GRUMA GOES AFTER ANOTHER RECORD YEAR IN THE BMV (EL FINANCIERO 2-20)  

Gruma, the world’s largest tortilla manufacturer, is preparing for another record year in the BMV. According to analysts, the company will benefit from increased sales in the U.S. and falling global grain prices in 2014. In 2013,Gruma was the issuer with the highest performance among those listed on the Mexican stock exchange (BMV), with a cumulative growth of 152.2% in the price of its shares. A Bloomberg survey shows that analysts have set an average target price of 120.6 pesos for Gruma shares later this year this year, representing a potential 22% upturn against its 98.78 pesos closing price in 2013. This projected growth is much higher than the estimated 7% expected for the BMV’s stock market index. “Gruma has a promising future,” said GBM analyst Miguel Mayorga. The Latino population will grow faster than others, and this will drive the company’s business in the United States... 

THE REMARKABLE RISE OF MANUEL ARROYO (PODER Y NEGOCIOS 1-3-32-41)

Many wonder how he became the man of the hour. His story speaks of a daring, successful... and unheard-of businessman. On the afternoon of Friday, November 29^th, President Enrique Peña Nieto gave Manuel Arroyo the 2013 Entrepreneur Award in the services sector. Later that day, the businessman went to Lincoln, one of the most exclusive restaurants in Polanco, with a group of friends and coworkers, to start what he described as “a year of celebrations.” He had recently closed negotiations with Bloomberg for the broadcast license in North and Central America, which will finally allow the editorial re-launch of El Financiero, which aims to reposition itself as the leader of economic journalism in Latin America... He grew up in a family of journalistic entrepreneurs had behavioral problems in his youth, and Arroyo Rodriguez has tried to spread the story of a self-made man and refers to the entrepreneurial icons he most admires: Roberto González Barrera and Steve Jobs...

FIVE COMPANIES STAND OUT BECAUSE OF THEIR OPERATING CASH FLOW  (EL FINANCIERO pp-20)  

Despite the weak domestic consumption environment, falling commodity prices, and weak spending on infrastructure, some companies managed to overcome this situation in Q4 2013 with operational efficiencies, by consolidating acquisitions, and easy comparison bases. A survey by El Financiero with estimates from seven brokerage firms reveals that the five companies with the best performance in operating cash flows (EBITDA) for Q4 2013 will include: Industrias CH and Gruma, both with a 32% increase... Despite the weak domestic consumption observed at year-end, companies like Gruma and Bimbo will produce positive operating results thanks to their cost and expense efficiencies, consolidating purchases abroad (in the case of Bimbo), plus price increases and stability in the international cost of grains. 

WEAK CONSUMPTION WILL AFFECT COMPANIES (CNNEXPANSIÓN.COM)

Grupo Financiero Santander said the expectations will be lackluster for the food and beverage industry, which includes major companies such as FEMSA, Gruma, Bimbo, Herdez, Coca-Cola FEMSA, and Arca Continental. “Although the recent poor performance of the sector incorporates most of the bad news, we remain cautious about issuers such as Herdez and Bimbo. We believe thatthe only company in the industry that could report positive surprises is Gruma, which is still our favorite stock in this group and can leverage tax benefits, followed by FEMSA…” 

TRENDS AND SIGNS (EL ECONOMISTA 7)  

GRUMA. The corn flour and tortilla manufacturer closed the week with a 46.05 billion peso market value. In the past 12 months, its shares fluctuated between a high of 109.54 pesos per share and a low of 40.43 pesos per share.

WEAK CORPORATE REPORTS: MONEX  (EXCÉLSIOR 3)  

According to the Monex Financial Group, the Q4 2013 results to be announced by companies on the stock market index will be weak. Compared to last year, their sales will only grow 2.7% on average…. According to Monex estimates,the best results at the EBITDA level will be those reported by Simec, Industrias CH, Fibra Uno, Terrafina, ICA, Elektra, Bimbo, Alsea, and Gruma...

QIU XIOAQU /LET’S JOIN EFFORTS TO STRENGTHEN THE CHINA-MEXICO COOPERATION (EL UNIVERSAL 14)  

Today, we celebrate the 42^nd anniversary of the establishment of diplomatic relations between China and Mexico... Over time, like aged tequila, the Chinese-Mexican relationship emanates a very peculiar aroma... Over the course of 42 years, China and Mexico have become important partners for each other... At the close of 2013, nearly 60 Chinese companies have invested over US $400 million in Mexico. Meanwhile, Mexican investments in China are also constantly increasing. Mexican products, such as Corona beer, Bimbo bread, Maseca corn tortillas, and electronics and communication equipment are discovered and welcomed by Chinese consumers every day …  

TRENDS AND SIGNS  (EL ECONOMISTA 7)  

GRUMA. The tortilla and corn flour manufacturer closed the week with a market capitalization value of 46.59 billion pesos. The price of its shares over the last 30 days has accrued a 3% growth.

STOCKS SEESAW (FORBES MEXICO 17)

Juan Antonio González Moreno.Gruma’s market value +8.73% to stand at 47.17 billion pesos. The corn flour and tortilla manufacturer, founded in Monterrey, has started off on the right foot. The potential of the company’s margins in the U.S. and the strength of its brand have been rewarded by investors. 

TRENDS AND SIGNS  (EL ECONOMISTA 7)  

GRUMA. As of Friday, Gruma’s capitalization value stood at 46.51 billion pesos. So far this year, its stock has risen 8.8%. 0.16% -

GRUMA REPORTED THAT ITS EARNINGS ROSE 94% IN 2013  (LA JORNADA 34)

Gruma, one of the world’s largest corn flour and tortilla producer, obtained 3.31 billion pesos in profits in 2013, an amount that exceeded the gains obtained in 2012 by 94%. The company improved its net profit “significantly” due to an increase in operating profits before taxes, “but mostly due to dramatic tax reductions,” the company said in a press release. Specifically, during Q4, net income grew to 2.97 billion pesos, an amount that exceeded the same period in 2012 by 541%, “primarily due to tax reductions and improved operating performance...” According to the press release, last December, Gruma debt stood at US $1.27 billion, 18% less than the debt recorded at the end of 2012... 

GRUMA WINS WITH CORN PRICES. (EXCÉLSIOR 4)

For Gruma, 2013 was a year of strong earnings. Between January and December, its net profit soared 94% to 3.31 billion pesos, while it grew 354% between October and December to stand at 2.15 billion pesos. The company’s profitability indicator, EBITDA, increased 33% and 46% for the quarter and year, respectively. It is important to note that during the last three months of 2013, sales operations outside Mexico accounted for 60% of the total. In just the fourth quarter of last year, Gruma sales volume stood at 1.86 million tons, and its net sales totaled 13.67 billion pesos, below the 13.97 billion pesos reported during the same period in 2012. Annual revenues stood at 54.106 billion pesos, compared to the 54.41 billion reported last year. The company explained that net sales were driven primarily by Gruma Corporation and Gruma Central America..

JESUS RANGEL / TUG OF WAR  (MILENIO DIARIO 26)

The Next Room.Gruma’s numbers are impressive: 94% growth in net profits, and a 152.2% increase in its share prices in 2013.

IRASEMA ANDRÉS DAGNINI / CLEAR ACCOUNTS (LA RAZÓN 18)  

Real gains forGruma.Gruma’s good management continues to generate attractive profits for the company and for investors in the stock market. Consistency in a cost reduction and market consolidation policy has allowed for better cash flows and significant debt reduction, reflected to a greater degree by the Fitch Ratings. Last December, the rating company raised the rating of its liabilities on a global scale in foreign currency to BB+ from BB. The Mexican company’s sales volume amounted to 1.08 million tons, which generated net revenues in the amount of 13.6 billion pesos during Q4 2013, confirming its constant growth. As a result of a policy focused on reducing operating expenses and improving management and operations, operating income grew 72% to stand at 4.83 billion pesos....The company’s financial results are reflected in the strong demand for the company’s stock in the Mexican Stock Market. Gruma value increased 152.2% in one year, the strongest growth in the Mexican Stock Exchange during 2013, going from 39.17 pesos to 98.78 pesos per share... 

ROGELIO VARELA/CORPORATE  (EL FINANCIERO.COM)  

Companies continue publishing their 2013 year-end reports, and those reporting positive numbers include Gruma, led by Juan González Moreno. The corn flour and tortilla giant reported sales totaling 13.6 billion pesos in the last quarter of last year, while its operating profit stood at 1.3 b pesos with an EBITDA free flow of 1.8 billion pesos. This explains the extraordinary rise of Gruma shares on the Mexican Stock Exchange; in the last year, from 39.17 pesos to 98.78 pesos per share, for 152.2% increase.

GRUMA ANNOUNCES ITS Q4 2013 RESULTS (MILENIO EVENING NEWS - 4 TO 8 PM)  

Luis Carlos Ortiz:When speaking of business news, Gruma announced its Q4 2013 operating results, which maintain a constant improvement. It noted that its operating cash flow was up 33%, despite the fact that net sales fell 2%, due to the reduction in Gimsa volumes. Operating profits were up 56%, while its net income was up 541%. 

GRUMA REPORTED 13.67 BILLION PESOS IN NET SALES AT THE CLOSE OF Q4 2013 (MVS EVENING NEWS)

Ezra Shabot: Gruma announced that its net sales reached 13.67 billion pesos during the fourth quarter of 2013. The multinational’s operating income was up 56% to stand at 1.37 billion pesos during the reporting period. This growth was driven primarily by improvements in most operations and by significant reductions in operating and administrative expenses, as ordered by the Gruma Board of Directors in December 2012.

DISAPPOINTING OUTLOOK FOR ISSUERS THIS YEAR (EL ECONOMISTA 8)  

In the final round of financial reports for Q4 2013, the expectations of how Mexico’s largest companies will perform in the first part of 2014 are not encouraging. The tax reform, the low economic growth, and the inflationary pressures paint a dismal picture for the private sector, said Carlos González, director of Grupo Financiero Monex Analysis... From January to March, it is expected that consumer companies, specifically, will report lower sales because of the new taxes on soft drinks and food products with high calorie content. “Gruma is one of the few companies that will escape the taxes on food  with high calorie contents because it produces food staples.”

GRUMA WILL INVEST US $160 MILLION IN FOUR NEW PLANTS (EL FINANCIERO 63)  

Gruma, the world’s tortilla and corn flour production giant, will invest US $160 million during 2014 to build plants in Russia, Malaysia, and Mexico. “We’re building strong partnerships in Russia, which has reported a 45% growth in volume in the last six quarters,” said Gruma CFO, Raúl Cavazos Morales. He explained that they are currently responding to the demand by using other production plants, although this is generating additional costs. The second investment will be used to build a second plant in Malaysia, as they have struggled to meet demand in the last quarter. Two other plants will be built in Mexico. Both will be operational by 2015.

GRUMA DOUBLES ITS NET INCOME IN 2013 (IMAGEN EMPRESARIAL – BUSINESS IMAGE)

Rodrigo Pacheco: Gruma doubles its net income. The corn flour and tortilla manufacturer reported net revenues in the amount of 3.3 billion pesos in 2013, for a 94.3% increase, due to a dramatic reduction in taxes whereGruma benefited from the application of tax losses in previous years... 

GRUMA REPORTS AN OUTSTANDING PERFORMANCE IN TERMS OF PROFITABILITY  (EN LOS TIEMPOS DE LA RADIO)

Alfredo Huerta: Gruma reported outstanding profitability due to its good management of operating expenses and the low cost of grain. Its consolidated EBITDA grew 33%, driven by growth in its U.S. operations. Its three corn flour businesses, Gruma Corporation, Maseca, and Gruma Central America reported improved EBITDA margins. Gruma ,therefore, presented one of the most outstanding reports.

MAURICIO FLORES: GRUMA INCREASES ITS PROFIT FLOWS BY 33%, REPORTING SALES IN THE AMOUNT OF 13.6 BILLION PESOS  (6 TO 11 MORNING REPORT)  

Mauricio Flores: Gruma, the world’s largest corn flour manufacturer, is another company and chronicle of our country. Maseca was founded by Roberto González Barrera, known as “Don Maseco” who I trust is having a good time wherever he is. He was a real character ... despite the fact that his wallet was already full, he would go directly to the tortilla makers to look into their processes and would ask questions like, “Hey, and what about Maseca?” and people would answer, “No, I don’t receive it on time”, or “It has too many granules” or “It’s not the way it should be.” He took notes ... I mean, really, this was a person who conducted his business very well. Today, the business is headed by his son, Juan González Moreno and let me tell you, it has increased its profit flows by 33%, selling 13.6 billion pesos worth of product under his leadership. 

COMMUNICATIONS, STOCK EXCHANGE FAVORITES (EL FINANCIERO 14)  

After the stock market index got off to its worst start for a year since 2009, the communications, consumer staples, infrastructure, technology, and telecommunications sectors could be the favorites to diversify investment portfolios...Research departments updated their list of favorite investment tools in February, favoring the communications, consumer staples, infrastructure, financial, and technology sectors globally, and the housing, supermarket, and industrial sectors to a lower extent, for reasons ranging from the exchange rate, consumer confidence, or high valuations. Gruma has gained 6.95% so far this year.