THE BOSSES (EL FINANCIERO 19)

Tortilla recipe. Do you remember all the recent changes to its board? Well, Gruma is now at a record high on the Stock Exchange, despite the current Greek tragedy. It has reduced its costs and its debt, reached out to new markets, and focused on its dollar revenues. That is the tortilla recipe prepared by Juan González Moreno. Its market cap is now 5.6 billion dollars, just in case you were thinking of buying it. That figure is larger than Grupo Lala, and higher than Herdez, Minsa, Bafar and Bachoco put together! Oddly enough, the global leader in corn flour and tortilla production was only granted an investment-grade credit rating last month. During the first half of this year, shares in Gruma have returned almost 30%. Anyone for a taco?

MEDIOCRE HALF-YEAR ON THE MEXICAN STOCK EXCHANGE (EL ECONOMISTA 1-8)

The Mexican Stock Exchange performed poorly during the first half of this year, with a gain in pesos of just 4.42%, while the IPC Index was up from 43,145.66 to 45,053.70 points. However, in dollar terms the index fell by 2.02%. It is worth highlighting the share price of ultra-low cost airline Volaris, which was the biggest riser at 41.20%, followed by Gruma with an increase of 28.4%, Liverpool at 23.1%, and Aeroméxico at 22%. 

BÁRBARA ANDERSON / NOTHING PERSONAL, PURELY BUSINESS (MILENIO DIARIO 2)

In Spain, the best business is in banking, the energy sector, the hotel trade and infrastructural development. In Mexico, the most powerful investments have been in real estate, food, and mining. According to data from the Registry of Foreign Investment, published by the Spanish Ministry of Economy and Competitiveness, Mexico has increased its investment in Spain 7.8 times over since 2012, now standing at EUR 1.178 billion.  The food sector is spearheaded by Bimbo, which has invested US$461.5 million, including the construction of its new bread manufacturing plant and its purchase of Panrico, followed closely by Sigma (of Alpha Group), which has invested US$418 million in its purchase of traditional foods brand Campofrío. Just a few months ago, Gruma paid US$50 million for corn and wheat flour trader Mexifoods.

IPC INDEX RISES BY 4.42% IN THE FIRST HALF OF THE YEAR. (EL NORTE 0) (EL HORIZONTE ONLINE 0)

During the first half of 2015, the IPC Index of the Mexican Stock Exchange made a gain of 4.42% to stand at 45,053.70 points. The company that benefitted most during this six-month period was Gruma (GRUMAB), whose share price increased by 20.75 percent from MXN 157.32 per share at the start of 2015 to its current price of MXN 201.97.

SPLIT RETURNS ON THE MEXICAN STOCK EXCHANGE. (REFORMA 1)

Eighteen of the 35 companies in the IPC Index of the Mexican Stock Exchange made gains during the first half of 2015, whereas the other 17 issuers recorded losses. The winners: GRUMAB 28.4% (Share price increase between December 31, 2014, and June 30, 2015).

NEITHER GREECE NOR THE EXCHANGE RATE CAN STOP GRUMA’S RATE OF RETURN (VANGUARDIA 0)

The strong performance of the share price of Gruma, owned by Juan González Moreno, is showing no signs of abating on the Mexican Stock Exchange, despite the financial markets suffering from a blow to the exchange rate and the Greek debt crisis. This comes in the wake of the issuer’s announcement that it will delist from the New York Stock Exchange (NYCE), which analysts say will not affect the ascending share price of the Monterrey company in the Mexican market.

SALES WILL ROCKET, PROFITS WILL FALL (EL ECONOMISTA 2-10)

Despite operating in a highly-volatile environment, analysts predict that companies trading on the Mexican Stock Exchange will report positive results in terms of revenue and profitability, although a fall in net profits is also expected as companies publish their financial reports for the second quarter of 2015. On the other hand, key acquisitions may reap stronger financial results for some companies during this quarter, such as Alsea with its purchase of Vips and Grupo Zena, América Móvil with its incorporation of Telekom Austria, Bimbo with Saputo, Gruma with Spanish firms Mexifoods and Azteca Foods, and Herdez with Nestlé’s ice cream business. Issuers bookmarked to report positive second-quarter sales results and operating profits include Cemex, Arca Continental, Walmart, Liverpool, Gruma, Mega and OMA. According to analysts at Actinver, the trading companies that will report the most attractive financial results over the coming months will be: Alsea, Lamosa, Liverpool, Cemex, Alfa, Gissa, Walmart, Grupo Financiero Interacciones, Gruma and Herdez.

THE BOSSES. (EL FINANCIERO 19)

Torrado’s recipe. New brands and markets, organic growth, operating efficiencies, an aggressive purchasing strategy and a healthy financial structure are the recipe that Alsea has followed to achieve sustained double-figure growth in terms of sales and operations flow over the last five years... And the market has rewarded Alsea’s results and expectations. At MXN 51.49, its share price reached an all-time high on the Mexican Stock Exchange, with a return of 25% so far this year, placing the firm among 2015’s top four biggest winners after Gruma, Liverpool and GAP. Were you invited to the party?

THE FIVE MOST PROMISING FINANCIAL REPORTS OF 2Q15 (EL FINANCIERO 20)

The upturn in consumption, the positive impacts on exporters of the rising cost of the U.S. dollar, the consolidation of new business and, in some cases, generous comparative costs will lead to positive operating results among companies in the IPC Index of the Mexican Stock Exchange in the second quarter of 2015. According to the forecasts of analysts, the five best EBITDAs will be reported by Alsea with growth of 53%, followed by IEnova at 43%, Grupo Aeroportuario del Pacífico (GAP) at 28%, Gruma at 25%, and Grupo Aeroportuario del Sureste (Asur) at 23%. As far as Gruma is concerned, the appreciation of the dollar could benefit the company, due to its significant business in the United States. “A combination of greater sales volumes and higher prices in Mexico, in addition to lower grain costs, could mean greater profitability for Gruma”, said one analyst who asked not to be named.

MUNDO EJECUTIVO EDITORIAL / MEXICANS SPARKLE ABROAD / THE EDITORS (MUNDO EJECUTIVO 1)

With each passing year, Mexican companies are expanding their global presence. Bimbo, Cemex, Omnilife, Carso, GenommaLab, Maseca and Grupo ICA are just some of the companies that have worked impeccably to position themselves in foreign climates. To achieve this, they have implemented strategies aimed at increasing productivity and strengthening their market share in key regions of the United States and Latin America. However, it is still not enough. Many of us would like to see new names succeeding abroad, in countries such as China...

FIFTY WORLD-CLASS MEXICAN COMPANIES (MUNDO EJECUTIVO 46-65)

Mundo Ejecutivo magazine has published a list of 50 world-class Mexican companies, featuring Grupo Industrial Maseca 93.3 (score), 7 (brand ranking), 8 (country ranking)..

CAN MEXICO TAME THE DRAGON?(MUNDO EJECUTIVO 3-102-110)

In the past decade, China has spent US$10 billion on Foreign Direct Investment in Latin America, with US$300 million invested in Mexico, its nearest country in the region, according to the Heritage Foundation. This amount is similar to that invested by Mexican firms in the economy of the Red Dragon. According to a study entitled “Mexican Firms Investing in China”, published by the Inter-American Development Bank (IDB),Gruma, Televisa, Aeroméxico, Katcon, Interceramic, Kuo, Bimbo, Nemak, Omnilife and Softtek have invested US$328.5 million in China over the 2006-2012 period.

PERCENTAGE GROWTH OF THE FOOD SECTOR COULD REACH DOUBLE FIGURES (EL ECONOMISTA 11)

The key financial indicators of issuers such as Bimbo, Gruma, Herdez and Lala could reach double figures in percentage terms, in contrast to bottling companies, which could be the food and drink sector’s stand-outs in the Mexican Stock Exchange... Corn flour producer Gruma could benefit from the strength of the U.S. dollar, in addition to its high sales volume in the United States and higher prices in Mexico. The firm could increase its sales by 13.5% to MXN 13.999 billion in the second quarter of the year, generating profits of MXN 1.151 billion and cash flow of MXN 1.300 billion, which would enable it to reduce its gearing ratio to one.

TRENDS. (EL ECONOMISTA 7) GRUMA.

Analysts monitoring the company agree that the company is expected to achieve growth of 9.7% (MXN 13.534 billion) for the second quarter of 2015, in addition to growth in its EBITDA of 23% (MXN 2.126 billion).

WINNERS AND LOSERS AS THE DOLLAR REACHES 16 MEXICAN PESOS (EL FINANCIERO pp-17)

The 8.5% revaluation of the U.S. dollar against the Mexican peso that has occurred this year, whereby one dollar now costs 16 pesos, could have both positive and negative impacts on companies trading on the Mexican Stock Exchange, depending on whether they export, whether they have nationwide coverage, and whether they have a high “dollar” debt. A study carried out by EL FINANCIERO showed that five of the companies that could lose out through the current exchange rate are Elektra, Televisa, Grupo Carso, Grupo Aeroportuario del Sureste (Asur) and ICA, all of which have a higher dollar debt than dollar revenues. By contrast, firms that could come out as winners due to their high foreign-currency revenues, particularly in dollars, include Mexichem, Peñoles, Genomma Lab, Gruma and Alfa.

BASIC CONSUMPTION AND INDUSTRIAL SECTORS PERFORM BEST. (EL ECONOMISTA 3)

During this earning season on the Mexican Stock Exchange, the best financial results will be observed in the basic consumption and industrial sectors, according to a report by Accival... Based on the consensus expectations, the report mentions that Bimbo will post the largest growth in revenues (16%), with Gruma’s EBITDA increasing by 27% increase, and Walmart’s profits up by 5%.

ISSUERS’ FINANCIAL REPORTS GAIN RELEVANCE(EL FINANCIERO 32)

Wednesday’s trading will provide little information on the economy for decision making. In Mexico, financial reports are expected from Alsea, Cemex,Gruma, and Grupo Aeroportuario del Centro Norte.

MEXICO’S 300 MOST INFLUENTIAL LEADERS / 121-124. (LÍDERES MEXICANOS 196)

Juan González Moreno, CEO and Chairman of the Board of Directors of Gruma and Gimsa. 1998 - Becomes President of Azteca Milling, USA. 2006 - Gruma begins operations in China under the leadership of Juan González Moreno. 2012 - Juan becomes Chairman and CEO of Gruma, initiating a strategic plan to increase cash flow and strengthen the firm’s financial structure. 2013 - Named Business Person of the Year by the Mexican Entrepreneur Association (AEM), USA. His work in heading one of the most successful Mexican multinationals is bearing fruit. In each of the last three years, Gruma has been the most profitable company in the IPC Index of the Mexican Stock Exchange. In 2014, it reported higher net profits than the previous year. Thanks to this growth, it was able to acquire Spanish firm Mexifoods for a sum of US$15 million, and increased investment is forecast in its Russian business, where it is building a new production plant.

TOTAL TRUST. (LÍDERES MEXICANOS 30)

With 65 years’ experience, Gruma has become an institution. The roles of each area are clearly defined and team members are in constant communication with one another. “Trust is built day by day, as we support the decisions each manager takes as part of their remit as we know that decisions are being taken professionally and on a solid basis in order to benefit each of us and the company as a whole. When mistakes are made, they are analyzed to make sure they don’t happen again, but we all lend a hand to ensure we move forward as a group. At Gruma, we have the confidence to make tough decisions, since we know we have a whole team behind us.” Gruma is a socially responsible company that builds towards the total development of the communities where we operate, and these values are also promoted internally with our loyal, professional, transparent, dedicated, persistent and visionary team. “Key decisions are taken as a group and backed up on technical, financial and strategic grounds based on the experience of a specialized team of professional employees with a breadth of knowledge in business and the company’s history.”

MAURICIO FLORES/PEOPLE BEHIND THE MONEY (LA RAZÓN 21)

Thirteen in a row: Gruma, led by Juan González, has seen its EBITDA increase by double figures for the 13th quarter in a row; in the second quarter of this year, this indicator increased by 21%, with net profits of MXN 1.151 billion. Its strong operational drive has helped the multinational to achieve its highest ever return on invested capital (14.5%).

GRUMA’S REVENUE INCREASES BY 16%. (EXCÉLSIOR 1-3) (EL SOL DE MÉXICO 1-2) (LA JORNADA 21) (EL ECONOMISTA pp-1-10-11) (EL FINANCIERO 22) (MILENIO DIARIO 31) (LA RAZÓN 23)  (REFORMA 1) (LA CRÓNICA DE HOY 26)  (EL NORTE 0)  (MILENIO DIARIO DE MONTERREY 0) (NEGOCIOS EN IMAGEN ) (NOTICIAS MVS (NOCTURNO)

Gruma has announced that its sales increased by 16.13% during the second quarter of this year to MXN 14.280 billion, while its sales volume rose by 4% compared to the same period last year. Furthermore, its operating profits increased by 22%: “this growth was driven by the improved performance of all our subsidiaries, in particularly in the United States, as well as greater efficiencies and the positive effects of the depreciation of the Mexican peso”, Gruma stated in its quarterly report. The company reported that its subsidiary Gruma Corporation, whose operations are concentrated abroad, increased its sales volume by 7% thanks to greater demand for corn flour from restaurants in the United States. On the other hand, the sales of its Mexican flour business grew by 4% to MXN 3.933 billion, with its sales volume remaining stable.

TAKING ADVANTAGE OF AN APPETITE FOR TORTILLAS. (EL NORTE 0)

An appetite for tortillas and the growing popularity of corn-based dishes abroad countries, particularly in the United States, have boosted Gruma’s global sales. However, a number of strategies employed by the company have managed to filter into the eating habits of foreign consumers to reverse the trend from April to June this year, as Gruma Corporation’s sales volume increased by 7%.

SPAIN: THE NEW FRONTIER (FORBES MÉXICO 136-142)

Mexico has doubled its investment in Spain and is now the fifth largest investor in the market. The attraction: good prices of assets and signs of recovery in the Spanish economy. For Gruma, Spain represents a gateway into the European market. In the past nine months, the firm has purchased two companies that produce corn tortillas and other Mexican products for the sum of US$60 million, bringing the number of its European plants up to 11.

ALFREDO HUERTA: GRUMA REPORTS 16% GROWTH IN SALES.   (EN LOS TIEMPOS DE LA RADIO )

GRUMA REPORTS INCREASED SALES.   (MILENIO NOTICIAS (08:00 AM to 12:00 PM)

ALBERTO CARRILLO / INSIGHTS WITH SIGNUM RESEARCH. (EL ECONOMISTA 6)

Just over half of companies published their financial reports yesterday and, with the exception of telecommunications firms, we have seen positive results in the consumption, airline and airport, infrastructure and fiber sectors. With approximately 70% of companies having published their reports, results have generally been positive, ranging from good to excellent. Gruma continues to deliver increased sales volumes with greater profitability, due to its focus on products with greater added value such as tortillas, and its profit margins continue to grow as a result.

JULIO PILOTZI/FINANCIAL SPLIT (EL SOL DE MÉXICO 6)

Positive balance sheet. Gruma has confirmed that its sales increased by 16.13% during the second quarter of this year to MXN 14.280 billion. This return was helped by the depreciation of the Mexican peso, the increase of its market share, and its brand consolidation. The company led by Juan González Moreno is consolidating on its expansion with the addition of new customers from the fast food sector and the launch of new tortilla-based meals, which have helped it improve its financial results, crowned by the double-figure growth achieved in the firm’s EBITDA for the 13th consecutive quarter, which is up 21% on the same period in 2014, when it stood at MXN 2.242 billion.

GRUMA BUYS ADDITIONAL GIMSA SHARES(EL NORTE 0) (REFORMA 13) (EL HORIZONTE ONLINE 0)

Gruma today announced its purchase of 18,587,423 Series B Grupo Industrial Maseca (GIMSA) shares priced at $22 pesos each. It explained that the only purpose behind its share purchase was to increase its stake in this subsidiary to generate shareholder value, without announcing any relevant event pending disclosure 

MEXICAN INVESTORS UP COMMITMENT TO SPAIN. (EL PAÍS 15) (LA CRÓNICA DE HOY 23)

Cinemas, sausage, bread, buses, malls, banks, construction companies, media, real estate ... Hardly any industries in Spain can resist Mexican capital. Spain has seen a spate of investments by the great fortunes of this country in Latin America. The recent purchase of Panrico by Bimbo or Yelmo, the second largest chain of cinemas in Spain, by Cinépolis represent the most recent deals closed, although the experts consulted do not believe they will be the last. The Mexican conquest is spreading across all sectors ... Gruma, one of the world's leading corn tortilla manufacturers, purchased Mexifoods

TRENDS (EL ECONOMISTA 7)

GRUMA The corn processor and marketer's Q215 net income soars 16% to $14.279 billion pesos, driven by Gruma Corporation and operations in the U.S. and Europe during the year’s second semester. 

THEY EAT THEM BECAUSE OF THE BRAND. (REFORMA 2)

Brand is what matters most when it comes to food and beverages. On average, 38% of a company's value in any industry is represented by the brand, said Interbrand consultant Fernando Barrenechea. However, brands in the food industry become even more important to stand at 40% while beverage brands are valued at up to 50%. Table: The most desirable. The list of most valuable food and beverage brands is led by a beer brand that is well-known across the globe. TheMasecabrandis valued at US $115 million. 

THE FOOD & BEVERAGE INDUSTRY HAS NOT BEEN ABLE TO CIRCUMVENT THE STRONG WINDS. (EL ECONOMISTA 8-9)  

The food and beverage industry on the Mexican Stock Exchange was affected by a strong dollar against different global currencies in the first half of 2015, by jointly recording $4.805 billion pesos in losses due to foreign exchange and the use of derivatives despite reporting $3.101 billion pesos in profits. Companies that benefited from U.S. dollar or euro revenues through June this year were: Bachoco, reporting $145 million pesos in earnings based on the U.S. dollar and the use of derivatives, and Gruma with $98 million pesos, breadmaker Bimbo with $34 million, and bottler Arca Continental with $5 million pesos... 

PROMÉXICO IS LOOKING TO ATTRACT PARTS SUPPLIERS FROM AUSTRALIA (MILENIO DIARIO MONTERREY 0)

The new ProMéxico office in Australia will look to bring trade missions to invest in Mexico, given its extensive auto part supplier network, coupled with the fact that this is not the best moment for the Australian automotive industry, said Oceania CMO Esau Garza de Vega...”They are working on setting up a trade mission to take Mexican entrepreneurs to Australia to get a feel for business opportunities both in Australia and in the TPP countries while also inviting the Australian business community to visit Mexico.” Gruma and Metalsa have factories in Australia and Oceania