THE MEXICAN STOCK EXCHANGE REPORTS GOOD RESULTS FOR 2015. (EL ECONOMISTA pp-4-5)

The food and beverage industry of the Mexican Stock Exchange closed 2015 with increases to its key indicators driven by renewed dollar consumption and earnings. Bachoco, Bafar, Bimbo, Gruma, Herdez, Lala, and bottlers AC, KOF, and Cultiba announced a combined 12.4% increase in net earnings in Q415, up from MXN 590.793 billion the previous year to MXN 663.950 billion...

COMPANIES JOIN IN LABOR INCLUSION INITIATIVE (MILENIO DIARIO DE MONTERREY 0) (EL UNIVERSAL 7) (REFORMA 6) (MILENIO DIARIO 24) (EL ECONOMISTA pp-25, following from Front Page)

A total of 25 companies enrolled in the Mexican Business Council have joined the “Éntrale” or Get Involved to promote a culture of social inclusion of people with disabilities that are economically inactive and without paid work. Some of the companies adding their weight to this initiative include Aeroméxico, Banamex, Bimbo, Casa Cuervo, CEMEX, Cinépolis, Gruma, Mabe, Soriana, Televisa, La Comer, and Grupo Lala.

THE MEXICAN STOCK EXCHANGE REPORTED AN UPWARD TREND FOR SIX STRAIGHT DAYS (EL ECONOMISTA 2-4)…

Despite the volatility of the Mexican Stock Exchange in the early months of this year, the IPC could close 2016 at 46,000 units, according to estimates by GBMhomebroker, whose director, Iván Barona, noted that despite the volatility of the first two months of this year, the IPC actually grew in January by 1.52%, while a 5% decrease was observed during the same period in 2014. Barona mentioned that there are three issuers reporting yields above 20% so far this year: Gruma “B” Series at 20.5%, and Grupo Peñoles and ICA, which both increased by 20.3%. 

TRENDS (EL ECONOMISTA p.7) GRUMA.

The corn flour and tortilla manufacturer announced that its investment budget for 2016 stands at USD 350 million. It plans to build a new tortilla plant in Dallas, Texas. 

YUCATAN ENTERS THE GUINNESS BOOK OF WORLD RECORDS FOR THE LARGEST COCHINITA PIBIL (MILENIO DIARIO DE MONTERREY 0)

Yucatan won back the Guinness World Record after making the largest quantity of cochinita pibil, a Mexican delicacy, in the world. The recipe used 7.9 tons of meat, 620 pounds of achiote paste, 206.8 pounds of salt, 150 gallons of bitter orange juice, 282 packs of banana leaves, 352 pounds of pickled onions, 110 pounds of cabbage, 220 pounds of habanero chili peppers, and 2.5 tons of tortillas. The record attempt was sponsored by companies such as Grupo Kekén, Condimentos La Anita, Grupo Maseca, Industria Agrícola Maya, Juguera de Akil and Sistema Producto Chile. 

GRUMA’S RATING UPGRADED (REFORMA 8) (EL NORTE (ON LINE)) (EL SOL DE MÉXICO 3) (LA JORNADA 28) (EXCÉLSIOR 2) (ENFOQUE FINANCIERO)

Standard & Poor’s upgraded Gruma’s credit rating from BBB- to BBB with a stable outlook as a reflection of the company’s strong financial performance with a strengthening of its principal credit indicators, the agency announced. 

ABOUT THE BOSSES (EL FINANCIERO 21)

A U.S. stimulus. Following a “dream” 2015, when it obtained double-digit growth in its sales and EBITDA, Gruma seems to be raking it in from tortillas yet again. Citigroup has claimed that the United States will drive the growth of the world’s leading corn flour and tortilla manufacturer, even with Donald Trump on the horizon. And that’s hard to argue with, as Gruma Corp already accounts for 64% of its total EBITDA. The group, led by Juan González, is working in the U.S. market to make its operation even more efficient through implementing a reduction of its advertising activities and articles, a more profitable distribution network, and a wide-ranging product offering. According to Citi, this should lead to growth of 120 bps in the company’s EBITDA margin. Brokerage experts forecast that Gruma’s share price will reach MXN 300 in 12 months’ time, signaling the share’s potential to increase to more than 15% above its current level.

TRENDS (EL ECONOMISTA p.7) GRUMA:

Accival Brokerage House has begun covering the issuer’s share price, as it issued a neutral investment recommendation and set a target price of MXN 300. In a press release, this corn manufacturer also announced that the credit rating’s firm Standard & Poor's Ratings Services upgraded its credit and risk debt ratings from “BBB-” to “BBB” on Tuesday, following sustained strong results. The credit rating outlook is stable.

UNITED KINGDOM: A MARKET WITHIN THE REACH OF SMES AND ENTREPRENEURS (EL ECONOMISTA 26-27)

The United Kingdom is a mature, cosmopolitan and deeply-segmented market, and despite being one of the markets worst affected by the 2009 financial crisis, and currently in the midst of a debate on whether to stay in or leave the European Union, it is still an area that offers attractive opportunities to Mexican businesses, entrepreneurs or skills-seeking talent. The British public associates Mexico more with drug trafficking than incoming investment from its companies. In the past 10 years, companies such as Gruma, Cemex, Grupo Bimbo, Mexichem, Fresnillo, Softek, Monex, El Farolito and, more recently, KidZania and Gresmex, have entered into this market of four nations and 65 million inhabitants.

HISPANICS DRIVE SUCCESS (EXCÉLSIOR 2) (LA JORNADA 29)

The increase in the Hispanic community in the USA, and the spread of its culinary traditions to the non-Hispanic population, have led to Gruma consolidating its success in the country. According to a study by Packaged Facts, more than USD 2.9 billion was spent in the United States on tortillas in 2013, a figure 38% higher than the net amount spent on hamburger and hot dog buns. 

MEXICAN MILLIONAIRES (FORBES MÉXICO 112-120)

Juan A. González Moreno, Chairman of Gruma’s Board of Directors. Following the death of Roberto González Barrera, who was the head of the González Moreno family, Juan took the reins of Gruma in 2012, having previously held several positions within the organization, including CEO for Special Projects of Azteca Milling, Vice President of Mission Foods, and chief executive officer of GIMSA and Gruma Asia & Oceania.

PI BETS ON DOMESTIC CONSUMPTION. (EL UNIVERSAL pp) (EL UNIVERSAL 16)

The dynamic movement shown by the consumption indicators in Mexico is attracting interest from the private sector, which is considering accelerating its investments and opening new business centers during the course of this year. According to data collected by El Universal, companies such as FEMSA, Walmart, Bimbo, Arca Continental, Gruma, Alsea, and Herdez—the leading listed corporations in the consumption sector—are planning to invest MXN 64 billion (USD 3.772 billion) in 2016. This figure represents a 17% increase over the amount invested last year. Private sector consumption has become the main driver of economic growth in the country, backed by job stability, low inflation, increased remittances, and the recovery of banking credit. Last week, the Mexican Institute of Geography and Statistics (INEGI) announced that in 2015, private sector consumption was up 3.2% over the previous year.

MONTERREY, BUSINESS CENTER (EXPANSIÓN 56-57)

This industrial hub par excellence is home to big business and entrepreneurs, as 66 of the 500 companies ranked by Expansión are based in Monterrey, including iconic business leaders such as Gruma’s Juan González Moreno, and Carlos Hank González.