MASECA CELEBRATES WORLD FOOD DAY. (RADIOAMERICAHN.NET)

Staying true to its commitment to social responsibility, on World Food Day MASECA organized a volunteer event with the Food Bank of Honduras to benefit low-income Honduran families. "MASECA has a strong sense of social responsibility, and so we got together internally with our team members to collect supplies for several low-income families," said MASECA Honduras Marketing Manager Sherly Carias... 

COMPANIES TO FOLLOW IN LATIN AMERICA: ITAÚ, ENTEL, TENARIS, ANTOFAGASTA, HYPERMARCAS, SANTOS BRASIL, GRUMA, AND BRADESCO.  (REUTERS) GRUMA 

JP Morgan began coverage of the Mexican tortilla and corn flour producer's stocks with a recommendation of "increase in the portfolio" and a target price of 307 MXN.

SANMEX SHOWING POSITIVE AND SURPRISING Q315 RESULTS. (TERRA.COM)

Grupo Financiero Santander México (SANMEX) noted that companies reported positive results in Q315, in line with expectations, albeit with a few surprises. Some of those reporting higher than expected EBITDA are KOF, VOLAR, HERDEZ, AC, KIMBER, GAP, ALFA, FEMSA, IENOVA, and GRUMA.

ACTIONS AND REACTIONS.  (EL ECONOMISTA p.2) (EL NORTE)

They like Gruma, led by CEO Juan González Moreno. Due to its geographical diversification and consistent increase in profits, Gruma share prices could rise to 300 MXN by year-end, according to JP Morgan. At the start of its coverage of the Mexican multinational, the U.S. investment bank issued a recommendation of "overweight" and a target price of 307 MXN per share. The price of Gruma stock is currently 254.05 MXN per share, representing a 66.91% increase so far this year...

GRUMA  (EL ECONOMISTA p.7) TRENDS

Financial intermediary JP Morgan recently began coverage of the tortilla and corn flour producer's stock. The company issued a recommendation of "increase in the portfolio" for Gruma's stock, with a target price of 307 MXN.

LOW-INCOME FAMILIES ARE SAVING THE ECONOMY.  (EXCÉLSIOR p.1-16)

Just take a look at the best stocks on Mexico's IPC exchange this year to date and you'll see what's happening with the economy. Out of this year's nine top stocks, seven are from the consumer goods sector. These seven are Gruma, Liverpool, Grupo Lala, Wal-Mart Mexico, Alsea, Fomento Económico Mexicano, and Kimberly-Clark Mexico...

GRUMA'S RATINGS INCREASE. (EXCÉLSIOR p.2)(EL FINANCIERO p.27)(LA JORNADA p.27)(EL SOL DE MÉXICO p.3)

Fitch Ratings upgraded its assessment for flour and corn products manufacturer Gruma to “stable”. This adjustment comes due to the company's increase in profitability and credit metrics in the last few years, which have strengthened its credit profile and decreased the company's business and financial risk. Gruma's ratings are as follows: International Issuer Default Rating (IDR) in foreign currency went from 'BBB-' to 'BBB' and international IDR in local currency went from 'BBB-' to 'BBB', while the company's senior notes, valued at USD 400 million and coming to maturity in 2024, went from 'BBB-' to 'BBB'. The increased rating assumes that CEO Juan González Moreno's company will maintain a strong free cash flow (FCF) generation capacity and total debt-to-EBITDA of close to 1.5x over the next 18 to 24 months.

JULIO PILOTZI / FINANCIAL SPLIT.  (EL SOL DE MÉXICO p.7) 

Checkmark for Gruma. This year will undoubtedly be a successful one forGruma, led by CEO Juan Antonio González Moreno. After reporting net profits of 1.469 billion MXN in Q315, and with 14 consecutive quarters of double-digit growth in operations, the company continues to reflect a solid positioning as the main producer of corn flour and tortillas in the world, which has improved its evaluation with Fitch Ratings...

TENDENCIES AND TRENDS. (EL ECONOMISTA p.7) GRUMA

A Bloomberg analysis positions the company as the most upward trending food production stock in North America so far this year, with an upturn of 60%; this success has earned the company a place in the EcoMex10 rankings...

THE BOSSES.  (EL FINANCIERO p.28)

Gruma is looking for more 'kick' in Mexico. The company loves to go overseas, but home is where the heart is.Gruma, the world's foremost producer of corn flour and tortillas, is hoping to yield higher profits in Mexico, where it will implement a new series of business strategies.Juan González Moreno, CEO of the Mexican multinational company, is seeking to drive the growth of Gruma's subsidiary GIMSA, which produces, distributes, and sells corn flour in Mexico under theMasecabrand, founded by the current CEO's father Roberto González Barrera in 1949. To achieve this,González has begun initiatives targeted at the efficient use of corn flour, especially in central Mexico; his goal is to see a 3-4% increase in sales volume in this area over the next three to four years. The CEO has achieved solid results and has positioned Gruma as the most profitable issuer on the Mexican Stock Exchange (BMV) index since 2013. Flying High.

GRUMA'S STORY IS PRACTICALLY GUINNESS WORLD RECORD MATERIAL.  (ECONOMÍAHOY.MX)

If there are any bullish IPC stocks, then Gruma, a Mexican food company, is certainly one of them. The stock price boasts no less than 42 consecutive months closing above the previous month's minimum, a long stretch for any company. You would be hard pressed to find a situation like this in any of the world's markets. All of the company's stockholders are well-advised to hold while shares are still standing strong during this upward trend. 

RANKING OF 200 TOP EMPLOYERS.  (MUNDO EJECUTIVO p.84-93)

Mundo Ejecutivo (Executive World) magazine has published its list of the 200 top employers, with Gruma ranked at 47th and Grupo Industrial Maseca at 151st... On the list of the 1,000 biggest employers in Mexico, Gruma appears in 70th place, Grupo Industrial Maseca in 212th, and Molinera de Mexico in 854th...

MIXED RESULTS  (MUNDO EJECUTIVO p.172-190)

The food industry is relevant not just because it is vitally important for consumers and because of its high volume of business activity, but also because it is closely tied to other areas of the economy. Mexico's food industry is becoming increasingly involved in the global industry. Foreign direct investment flows from 1999 to Q115 in this industry represent 8.3% of the manufacturing industry total, reflecting the clear presence of global brands. Examples of this evolving industry include the manufacturing of some Mexican products for global markets, importation of other products into Mexico, and the growing international presence of certain Mexican companies such as Bimbo and Maseca. On thefood and beverage industry lists,Gruma ranks in 6th place with revenues of more than USD 4.24 billion and -13.17% of revenue variation for 2013/2014.

FROM THE FIELDS TO PROCESSED FOODS.  (MUNDO EJECUTIVO p.192-204)

Thanks to the growing international popularity of tortillas and Mexican food, Gruma has restated its desire to streamline its processes, reduce costs, and increase competitiveness in all 110 countries in which it operates. "Gruma continues to be committed to the financial health and will always preserve its current financial indicators at the least; our whole investment plan will be financed by the resources generated by the company itself," it says. Gruma's plans for 2016 are focused on the construction of new tortilla, flatbread, and tortilla chip production plants in the United States, Russia, Malaysia, and Mexico, as well as the expansion of its existing infrastructure in countries such as the United Kingdom, China, and Spain. Gruma hopes to expand its corn flour production capacity in the United States, Mexico, and Italy. The company has experienced high demand for its products worldwide thanks to the popularity of tortillas and Mexican food in general. Gruma takes second place in the processed foods industry rankings. 

TRENDS. (EL ECONOMISTA p.7) GRUMA

Gruma, a company that processes and sells corn products, is attempting to raise its sales volume in the corn flour division under the Maseca brand through initiatives aimed at improving the industry's efficiency.

COMPANIES BENEFIT FROM PROXIMITY TO THE U.S. (EL NORTE)

Porfirio Díaz had a famous quote about Mexico's proximity to its powerful northern neighbor: "Poor Mexico; so far from God, and so close to the United States." However, this nearness is turning out to be a blessing for Mexican companies while other companies in Latin America are suffering from slow economic times and depreciation of their currencies. Mexican companies from Nemak to Gruma have avoided the slowdown their Latin American competitors are experiencing by generating a good portion of their revenues in the U.S., where the economy appears to be relatively strong.

THE BOSSES (EL FINANCIERO p.26)

Is the party over for Liverpool? Liverpool, thanks to good financial results, aggressive retail expansion, and a positive outlook, has become one of Mexico's key players in the retail industry in the last three years. After yielding over 55% on the BMV exchange this year, positioning it as the third fastest growing company in the stock market's elite class (after Grupo Aeroportuario del Pacífico and Gruma), Credit Suisse has lowered its investment recommendation for the company, led by CEO Graciano Guichard, from outperform to neutral. Though the brokerage firm sees Liverpool as the best retail player of its kind in Latin America, with an attractive outlook and one of the best management teams in the industry, it also realizes that the company's stock has limited upside potential after this rally. Credit Suisse estimates that Liverpool shares will trade at MXN 235 by the end of 2016, just 2.5% of their current numbers. What do you think: sell or hold? 

 GRUMA  (EL ECONOMISTA p.7) TRENDS

In the most recent 12-month period, the company’s share prices were up 64.16% to stand at 249.60 MXN per share. According to Reuters, Gruma’s capitalization stood at 108.014 MXN billion on Friday. 

LAS MEXICANAS SIN FRONTERAS (MILENIO DIARIO 16)

Las firmas mexicanas apuestan por la expansión más allá de las fronteras y las compras son una estrategia clara... De acuerdo con la Balanza de Pagos del Banco de México, entre enero y junio, los mexicanos invirtieron 7,336 mdd en el extranjero, contra 4,224 millones del año previo… Otra que abrió la cartera fue Gruma. La firma especializada en productos de maíz pagó 45 mde por las operaciones de Fat Taco y Azteca Foods en España. La firma mexicana aseguró que la adquisición está en línea con la estrategia de la compañía de enfocarse en sus negocios base…