April 1

INVESTMENTS. (MILENIO DIARIO 18) Gruma obtains a USD 200 million loan. To improve its debt costs, corn flour and tortilla producer, Gruma obtained a USD 200 million loan from the Bank of Nova Scotia and Bank of America México. The loan is for a five-year term, and the company, which has 73 factories and 22,000 employees, will use the funds to refinance its liabilities in U.S. dollars and Mexican pesos. In 2020, it reported USD 4.6 billion in sales.

April 2

GRUMA TO RESTRUCTURE ITS DEBT. (REFORMA 15) (REFORMA ONLINE 0) (EL NORTE ONLINE (NUEVO LEÓN) 0) (MURAL ONLINE (JALISCO) 0) Gruma obtained a USD 200 million loan from Bank of Nova Scotia and Bank of America México, which it will use to refinance liabilities denominated in dollars and pesos.

April 05

ACTIONS & REACTIONS. (EL ECONOMISTA 19) (EL ECONOMISTA ONLINE 0) Despite the effect COVID-19 has produced on the economy, Moody’s confirmed the Insurance Financial Strength rating of the credit insurer Atradius, keeping it at A2. Gruma,the world’s largest corn flour producer, obtained a USD 200 million loan that it will use primarily to refinance its liabilities. The loan was granted by The Bank of Nova Scotia and Bank of America México for a five-year term, with a London Interbank Offered Rate (LIBOR) plus one percentage point, the company announced in a press release. “This refinancing allows Gruma to improve its cost of debt conditions and its maturity profile,” added the release. Gruma’s net debt stood at USD 1.176 billion at the end of December last year.

ROGELIO VARELA / CORPORATE NEWS. (EL HERALDO DE MÉXICO 30) (EL HERALDO DE MÉXICO ONLINE 0) Tortillas are one of the food products that have experienced an increase in global consumption during the pandemic. The tortilla’s versatility and increased availability on shelves explain this growth where the big winner has been corn flour and tortilla giant Gruma. Consumers perceive tortillas as a healthy food product, which has specialized tortilla shops in Mexico and sold in supermarkets and convenience and grocery stores. In Q420 alone, Gruma,led by Juan González Moreno,saw its corn tortilla sales in the U.S. grow by 9% and its Super Soft wheat brand that has increasingly gained acceptance as a low-carb food product. However, as I said, tortillas are increasingly seen as a global product consumed in South Africa, Australia, Latin America, and Europe, where Gruma just finished expanding its plant in Spain.

April 6

REACTIVATION AND VACCINES CALL FOR READJUSTMENTS IN THE STOCK MARKET. (MILENIO DIARIO 17) The BMV Price and Quotation Index closed 2020 in positive territory, with a 1.21% increase. Some of the most outstanding earnings reported by Mexican issuers whose main revenues come from outside of Mexico in U.S. dollars include Peñoles (69.91%), Grupo México (62.21), Cemex (45.06) and Gruma(22.05%). In contrast, the worst-performing companies focused on revenues in Mexico and were affected by the contingency, such as Gentera, Alsea, Televisa, Liverpool and Coca-Cola Femsa.

April 7

FINANCE AND BUSINESS BRIEFS (IMAGEN INFORMATIVA (EVENING EDITION) Esteban Arce, news anchor: Gruma obtains a long-term loan for USD 200 million to refinance various liabilities and improve the cost of its maturity profile.

April 8

GRUMA OBTAINS USD 200 MILLION LOAN WITHOUT AFFECTING LEVERAGE. (EL FINANCIERO ONLINE 0) The USD 200 million loan Gruma applied for last March 31st will not affect its net debt-to-operating cash flow leverage, says Intercam Brokerage firm analyst Richard Hobarch. It is important to note that Gruma sent a statement to the Mexican Stock Exchange (BMV) on March 31, informing the BMV that it obtained a long-term loan for USD 200 million. According to the statement, the loan will be used to refinance several of its liabilities denominated in U.S. dollars and Mexican pesos, allowing Gruma to improve its debt maturity cost conditions. The loan was granted by The Bank of Nova Scotia and Bank of América México, S.A., Institución de Banca Múltiple for a five-year term, with a LIBOR rate plus 100 basis points, payable in a single installment upon maturity.

April 13

2021 MILLIONAIRES. (FORBES MÉXICO 4-50-93) Thirty-six fortunes make up the Forbes Mexico list this year. The group of Mexican businessmen collectively owns USD 171.490 billion. Vaccination and recovery after the pandemic will be key to their wealth. 11. González Moreno Family. Gruma beat its sales forecast by 12.8% as of Q420. Revenues from the U.S. market were up 9%, driven by a positive effect of the depreciation of the Mexican peso against the U.S. dollar. Gruma was favored by higher demand for wheat flour and low-carb tortillas in the retail channel.Grumaconsumers favored higher-priced products, which led to a higher cost of sales at an operational level. In the future, the company expects some pressure on its transactions in U.S. dollars— which represent 50% of its revenues—plus the rising cost of raw materials.

April 15

GRUMA TO ISSUE MXN 2 BILLION OF DEBT. (ElFinanciero.com) Gruma reported that according to the stock certificates program authorized in 2018 for a total amount of MXN 8 billion, it would issue MXN 2 billion of debt for a seven-year term on May 21. The company explained that the net resources obtained from this issue would be used to settle a long-term bank loan denominated in Mexican pesos with a TIIE-based annual interest rate maturing in 2021.

April 16

COMMUNITY BENEFITS FROM CLOSE TO 50,000 SUPPORTS. (EL NORTE ONLINE (NUEVO LEÓN) 0) (MURAL ONLINE (JALISCO) 0) (REFORMA ONLINE 0) Thousands of people have been benefited from citizens who joined the Unir y Dar (Unite and Give) Project, reported the Comunidar Foundation. The #AbrazaNL initiative was used to deliver 17,000 money-wallet cards with up to MXN 3,000, supporting families in vulnerable situations every month. This strategy reached 43 municipalities in a coordinated effort with Cáritas to distribute close to MXN 53.3 million. The Unir y Dar Project is supported by Fundación Comunidar and Grupo Monterrey comprising Alfa, Cemex, Cydsa, DeAcero, Femsa, Frisa, Gruma, Lamosa, Proeza, Soriana, Vitro and Xignux.

END OF THE TRADING SESSION AT THE MEXICAN STOCK EXCHANGE (CLOSING BELL) Karla Palomo, collaborator: The Prices and Quotations Index closed with at least a quarter of a percentage point advance at 48,507 points, for a 0.37 percentage advance. The list of winning companies included Grupo Financiero Inbursa, Gruma, which shot up more than 3%, Industrias Peñoles and Grupo Financiero Banorte. The losers included Walmart de México and Arca Continental.

April 17

BURGER BOY: THE MEXICAN BURGER CHAIN THAT HAD ITS GLORY DAYS WAS PROMOTED BY CHABELO AND SALMA HAYEK. (INFOBAE ONLINE (ARGENTINA) 0) The original idea of the hamburger chain was born in 1968 when two Puerto Rican businessmen and one Cuban businessman decided to start the business. They began by opening four restaurants in Mexico, considering they wanted to match the American fast-food model. It soon became a great success. Shortly after, in 1974, Grupo Maseca, a company owned by Monterrey businessman Roberto González Barrera,bought the chain after seeing its huge success. In the hands of Maseca,the chain grew rapidly across the nation to become the first large fast-food chain in Mexico.

April 19

WITH TORTILLAS OR BREAD? THIS IS WHAT THE EXPERTS RECOMMEND TO CARE FOR YOUR HEALTH (Milenio.com). Bread, made with wheat flour, does contain gluten, causing discomfort to people with celiac disease. On the other hand, corn tortillas made in a traditional manner or with nixtamalized corn flour such as Minsa or Maseca, with its high fiber content, helps improve gastrointestinal functions.

April 22

GRUMA’S PROFITS UP 135% IN Q121. (EL ECONOMISTA 23) (EXCÉLSIOR 1-2) (24 HORAS 16) (EL SOL DE MÉXICO 18) (EL HERALDO DE MÉXICO 30) (EL NORTE 12) (EL DÍA 5) (EL FINANCIERO 19) (REFORMA 1) Gruma's net income was up 135% this first quarter of 2021 for a total of MXN 1.321 billion pesos, MXN 759 million above the MXN 562 million it reported in the same period of the previous year. The producer of nixtamalized corn flour, tortillas and other products reported MXN 22.179 billion in revenues for the period, reflecting a 2.9% increase compared to Q120. Profitable growth in EBITDA, net sales and net profit between periods are observed. EBITDA was up 21%, Net Sales grew 19%, and Net Profits were up 28%, said the company in its quarterly report.

ALFREDO HUERTA / FINANCE 24 AND BUSINESSES. (24 HORAS 16) Gruma,the leading Mexican company in the production of nixtamalized corn flour, tortillas and wraps worldwide, presented its financial results for Q121. Net Sales stood at MXN 22.179 billion, 3% more than the amount reported in the same period in 2020. The Cost of Sales as a percentage of net sales went from 62.3% to 63.8%, while net profits totaling MXN 1.321 billion was 135% higher than the amount reported in the same quarter of the immediately previous year. EBITDA at the end of the first quarter of 2021 stood at MXN 3.472 billion with a 15.7% EBITDA margin. During the period, corn registered a close to a 20% price hike, so the company’s efforts were significant.

ROGELIO VARELA / CORPORATE NEWS. (EL HERALDO DE MÉXICO 25) (EL HERALDO DE MÉXICO ONLINE 0) The money route. Gruma once again surprised the markets with its first-quarter report informing the stock market that its income as of March was up 3%, while its net profits shot up 135%. The corn flour and tortilla giant, led by Juan González,is consolidating its position as a global company since 75% of its revenues come from sales outside of Mexico.

CORPORATE ECONOMIC BLOCK (ENFOQUE FINANCIERO) Isaí Morales: GRUMA reported MXN 22.179 billion in net sales in the first quarter of the year, representing 3% annual growth driven by higher sales in the United States and Europe. Meanwhile, the company’s net profit shot up 135% to stand at MXN 1.321 billion.

GRUMA SALES AND EARNINGS WERE UP IN 2021 (MILENIO NOTICIAS (16:00 A 17:00) Magda González, editor: Gruma announced its Q121 results, with a notable 3% increase in sales to stand at MXN 22.179 billion and a 135% growth in net profits to stand at MXN 1.321 billion. 

April 23

CORPORATE MINUTE BY ROBERTO AGUILAR. (EL SOL DE MÉXICO 17) Gruma, mid- and long-term option. According to Refinitiv, the average target price of the shares of the corn flour and tortilla producer led by Juan González could reach MXN 274, growth potential of over 20% considering the adjustment it registered yesterday in the Mexican Stock Exchange (BMV). José Oriol Bosch.Gruma explained that 2020 was a great year for the company in terms of sales of food products worldwide boosted by the pandemic, noting that between Q119 and the same period this year, its net sales were up 19%, for an annual average of 9.1%. Cash flow advanced 21% at an average rate of 10% per year, and lastly, its net earnings were the most favored, with a 28% increase at a 13% average annual rate.

GRUMA ACHIEVES SALES AND PROFIT GROWTH. (24 HORAS ONLINE (PUEBLA) 0) The recovery of the food industry worldwide, primarily in terms of Food Services, led Gruma, a company engaged in the production of nixtamalized corn flour, tortillas and wraps, to boost its sales in markets such as Asia, the United States and Mexico. We are witnessing an accelerated recovery of the food industry worldwide towards levels prior to the pandemic, which gives us great satisfaction,” said Gruma President and CEO Juan González Moreno. 

ECONOMY AND FINANCE (IMAGEN NOTICIAS WITH YURIRIA SIERRA) Rodrigo Pacheco: Gruma increased its income by 3% in the first quarter of the year to stand at MXN 22.179 billion. Something interesting about Gruma is that the United States is its largest market, instead of the Mexican market where we eat so many tortillas. With these revenue results, the company consolidated globally and as part of the accelerated recovery of the food industry worldwide, as seen in these positive results.

April 25

GRUMA’S Q121 RESULTS WILL CONTINUE TO DRIVE THE PRICE OF ITS SHARES. (MILENIO ONLINE 0) The Mexican company Gruma,a worldwide leader in the production of nixtamalized corn flour, tortillas and wraps, released its Q121 income statement last Wednesday, April 21, which, although it reflected a moderation in its net sales, presented a 135% increase in its profits compared to the same period last year, registering a net result of MXN 1.321 billion. The above, according to financial and economic analysts, helps the issuer maintain its position as one of the favorites in the Mexican Stock Exchange (BMV), as a resilient company in the face of the health emergency caused by COVID-19 and the global economic crisis, it will continue to register positive results during 2021, which in turn will boost the price of its shares in the stock market. In this sense, according to Refinitiv, a London Stock Exchange Group member, one of the world’s largest providers of financial market data and infrastructure, the average target price of the shares of the corn flour and tortilla producer led by Juan González could reach MXN 274, a growth potential above 20%.”

April 26

GRUMA’S SALES ARE GROWING IN THE U.S. THANKS TO ADDED VALUE. (PLAYERS OF LIFE ONLINE (NUEVO LEÓN) 0) A shift toward higher value-added products, part of the company’s broader “evolution” of its retail channel, contributed to revenue and sales gains within the Gruma USA owned by Monterrey-based Gruma S.A.B. de C.V. in the first quarter of fiscal year 2021. “The improvement in growth in our Super Soft and especially our Carb Balance segment, which has shown double-digit growth during the last two years in the U.S., has convinced us that the trend that began with knowing that tortillas are a healthy and versatile product for the diet of all cultures and the preference for value-added products has been maintained and is expected to continue to increase over time, even in a post-pandemic market,” said the company’s Chief Financial Officer, Raúl Cavazos Morales.

April 28

J. JESÚS RANGEL M. / TUG-OF-WAR / GRUMA AND FERROMEX IN 2021. (MILENIO DIARIO 20) (MILENIO ONLINE 0) Gruma is not lagging. Gruma President and CEO Juan González Moreno ordered the company to increase its presence in the tortilla market in the USA in 2021, especially due to the opportunities presented by the retail channel. “Enter and expand in the tortilla, flatbreads and flavored fried chips markets in Europe, Asia and Oceania” with fresher products, and respond more quickly to consumer needs. Gradually enter the flatbreads and flavored corn chip market in the U.S. and Mexico, ensure that Mission and Guerrero maintain their positions as the first and second national brand in the U.S., and position Mission in other countries.

RUSSIA EXPECTS TO ADDRESS SPACE COOPERATION IN ITS MEETING WITH EBRARD. (TELEDIARIO ONLINE MONTERREY (NUEVO LEÓN) 0) During the high-level meeting scheduled for tomorrow by the Secretary of Foreign Affairs, Marcelo Ebrard, with his counterpart Sergei Lavrov, the cooperation of both countries will be discussed to exploit space peacefully, according to the Russian government. “The locomotives of cooperation in the financial sector is the Russian oil and gas company Lukoil, which operates in the Mexican market, and Mexican companies Nemak, that produces parts for the automotive industry in the province of Ulyanovsk and Gruma International Food, that opened a plant on the outskirts of Moscow to make flatbreads and corn-based snacks,” said the Russian Ministry of Foreign Affairs.