May 1

INITIATIVES FROM THE HEART. (REFORMA 32-39)

Caring Flavor. The food company Gruma launched the Maseca House-to-House National Aid Distribution Program to support the neediest communities. The company created 337 routes to deliver thousands of kilos of Maseca equal to 600,000 kilos of tortillas to close to 300,000 families nationwide. The food company also announced its pledge not to raise its prices to ensure peace of mind for the Mexican population. However, it has not provided information on how others can join their projects.

THE FOOD SECTOR IS OF THE ESSENCE IN LIGHT OF THE COVID-19 PANDEMIC. (LA RAZÓN DE MÉXICO ONLINE 0)

In light of the COVID-19 pandemic, the food sector in Mexico has raised its hand to become a key factor in boosting the national economy through food supplies. Food manufacturers like Bimbo, Maseca, Kellogg’s, Femsa, and La Costeña have redoubled their efforts to deal with the pandemic and take charge of food distribution nationwide ...

May 2

MONTERREY-BASED COMPANIES HAVE DONATED MXN 58 MILLION. (MILENIO DIARIO 9)

One month after a group of businessmen from the northern state of Nuevo León, the state government, and social organizations announced their strategy to fight the coronavirus, hospitals in that state have received 266,000 medical supplies through the #RespiraNL initiative. “MXN 58 million has been raised to provide public and private hospitals with personal protective equipment,” reported the Fundación Comunidar that is coordinating the Unite & Give efforts. Unite & Give is a solidarity action movement created in Monterrey to respond to the health, economic, and social emergency caused by the coronavirus focused on building on the efforts made by companies and citizens in the state of Nuevo León to support the public and private health care system. Some of the companies supporting this initiative include Grupo Alen, Alfa, Arca Continental, BBVA, British American Tobacco, Cemex, Cydsa, DeAcero, Femsa, Frisa, Gruma, Heineken, Lamosa, Proeza, Soriana, Vitro, and Xignux.

May 4

GROCERY BASKETS DELIVERED TO 250 FAMILIES LEFT WITHOUT INCOME. (EL SUDCALIFORNIANO ONLINE (BAJA CALIFORNIA SUR) 0)

A total of 250 families living in the town of Villa Morelos that were left without income received grocery baskets yesterday, on Sunday, from the Citizen Committee headed by the young producer Juan Manuel García Amarillas. He noted that the Citizen Committee of Villa Morelos, in coordination with Ejido La Granada, and a flour company called Trimex, worked together to contribute with their share of the work to prepare the 250 packages containing flour, Maseca, beans, soup, tuna, rice, oil, sugar, and onions.

ENGGE CHAVARRÍA / INK AND PAPER / SUPPORT PLAN Heraldodemexico.com.mx

Now that food prices are sky-high, Gruma has emphatically confirmed that it will not raise its prices in Mexico, and in the times of COVID-19, one of its success stories has consisted of using its 337 Maseca distribution routes to support more than 300,000 families living in marginalized areas nationwide. The company’s President and CEO, Juan González Moreno, told us that he also instructed the U.S. Mission brand to donate USD 1.5 million worth of product, translating into more than 40 million tortillas donated to Mexican families living in vulnerable economic conditions in the United States.

May 5

ARTISANS IN THE STATE OF OAXACA ASKED TO TRADE THEIR HANDICRAFTS FOR FOOD. (EL HORIZONTE ONLINE (NUEVO LEÓN) 0)

How much is a Mexican handicraft worth? One grocery basket. Yes, you heard it right, one grocery basket! Artisans in Oaxaca are giving their handicrafts valued in U.S. dollars abroad in exchange for food, says Don Juan. “[We need] a kilo of Maseca, flour, and oil. We lack many things; we have small children and really need food,” they said. Although artisans usually have a hard time selling their handicrafts, the coronavirus has made matters worse. 

May 6

MONTERREY-BASED COMPANY SHARES FALL 16.01% SO FAR IN 2020. (THE ONLINE ECONOMIST 0)

The regional index comprising 21 Monterrey-based companies listed on the Mexican Stock Exchange, has dropped 16.01% in 2020, much like the 16.24% fall reported by S&P/Mexican Stock Exchange CPI in the same period, according to a Monex analysis. Gruma, the world’s leading producer of corn flour and other related products, is the only one reporting positive returns in 2020, with its 17.9% increase,while Farmacias Benavides shows no changes ...

May 7

FOOD COMPANIES AND SELF-SERVICE STORES SURVIVE THE COVID-19 CRISIS. (LA JORNADA 19) (LA JORNADA ONLINE 0)

The first quarter was marked by weak financial results reported by most companies listed on the Mexican Stock Exchange due to the effects produced by the COVID-19 pandemic. However, food companies and self-service stores came out ahead, given the nature of what they do. Gruma’s 16% growth in revenues stood out among food producers, as the owner of the corn flour manufacturer Maseca. Monex analyst Jimena Colín noted that this hike beat expectations and was related to the depreciation of the Mexican peso and higher sales due to the pandemic.

THE MOST VALUABLE COMPANIES IN TIMES OF COVID-19. (MUNDO EJECUTIVO 70-77)

Gruma placed fourth in the ranking. Not even the economy, as a science that has anticipated how to handle different crises, was able to forecast a scenario in which we faced a pandemic and have been forced with the need to maintain and rescue jobs. And because we know little about this virus, we do not know how soon we will resolve the problems caused in order to get back to normal, recognizing that the world will never be the same, just as it happened after the 9/11 attacks in 2001. This is when the theory tells us that opportunities arise in times of crisis, and are leveraged by “The Most Valuable Companies in times of COVID-19”... 

May 8

THE FIVE BEST REPORTS OF THE FIRST QUARTER OF 2020. (EL FINANCIERO PAGE 18) (INFORMADOR.MX ONLINE (JALISCO) 0)

This Friday marked the end of the extended period granted by the National Banking and Securities Commission (CNBV) for companies listed on the Mexican Stock Exchange (BMV) to release their first-quarter results. The companies announced income and operating cash flows (EBITDA) slightly above those expected by analysts, albeit with a drop in net profits. Banorte analysts noted the economic slowdown reflected from January to March 2020, notwithstanding focused effects due to the social distancing measures implemented because of the pandemic. By company, the five businesses reporting the highest growth in operating cash flow (EBITDA) in the first quarter were Kimberly Clark de México, BMV, Grupo Cementos Chihuahua (GCC), Gruma, and Walmart de México y Centroamérica reporting 25.6%, 25.4%, 23.2%, 22.1%, and 15.7%, respectively.

GRUMA AND BIMBO, THE COMPANIES STRENGTHENED DURING THE HEALTH CONTINGENCY. (SUP.NEWS ONLINE 0) (SIN EMBARGO.MX ONLINE 0) (THE CEO ONLINE 0) (ONLINE POLITICAL DOSSIER (SONORA) 0)

The Q1 2020 reporting season ended with mixed results for issuers, amid an environment of global economic weakness and the beginning of confinement measures and non-essential business closings in Mexico at the end of March. Two companies stood out during this complicated scenario. Bimbo and Gruma leveraged the geographic diversification of their businesses—especially in the U.S. marketplace—where they reported outstanding consumer purchases in March and the resilience of the food sector in times of uncertainty. In fact, Gruma reported even better figures. Between January and March, its sales and EBITDA were up 16% and 22%, respectively, according to the company’s quarterly reports.

May 9

GRUMA, ONE OF THE BEST COMPANIES TO INVEST IN DURING THE COVID-19 PANDEMIC. (MILENIO ONLINE 0)

During the economic crisis anticipated across the globe and the turbulence in the financial markets caused by the COVID-19 health contingency, one of the companies best positioned to invest in is undoubtedly Gruma, according to several financial analysis groups. Although the Mexican company, known as the global leader in the production of corn and flour tortillas and wraps worldwide, is considered one of the most defensive in financially volatile environments, the company will maintain its attractiveness after the contingency due to its high profitability levels. In this sense, Grupo Financiero Scotiabank said that Gruma sales and EBITDA were up 16% and 22% in the first quarter, despite the start of the COVID-19 pandemic, thereby anticipating “an impressive” second quarter and year-end for the company...

May 11

TRENDS. (EL ECONOMISTA 21)

GRUMA. The shares of the flour and tortilla producer Gruma closed last week on the Mexican Stock Exchange with 7.95% growth to MXN 246.99 per share, equivalent to MXN 7,379.94 million in market capitalization gains.

May 13

IN MONTERREY, 13 OF 18 COMPANIES REPORT LOSSES DUE TO THE PANDEMIC. (EL NORTE ONLINE (NUEVO LEÓN) 0) (REFORMA ONLINE 0) (MURAL ONLINE (JALISCO) 0)

Two months after the COVID-19 pandemic was declared, 13 of 18 companies in the northern city of Monterrey, 72% of which are listed on the Mexican Stock Exchange, reported accumulated losses in their price shares, some of which were greater than 20%. The companies reporting earnings include Gruma, Alpek, and Femsa, with 33.8%, 6.2%, and 4.0%, in that order. Monex analyst Roberto Solano explained that the hike in the price of Gruma shares is based on the good operating results reported in the first quarter of the year, in particular, due to the 9% increase in sales volumes in the United States, the rising U.S. dollar exchange rate, and the falling price of corn worldwide... 

May 14

DEMASA MADE DAILY DONATIONS TO 10,000 FAMILIES. (GOOGLE NEWS MEXICO 0)

A total of 10,000 families benefited from the 10,000 donations delivered by DEMASA every day. The products were distributed through the Food Bank, health care centers, hospitals, and city halls. “DEMASA stands in solidarity with the most vulnerable populations in Costa Rica and seeks to support the population’s food security with essential products made with excellent quality and high nutritional value,” said Ivania Alpízar, the Regional Organizational Development and Communication Manager for Gruma in Central America.

May 15

WINNERS & LOSERS. (FORBES MEXICO 10)

Juan González Moreno, Gruma MXN 83,769 million +16.6%. Given the depreciation of the Mexican peso against the U.S. dollar so far this year (primarily in early April), investors looked for issuers to benefit from this situation. Such is the case of Gruma. The issuer makes 54% of its income in U.S. dollars.

LOURDES MENDOZA ON WINNERS AND LOSERS DURING THE COVID-19 CRISIS (MILENIO NOTICIAS (21:00 to 22:00)

Lourdes Mendoza: Our new normal is reflected in the financial markets. In the United States, the clear winner during the quarantine is Netflix, with 35% gains. At the same time, shares on the Dow Jones index accumulated 41% in losses, while Disney reported -29%. In Mexico, at the same time, the great winner has been Gruma with 21% growth.

MEXICAN COMPANIES DURING THE CRISIS. (FORBES MEXICO 70-72)

No one was prepared for the health and economic crisis that Mexico faces today. The virus that appeared nearly 13,000 kilometers away in China has affected global economic activity. However, a group of Mexican companies is ready to take advantage of the opportunities that the market offers to their businesses. Gruma, Genomma Lab, Liverpool, Grupo Cementos Chihuahua, and Walmart de México are some of the companies that could beat the challenges posed by the global recession and show their financial and operational muscle to meet consumer demand. Gruma has a secure debt ratio position. The food company has a net debt of 1.5x its EBITDA and obtains most of its profits in the United States, representing a defense against the possible volatility of the Mexican peso, said HSBC in a report.

THEY CREATE ‘AEROBOX,’ A BARRIER TO PROTECT HEALTH CARE PERSONNEL FROM COVID-19. (MILENIO ONLINE 0)

Given the limited availability of personal protective equipment to perform procedures on COVID-19 patients, the creativity of specialists led to a special solution for Mexico: the Aerobox, a translucent box that works as a barrier for health care personnel performing intubations. The Aerobox can be described as a refrigerator drawer with an extension and two holes that health care personnel can use to put their hands through to perform medical procedures ... More than 20 companies headquartered in Nuevo León have donated more than MXN 1 million to #RespiraNL. The list of companies includes Alfa, BBVA, Berel, Cemex, Cemix, Cydsa, DeAcero, Femsa, Finsa, Frisa, Gruma, Ingenios Santos, Lamosa, Proeza, Protexa, Quimmco, Soriana, Sultana, Vitro, and Xignux.

May 16

GRUMA, A SOLID MONTERREY-BASED COMPANY WITH EXCELLENT PROSPECTS: ANALYSTS. (MILENIO ONLINE 0)

Amidst the global economic crisis caused by the COVID-19 pandemic and the relentless drops in financial markets, Gruma, the international leader in the production of corn flour, tortillas, and wraps, leads the earnings of the Monterrey-based companies listed on the Mexican Stock Exchange. According to Bloomberg figures, only three of the 18 Monterrey-based companies listed on the Mexican Stock Exchange have reported profits during the last two months, since the health contingency was declared in Mexico. We are talking about Gruma, Alpek, and Femsa that reported 33.8%, 6.2%, 4.0% growth in the price of their shares, respectively, between March 10 and May 12 this year.

ON MONTERREY-BASED COMPANIES. (EL NORTE ONLINE (NUEVO LEÓN) 0)

The “Unite & Give” movement injects pure OXYGEN. The movement promoted by business people in the northern state of Nuevo León, in coordination with the Comunidar Foundation, has cushioned the impact of the coronavirus on health, society, and the economy. The movement encompasses three initiatives: #RespiraNL for the purchase of strategic medical supplies, AbrazaNL to provide Care Cards for the unemployed for three months, and ReactivaNL to restart the economy. The list of companies includes Alfa, BBVA, Berel, Cemex, Cemix, Cydsa, DeAcero, Femsa, Finsa, Frisa, Gruma, Ingenios Santos, Lamosa, Proeza, Protexa, Quimmco, Soriana, Sultana, Vitro, and Xignux.

May 18

CAPTAINS. (REFORMA 3) (EL NORTE 15)

Juan González Moreno... The captain of Gruma has successfully weathered the COVID-19 storm. Since 75% of its cash flow is in hard currencies, its stock has grown more than 35% in recent weeks. The company plans to invest USD 250 million in 2020, primarily in the United States and Europe.

MASECA SUPPORTS VULNERABLE POPULATIONS. (REFORMA 5) (EL NORTE 13)

GRUMA implements the MASECA House-to-House National Aid Distribution Program in the neediest communities in Mexico. The company donated MASECA to health care centers, hospitals, foundations, food banks, and government programs, including support channels, also implemented the MASECA House-to-House National Aid Distribution Program in the neediest communities nationwide. “At GRUMA, we reaffirm our commitment to continue supporting Mexicans and all the programs that benefit corn farmers in Mexico. We are sure that this will permit the production of grains with the best nutritional quality and safety,” Juan González Moreno, President of Maseca Group (GRUMA).

TOGETHER FOR THE FARMLAND. (REFORMA 5) (EL NORTE 13)

In order to reduce its corn imports in the medium term, GRUMA pledged to work with the Secretariat of Agriculture and Rural Development (SADER) in the Comprehensive Management Program for White Corn in northern Tamaulipas. The agreement will benefit state producers since the company will buy about 400,000 tons of grain currently purchased in the U.S. The company currently imports 600,000 tons of corn per year, representing 24% of the 2.5 million tons of corn processed in Mexico. Concerning this agreement, Juan González Moreno, GRUMA President and CEO, recognized the interest, willingness, and vision of the administration headed by President Andrés Manuel López Obrador to work with the private sector to improve and create opportunities for corn farmers in the Mexican farmland. “We celebrate the joint effort with the Government of Mexico to move forward in favor of national food self-sufficiency,” said González Moreno.

THEY SUPPORT NATIVE CORN BY ENTERING INTO AN AGREEMENT. (REFORMA 5) (EL NORTE 13)

To ensure that small and large-scale farmers who grow native corn in the states of Oaxaca, Guerrero, and Puebla can improve their income, the MASECA Group (GRUMA), in a joint effort with the Secretariat of Agriculture and Rural Development (SADER), implemented a program to buy crops in these states. The agreement permits the purchase of 5,000 tons of native grain at prices better than those offered at the international level, to more than 200 farmers that will benefit from this program and which, according to the company’s estimates, could stand at MXN 50 million, to double the amount purchased by the company in previous years. For its part, Juan González Moreno, GRUMA President and CEO, said that he firmly believes that the best way to celebrate “National Corn Day” is by supporting the men and women working in the Mexican farmland. “Thanks to their extraordinary capacity, work, and efforts, we have access to the native corn representing the essence of the Mexican diet.”

A BOOST FOR THE PRODUCTIVITY OF WHITE CORN FARMERS. (REFORMA 5) (El Norte 13)  

white corn farmers in the states of Tamaulipas and Campeche saw their productivity grow with GRUMA’S “Technological Aid and Research Program for Sustainable Corn Production” implemented in a joint effort by the International Center for Corn and Wheat Improvement (CIMMYT). The fact is that in 2018, Gruma has contributed USD 872,000 over a three-year term to the project; that is, USD 290,000 per year to research and development, while also assuming the commitment to acquire the crops that meet the indispensable requirements established by its corn flour plants in the region.

May 20

LOURDES MENDOZA / AFTER DINNER. (EL FINANCIERO PAGE 33) (EL FINANCIERO ONLINE 0)

Winners and losers. COVID-19 turned our lives and the global stock markets upside down. Although the most critical moments in the markets seem to be a thing of the past, we are beginning to see the light at the end of the tunnel with the gradual reopening of economic activities in countries such as China, Spain, Italy, and soon the United States, in addition to a certain level of stability in international oil market prices, and improved liquidity in monetary and fiscal shares, we cannot yet claim victory ... in Mexico: Volaris (-59%), Alsea (-57%), Liverpool (-43%), and Grupo Financiero Banorte (-40%) have reported sharp drops in earnings. However, Gruma (21%), Bimbo (17%), Cuervo 11%), and Walmart (2%)have done well and have even reported surprising results.

May 24

THEY REPORT 13.2% GROWTH IN GROCERY SALES. (EXCÉLSIOR 2)

The National Wholesale Grocers Association (ANAM, acronym in Spanish) reported that, during the month of April, the main month covered by the National Social Distancing program launched by the federal government, registered an average increase of 13.2% in sales, through its more than 6,200 points of sale nationwide, in contrast to the 22.9% decline reported by the National Association of Self-Service and Department Stores (ANTAD, acronym in Spanish). It indicated that, in the fourth month of the year, the brands with the highest sales growth included DUMSA (49.7%), MASECA(43.9%), Zucarmex (40.3%), PINSA (28.9%), Gamesa (27.4%), La Moderna (26.9%), and Kellogg’s (24.4%), among others.

CORN FLOUR LIKE MASECA, YOUR ALLY AT HOME: NUTRITIONISTS. (SDP NOTICIAS.COM ONLINE 0) (MILENIO ONLINE 0)

Corn flour like Maseca is one of the best allies for Mexicans, since this nixtamalized corn flour with high nutritional value that is easy to store at home, can be used to prepare a variety of dishes to improve family health in addition to protecting families as they maintain their social distance by not going out into the streets in search of other food products, said Araceli Martínez Coronado, a nutritionist certified by the Mexican Association of Nutritionists. She stressed that corn flour like Maseca can be used not only to make tortillas and a variety of Mexican dishes, but also to prepare atole, a boiled corn drink, and tamales.

May 25

CRISIS COMPLICATES DIVIDEND PAYMENTS IN THE BMV. (EL ECONOMISTA 18) (EL ECONOMISTA ONLINE 0)

Amid the paralysis of activities in Mexico attributed to the COVID-19 pandemic, at least four companies listed on the Mexican Stock Exchange decided to suspend or reduce the payment of dividends to shareholders in order to strengthen their financial structures. Some of the issuers that will pay dividends include Alfa, América Móvil, Coca Cola FEMSA, FEMSA, Grupo Carso, Gruma, Kimberly Clark de México, Liverpool, Megacable, Orbia, Quálitas, and Vesta. This, Rich said, does not mean that they are looking after their cash flows, but can pay dividends without affecting their financial structures.

May 29

ALBERTO AGUIRRE / VITAL SIGNS. (EL ECONOMISTA PAGE 37)

The Monterrey Group—Proeza, Femsa, BOCAR, Cemex, Alfa, Xignux, Cydsa, Vitro, Frisa, Ternium, and Gruma—financed a multidisciplinary group of engineers, biomedical and clinical specialists who worked in a coordinated effort with Tec Salud. “It has been a challenge for all of us who are not involved in this type of industry, but this is proof that we can do things working with agility and collaboration,” said Metalsa CEO Leopoldo Cedillo, who omitted to mention a fact that came to light, thanks to Senator Beatriz Paredes as part of the Standing Committee, where doctors, biomedical engineers, and surgeons at the Salvador Zubirán National Institute of Medical Sciences and Nutrition, developed the prototype for the VSZ-20 ventilator that will be made by workshops in Monterrey.

May 30

GRUMA, NOW MORE ATTRACTIVE TO INVESTORS: ANALYSTS. (MILENIO ONLINE 0)

Given the complicated economic situation worldwide and the high volatility in financial markets, at least four companies listed on the Mexican Stock Exchange have decided to suspend the payment of dividends to their shareholders, contributing to the constant drop in the value of the shares of most issuers, which has led to an increase in investors attracted to Gruma, a global leader in the production of corn flour, tortillas, and wraps worldwide. The company run by Juan González Moreno is considered one of the most defensive in times of high volatility because its production line is based on basic consumption and perishable products with a long shelf-life, which during the health crisis caused by COVID-19, has driven its sales, earnings, and the profitability of its stock valuations up. According to Monex analysts, in 2020, Gruma income and EBITDA could register an increase of 10.0% and 14.0%, respectively, from its previous 4.0% and 5.0% rates. The above considers its 12% Operating Margin similar to that of 2019, and to the average reported over the last three years.