JULY 2

GRUMA NAMES LEGAL DIRECTOR. (EL FINANCIERO 36) (EL ECONOMISTA 2) (MILENIO DIARIO 40) Gruma announced that Rodrigo Martínez Villarreal will be the head of the Company’s Corporate Legal Department, replacing Salvador Vargas Guajardo, who will be retiring. The change will be effective from June 30. “Rodrigo Martínez Villarreal, as Gruma’s Corporate Legal Director, will report to Juan González Moreno, Gruma’s Chair of the Board of Directors and CEO,” the company explained in a statement to the Mexican Stock Exchange (BMV).

THE FIVE BMV COMPANIES THAT WON AND FIVE THAT LOST IN Q218. (EL FINANCIERO 34) (EL ECONOMISTA 7) The second quarter of 2018 is now over, and it was one of the most volatile and risk-averse in recent years for Mexican financial markets. The five most successful companies in the sample of the 35 that comprise the S&P/BMV/IPC were: Gentera with 32.5%, followed by Grupo Televisa with 30.3%, Alpek with 17.0%, Grupo Aeroportuario del Centro-Norte (OMA) with 16.8%, and Gruma with 16.5%. In the case of the multinational Gruma, Marisol Huerta, analyst at the Multiva Brokerage House, attributed the recovery to good performance in their sales volumes, in the United States as well as Europe. 

JULY 3

JUAN GONZÁLEZ MORENO’S GRUMA, MEXICO’S SECOND LARGEST GLOBAL COMPANY Enfoquenoticias.com.mx/noticias/ Due to its size, sales volume, and capacity for job creation, Gruma, the Mexican company headed by Juan González Moreno, outperforms its rival transnational food companies currently operating in Mexico, according to the latest rankings published by Expansión.

JULY 4

COUNTRY’S BUSINESSES, RESILIENT IN THE FACE OF CHANGE. (EXCÉLSIOR 2) Faced with the change to a new presidential administration and other challenges such as the U.S. trade war and the lack of a renegotiated NAFTA, Mexican companies are prepared. According to José Antonio Cebeira, analyst at Grupo Financiero Actinver, some companies are more defensive than others when faced with periods of uncertainty such as that we are currently witnessing. “What I have discussed with foreign and domestic investors is that we make sure that, regardless of what happens and what direction policy takes, consumption overall will benefit. We do not foresee any negative impact on Arca, Gruma, Lala, Herdez, KOF, FEMSA, Bimbo, Bachoco, Cuervo, or Kuo; on the contrary, we believe that they will be among the big winners under the new administration.”

ROBERTO AGUILAR / CORPORATE MOMENT. (EL SOL DE MÉXICO 21) The BMV’s most defensive portfolios... After the elections, Santander, headed by Hector Grisi in Mexico, stepped up its domestic positions in its Latin America strategy, while at the same time reducing those in Brazil. In addition, in its model portfolio of the region it held onto to its shares in Carlos Hank González’s Grupo Financiero Banorte and Fernando González’s Cemex, while replacing its shares in Carlos Ruiz Sacristán’s Ienova for certificates in Gruma, the company headed by Juan González Moreno.

JULY 10

JUAN GONZÁLEZ’S GRUMA FIGURES AS ONE OF BMV’S TOP FIVE. Sdpnoticias.com/economia/2018/07/09/ Mexican company Gruma, world leader in the production of corn flour and tortillas, figured among the five issuing companies with the highest earnings in the Mexican Stock Exchange (BMV) in Q218. According data from the securities exchange, Gruma’s certificates closed on June 29 at MXN 242.56 per share. This constitutes a share price increase of 16.5% during this year’s second quarter.

JULY 11

LATIN AMERICA’S TOP 500 COMPANIES. (MUNDO EJECUTIVO 42-53) And against all odds, the Latin American region continues to be a hub of economic development. Since 2017 the International Monetary Fund has been optimistic in the region’s economic outlook. This optimism is due to the improvement of economic activity in developed countries. However, Trump’s arrival to the White House has put the region’s economic development at risk, due to the president’s opposition to international trade, and Latin America is no exception. The magazineMundo Ejecutivo has published a ranking of the “500 Top Companies in Latin America.” This ranking considers both public and privately-owned businesses listed on stock markets in the following countries: Argentina, Brazil, Chile, Colombia, Mexico, Panama and Peru. Gruma is ranked number 100.  

JULY 13

TABLE: INDEX OF WEALTH AND POWER/ WINNERS/ LOSERS. (FORBES MÉXICO 16) Winners. Juan Antonio González Moreno. Gruma MXN 99.004 billion +8.0%. Due to its positioning in relation to consumers in the United States and advance in market share in Europe and Asia, solid results are predicted forGruma this year. Additionally, it is protected from the volatility of the exchange rate (54% of its income is in U.S. dollars.)

TABLE: INDEX OF WEALTH AND POWER/  BUY/ MAINTAIN/ SELL.) (FORBES MÉXICO 17) Buy. Gruma. It is one of the firms with the highest level of revenues and cash flows from abroad. This makes it a company capable of withstanding volatility of the exchange rate and NAFTA. It has benefited from the increase in sales of wraps and tortilla chips, which are the most widely consumed Mexican food products in the U.S. and Europe.

JULY 19

BANORTE DONATES 100 HOUSES TO COMMUNITIES AFFECTED BY SEPTEMBER 19 EARTHQUAKE. (LA CRÓNICA DE HOY 21) (IMAGEN INFORMATIVA (NOCTURNO) (EVENING HEADLINES) Grupo Financiero Banorte delivered the 100th house in their “Banorte Adopts a Community” Program to the town of Santa Cruz Cuautomatitla in Puebla, as part of the support for victims of the earthquakes last September that destroyed about 200 houses in that community. Carlos Hank recalled that after the earthquakes, Banorte raised MXN 30 million in donations from its customers and employees, a figure that Banorte increased fivefold, to make a final total of MXN 170 million. These resources will be used over a three-year period, during which time it is hoped to reach its goal of building 600 homes in nine communities and bringing medical and nutritional services to the villages via strategic alliances with Fucam, Maseca and the Museum of San Carlos.

JULY 21

BOSCO DE LA VEGA (ENFOQUE FINANCIERO) Bosco de la Vega, President of the National Agricultural Council: An event was held today at the Australian Embassy in honor of the arrival of Minister of Agriculture. He was joined by the ambassador, Dr. Víctor Villalobos, as well as yours truly. Also present were representatives from the International Maize and Wheat Improvement Center (CIMMYT), Gruma, and the National Service for Agroalimentary Public Health (Senasica). They were there to discuss how Australia and Mexico were able to build a close relationship within the TPP negotiations. It really was very fortunate that representatives from the current government, Dr. Sánchez Cruz, Dr. Víctor Villalobos from the new cabinet, private sector representatives, as well as our Australian hosts were all able to converse together on this matter. We were all speaking the same language, the language of building on the foundations that are already present in Mexico and it was, therefore, a very positive meeting indeed.

JULY 24

JUAN GONZÁLEZ MORENO, AMONG THE 50 MOST PROMINENT ENTREPRENEURS IN MEXICO. (MILENIO DIARIO DE MONTERREY 0) The growth of a country can be largely explained by the growth of its companies, and behind successful companies are outstanding entrepreneurs and visionaries, such as Juan González Moreno, described by Mundo Ejecutivo magazine as ranking among 50 entrepreneurs responsible for driving economic growth in Mexico. The list released by the magazine consists of those Mexican entrepreneurs who in the last 10 years have been able to generate sustained growth in their companies, both in terms of income, profitability, and earnings. Mundo Ejecutivo describes how Juan González Moreno, who heads Gruma, a leading company in the production of corn flour, tortillas and wraps worldwide, recorded total revenues of USD 3.589 billion at the end of 2017, a feat that earned the entrepreneur 17th place on the list. 

JULY 25

MARKET ANALYSTS EXPECT ANOTHER RECORD-BREAKING QUARTER FOR GRUMA’S ACCOUNTS. Economiahoy.mx/mercados-eAm-mexico/ This year could see record-breaking numbers from Gruma. Analyst forecasts for both sales and net income also suggest the likelihood of this outcome. According to estimates offered by Bloomberg, company profit will reach MXN 1.696 billion, a figure never before seen during the issuing company’s second quarter and which represents an increase of 18% over the previous year’s second quarter. Another record could be set during between the months of April and June if the expected sales figure of MXN 18.3 billion is reached. This amount is 5% higher than that obtained during the second quarter of 2017.

JULY 26

MEXICO’S 300 MOST INFLUENTIAL LEADERS/ 125-144. (LÍDERES MEXICANOS 220-229) Juan Antonio González Moreno,President of the Board of Directors and CEO of Gruma and Gimsa. In May, González Moreno signed an agreement with the International Maize and Wheat Improvement Center (CIMMYT) designed to boost productivity in the Mexico’s rural economy. Gruma will contribute USD 872,000 over three years, equivalent to USD 290,000 for research and development per year. During the second semester of the year and at beginning of 2019, Gruma will pay dividends to its shareholders and increase its buyback fund, thereby gaining more resources to buy its own shares when it deems doing so advantageous.

MEXICO’S 300 MOST INFLUENTIAL LEADERS/ 145-164. (LÍDERES MEXICANOS 236-245) Carlos Hank González. President of Grupo Financiero Banorte, Vice President of Gruma, and CEO of Grupo Hermes. Hank González stressed the financial institution’s commitment to conform to global best practices, an example, he said, of the work done at Banorte to protect the interests of shareholders, customers, employees, suppliers, and communities.

GRUMA INCREASES CASH FLOW BY 9%. (EL NORTE 1 Business) (EL HERALDO DE MÉXICO 33) (EL FINANCIERO 20) (REFORMA 3) (LA JORNADA 22) (EXCÉLSIOR 9)(NOTICIAS MVS (NOCTURNO) The weakness of the Peso combined with a 2% volume increase resulted in a 9% increase in Gruma’s cash operating flow (EBITDA) during the second quarter of the year, an increase of MXN 3.97 billion compared to a similar period in 2017. Benefits obtained from the exchange rate, as detailed in its report to the BMV, constituted around 40% of the consolidated increase in EBITDA. During the quarter, sales revenue reached MXN 18.942 billion, an increase of 9% driven by higher sales volume in the United States, Mexico, and Central America, which in turn offset the 18% drop in Europe. Volume and operating flow in the United States rose 3% and 6% respectively, due to increased sales of corn flour.

CORPORATE AFFAIRS. (LA CRÓNICA DE HOY 22) Gruma announced its operations results at the end of the second quarter of the year (Q218), highlighted by increases in sales in all its operations and EBITDA, whose margin improved by a factor of 10 basis points. At the end of Q218, Sales Volume was 1,029 metric tons, 2% higher than that reported during the same period in 2017. This growth was mainly driven by Grupo Industrial Maseca (GIMSA) in Mexico and Gruma U.S. The leading company worldwide in the production of corn flour, tortillas and wraps saw an increase in its net sales of 9% compared to the same quarter of 2017. Net sales reached MXN 18.942 billion…

JULY 27

AMLO MAKES PACT WITH GRUPO MONTERREY, INVESTMENT, AND EMPLOYMENT. (MILENIO DIARIO PP-6) Headline Article (REFORMA PP-5) (EL NORTE (ON LINE) 0) (EL UNIVERSAL 6) (LA JORNADA PP-7) (EXCÉLSIOR 6)(MILENIO NOTICIAS (21:00 A 21:30) President-Elect Andrés Manuel López Obrador met with 12 businessmen who make up the Grupo Monterrey and who lead some of the largest companies in the country, with whom he agreed to join and generate “a machinery” to spur the economic growth of Mexico. López Obrador invited the entrepreneurs to help him evaluate high-impact projects, as he needs their experience and frankness. Attendees included Eduardo Garza T., founder and president of the Frisa group; Juan González, President of Maseca; Juan Garza Herrera, President of the Nueva León Chamber of the Manufacturing Industry (Caintra); Tomás González Sada, President of Grupo Cydsa, and Adrián Sada, Executive Director of Vitro. 

GRUMA’S SALES REACH MXN 18.942 BILLION (MILENIO NOTICIAS (08:00 A 10:00) (EN LOS TIEMPOS DE LA RADIO) (MILENIO NOTICIAS (10:00 A 12:00) (ENFOQUE (VESPERTINO)Blanca Garza: Gruma’s sales in the second quarter of the year reached MXN 18.942 billion, representing a 9% increase. This increase is driven by the progress of its subsidiaries. In its financial report, the company reported that it sold 29 metric tons during that period, 2% higher than that reported in the same period of 2017, an increase due primarily to the Grupo Industrial Maseca in Mexico,and Gruma United States. It also indicated that its operating flow grew 9%, reaching MXN 3.097 billion.

JULY 28

LATIN AMERICA’S TOP 500 BUSINESSES. (EXPANSIÓN 86-99) (EXPANSIÓN 100-111) The economies of Latin America ended 2017 with an overall GDP increase of 1.3%, its first increase after two years of recession and four years of deceleration.Grumaoccupies position 161 in the rankings, while the Grupo Industrial Maseca ranked 499.

JULY 30

TRENDS. (EL ECONOMISTA p. 7) GRUMA. In its quarterly report, the company stated that second quarter sales reached MXN 18.942 billion, an increase of 9% driven by the progress of its subsidiaries. It also indicated that its operating flow was up 9%, reaching MXN 3.097 billion, with a margin of 16.4%. This quarter, Gruma made capital investments of USD 55 million, which were distributed in Mexico for the tortilla plant in Puebla and towards making technological improvements in all GIMSA plants.