June 1

ALBERTO AGUILAR / NAMES, NAMES, AND ... NAMES. (EL ECONOMISTA 25) (EL ECONOMISTA ONLINE 0)

Last week, I told you about the efforts Mexico is making to sign a Free Trade Agreement with Ecuador, as well as some points that concern the private sector because of the pressure exercised by the federal government ... This is the second round of negotiations in an effort that began in 2019, led by the Secretariat of the Economy directed by Graciela Márquez ... The Under-Secretariat of Foreign Trade led by Luz María de la Mora is leading the negotiations and has clearly stated that Mexico will only sign the treaty with Ecuador if it obtains a consensus on the subject matter from the private sector… Beyond those statements made, the negotiators are also paying special attention to investors, especially the Mexican companies that have a presence in Ecuador, such as Femsa, Maseca run by Juan González, América Móvil, Cemex, and Bimbo.

June 3

MEXICAN COMPANIES CREATED THE FIRST VENTILATOR TO TREAT COVID-19 IN MEXICO (MILENIO ONLINE 0)

Metalsa reported that it began manufacturing 500 intensive care unit (ICU) ventilators this week to treat patients with COVID-19. They will be distributed by the Mexican Health Institute for Well-Being (INSABI, acronym in Spanish) to all medical centers in Mexico. The company explained that it worked on a strategy in coordination with ten Monterrey-based companies to design, coordinate, and assemble a VSZ-20 ventilator. For 45 days, biomedical engineers from the Salvador Zubirán National Institute of Medical Sciences and Nutrition and the Tec de Monterrey worked with engineers at Metalsa and other companies such as Cemex, Alfa, Xignux, Cydsa, Frisa, Ternium, Bocar, Vitro, Torey, and Gruma, to make a ventilator for USD 10,000. All ventilator parts will be produced and supplied within Mexico to ensure there are no shortages ...

June 5

THE TOP EMPLOYERS IN MEXICO. (MUNDO EJECUTIVO 68-73)

Today, the focus of world economic policy is on employment. Many people have lost their jobs because of the pandemic, with close to one million jobs lost in Mexico alone. Since this is a fundamental factor for the development of any country, it is a variable that must be analyzed, which is why Mundo Ejecutivo has highlighted the 50 private companies that have created the largest number of jobs nationwide. Gruma appears as number 22 in the general ranking, placing 25^th in best labor practices, 11^th in promotions per employee, 7^th in profitability per employee, and 31^st in the number of employees.

June 8

TRENDS. (EL ECONOMISTA 21) (EL ECONOMISTA ONLINE 0)

GRUMA. The shares of the flour and tortilla producer Gruma closed last week on the Mexican Stock Exchange with a 0.86% increase to MXN 221.98 per share, equal to MXN 770.43 million in market capitalization gains.

GRUMA, A SOLID COMPANY THAT WILL PAY DIVIDENDS TO ITS SHAREHOLDERS. (MILENIO ONLINE 0)

Specialists reported that the Gruma forecast for growth in sales, revenues, and profits position the company as one of the few issuers that can pay dividends to its shareholders this year, without affecting its financial structure. Amid the health emergency due to the COVID-19 pandemic that is causing a global economic recession, the company run by Juan González Moreno maintains its solid financial structure. Simultaneously, its growth and profitability forecasts have also improved because it is a company in the food sector that is resistant to economic crises, said Luis Alvarado, a capital markets specialist at BancoBase. One of the main reasons why companies pay dividends is to attract investors. Investors are attracted to companies that can have the solidity and stability required to share their profits with their shareholders. Along the same lines, Grupo Financiero Monex analysts predict that by 2020, Gruma could report a 10.0% and 14.0% growth in revenues and EBITDA, respectively, up from the 4.0% and 5.0% reported in the past... 

June 10

IPC COMPANIES OPT FOR BANKING ACTIVITIES INSTEAD OF TRADING ON THE STOCK EXCHANGE. (EL ECONOMISTA 19)  (EL ECONOMISTA ONLINE 0)

Nearly 65% of the companies listed on the main Mexican Stock Exchange (BMV) index, the S&P/BMV IPC (the quotes and prices index), have used their available bank credit lines. Others have expressed their intention to do so if necessary, to preserve their liquidity in order to meet their financial obligations and face the economic pressures caused by the COVID-19 pandemic. Gruma, the corn flour producer, mentioned that its liquidity is ensured with the generation of cash flow and the bank credit lines it could use if necessary.

June 11

HOW DOES THE BANKRUPTCY PROTECTION PROCESS FUNCTION IN SPAIN? (LA VERDAD ONLINE (SONORA) 0)  

Spain is the ideal market for Mexican companies aiming to leap to internationalization in Europe. The close cultural ties that unite Mexico with Spain and the many family ties between Mexican and Spanish citizens make this first leap to the Old Continent possible thanks to a shared language. Pemex, Cemex, GRUMA, Bimbo, Corporación Masaveu, Cinépolis, and Grupo México are some of the Mexican companies and business groups that have a presence in Spain, the second-largest trade partner of the Aztec country in the European Union.

June 15

THEY REPORT BETTER RETURNS FROM THE SIC. (EL ECONOMISTA 23)  (EL ECONOMISTA ONLINE 0)  

Although local firms listed on the Mexican Stock Exchange (BMV, acronym in Spanish) have reported moderate returns, investors have access to the BMV’s International Quotation System (SIC, acronym in Spanish) and foreign companies that have shown great resilience during the adverse environment created by the COVID-19 pandemic. The global markets available through the Mexican Stock Exchange allow local investors to participate in the negotiation of international securities without having to operate in accounts abroad, ensuring access to a diversified portfolio, both in sectoral and geographic specificities and in several currencies. The S&P/BMV IPC has experienced a 15.30% contraction. The company reporting the highest yields in this sample is Gruma, with 16.67% growth.

MASECA REITERATES ITS SOCIAL COMMITMENT TO MEXICANS. (VANGUARDIA MX ONLINE (COAHUILA) 0) (OMNIA ONLINE (CHIHUAHUA) 0)

Faced with the health contingency caused by the COVID-19 coronavirus, hundreds of companies have expressed their empathy and social commitment to Mexicans through a variety of initiatives implemented to support the neediest communities, the health care sector, and the population, in general, in the different states nationwide. One such case is the Maseca Group (Gruma), the Mexican company led by Juan González Moreno engaged in the production of corn flour, tortillas, and wraps worldwide that has implemented several initiatives to support different groups in Mexico and the world during the current situation.

June 16

THE PLUS SIDE OF BEING AN ELITE. (EXPANSIÓN 34)

Traditionally, belonging to a club allows members to obtain special benefits, and the more select the group, the greater the benefits. In the Mexican stock market, the crème de la crème of companies is listed on the S&P/BMV IPC, the Mexican Stock Exchange’s quotes and prices index. This index comprises the 35 companies reporting the strongest trading activities out of 145 companies listed on the Stock Exchange. It includes América Móvil, FEMSA, Cemex, Bimbo, Walmart, Elektra, Banorte, and Televisa. For an even more select group, one would need to invest close to MXN 3,200 to buy one share of 15 of the 35 companies listed on the S&P/BMV IPC: Gruma placed third in this ranking with MXN 222 per share.

June 19

CHARITY SHINES IN OXKUTZCAB AFTER TROPICAL STORM CRISTÓBAL. (DIARIO DE YUCATÁN ONLINE 0)

The generosity seen after Tropical Storm Cristóbal continues to reach the families affected by the storm. Last Monday, families received donations of nearly 150 kilos of tortillas from the Secretariat of Rural Development and Maseca,as they continue to provide food support. On Wednesday, the Municipal office of the National System for Comprehensive Family Development (DIF, acronym in Spanish) delivered 100 food baskets to families affected by the health contingency and the flooding exacerbated by Tropical Storm Cristóbal across the region.

June 22

INSTITUTE OF FOREST RESEARCH IN PURSUIT OF PUBLIC-PRIVATE PARTNERSHIPS ON BEHALF OF THE MEXICAN FARMLAND. (EL FINANCIERO ONLINE 0) (MILENIO ONLINE 0)

Amid the financial uncertainty felt in Mexico, due to the health emergency caused by the COVID-19 pandemic, the National Institute of Forestry, Agricultural, and Livestock Research (INIFAP) could start to look for funds in the private sector by entering into strategic alliances to finance its projects on behalf of the Mexican farmland. The INIFAP is already targeting certain companies in the country’s agri-food industry that it could approach to enter into a strategic alliance, including Maseca Group (Gruma), the Mexican company leading the production of corn flour, tortillas, and wraps worldwide, and Bimbo, the main bakery in Mexico, as these companies are known for participating in activities to support and train Mexican corn and wheat producers. In the case of Gruma, it would not be the first time that it has collaborated with a public institution on behalf of the Mexican farmland.

GRUMA, QUÁLITAS, AND VESTA DEBUT IN PROFITABLE IPC. (EL ECONOMISTA 22) (EL ECONOMISTA ONLINE 0)

Gruma, Quálitas, and Inmobiliaria Vesta join the profitable S&P/BMV Prices & Quotations Index (IPC) starting this Monday after the change made to a sample of companies listed on the Mexican Stock Exchange index. The indicator was created in June 2017 and includes up to 20 issuers. On April 24, Gruma, the corn flour producer with a presence in more than 112 countries worldwide, approved cash dividends in the amount of MXN 5.64 per share to be distributed in four payments of MXN 1.41 each ...

June 26

GROCERY SALES SUFFER IN MAY; SALES VOLUMES DROP 11.9%. (EL FINANCIERO ONLINE 0)

“May was not a good month. The health and economic crisis has hit grocery sales. We grew only 3.6% in value, with an 11.9% drop in volume,” said Iñaki Landáburu Llaguno, executive president of the National Association of Wholesale Grocers (ANAM). ANAM comprises 140 retailers such as La Europea, La Castellana, Bodegas Alianza, and Zorro Abarrotero, which indicated that the brands that grew the most were DUMSA with its 49.7% increase, followed by Maseca with 43.9 growth, and Zucarmex with its 20.3% increase.