August 3

TRENDS. (EL ECONOMISTA 21) (EL ECONOMISTA ONLINE 0)

GRUMA. Last week, flour and tortilla producer Gruma shares closed with a 0.34% increase to MXN 261.15 per share, equal to MXN 353.54 million in capital gains.

THE WINNERS ARE... (EL ECONOMISTA PP-4-5)

Consumer staples companies with limited contact with customers reported significant income growth, while those in the service sector characterized by their massive interactions with people and interactive contact with customers were the big losers in Q220; that is, corporate revenues faithfully reflect the health emergency that forced the general shutdown of services provided and shut down many business activities. Gruma, a strategic company in the food sector, reported unprecedented and historical operating results; however, these were largely driven by operations outside of Mexico and in the United States.

ALFA SHARES, THE HIGHEST GROWTH SHARES ON THE STOCK EXCHANGE. (EL ECONOMISTA ONLINE 0)

The shares of companies listed on the Mexican Stock Exchange did well in the second quarter of the year, especially those in the industrial and consumer sectors, although everything seemed to indicate that they would report losses due to the COVID-19 pandemic. The insurance sector also did well with Quálitas, whose yields on the Mexican Stock Exchange stood at 48.25% in the semester, while Gruma, Cemex, and Orbia shares were up 36.54%, 31.44%, and 30.24%, respectively...

BIMBO AND GRUPO MÉXICO WIN DESPITE THE MAGNITUDE OF THE CRISIS. (EL ECONOMISTA ONLINE 0)

Although sales at Grupo Televisa fell 7.8% YoY in Q220, due to the drop in advertising sales, its net income was up 89.3%... Gruma again appears in the annual ranking of companies with the highest profits in Q220. The figure stood at MXN 1.751 billion, for a 38% increase compared to the April-June period last year.

August 4

THE POPULARITY OF TORTILLAS ON THE RISE IN THE U.S. (EXCÉLSIOR 1-3) (EXCÉLSIOR), (EL HERALDO DE MÉXICO), (24 HORAS) (EL HORIZONTE), (MUNDO EJECUTIVO), (JOSÉ CÁRDENAS), (AMERICA RETAIL), (EL LIDER USA), (EL COLOMBIANO), (YAHOO FINANCE), (GREAT AMERICAN)

Gruma reported positive Q220 results thanks to the increasing popularity of tortillas in the United States. While other companies have been affected by COVID-19, Gruma has reported a strong performance, according to the tortilla and corn flour manufacturer, because the demand for tortillas, wraps, and corn flour is growing in the neighboring country. “During the second quarter of the year, the excellent results Gruma reported in terms of net sales and EBITDA were driven by its subsidiaries outside of Mexico, primarily in the United States, representing 61% and 70%, respectively, of the consolidated global figures,” the company announced in a press release. According to Gruma, net sales in the U.S. during the second quarter were up 14% compared to the same period last year, when they totaled MXN 14.536 billion, while operating income was up 14% to stand at MXN 2.141 billion. EBITDA increased 15% to settle at MXN 2.798 billion.

THE CAPITAL: DESPITE THE CRISIS IN THE U.S., MEXICO IS RECEIVING INCREASING AMOUNTS IN REMITTANCES.  (EDGAR GONZÁLEZ / UP-TO-DATE, INVESTMENT AGENDA, MEN IN POWER, FUND ANALYSIS, POLITICAL INDEX)

Gruma’s unprecedented growth in the United States: The demand for tortillas, wraps, and corn flour increases among Hispanics. In Q220, net sales and EBITDA from operations in the United States stood at 61% and 70%, respectively, of consolidated global figures at Q220. The retail channel (stores and supermarkets) registered the highest corn and wheat tortilla sales levels. Gruma has not stopped meeting the growing demand for its MISSION and MASECA products by all direct customers in the U.S., where the Mexican multinational’s sales volumes were up 5% to stand at 383,000 tons.

TINTA Y PAPEL (INK & PAPER). (ENGGIE CHAVARRÍA / INK & PAPER)

Gruma benefits from the USMCA: The Mexican company that has seen the light in the middle of the health crisis has been GRUMA, chaired by Juan González Moreno, who presented its financial results to the investing public. Net sales only in the United States during the second quarter of this year were up 14% YoY. Operating income was up 14%, and EBITDA grew 15%.

BIMBO AND GRUMA, UP; AIRLINES DOWN ON THE MEXICAN STOCK EXCHANGE. (MILENIO DIARIO PP-16)

The companies listed on the Mexican Stock Exchange have reflected the effects of the coronavirus pandemic. Some of the most notable losers in July included discretionary consumption companies, such as Alsea and El Puerto de Liverpool, while the winners were those in the basic consumption industry, such as Bimbo and Gruma… the best financial reports for the second quarter this year were presented by Bimbo and Gruma, thanks to the fact that their activities are considered essential.

GRUMA ANNOUNCED A 14% INCREASE IN NET SALES. (MILENIO NEWS / CLAUDIA OVALLE 14.41S)

Claudia Ovalle: Gruma reported that its net sales and EBITDA margins in the United States stood at 61% and 70%, respectively, of the consolidated global figures for Q220.  Net sales in the United States were up 14%, compared to the same period in 2019, to stand at MXN 14.536 billion. Operating income improved 14%, to stand at MXN 2.141 billion, and EBITDA improved 15%, to settle at MXN 2.798 billion.

August 6

RODRIGO PACHECO: DIGITALIZATION OF THE ECONOMY(IMAGEN INFORMATIVA (EVENING EDITION)

Rodrigo Pacheco: An interesting transformation from a business perspective. Especially during a recession, since clearly, the most resistant businesses are those applying the intelligent use of technology. For example, others, such as Bimbo, Gruma, and Walmart, also did very well during this major crisis ...

August 7

CORPORATE INVESTMENTS ON THE MEXICAN STOCK EXCHANGE (BMV) FELL 28% IN Q220. (EL ECONOMISTA PP-4) (EL ECONOMISTA ONLINE 0)

Amounts companies listed on the S&P/BMV IPC spend on fixed assets, intangibles, and computer equipment, known as Capital Expenditures (CapEx), dropped 28.10% in the second quarter of this year, per annum, according to Refinitiv, a provider of financial data intelligence. Under these conditions, according to Refinitiv, 26 companies listed on the IPC reduced their investment amounts compared to the amounts they channeled to CapEx last year. Gruma is one of the companies that increased their Capital Expenditures in the second quarter by MXN 651 million, for a 114% increase compared to the MXN 304 million it allocated to this line item in the same period, but for last year, according to the financial markets data intelligence firm.

August 8

TORTILLAS, A NUTRITIONAL AND HEALTHY FOOD IN THE COVID-19 ERA. (MILENIO ONLINE 0)

During the health emergency caused by COVID-19, which has implied the confinement of millions of families across Mexico, consuming nutritious, affordable food products is essential to the household economy. Therefore, tortillas were, are, and will continue to be the ideal ally. Contrary to what many people think, tortillas are not fattening and provide the necessary nutrients for the healthy development of children while also providing a balanced diet for adults and the elderly, explained Araceli Martínez Coronado, a nutritionist certified by the Mexican Association of Nutritionists. She added that some tortillas, such as those made with nixtamalized corn flour, such as Maseca, contain folic acid and iron and are enriched with vitamins and minerals, which in addition to helping people eat a healthy diet, help prevent diseases such as anemia and spina bifida. This corn flour, made by the Mexican company Grupo Maseca (Gruma), was a pioneer in food product enrichment to support Mexicans’ nutrition, as part of its consistent R&D efforts driven by its concern for nutritional aspects.

August 10

TRENDS. (EL ECONOMISTA 21) (EL ECONOMISTA ONLINE 0)

GRUMA. Shares of the world’s largest flour and tortilla producer closed last week with a 0.10% increase to stand at MXN 261.41 per share, equal to a market cap gain of MXN 104.45 million.

HISTORICAL SALES REPORTED BY FOOD FIRMS DURING THE PANDEMIC. (EL DÍA 5)

Far from being affected by the crisis, as experienced by farmlands, the largest food companies operating in Mexico have benefited from the COVID-19 pandemic. During the second quarter of 2020, with the stricter lockdown rules, they announced a strong increase in sales, reaching historic levels in some cases. Gruma, one of the largest corn producers globally, experienced a 25% increase in net sales, going from MXN 19.314 billion in Q219 to MXN 24.146 billion in the same period of 2020. Although the world has experienced disruptions due to the pandemic, the company announced that Gruma has continued growing, strongly increasing its net sales, and increasing its margins to historical levels.

August 13

BASIC CONSUMER SHARES, THE FAVORITES TO BUY NOW TO MAKE A PROFIT. (EL CEO ONLINE 0)

The COVID-19 pandemic caused high volatility and uncertainty in the stock market; however, defensive stocks look attractive as an option to buy, hold a few months and collect returns at the end of the year. Investor and analysts’ favorite shares include Gruma, the corn flour and tortilla producer; Femsa, with exposure to convenience stores, pharmacies, gas stations, and Coca-Cola bottling; Chedraui, retailer, and Lala, the dairy products and derivatives company. Gruma was one of the few issuers that reported an increase in revenues, operating cash flow, and net profit in the second quarter of the year, despite the lockdown measures implement to slow down the rate of COVID-19 infections. The company’s net profit improved 38% per annum to MXN 1.751 billion. This year, Gruma shares have reported the second-best performance, among the 49 shares most popularly traded on the market, with a 37.74% increase, only behind the mining company Peñoles, which is favored by rising prices on the international gold and silver markets.

August 14

COMPANIES LISTED ON THE IPC STOPPED LOST MXN 34 BILLION IN Q220. (EL CEO ONLINE 0)

The money earned by companies listed on the Price and Quotation Index of the Mexican Stock Exchange fell in Q220 due to the COVID-19 pandemic. The sample made up of 28 companies—excluding financial institutions—lost MXN 34.511 billion between April and June of this year, compared to the same period of 2019. Some of the companies recording the steepest drop in sales in the second quarter of the year include Alsea, all three airport operators (Asur, Oma, and GAP), Liverpool, Pinfra, Grupo Carso, and Alfa. In contrast, the companies reporting the highest growth rates include Bimbo, Grupo Bolsa Mexicana de Valores, Cuervo, Gruma, Genomma Lab, and Vesta.

August 17

TRENDS. (EL ECONOMISTA 21)

GRUMA. Flour and tortilla producer Gruma shares closed last week with a 1.34% increase to MXN 264.91 per share, equal to MXN 1,406.14 million in capital gains.

ALFA SHARES REPORTED AS THE LEADERS IN LATAM IN Q220. (EL ECONOMISTA PP-18) (EL ECONOMISTA ONLINE 0)

Alfa is the company that obtained the best returns for its shares in Q220 in the S&P Latin America 40, with 108.6% growth, as the only Mexican company among the list reporting the 10 best returns of the index that includes companies listed on the Brazilian, Chilean, Colombian, Mexican, and Peruvian stock exchanges. Alfa also led the S&P MILA Pacific Alliance Select designed to measure the performance of the largest, most liquid companies in the Pacific Alliance region, which consists of the Latin American nations of Chile, Colombia, Peru, and Mexico, while Industrias Peñoles slipped into second place with its 53.4% increase. The Mexican companies were followed by Empresa Nacional de Telecomunicaciones (52.6%), Colbun (46.8%), Falabella (43.6%), Gruma (40.9%), Southern Copper Corp (40.3%), OMA (37.6%), Cemex (35.6%)…

August 18

MISSION FOODS, BASED IN IRVING, TEXAS WILL OPEN A NEW TORTILLA FACTORY IN INDIANA. (GOOGLE NEWS MÉXICO 0)

Mission Foods, the world’s largest tortilla producer, will open a new plant in the Indianapolis suburbs, creating up to 544 new jobs by the end of 2026, according to the announcement made on Monday by the state and company. Mission Foods employs approximately 6,900 workers at 19 plants in the United States. The company plans to begin hiring in Indiana early next year. Pending approval of the IEDC board, the state will offer Gruma Corporation,which does business as Mission Foods, up to USD 4.75 million in conditional, performance-based tax credits, meaning the company is eligible for the incentive once it meets hiring goals. Gruma Corporation,based in Monterrey, Nuevo León, Mexico, is one of the largest Mexican transnationals in the United States. Mission Foods was established in Texas in 1977.

August 20

ROMO TO PI: PROUD OF AMLO’S VISIT TO TRUMP. (MILENIO DIARIO PP-16) (MILENIO ONLINE 0)

During his participation in the 76^th Annual Assembly of the Chamber of the Transformation Industry of Nuevo León (CAINTRA), the Chief of Staff of the Office of the President of Mexico, Alfonso Romo, said that the business community “can feel very proud” of the way President López Obrador conducted himself during his visit to Washington, where he met with his counterpart Donald Trump while describing the meeting as “extraordinary” ... Virtual attendees to the meeting included Raúl Gutiérrez Muguerza, Chairman and CEO of Grupo Deacero; Tomás González Sada, Chairman of the Board of Directors and CEO of Cydsa; Rogelio Zambrano Lozano, Chairman of the Board of Directors of Cemex; Armando Garza Sada, Chairman of the Board of Directors of Alfa; Álvaro Fernández Garza, CEO of Alfa; Federico Toussaint Elosúa, CEO of Grupo Lamosa; Eduardo Garza T. Fernández, President of Grupo Frisa Industrias; Juan González Moreno, Chairman of the Board and CEO of Gruma;among others.

August 21

ROGELIO VARELA / CORPORATE NEWS. (EL HERALDO DE MÉXICO 25) (EL HERALDO DE MÉXICO ONLINE 0)

One of the winners during the COVID-19 pandemic has been Gruma by recording an extraordinary demand for tortillas and corn flour in foreign markets. During the second quarter of the year, net sales and free cash flow reported by the company led by Juan González Moreno were driven by its subsidiaries outside of Mexico, especially in the United States, representing 61% and 70%, respectively, as part of the company’s consolidated global figures... Similar behavior was reported by Maseca corn flour, as the package presentation registered an extraordinary increase in sales because many families have opted for this food product during the lockdown due to its processing and preservation benefits… The greatest demand for Gruma products in the United States has been covered by the plants installed in that country, although it has also needed help from the factories located in Mexicali, Tijuana, and Monterrey, Mexico. As I said, Gruma is perceived as one of the companies that will do great during the coronavirus crisis, reaping, to a large extent, the benefits of the efforts planted by the founder of the tortilla giant, Mr. Roberto González Barrera.

GRUMA REACHES PEAK REPORTED IN 2016 AND LAUNCHES EXPANSION PLAN FOR THE U.S. (INFOBAE ONLINE (ARGENTINA) 0) (EL FINANCIERO 16) (REFORMA ONLINE 0) (MURAL ONLINE (JALISCO) 0) (EL NORTE ONLINE (NUEVO LEÓN) 0)

On Wednesday, Gruma shares reached their highest peak since early 2016. Gruma is the largest corn flour and tortilla manufacturer in the world. The rebound came after company executives revealed a spike in U.S. demand and its expansion plans in an unusual call with investors led by Raúl Cavazos, Chief Financial and Planning Officer at Gruma.

August 22

MISSION TORTILLA CHIPS AMONG THE FAVORITES IN THE U.S. MARKET. MISSION IS GRUMA’S GLOBAL BRAND. (DINERO EN IMAGEN ONLINE 0)

During the global lockdown due to the health emergency caused by COVID-19, The Washington Post conducted a survey to determine tortilla chips preferences in the United States, including those made by Gruma under its global Mission brand. With a presence in more than 120 countries, the Mexican company has conquered the palate of the U.S. community with its Mission chips, who highlighted that it is a staple in their pantry, as a mid-day snack, at lunch, or during any type of meeting. Gruma, the world-leading producer of corn flour, tortillas, and wraps, registered a 25% increase in net sales, to stand at MXN 24.146 billion in Q220, due primarily to the increase in sales volume and higher prices in its U.S. operations, as well as a stronger U.S. dollar compared to the Mexican peso.

BUSINESS OWNERS IN NUEVO LEÓN RAISE OVER MXN 70 MILLION TO FIGHT CORONAVIRUS. (MILENIO ONLINE 0)

With MXN 70.410 million collected in donations in kind, the #RespiraNL (#BeatheNL) initiative based on the solidarity movement Unite and Give (Unir y Dar) beat its goal by delivering more than 1.188 billion items to the public and private health sectors. The Monterrey Group (G10) set the example of Monterrey’s generosity, as the Group’s 12 companies including Alfa, Cemex, Cydsa, DeAcero, Femsa, Frisa, Gruma. Lamosa, Proeza, Soriana, Vitro, and Xignux, donated a total of MXN 100 million to Unir y Dar.

August 24

JONATHAN RUIZ / THE DIVIDE. (EL FINANCIERO 20) (EL FINANCIERO ONLINE 0)

If Google were a man you could talk to, I would suggest asking him the following question: what do Americans prefer during these days of lockdown due to the COVID-19 pandemic, tacos or hamburgers? It turns out there is a way to do that. Google Trends—-the company’s tool that lets you know what people are looking for on the Internet—revealed that they ask more about the former. These days, the taco culture exceeds the typical U.S. dish in the interest of our neighbors. That has an impact on the business of Gruma, led by Juan González Moreno, which, as if it were a technology company, confirms its best days this year in which few can see the light. … El Financiero and Bloomberg reported on Friday that Gruma shares reached their highest peak since early 2017 after company executives revealed a spike in demand from the United States. 

August 27

ENRIQUE QUINTANA: GDP DROP (ASÍ LAS COSAS - THE STATE OF THINGS)

Enrique Quintana, collaborator: Mexican investments tripled year over year; however, the problem is that the investments were made abroad. Mexican companies with operations outside of Mexico invested USD 5.29 billion, 316% more than the amount invested in the same period last year. This reflects that Mexicans did invest and that there is a good number of transnational companies like FEMSA, with its significant operations in South America, as well as Cemex, Grupo Maseca, and Grupo Telmex owned by Carlos Slim, which saw fit to invest outside of Mexico.

BUSINESS OWNERS IN THE STATE OF NUEVO LEON HELP 17,000 PERSONS AFFECTED BY COVID-19. (MILENIO ONLINE 0) (EL NORTE ONLINE (NUEVO LEÓN) 0) (REFORMA ONLINE 0) (MURAL ONLINE (JALISCO) 0)

Three months after the Unir y Dar movement launched the #AbrazaNL (#HugNL) initiative in a joint effort with the private sector, it completed the selection of 17,000 persons living in the State of Nuevo León who will receive aid through a solidarity card, according to the funds collected. They indicated that this effort had been possible thanks to the contributions of citizens and different companies, all of which have has donated at least MXN 1 million, such as Alfa, Berel, Cemex, Cydsa, DeAcero, Femsa, Frisa, Gruma, Lamosa, Proeza, Soriana, Ternium, Tubacero, Vitro, and Xignux.

August 28

FEW COMPANIES LISTED ON THE MEXICAN STOCK EXCHANGE (BMV) WILL PAY DIVIDENDS. (EL ECONOMISTA 17) (EL ECONOMISTA ONLINE 0)

Some companies have implemented measures to strengthen their flows amid the economic and health crisis caused by COVID-19; however, there are still some that pay attractive dividends, such as Crédito Real, Alfa, and Fhipo, with the highest yields according to the Ve por Más stock market analysis and strategy department. Some of the companies that will distribute corporate profits to shareholders include Herdez, with its 1.41% dividend yield, Femsa with 1.38%, América Móvil with 1.34%, Lala with 1.13%, Kimberly Clark de México with 1.08%, Grupo México Transporte with 1.05%,Gruma and Walmex with 0.53% each, and Grupo Cementos de Chihuahua with 0.44%, according to the Ve por Más report.

August 31

THE 100 COMPANIES WITH THE BEST REPUTATION IN MEXICO, ACCORDING TO MERCO. (POLITICAL INDEX ONLINE 0) (UP-TO-DATE NEWS ONLINE 0) (MEN IN POWER, HOMBRES DEL PODER.COM ONLINE 0)

For several years now, the Corporate Reputation Business Monitor (Merco) has been given the task of identifying Mexican companies that have done a better job managing their corporate reputation and the leaders of some or all of these companies who enjoy an unblemished reputation. This year’s ranking is led by Daniel Servitje, from Grupo Bimbo, followed by Carlos Slim, whose efforts with the vaccine against COVID-19 seem to have helped him climb from position number 4 to second place this year ... others leaders in the ranking include Eduardo Osuna (BBVA), Germán Larrea Mota (Grupo México), Carlos Slim Domit (Grupo Carso), Emilio Azcárraga Jean (Televisa), Marcos Achar Levy (Comex),Juan González Moreno (Gruma), Héctor Grisi Checa (Santander México), Ana Longoria (Novartis), Adrián Sada Cueva (Vitro), Antonio Gómez García (Grupo Carso), and Claudia Jañez (Dupont).

GRUMA SELLS MORE IN THE U.S. AND STRENGTHENS ITS POSITION WORLDWIDE. (CONTRARÉPLICA 16) (DIARIO CONTRARÉPLICA ONLINE 0)

Between April and June, Gruma’s net sales and EBITDA (profits after taxes and others) margins were driven by its subsidiaries outside of Mexico, primarily in the United States, which represented 61% and 70%, respectively, of Gruma’s global consolidated figures, as reported by the organization in its financial report at the end of the second quarter of the year ...