ANALYSTS EXPECTED POOR CORPORATE REPORTS (EL ECONOMISTA 13)

The results of the Q4 2013 corporate reporting season showed that Gruma and Alsea did best during the period while companies in the financial sector were more defensive. “Gruma is one of the specific cases of the companies listed on the Mexican Stock Exchange whose indicator earnings grew by 33% before interest, taxes, depreciation, and amortization (EBITDA),” said Carlos González, director of Monex Analysis...Gruma performed well in terms of administrative management, the lower price of corn, and its operating strategy, and because it has focused on products with a higher value,” he added.

BUILDERS LEAD THE BMV ELITE’S REPORTING IN Q413 (EL FINANCIERO 38)

Companies listed in the BMV Index of Price and Quotations as the fastest growing in terms of operating cash flow (EBITDA) in the last quarter of 2013 are listed as follows: ICA, with 401%; followed by OHL Mexico with an 80% increase; Gruma, witha33% rise; Pinfra, with 29%; and Alsea, with a 28% increase.

TRENDS AND SIGNS (EL ECONOMISTA 7)  

GRUMA. The corn flour processor reported a 2.1 billion peso profit during Q4 2013, compared to the 327 million pesos reported for the same period in 2012.

MONTERREY INDEX REFLECTS A STRONGER PROFITABILITY THAN THE STOCK MARKET INDEX SO FAR THIS YEAR  (EL ECONOMISTA 2-10)  

An analysis by Monex reveals that so far this year, the Monterrey Index has fallen 7.6% against the 9.2% drop reported by the BMV Index of Prices and Quotations. Monex added that the Monterrey Index companies exhibiting the highest yields in 2014 are Cydsa, Cemex, and Gruma, with 14.2%, 13% and 5.7% increases, respectively... 

PORTFOLIO/GRUMA PREPARES TO BUILD NEW PLANTS (REFORMA 1) (EL NORTE)  

As part of its US $165 million investment, Gruma announced that it will build four plants this year, one in Tijuana and another in Monterrey, and one in Russia with another one in Malaysia. In a conference call with financial analysts, the company explained that they will build one production unit in Mexicali to support its tortilla business in Los Angeles, California.

S&P INCREASES GRUMA’S RATING  (EXCÉLSIOR 3)  

Standard & Poor’s (S&P) raised its ratings for Gruma from BB to BB+, based on the company’s performance and improved financial policy. The agency considered the fact that the company has eased its financial policy in recent years and focused on reducing its debt and improving its profitability, especially after it bought the stake Archer Daniels Midland held in the company. This year, S&P expects the company’s sales volume to grow between 1% and 2%, thanks to the economic and population growth of the countries where it operates. However, this growth will be offset by falling prices in Mexico and the U.S. Nonetheless, revenue growth will stabilize in 2015, mainly due to higher sales volumes in Mexico. The company could also complete small acquisitions without the need for significant additional external financing.

ACTIONS AND REACTIONS (EL ECONOMISTA 2)

Checkmark for Gruma. Yesterday, the Standard & Poor’s Mexico ratings agency led by Victor Herrera, raised Gruma’s ratings from BB to BB+, reflecting the company’s improved performance and financial policy. Herrera said the rating was raised becauseGruma’s moderate financial policy is evidenced through its approach to reduce debt and improve profitability, resulting in better financial indicators than those expected at the end of last year. S&P approves the fact that Gruma maintains its commitment to reduce its debt while improving its profitability.

IRASEMA ANDRÉS DAGNINI/CLEAR ACCOUNTS (LA RAZÓN 18)

S&P raises Gruma’s rating. S&P upgraded Gruma’s debt rating to BB+ from BB, based on the company’s improved financial policy performance. It kept its perpetual bonds recovery rating unchanged at three. The agency noted in a statement to investors that the company’s debt reduction policy has improved its profitability and that its business risk profile is “satisfactory” reflecting the “medium risk” of agribusiness and food commodities and the “intermediate” country risk rating, through its diversity of operations (in Mexico, the United States, Europe, Asia, Central America, and Oceania). The company is expected to reach a ratio of 2.0 times (x) if it maintains its leverage objectives. GRUMAB stock maintains its “buy” recommendation with a $130 peso target price at the close of 2014.

STANDARD & POOR’S ANNOUNCED THAT IT RAISED ITS RATING FOR GRUMA (ENFOQUE EVENING EDITION)  

Martin Carmona: Standard & Poor’s announced today that it raised its rating for Gruma, based on its improved performance and financial policy. The Standard & Poor’s announcement says it raised Gruma’s debt rating from BB to BB+, while its recovery rating remains unchanged at three. The stable outlook reflects the expectation that Gruma will continue to reduce its debt and improve its profitability while maintaining its financial policy and growth strategy aligned with expectations. Gruma, a company with a global reach,has operations in several countries and sound finances.

STANDARD & POOR’S RAISES GRUMA’S DEBT RATING  (MVS EVENING NEWS)  

Ezra Shabot: Standard & Poor’s raised Gruma’s debt rating with a stable outlook on a global debt scale to BB+ up from BB. The ratings agency noted that this stable outlook reflects expectations that Gruma will continue to reduce its debt and improve its profitability.

ONLY 19 BIG COMPANIES EARNED 73.86 BILLION PESOS DURING THE LAST THREE MONTHS OF 2013 (LA JORNADA 30)  

Despite the overall weakness of the national economy in 2013, financial reports submitted to the stock market revealed that 19 large corporations listed on the Mexican Stock Exchange (BMV) obtained 73.86 billion pesos in earnings during the last three months of last year... Bimbo recorded a jump of 621.5%, Gruma grew 541.3%, and fast food chain Alsea was up 108.3%.

GRUMA TO BUILD FOUR NEW TORTILLA PRODCUTION PLANTS (MILENIO NOTICIAS (10:00 PM to 10:30 PM)  

Barbara Anderson: Distant tortillas – this is the name we can give this story, because Gruma announced that it will build four new plants, two in Mexico and two abroad. The two plants in Mexico will be built in Tijuana and Monterrey, while the two plants abroad will be built in Russia and Malaysia. These projects will use up a great deal of the US $165 million earmarked for investment in 2014. The company also plans to expand its production unit in Mexicali, to better meet the increasing demands of the Los Angeles market… 

SHOWCASING MONTERREY ON THE GLOBAL STAGE  (EL NORTE 0)  

A group of 33 business and academic organizations comprising the “Monterrey Investment Outreach” initiative will go to New York to talk about the benefits Monterrey can offer the world. Monterrey will be presented as a great investment destination, in an effort to counter its negative image triggered by the wave of insecurity. Alberto Santos Boesch, the Empresas Santos CEO and representative of the 33 organizations promoting the “Monterrey Investment Outreach” Initiative, said the campaign will enter its second phase on March 18^th and 19^th. Governor Rodrigo Medina will attend the event as a guest only, and Secretary Economy Ildefonso Guajardo will present the different topics, followed by businessmen such as Raúl Gutiérrez Muguerza from Deacero, Maximo Vedoya from Ternium Mexico, Eduardo Livas from Gruma, Juan Ignacio Garza Herrera from Xignux, and Tomas Milmo, from Axtel ... 

GRUMA IS GIVEN A GOOD GRADE (EL NORTE 0)  

Standard & Poor’s raised its Gruma rating from BB to BB+ with a stable outlook, due to the moderate financial policy that allowed Grupo Maseca to reduce its debt and improve its profitability.

TEASER / DURING RADIO TIMES (EN LOS TIEMPOS DE LA RADIO)  

Juan Manuel de Anda: Standard & Poor’s raised its rating for Grupo Maseca from BB to BB+ with a stable outlook, due to the moderate financial policy that allowedGrupo Maseca to reduce its debt and improve its profitability.

ONLY SEVEN STOCKS ESCAPE THE WAVE OF RED NUMBERS (EL FINANCIERO 17)  

Of the 35 companies that make up the Index of Price and Quotations (stock market index) of the Mexican Stock Exchange (BMV), only seven have remained unscathed so far this year. The only defensive stocks on the Mexican stock market are Lenova (+10.98%) Promotora y Operadora de Infraestructura (+10.84%), Cemex (+9.97%),Gruma(+7.83%), Televisa (+5.24%), OHL Mexico (+3.05%), and Grupo Aeroportuario del Pacífico (+0.49%)...

ALFA, AC, and BANORTE CONTINUE TO SUFFER DROPS ON THE STOCK EXCHANGE. (MILENIO DIARIO DE MONTERREY 0)  

The Index of Prices and Quotations (stock market index) of the Mexican Stock Exchange (BMV) registered a 9.54% drop so far this year, hitting companies from Monterrey the hardest. In contrast, Gruma has positioned itself as a “little star” during this downturn with its 8.35% growth, or has at least defended itself better than the stock market index, according to figures from the Mexican Stock Exchange. 

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

Since March 2013, we have said that according to the behavior of key economic variables, such as investment, industrial production, employment, and exports, the Mexican economy faces recession conditions and has not shown any signs of recovering...Gruma and Minsa are the world’s largest producer of corn flour and tortillas, and the second largest producer of corn flour, respectively. Gruma has demonstrated its strong performance by increasing its shares in other markets and the profitability of its portfolio. So far this year, its share prices have yielded +10% compared to the -8.5% loss suffered by the stock market index... 

TRENDS AND SIGNS. (EL ECONOMISTA 7)

GRUMA. According to Signum Research, Gruma has demonstrated high performance by increasing its shares in other markets and the profitability of its portfolio. Its stock has risen 8.1% so far this year.

RISING GRAIN COSTS HAVE NOT AFFECTED THE BIG COMPANIES (EL ECONOMISTA 9)

In the short term, the rise in prices of grains such as wheat and corn is not predicted to have a significant impact on companies such as Gruma, Bachoco, and Bimbo, which are major consumers of these grains. José María Flores, an analyst at Banco Ve por Más (Bx+), says this is due to contracts they had agreed to in advance, as well as the economic savings achieved last year due to the low prices of certain products, such as corn. However, production costs could increase if the international markets maintain their volatility, which would be reflected in the second half of the year. In its financial report for Q4 2013, Gruma reported an operating cash flow of 1.8 billion pesos for a 34% increase compared to the same period in 2012. This increase was mainly related to the low price of corn, which fell 34.8% in 2013 from US $6.90 to US $4.50 per bushel, the expert revealed…

MONTERREY COMPANIES HEAD TO NY (EL NORTE 0)  

The “Monterrey Investment Outreach” starts today in New York. This is an event in which 33 Monterrey companies will present the benefits their city offers as a destination worthy of investment. Notably, Juan Ignacio Garza Herrera from Xignux, Tomas Milmo Santos from Axtel, Eduardo Livas from Gruma, Jaime Parada from the Institute of Innovation and Technology Transfer, and Francisco González from ProMéxico will participate in the event... 

EXCELLENT RESULTS BY THE GRUMA MANAGEMENT TEAM HEADED BY JUAN GONZÁLEZ (MEXICONEWSWEEK.COM/ELPONIENTE.COM.MX)

After taking office as President and CEO of Gruma,Juan González Morenoand the Management Committee have been surprised by the company’s excellent results producing a 150% increase in the value of its shares. The company recently released the results it obtained at the close of the fourth quarter of 2013. These results show that its EBITDA debt fell from 4.41 to 2.51, as compared to December 2012, thereby exceeding its goals set for December 2013 three times over... Standard & Poor’s increased Gruma’s rating from BB to BB+, while keeping its bond recovery rate at three. It should be noted that the Management Committee, headed by Juan González Moreno and comprised of Carlos Hank González (Vice President), Eduardo Livas Cantú (director), and Javier Vélez Bautista (CEO of Gruma Corporation), has developed strategies that make it possible for them to implement an improved financial development looking forward... 

MASECA TO PAY DIVIDENDS (EL HORIZONTE ONLINE 0)

Grupo Industrial Maseca (Gimsa) approved a dividend payment of $303,073,650 pesos during its annual shareholders meeting today. A total of $0.33 pesos will be paid in cash for each one of the company’s 918,405,000 shares on August 19^th this year. 

THE 37 MEXICANS  (FORBES MEXICO 170-172)

This year’s list confirms two things: that fortunes in Mexico are essentially family affairs, and that the largest generators of wealth are a handful of traditional industries, including trade and processed foods. The González Moreno Family’s companies, Gruma, with 432,749 total shares, and Banorte, with 2,733,729,562 total shares, are ranked 10^th in the list.

37 STORIES AT THE TOP (FORBES MEXICO 1-168)  

The González Moreno Family. US $4.7 BILLION. Source of wealth: Financial and food industries. Origin of wealth: inherited. Once Roberto González Barrera died in August 2012, his children inherited the entrepreneur’s share in Gruma and Banorte. However, they now own a smaller stake of just 12.7% after the financial group announced an issuance of shares. Nonetheless, after leveraging their purpose of the stock held by ADM in the latter, they increased their stake in the world’s largest corn flour and tortilla producer to 66.2%. With this, his daughters Graciela, Bertha, and Mayra, and his sons Juan González and Roberto Moreno...own a combined fortune valued at US $4.7 billion.

FOR BIG DINERS ONLY (FORBES MEXICO 134-138)

Fiction may well resemble the reality: the barons of the food industry in Mexico are sitting at the same table and appear to be about to taste a succulent dish. To be more precise, businessmen Daniel Servitje, Armando Garza, Héctor Hernández-Pons, and Juan Antonio González among others, are sharpening their knives to devour the processed food market in Mexico, which was valued at US $136 million in 2013. There are elements that suggest this could really happen, as the country’s food consumption is expected to reach US $222 million by 2020, while this figure at the global level is expected to stand at US $8.2 billion. These are numbers that arouse an appetite in Mexican companies looking to increase their market share not only in Mexico, but also abroad.

MONACA RECEIVES ISO 14001 CERTIFICATION (El Universal of Venezuela)

TheGruma Monaca plant inVenezuelathat produces pre-cooked corn flour in Bolivar City received its ISO 14001 certification, a distinction that reinforces its image as a plant that has implemented and maintained an Environmental Management System according to the standard. Gruma Venezuela president Henry Castrosaid, “It is essential for us to care for the environment, which is why we are committed to guaranteeing the preservation of the ecosystem in all our operations…”

TRENDS AND SIGNS. (EL ECONOMISTA 7)

GRUMA. The reduction of gas emissions is so important for this processing company’s executives that we invested in technology that uses less fuel to process corn. 

THE STPS RECOGNIZES GRUMA’S COMMITMENT TO SAFETY. (EL SOL DE MEXICO 2)  

Gruma has a deep commitment to being a “Safe Company” by preserving the well-being of its employees. This commitment comes from the company’s leaders and permeates the base of the corporate pyramid and beyond, to families, suppliers, and contractors, reported Carlos Guemez Mena, manager of the Gruma Yucatán Harinera plant, after the company had received a Level 1 Safe Company award from the Ministry of Labor and Social Welfare (STPS). He indicated that they decided to accept the invitation from the STPS to participate voluntarily in the Safety and Health at Work Self-Management Program, because it is in line with its ongoing efforts to promote safe working conditions at corporate facilities. The company is committed to offering safety procedures to promote the well-being of each of its employees. The ceremony was held in Mérida, Yucatán, where the company recognized “all of its employees” who have participated in programs such as “Blue Helmets,” the purpose of which is to promote each employee’s responsibility for the safety of his/her coworkers. The Yucatán plant manager said the constant advice and support from Anastasio Canul and his personnel to successfully implement the STPS’s Self-Management Program is what allowed the company to reach 90% of the Standards on Safety and Health at Work, thus obtaining the recognition as a Level 1 Safe Company.

DARÍO CELIS / BUSINESS TIMES (EXCÉLSIOR 3)

Gruma makes appointments. Speaking of appointments, Gruma just appointedThomas Heatherto serve aschairman of the Audit and Corporate Practices Committee. The Ritch, Mueller, Heather, and Nicolau law firm attorney is also taking over the same position in Grupo Industrial Maseca to lead the operations in Mexico of this group presided by Juan González Moreno. Everardo Elizondo, former deputy governor of Banxico, was also appointed to serve as an independent adviser... 

THE MEXICAN INVESTMENT IN UKRAINE IS SAFE: SIRÍN (EL FINANCIERO 27)  

The conflict between Kiev and Moscow over the incorporation of Crimea into Russia has not “yet” put Mexican investments in Ukraine at risk. Although the small community of our countrymen is alert to the danger of war, they are also safe. In an interview, the Ukraine Ambassador, Ruslan Sirín, assured that the capital belonging to Gruma, the only Mexican company established in Ukraine, is fully protected from the conflict that led to Russia’s annexation of the Crimea, an action that could trigger a war between the two nations. The diplomat said that the tension is located on the border between Ukraine and Russia, far from the province (oblast) of Cherkasy where the Gruma facilities, representing a more than US $9 million investment, are located…

THE GIANTS PUT ON THE BRAKES (EXPANSION 7-17)

Although most companies comprising the Mexican Stock Exchange Index generated more profits last year than in 2012, the overall balance was lower. The reason behind this is that the heavyweights like América Móvil and Walmart Mexico, earned less money. Earnings by companies like Alsea, Bimbo and GRUMA soared in 2013; however, their contribution to the general stock market is still modest...

GOLDEN OPPORTUNITY (REFORMA 9)

When speaking about investing in highly skilled labor in Italy, its strategic location in the Mediterranean and leadership in growth industries position the country as a great choice for Mexican entrepreneurs, according to the government's new plan to attract investment. Italy is currently Mexico's third largest trading partner in Europe, and according to estimates by ProMéxico, nearly 1,000 Mexican companies export their products to the Italian market. A total of 98% of these companies are SMEs, although Grupo Maseca and Mexichem are also part of this group, and now, with the signing of new agreements during the visit of the then Prime Minister, Enrico Letta to Mexico, the first visit in over 20 years, an increase in the bilateral trade flow is expected...  

TRENDS AND SIGNALS  (EL ECONOMISTA 7)  

GRUMA. The value of the corn processor's market capitalization totaled $46.5 billion pesos at the close on Friday, representing an 8.95% advance with respect to the $42.7 billion recorded in Q4 2013.