PROFECO. (MILENIO ESTADO DE MÉXICO 22) (MILENIO ONLINE 0) (24 HORAS ONLINE 0) (EL SOL DE TOLUCA ONLINE (EDOMEX) 0)

The Federal Consumer Protection Bureau (Profeco, acronym in Spanish) reiterated that there is no justification for raising the price of the tortilla since neither white corn nor any ingredient of that product, nor the machinery used for its preparation, are imported. The guaranteed price for white corn is MXN 4,150 per ton and tortilla makers buy it below that price, and Maseca has not increased nixtamalized corn flour.Of the companies that were warned,Grupo Industrial Maseca,of the nixtamalized flour sector, showed that it has not raised nor does it intend to raise the price of the product in the short- or medium-term.

CORPORATE MINUTE / BY ROBERTO AGUILAR. (EL SOL DE MÉXICO 16)(EL SOL DE PUEBLA ONLINE 0) Exclusive list. The strategists of HSBC Mexico selected the Mexican companies that not only have the ability to withstand a sharp downturn in the economy, but that also have the potential to continue growing. And so emerged the names of Walmart de México y Central America; Gruma; Kimberly Clark de México; Terrafine; Genomma Lab; GCC; and Grupo Financiero Banorte, and on the other side of the spectrum they placed Cemex that, due to the drop in sales and limited generation of cash flow, it is very likely that it will not be able to comply with the financial restrictions imposed by its creditors.

April 16

IT'S TIME TO GIVE TO THE COMMUNITY THROUGH COMUNIDAR. (ONLINE REFORM 0) (EL NORTE ONLINE (NUEVO LEÓN) 0) (MURAL ONLINE (JALISCO) 0) (ABC NOTICIAS.MX ONLINE (NUEVO LEÓN) 0)

Comunidar, the civil association that promotes strategic philanthropy in Nuevo León, announced yesterday #abrazaNL (hugNL), the second of three programs of the regional solidarity movement Unir y Dar (Unite and Give) created to urgently address the impacts on health and the economy that COVID-19 is causing throughout the State. The program that started a week ago and is ongoing is #respiraNL (breathNL). The idea behind the program is to collect and take medical supplies to public and private hospitals using different platforms. The association expects to raise MXN 200 million to execute these programs, of which MXN 100 million have already been donated by 12 companies: Cemex, Alfa, Femsa, Frisa, Vitro, Gruma, Soriana, Lamosa, Cydsa, Xignux, DeAcero, and Proeza.

April 20

MASECA SUPPORTS AGRICULTURAL FIELDS AND THE MEXICAN POPULATION DURING COVID-19. (MILENIO ONLINE 0)

Gruma's global brand, Maseca, led by Juan González Moreno, reiterated its social commitment to Mexico and to Mexicans. Due to the possible crisis caused by the spread of COVID-19, a few days ago President López Obrador publicly acknowledged and thanked the businessman for not raising the prices of his products, mainly Maseca corn flour, which is the raw material used to make tortillas and an item of the national basic basket, to support the family economy of millions of Mexicans. For his part, the head of the Federal Consumer Protection Bureau (Profeco, acronym in Spanish), Ricardo Sheffield Padilla, after reiterating that there is no justification for increasing the prices of tortillas in the country, since neither white corn nor the machinery used to prepare the tortillas are imported, stressed that, in the nixtamalized flour sector, Grupo Industrial Maseca has shown that it has not raised its prices, nor does it intend to do so in the short- or medium-term.

April 22

CORPORATE MINUTE / BYROBERTO AGUILAR. (EL SOL DE MÉXICO 16) (EL SOL DE MÉXICO ONLINE 0)

Gruma is expecting positive figures. Today, the company led by Juan González Moreno publishes its results for the first quarter of the year and a positive performance is expected driven not only by its operations in the United States but also by greater operational efficiencies of the world’s largest tortilla and corn flour producer. The U.S. market, which contributes more than half of the company’s income, will benefit from higher sales driven by social distancing measures and the positive exchange rate effect, while in Mexico the company will benefit from the energy of sales and the increase in prices at the beginning of the year, which together more than made up for the weakness of its operations in Asia and Europe.

PEOPLE BEHIND THE MONEY / BY MAURICIO FLORES. (LA RAZÓN 16)(LA RAZÓN DE MÉXICO ONLINE 0)

There will be more than enough tortillas. The Agricultural Markets Consultation Group, led by Juan Carlos Anaya, has good news: the promising national autumn-winter harvest of white corn, as well as the commitment of Maseca, led by Juan González, ensures the supply of white corn of about 26.3 million metric tons this year. The focused price guarantee system and the grain collection mechanism executed by Segalmex, led by Ignacio Ovalle, was another positive factor for domestic production. Meanwhile, the good harvests of yellow corn in the world provide certainty of the forage supply.

April 23

THE U.S. BOOSTS GRUMA’S CASH FLOW BY 22%. (EL NORTE 9 PORTADA NEGOCIOS) (REFORMA 6) (EL FINANCIERO 18) (MILENIO DIARIO 17) (EL ECONOMISTA 22) (EXCÉLSIOR 2) (24 HORAS 17) (EL HERALDO DE MÉXICO 30) (EL HORIZONTE 11) (EL PORVENIR 8)(EL UNIVERSAL 31)

Operations outside of Mexico, mainly in the United States, boosted Gruma’s operating cash flows (EBITDA), which totaled MXN 3.505 billion in the first quarter of the year, 22% more compared to the same period of 2019. In its report to the Mexican Stock Exchange, the company highlighted that its sales increased from MXN 18.579 billion to MXN 21.544 billion, a 16% increase. In addition, the sales volume reached 1,041 tons, which is 6% more than in the same quarter of 2019, while operating profit reached MXN 2.662 billion, a 30% increase. During the period, the largest flour and corn tortillas producer in the world was able to reduce its debt by USD 45 million, to stand at 1.4 billion. Gruma also recorded an increase in sales and volumes in the rest of its territories, such as Europe, Mexico, and Central America.

CURRENT ACCOUNT / BY ALICIA SALGADO. (EXCÉLSIOR 5)

From fund to funds. #Gruma...The market diversification and expansion of production plants strategy in consumer markets has made the multinational Gruma, led by Juan González Moreno, remain one of the favorites on the Mexican Stock Exchange, amid the COVID-19 pandemic. Consider that, with 75% of its sales outside of Mexico, not even the exchange rate risk can hurt the company and, at the same time, the confinement of the population has given rise to an increase in the purchase of corn and wheat products that include processed products and flour for processing, in all markets, particularly in the United States, which are expressed as a 16% growth in net sales and of more than 30% in operating profits.

REVENUE. (CONTRARÉPLICA 15)(DIARIO CONTRARÉPLICA ONLINE 0)

Gruma sells well to the world. Gruma had an increase in sales and EBITDA at the end of the first quarter of the year, which was driven mainly by its operations outside of Mexico.

AMID THE COVID 19 CRISIS, GRUMA INCREASED ITS SALES BY 16%. (MILENIO NOTICIAS 5:23 AND 6:13).

Joel Valdez: Amid the COVID-19 crisis, Gruma had its best sales quarter. Between January and March of this year, Grupo Gruma’s net sales totaled MXN 21.544 billion, which represented an increase of 16% compared to the same period of the prior year. The increase signified the best quarter for the company since the last quarter of 2016 when it had a sales increase of 24%...

April 24

CORPORATE ANGLE / BY ROGELIO VARELA. (EL HERALDO DE MÉXICO 22) (EL HERALDO DE MÉXICO ONLINE 0)

The money route…Gruma, led by Juan González Moreno,achieved yet another quarter of double-digit growth both in invoicing and profits, with the support of sales in foreign markets. In the first quarter of 2020, the sales and free flow (EBITDA) of the corn flour and tortilla giant outside Mexico represented 75% and 77% of its consolidated figures, respectively.

CORPORATE MINUTE / BY ROBERTO AGUILAR. (EL SOL DE MÉXICO 14)(NOTICIAS DE EL SOL DE LA LAGUNA ONLINE (COAHUILA) 0)

An attractive option. After the publication of the quarterly results of Gruma, led by Juan González Moreno, the Scotiabank stock market analysis team improved the target price from MXN 260 to MXN 280 and reiterated its recommendation of above-market performance. What is striking is that the price was already higher than the average of the recommendations consolidated by the Refinitiv service of MXN 239 and that other brokerage firms are very likely to improve their expectations of the company's shares that are considered as a defensive option in times of volatility.

A LOT OF MONEY / BY CARLOS MOTA. (EL HERALDO DE MÉXICO 23)

Gruma. The company Led by Juan González Moreno was strongly boosted in its first-quarter results by its sales volume in the United States and in Europe.

April 27

THE TARGET PRICE OF 21 ISSUERS IS ADJUSTED THIS YEAR. (EL ECONOMISTA 26) (EL ECONOMISTA ONLINE 0)

The deterioration in global and country macroeconomic prospects has taken its toll on the valuations of companies, because so far this year, the average target price of the 35 firms in the S&P/BMV has been cut for 21 issuers, according to data from Reuters. In contrast, the average target price of 14 IPC firms has increased over the year. The top five companies with the highest increases are Grupo Elektra, with a 12.13% increase, followed by the insurer Quálitas with an 8.18% increase in its theoretical price; the Mexican Stock Exchange (6.94%); the leading flour and tortilla producer worldwide Gruma (4.13%); and the marketer and Genomma Lab (3.75%).

April 28

GRUMA SET TO INVEST USD 250 MILLION THIS YEAR. / IT WILL KEEP SUPPLY(EL NORTE 12 PP NEGOCIOS)

During 2020,Gruma plans to maintain an investment of USD 250 million, which it set since the beginning of the year, said its chief financial officer, Raúl Cavazos. In a conference with analysts, the CFO explained that despite the setbacks caused by COVID-19, the company plans to keep that amount to expand its capacity. In addition to having made the commitment not to raise the price of products in Mexico, Juan González Moreno,Gruma's CEO, said that the company has designed strategies to continue operating safely and to guarantee the supply of its products. “In Mexico, we agreed that we would not raise the price of Maseca products, and our action plan allowed us to ensure the production and supply of corn flour during the contingency.”

GRUMA WILL NOT INCREASE THE PRICE OF ITS MASECA PRODUCTS. (EXCÉLSIOR 4)

As a result of the COVID 19 pandemic, Gruma launched the Global Support Strategy, an initiative through which it has agreed not to increase the price of Maseca flour in Mexico and to guarantee the supply of its products worldwide. “In Mexico, we agreed that we would not raise the price of Maseca products and our action plan allowed us to ensure the production and supply of corn flour during the contingency, while also reinforcing our industrial safety and hygiene measures, in addition to safeguarding the health of our employees and guaranteeing the quality and food safety standards of our products and processes,” a company spokesperson said. “Gruma has strengthened the meaning of Social Commitment and we are moving towards new horizons that go beyond philanthropy. We have reached out to the communities that are the most in need and we stand behind our commitment to Mexico and the world. Whenever there is a contingency or natural disaster, we will be there to help,” said Juan González Moreno, Gruma President and CEO.

GRUMA GIVES AWAY KILOS OF TORTILLAS. (EL SOL DE MÉXICO 15)(REFORMA 1)(MURAL 10)(MILENIO DIARIO 35)(EL FINANCIERO 21)(24 HORAS 17)(EL HERALDO DE MÉXICO 26)(EL ECONOMISTA 27)

Gruma, the largest producer of corn flour and tortillas in the world, announced that its National Support Program Nacional for the Distribution of Maseca from Home to Home has supported more than 300,000 families with the equivalent of 600,000 kilos of tortillas. “Gruma has strengthened the meaning of Social Commitment. We have reached out to the communities that are the most in need and we stand behind our commitment to Mexico and the world. Whenever there is a contingency or natural disaster, we will be there to help,” said Juan González Moreno, Gruma President and CEO.

April 29

SHARES AND REACTIONS. (EL ECONOMISTA 37) (EL ECONOMISTA ONLINE 0)

Amid economic uncertainty in the wake of the coronavirus outbreak, global corn flour producer Gruma approved a dividend of MXN 5.64 per share with a 2.5% yield. This distribution will be paid in four parts throughout the year.

THE DIVIDE / BY JONATHAN RUIZ. (EL FINANCIERO 43)

Gruma, founded by Roberto González Barrera and led by Juan González Moreno, accrued a monthly increase of 28% in the value of the company measured by the price of its shares. Its market diversification plays an important role since it no longer depends only on Mexico. “As consumers stopped eating in restaurants and replaced those volumes by acquiring tortillas in supermarkets and grocery stores, our margins improved,” said the company’s CFO, Raúl Cavazos, on Thursday. "In Mexico, although the tortilla industry is very stable in terms of per capita consumption, we also exceed expectations.” Gruma’s revenue jumped 16%, largely because “panic” shopping also meant unprecedented demand for “low carb” or low-calorie tortillas purchased by many consumers in the United States, where Gruma has grown under the Mission brand. This product generates more profits than traditional tortillas and, in the U.S., the company’s income grew 13% at the year ended in March.

April 30

SHARES AND REACTIONS. (EL ECONOMISTA 35) (EL ECONOMISTA ONLINE 0)

The quarterly reporting season of the Mexican Stock Exchange is about to end, and one day before closing, 65.7% of the S&P/BMV IPC sample have filed, where within Mexico, 56.5% have reported online as expected, according to an analysis by Monex Casa de Bolsa. Meanwhile, 21.7% have filed better than expected figures, and 21.8% below expectations, as mentioned by Carlos González Tabares, Analysis and Strategy director of the brokerage firm, in a note for investors. Kimberly-Clark de México, Bolsa, Gruma, and Walmex have been the issuers that have had a better than expected growth in their operating cash flows (EBITDA)…