PROMEXICO RECOGNIZES GRUMA AS THE BEST IN AGRIBUSINESS (EL UNIVERSAL.COM) Gruma, the leading Mexican producer of corn flour, tortillas and wraps, has been acknowledged as the best company in the country’s agribusiness sector by the Ministry of Economy, ProMéxico, and a specialized journal. The Mexican company, headed by business leader Juan González Moreno, was recognized for its strong performance in a climate of low economic growth and high volatility, a situation that has affected dozens of Mexican companies.

BANKING ON PUEBLA (EL NORTE p. 12) (REFORMA p. 7) (LA JORNADA p. 29) (EL ECONOMISTA) (EL SOL DE MÉXICO p. 2) (EL FINANCIERO p. 23) (LA RAZÓN p. 20) (MILENIO DIARIO p. 29) Grupo Maseca Chairman and CEO Juan González Moreno announced the company’s plans to build a Mission tortilla and corn chips production plant in Puebla.

JULIO BRITO/RISKS AND YIELDS (LA CRÓNICA DE HOY p. 28) Tortillas. Gruma CEO and Chairman Juan González Moreno has announced the Mexican company’s plans to invest in the construction of its third national Mission tortilla and corn chips production plant in the municipality of Huejotzingo, Puebla… The plant, which will go live late in the first half of 2017, will have an installed capacity to produce 50,000 metric tons of corn and flour tortillas, baked tortilla chips and taco shells...

ACTIONS AND REACTIONS  (EL ECONOMISTA p. 2) What volatility? In Mexico, everything is upside-down… or at least that’s how it seems… though maybe we’re just being shown things that just aren’t real. You tell me. The point is this: it makes little sense for companies to continue to invest, invest again, and invest some more against a background of high volatility, instability, and the current exchange rate. And now Gruma, led by Juan González Moreno, announced that it would invest in building its third nationwide Mission tortilla and corn chips production plant in the municipality of Huejotzingo, Puebla.

GRUMA ANNOUNCES CONSTRUCTION OF ITS THIRD PRODUCTION PLANT IN MEXICO (MILENIO NOTICIAS (10:00 AM to 12:00 PM))

BUSINESS CONTRIBUTIONS REWARDED (EL FINANCIERO p. 25) (EXCÉLSIOR pp. 74-79) Grupo Mundo Ejecutivo and ProMéxico awarded prizes to companies that have generated value in the Mexican economy and contributed to creating jobs. The first to receive such a distinction were Nissan Mexico and Gruma, the last of which was rewarded under a special category on account of the strength of its business, which has an international impact. The company, which has operations in Mexico, the United States, Europe, Central America, Asia and Oceania, aims to increase its consolidated income by 13%, according to its reports.

ROGELIO VARELA: MEXICAN MINISTRY OF AGRICULTURE PROMOTES MEXICO FOOD FORUM 2016 (IMAGEN INFORMATIVA (EVENING)) Next week, an agri-food industry forum will take place in Mexico City. This sector has enjoyed success in the export market during the past two years and has diversified many of the products it sells abroad. It is also looking to diversify its markets. The forum will be called “México Alimentaria 2016”, and is being promoted and organized by the Ministry of Agriculture, headed by José Calzada. Its purpose is to seek out new markets for Mexican agri-food products... Companies that have been extremely successful in food exports will participate, such as SuKarne, Gruma, and Grupo Bimbo. The last two are global companies with a presence in various markets, which will be able to discuss their success stories in reaching different types of consumers.

ABOUT THE BOSSES (EL FINANCIERO p. 30) Panic over Trump. They are two different worlds. One as imagined by those who heard Carlos Slim at a forum organized in Mexico last week, where he shared a stage with Mike Bloomberg. In his speech, the business magnate highlighted the opportunity of obtaining low-interest loans for investment in Mexico. He believes that there will be several tumultuous months next year, but that the storm will pass... Analysts at JP Morgan believe that Mexico continues to receive more and more bad news every day, starting with the cloud that Trump wants to place over the country, and proceeding through reduced foreign investment, Carrier having apparently kept jobs in the United States, and Agustín Carstens’ resignation at the helm of the Mexican Central Bank. Based on this outlook, they have given Mexico an “underweight” rating, suggesting that you should only hold shares in Nemak, Mexichem, Fibra Macquarie, Gruma, Megacable, and Banorte, primarily because several of these companies generate strong dollar revenues.

BUSINESS CORPORATIONS IN MEXICO AND UNITED STATES TO FEEL THE EFFECTS OF THE TRUMP ERA (EL UNIVERSAL p. 5) Investments made by business corporations in Mexico and the United States will imminently be subject to a brake or short-term impasse and, in the worst-case scenario, will report negative profits, according to the analysts approached by El Universal... Mexican corporations with a major presence in the United States include Aeroméxico, Alfa, América Móvil, Bachoco, Cementos Chihuahua, Cemex, Cinépolis, Elektra, Gruma, Grupo Bimbo, Grupo Carso, Grupo México, ICA, Lala, Mexichem, Omnilife, Pemex, Rotoplas, Televisa, Villacero, and Vitro among others according to ProMéxico.

REGIOS(EL NORTE ONLINE) Industrial firms from Monterrey could seek partnerships to protect them against the hard knocks received from U.S. president-elect, Donald Trump, who is increasingly scraping away at the country’s commercial ties with Mexico. For this reason, 100 companies from Monterrey attended last night’s Christmas cocktail dinner put on by the Canadian Chamber of Commerce, headed by José Garza Montemayor. Representatives were in attendance from companies such as Alfa, Ciba Group, Daimler, Grant Thornton, Gruma, Marcatel, Metalsa, Planetario Alfa, Prolamsa, Roca Acero, Sigma Alimentos, Spelt, Villacero, and Xignux. 

CARLOS DE ICAZA GONZÁLEZ/MEXICO AND CHINA: AN INCREASINGLY SUCCESSFUL BUSINESS PARTNERSHIP (EXCÉLSIOR p. 14) President Enrique Peña Nieto’s government has built up a close and fruitful relationship with the People’s Republic of China. During the State visit of President Xi Jinping in June 2013, the countries agreed to establish a Comprehensive Strategic Partnership, which has enabled them to deepen economic, tourism, scientific, educational, and cultural ties and cooperation between Mexico and China, and intensify senior-level visits... The Chinese market is increasingly important to Mexico, and global companies such as Bimbo, Gruma, Grupo Kuo, Interceramic Metalsa, Nemak, and Softtek are continuing to build a presence in the Asian market...

IMBALANCE  (EL UNIVERSAL p. 2)  Winners and losers in the stock market. Following the share price contraction of other Mexican companies, and then the elections in the United States, we are told that analysts’ recommendations have improved for Gruma, led by Juan González Moreno; Alsea, led by Renzo Casillo; FEMSA, led by José Antonio Fernández Carbajal; Walmart Mexico & Central America, led by Guilherme Loureiro, and Arca Continental, led by Francisco Garza.

LOOKING TO STRENGTHEN TIES (EL NORTE (ONLINE)0) On his visit to the city of Monterrey, Russian Ambassador to Mexico Eduard R. Malayán, visited companies such as Gruma and Frisa to strengthen the commercial relationship between the two countries...

ABOUT THE BOSSES (EL FINANCIERO p. 21) (EL ECONOMISTA pp. 8-9) Gruma and Alsea are the most ‘appetizing’. Following the average 10% loss suffered by Mexican companies on the Mexican Stock Exchange, largely because of Donald Trump’s victory in the U.S. presidential elections, and against a weaker economic outlook for 2017, analysts at Citigroup have improved their investment recommendations for Alsea and Gruma, led by Alberto Torrado and Juan González, respectively... They are confident that the world’s leading corn flour producer will continue to benefit from the strong U.S. dollar. One key statistic is that 70% of its earnings are in U.S. dollars. Citi analysts believe that these firms’ shares will be revalued at 23 and 27, respectively, over the next 12 months. Buy?

ROBERTO AGUILAR/CORPORATE TIMES (CAPITAL MÉXICO p. 26) The favorite. Santander’s analysis department, headed by Héctor Grisi, has revised its food and beverage sector outlooks and selected Gruma, led by Juan González Moreno, as its favorite share for 2017 because its attractive valuation and the dynamics of the markets where it does business, especially in the United States, which accounts for more than 60% of its consolidated cash flow.

COMPANIES BENEFITED BY THE TRUMP EFFECT: GRUMA AMONG THEM (SDPNoticias) (MILENIO ONLINE 0) There has been much speculation over the new approach to be taken by the Office of the U.S. Presidency, with Donald Trump at the helm. The business magnate’s arrival has shaken some national and international financial markets, while others haven’t taken the news of this new era badly. Naturally, in Mexico there continues to be some uncertainty over Trump’s arrival, aside from his oft-repeated call to build a wall, which he claims Mexicans will pay for, even if he puts up the money initially. What a situation. However, there are some companies that could gain from the Trump effect, and analysts believe that Gruma, Bimbo and Arca Continental will be among them. For instance, Fitch Ratings has reaffirmed that Gruma’s operational performance will maintain a positive growth trend for 2016 and 2017. Fitch has a positive view of the company’s growth outlook in the United States, given demographic trends among the country’s Hispanic community and its growing popularity among non-Hispanic consumers. Gruma making gains from this situation would not be a giveaway, as the company has been present in the United States for 40 years, producing corn flour and tortillas at its 20 tortilla production plants and six corn flour mills. As a result, the imposition of trade tariffs would not have a negative impact on the company.

ABOUT THE BOSSES (EL FINANCIERO p. 22) The Mexican that will win out in the USA in 2017. In this column, we have told you about Gruma, the world’s leading corn flour producer, which was one of the companies that made gains from the strong dollar during the year that is now coming to an end. Experts affirm that this factor will keep the company among the big winners in 2017, with an average expected exchange rate of 21.21 pesos to the dollar according to a survey by Banxico. That is above this year’s average of 20.74. Gruma, led by Juan González Moreno, earns more than 70% of its revenues in the United States, where its penetration has grown among the Hispanic and Anglo populations. Although most of its debt is stated in dollars, the figure is low compared to its cash flow (EBITDA) generated. The United States, which accounts for 63% of the company’s revenue, will continue to drive Gruma’s growth in 2017. Senior management at the Mexican multinational predicts that the group’s sales volumes in the country will grow between 3% and 4%, driven by a better mix in its product portfolio...

TRENDS (EL ECONOMISTA p. 7) GRUMA wins. Gruma was the best-performing issuer in the week of December 9-16, with its shares listed on the Mexican Stock Exchange gaining 5.42%. Citibanamex recommends buying shares in Gruma due to the impact of the exchange rate on U.S. dollar cash flows. Analysis by BX+ points out that, although Gruma is not among its favorite issuers, it anticipates a potential return of 25.2% and, therefore, believes it is wise to stay in touch with the company to get more details on the outlook for 2016. Grupo Bursátil Mexicano believes that the food production company has sufficient grounds on which to improve its expectations and reflect a more optimistic scenario through its investments in the United States.

ANALYSTS: GRUMA’S SHARES TO EXCEED MXN 320 IN 2017 (MILENIO ONLINE 0) Next year, the share price of Gruma, led by Juan González Moreno, will exceed MXN 320 per share, which would represent potential profit of 30% compared to its price of MXN 246.22 at close on Friday, December 9. According to several brokerage houses, the share price target of the world’s leading cornflower and tortilla producer varies between a conservative MXN 284.60, as projected by Grupo GMB, and MXN 320, the most optimistic price projected by the analysis group at Actinver Casa de Bolsa.

WORLD CLASS COMPANY (MUNDO EJECUTIVO p. 197) Gruma is one of the world’s leading corn flour and tortilla producers with 67 years in the market. It primarily operates in the United States, Mexico, Central America, Europe, Asia, and Oceania. In 2015, it achieved net sales of approximately USD 3.4 billion, with 73% of this figure coming from its operations outside of Mexico. In 2016, the company, led by Juan Antonio González Moreno reported an extraordinary performance. In the third quarter alone, it increased its sales by 12% to MXN 17.209 billion. The United States accounts for more than 60% of the conglomerate's profits, and thus the volatility of the dollar throughout the year benefitted the results it reported...

BUILDING PARTNERSHIPS. (MUNDO EJECUTIVO pp. 312-333)… There are 39 corn flour producers in the Mexican market. A small group of large companies dominates the market, and another group of small producers serves regional markets. Chief among the large producers is Gruma, a company based in Nuevo León, which has 75 plants worldwide. It has more than 70% of its operations outside of Mexico. Its leading corn flour brand, Maseca, is well-known in the domestic market. It also produces tortillas and corn-based products under the Mission brand. This year, the company’s sales have increased by 2%, and it reported accumulated sales of 2,928 metric tons up to the third quarter of 2016. Gruma ranked 8^th in the 2015 Sector ranking, in 69 in the 1000 companies ranking for the same year; it is also ranked 353 in Profitability, and 50^th in the 2015 Employment ranking. Grupo Industrial Maseca ranked 23 in the 2015 Sector, and 228 among the 1000 companies in the same year; it ranked 83 in Profitability, and 170 in 2015 Employment ranking.

GRUMA MAKES STEADY PROGRESS IN MALAYSIA (LÍDER EMPRESARIAL ONLINE 0) Gruma, the world’s leading corn flour and tortilla producer, has opened a new plant in Kuala Lumpur, Malaysia, after a USD 55 million investment. Gruma CEO and Chairman Juan González Moreno announced that the new plant has an installed annual production capacity of 30,000 metric tons of tortillas, corn chips and flatbreads such as wraps and pizza bases. Gruma commenced its Malaysian operation in 2007 with the purchase a specialized flatbread production plant making wraps, pita bread, pizza bases, naan, and flour tortillas, and has produced first-rate products since then. From its Malaysian base, Gruma also caters to its customer and consumers from countries throughout South-East Asia and in the Middle East.