EXCHANGE RATE VOLATILITY BENEFITS SOME, HURTS OTHERS (EL ECONOMISTA 9) Barclays analysts are expecting mixed results in the financial statements reported by 36 issuers for the fourth quarter of 2016, some of which have been affected by exchange rate volatility, as others have benefited from it. Consumer goods companies in the Mexican Exchange are still expected to report a positive trend in Q4 2016. Nevertheless, a weak MXP and higher gasoline prices will have an impact on their quotes. In 2016,Gruma will have benefitted from an appreciating dollar, because its income will grow 12.9% vs. 2015.

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APEAM REPORTED THAT 35 THOUSAND TONS OF AVOCADO WILL BE CONSUMED DURING THE SUPER BOWL (FÓRMULA FINANCIERA (NOCTURNO) ) Maricarmen Cortés: The Avocado Producer, Packer, and Exporter Association of Mexico (APEAM) reported that 35 thousand tons of Mexican avocado, hugely popular in United States, will be consumed during the Super Bowl. 

José Yuste: You eat it with little tortilla chips from Maseca. So, yes you can call that an invasion. Whether Donald Trump likes it or not, we’ve invaded you...

ALFA, AXTEL, AND FAMSA, THE LOSERS IN THE MONTERREY INDEX (EL ECONOMISTA 2) Data from the Monterrey Index that groups 20 companies from that city in the state of Nuevo León, show that the 3 most attractive companies in terms of stock yields are Cementos Mexicanos, Autlán, and Grupo Financiero Regio, respectively with 144.3, 135.5, and 35.9% in accrued gains. In January, the index closed with a 2.49% growth vs. the IPC’s 2.98%. Companies with the best yields were Cemex, Famsa, and Gruma, respectively with 16.4, 11.2, and 6.6%, increases.

A EUROPEAN POPCORN EMPIRE (EL PAÍS 8) After inventing microwave popcorn in 1993, the Liven Group decided that corn was “their thing”. The company, founded by five Catalan families (Montagut, Mariné, Casals, Costa, and Clavell), produces 100 million bags of golden kernels every year, plus an endless range of treats like corn snacks, potatoes, tortilla chips, salsas, wheat tortillas, ganchitos, bread for dumm-kebabs, piadinas, wraps (a taco variation) or its famous “kikos”, for which the Group holds a patent… “In order to avoid competing directlywith our clients, we have positioned our products in the ethnic market [Tex-Mex],” says the Company. In the nacho, tortilla or guacamole segment, the Liven Group competes directly against General Mills (and its Old El Paso brand) and Gruma…

MARIO MALDONADO/BUSINESS STORIES (EL UNIVERSAL 3) Donald Trump may not know this, but the Thomas' English Muffin he frequently enjoys for breakfast that is served in some of his hotels, is produced, distributed and sold by a Mexican company: Grupo Bimbo. Actually, this is not just any company, but the largest bakery in the world and the United States… In this column we have told you about meetings held by the main entrepreneurs in the country attempting to align strategies against Trump. We’ve discussed entrepreneurs with major interests in United States, like Armando Garza Sada, from Alfa; Juan Antonio González Moreno, from Gruma; Claudio X González, from Kimberly Clark Mexico; Valentín Diez Morodo, from Comce; Fernando Chico Pardo, from Asur and SSA Marine; Miguel Alemán Magnani, Interjet; Alejandro Ramírez, Cinépolis; Rodrigo Herrera, Genomma Lab; Juan Pablo del Valle, Mexichem, and even Daniel Servitje, from Bimbo… The fact of the matter is that closing ranks requires incentives that the government has not yet proposed, whereas in the United States, Trump has pledged great tax benefits to those who do not take their investments abroad to places like Mexico...

ISSUERS ARE HIT BY THE DOLLAR IN Q4 (EL ECONOMISTA 1-8) Results for Q4 2016 show that companies listed in the Mexican Stock Exchange would be seriously affected by a weak MXP vs. USD, especially in net profits.Analysts are foreseeing a drop in net profits greater than 23% on average… Companies that will benefit from a weak exchange rate include exporters such as cement producing Cemex, Bimbo foods, and Gruma (that sells tortillas in United States, Europe, and Asia).

MEXICO’S MOST VALUABLE BRAND IS CORONA (MILENIO DIARIO 33) For fourth year in a row, Corona (worth 7,647 million dollars) was ranked the most valuable Mexican brand, and the second most valuable brand in the Latin American region, by BrandZ Top 30 Mexico, as released by WPP and Kantar Millward Brown. Also among the top Mexican brands, Telcel (worth 4,598 million dollars) ranked second in value, while Televisa (4,035 million dollars) came in third. Food brands also grew in value driven mainly byMaseca,that went from 710 million dollars in 2015 to 1,051 million in 2016, and Bimbo, whose value grew 7 percent to 2,990 million..

A WINNING MACHINE (EXPANSIÓN 32) In 1987, a Mexican food business opened its doors for the first time in San Diego, California. It would later become a successful tortilla manufacturer and supplier to local restaurants and self-service chains like Costco. Some 20 years later, this company known as Circle Food Products, and its expanded product portfolio (frozen tamales, enchiladas and burritos, among others) were acquired by multinational Tyson Foods. Today, these tortilla and Mexican food producers have spread all over the world, and with them tortilla machine manufactures like Villamex, Celorio, and (Gruma’s) Tecno Maíz, who now must compete with foreign companies… 

78 OF THE 100 MOST GLOBAL MEXICAN BUSINESSES OPERATE IN THE US (EXPANSIÓN 58) The new President of the United States has set out to enforce protectionist policies the likes of which had not been seen in decades. He also intends to review NAFTA.  Mexican exporters could face problems, but the larger firms are well prepared… They prosper more abroad than in Mexico. In 2015, these companies grew 12.1% abroad and 6.4% domestically. There are Mexican companies present in 99 countries, where sales in 2015 reached 2,165,455 millions of pesos. Companies that generate more jobs outside of Mexico, by number of workers are: Gruma 11,868; those that sell most abroad in millions of pesos are: Gruma $42,588...

OLIVER PATCH: SOLID BRANDS ENCOURAGE COMPANY GROWTH (24HORA 21)(MATUTINO EXPRESS ) Oliver Patch, the director of Kantar Vermeer Mexico, says that the main difference in the Brand study, an annual financial evaluation of brands, is that in addition to providing financial analyses it helps us understand the contribution more than 3 million consumers from all over the world assign to brands. We understand the role a brand should play in the daily lives of people. For example, in the case of Mexican brands there are four that grew over 30 percent vs. 2015. Tecate and Sol grew 31 percent, AeroMexico 41 percent, and Maseca grew the most: 48 percent.

TRENDS. (EL ECONOMISTA 7) GRUMA. GBM home broker estimates a positive Q4 for Gruma that should report 13.9 and 14.7% increases in sales and Ebitda. Securities rose 0.38% to 283.54 pesos.

MEXICO BETS ON MANUFACTURING IN THE US (EL ECONOMISTA 5) Almost a fourth of accumulated Mexican investment in United States is in the manufacturing sector, where liberalization has been challenged by President Donald Trump. Mexican manufacturing companies that have invested in the US market include: Bimbo, Gruma, Kuo, Lala, Kaltex, La Costeña, IUSA, Katcon, Alpek, Sigma Alimentos, and Nemak. 

BOASTING PROGRESS IN THE ECONOMIC PLAN (EL NORTE (ON LINE) 0) According to the federal government, the Acuerdo para el Fortalecimiento Económico y la Protección de la Economía Familiar (Agreement to Promote the Economy and Protect Household Incomes) has shown progress. After a few weeks since its introduction, the office of the President stated “the impact of increases in gasoline prices was taken care of,” while meeting a commitment to establish tax incentives on diesel for the agriculture-livestock and fishing industry. Such incentives will amount to 3 billion dollars by 2017. Grupo Industrial Maseca (GIMSA), the main corn flour producer in Mexico, promised to maintain fixed prices on its corn flour…

TRENDS (EL ECONOMISTA 7) GRUMA. Price of Gruma shares: 282.75 MXP per unit. It is estimated that Gruma will report its financial results on 22 February.

GREATER TORTILLA SALES IN US AND MEXICO SUPPORT GRUMA FIGURES (EL ECONOMISTA 1-10) (Story continues from the first page in Termómetro Financiero) (EL NORTE (ON LINE) 0)(REFORMA 11)(EXCÉLSIOR 1-3)(LA JORNADA 24)(EL FINANCIERO 20)(LA RAZÓN 22)(EL SOL DE MEXICO 5)(MILENIO DIARIO 25)(EL PORVENIR 0)(MILENIO DIARIO DE MONTERREY 0) During Q4 2016, Gruma, the corn flour producer from Monterrey, scored a 24% increase in sales reaching 18,819 million MXP, driven by its operations in United States, Mexico, and Central America, as well as by the exchange rate. According to the financial report sent to the Mexican Stock Exchange, sales volumes reached 1,040 thousand tons, 6% over the figure reported for the same period in 2015, thanks to Gruma United States and its subsidiary in Mexico, Grupo Industrial Maseca (GIMSA). The Mexican multinational highlighted that domestically, GIMSA continues to gain market share among tortilla manufacturers as it replaces the traditional method (nixtamal) to prepare tortillas. At the same time, during the last three months of 2016 operational flows (EBITDA) grew 22% vs. the same period in 2015, and amounted to 3,041 million MXP.

JULIO PILOTZI/ FINANCIAL SPLIT (EL SOL DE MEXICO 2) 2016 was good for Gruma. Gruma, under Juan González Moreno, has delivered good figures for 2016. The world leader in corn four, tortilla and wrap production closed the year with double-digit improvements in its financial results… 

GRUMA INCREASES NET PROFIT 475 PERCENT DURING 2016.   (DINERO CON RODRIGO PACHECO EXCÉLSIOR TV ) Juan Carlos de Lassé: Here in Mexico, and well, also in United States, we are still seeing quarterly reports. This week we’ve discussed a few like the reports issued by Home Depot and Walmart. Well, now it is Gruma’s turn. The company increased its net profit close to 500 percent.

TRENDS AND SIGNALS (EL ECONOMISTA 7) GRUMA. The issuer exceeded expectations for 4Q 2016. It recorded 24% increases in net income, a 29% higher operating profit and an additional 22% in EBITDA... 

THE 5 BEST AND WORST REPORTS IN Q4 2016 (EL FINANCIERO pp-26) Supported by still heavy consumption in Mexico, controlled costs and expenses, an upturn in the prices of certain commodities, and a weak MXP vs. the USD (benefitting companies that export or maintain operations in United States), the companies in the sample of the IPC Index of the Mexican Stock Exchange (BMV) reported solid results for the fourth quarter of 2016. Consolidated figures for 34 of the 35 firms constituting the main indicator for the BMV (Peñoles is just reporting today) reveals that their incomes increased 16.7 percent, operation flows (EBITDA) were up 16 percent, and net profit 0.3 percent, vs. October-December, 2015. “In general terms, the reports were better than expected… we feared the consumer products sector would slow down, but companies like Arca Continental, Bimbo, Alsea, and Gruma, among others benefitted from consumption trends in Mexico bringing about positive surprises,” explained Jorge Gordillo, Analysis Director for CIBanco.