IRASEMA ANDRÉS DAGNINI/CLEAR ACCOUNTS (LA RAZÓN 21)

Stock market profits are unlikely to be attractive this year in view of the likelihood that the United States Federal Reserve will extend its interest rates freeze until December, and given the market volatility that ensues... Another company that stands out is Gruma, with gains of 49% so far in 2015 and 66.72% in the past 12 months, driven by greater cost efficiencies in the face of a strengthening dollar, as a result of the price reduction of its main inputs, and in response to a high global demand for grains and cereals. 

ROBERTO AGUILAR / CORPORATE TIME. (CAPITAL DE MÉXICO 8)

Gruma, the profitable option. It isn’t the first time the company led by Juan Antonio González stands out due to its performance on the Mexican Stock Exchange. Its share price has risen ten-fold in just five years, increasing by more than 50% in 2015 alone, and Merrill Lynch has increased its price target to MXN 270, an additional upgrade of 20%. Gruma has enjoyed the benefits of the recent currency depreciation, with its costs in pesos and its revenue in dollars, as well as fierce expenditure reduction, with this trend expected to continue apace when it posts its results for Q3 on October 26...

THE FIVE WINNERS AND FIVE LOSERS OF THE MEXICAN STOCK EXCHANGE IN Q315 (EL FINANCIERO 19)

Despite the cloud of uncertainty and volatility that caused the main index of the Mexican Stock Exchange to fall by 5.4% during Q315, some issuers made gains of up to 37%. The five biggest winners on the Mexican Stock Exchange’s IPC Index were as follows: Grupo Aeroportuario del Pacífico at 37%; followed by Grupo Lala at 22%; Liverpool at 21%; and finally, Gruma and Grupo Carso, both at 16%...

REGIO INDEX UP 6.48% IN 2015; GRUMA AND OMA THE BIG WINNERS (EL HORIZONTE ONLINE 0)

The Regio Index rose by 6.48% during the first nine months of 2015, Banco Monex has indicated. This performance stands up well in comparison with the decline of the Mexican Stock Exchange’s IPC Index, which fell by 1.19% over the same period. The best-performing companies from January to September 2015 were Axtel, Gruma and OMA, with increases of 134%, 49.2% and 23.6%, respectively...

MEXICAN STOCK EXCHANGE ISSUERS TO HAVE A GOOD QUARTER: ACTINVER (EL ECONOMISTA 5)

In anticipation of the reporting season, Actinver Brokerage House anticipates a strong operational performance and unexpected growth in net income from at least 60 issuers on the Mexican Stock Exchange... The issuers studied include Axtel, Televisa, Cemex, ICA, Alfa, Alpek, Peñoles and Nemak, as well as Femsa, Bimbo, Gruma, Bachoco, Ara, Liverpool, Walmart de México, Alsea and Aeroméxico...

ALFREDO HUERTA / FINANCE 24 (24 HORAS 17)

We are just a couple of weeks away from the Q3 reporting season, and expectations are high in spite of the poor performances of some companies. The companies that stand out include Gruma, with a share price gain of nearly 60%; both Lala and Liverpool have increased by around 50%, while Walmart has recorded a rise of 30%, and Femsa’s stock has risen by 17%.

TRENDS (EL ECONOMISTA 7)

GRUMA The corn flour producer’s share price achieved a record high on Monday, reaching MXN 255.10 per share, according to data from Reuters Eikon.

SPAIN AND MEXICO MAKE EACH OTHER STRONGER (MILENIO DIARIO 18) (MILENIO DIARIO DE MONTERREY 0) (SUPLEMENTO MILENIO DIARIO 1-8-10)

Over the past 35 years, the global economy has changed significantly. Mexico has participated fully in this process by implementing reforms that few countries have undertaken.  Following the 2008 financial crisis, the business structure has undergone an even greater change, in some cases modifying the characteristics of countries. Mexico, for its part, developed its capital exports between 1994 and 2013 to above USD 131 billion, of which USD 35 billion were invested in Europe, particularly in Spain, which has benefitted from investment of USD 17.46 billion through the participation of Mexican companies including Grupo Cemex, Cinépolis, Televisa, Carso, Grupo Silanes and Grupo SOFTTEK. Other key operations include Grupo Sigma’s acquisition of Campofrío, GRUMA’s acquisition of corn and wheat trader Mexifoods, and MEXICHEM’s purchase of Wavin and petrochemicals firm Vestoil. 

STRONG QUARTER ANTICIPATED FOR SALES AND EBITDA (EL NORTE 0)

Mexican companies could report “decent” Q3 figures this year in their sales and operations, following several months of positive results in both categories, whereas caution is being exercised where profitability is concerned, Barclays Capital has indicated. In a recent report, the brokerage firm indicated that, in the wake of a strong operating performance, the ability of Liverpool, Gruma and Lala to deal with exchange rate headwinds and price increases has raised their stock price targets. Gruma’s price target was raised by 13% to MXN 260, whereas Lala’s target was up 11% to MXN 40. Liverpool’s target saw a 22% increase to MXN 150 following the incorporation of its 2016 capital investment plan.

AMBASSADOR HAILS FRIENDSHIP BETWEEN MEXICO AND SPAIN.  (MILENIO DIARIO DE MONTERREY 0)  (MILENIO NOTICIAS (16:00 A 20:00 HRS) )

Insert from Luis Fernández-Cid, Spanish Ambassador in Mexico: “Relations between Mexico and Spain go beyond financial cycle concerns. Relations are strategic, sentimental and strongly felt. Mexican investment in Spain stands at more than USD 20 billion, so we’re talking about hugely significant amounts in many sectors. In the food sector, we have investments from Gruma, Mexifoods Spain and Alsea, which has been acquired by the Zena Group... 

THE BOSSES (EL FINANCIERO 19)

Tortillas with a kick. In just two years, this share price has soared like a rocket. Shares in Gruma have risen by 302% since 2013. And yet there is a belief among food and drink sector experts that the stock of this issuer, led by Juan González, has the potential to climb even higher. Santander Brokerage House has just set its 2016 price target at MXN 285, signaling the share’s potential to increase to 15% above its current level. Analysts at the stock market intermediary assert that the key strengths of the world’s largest corn flour and tortilla producer remain intact, including its attractive geographic location and the positive effect of exchange rates, as well as the favorable costs of its raw materials and improvements in its profit margins... The Bloomberg survey of analysts anticipates that the company will close the year with a 16% rise in its EBITDA, which it will repeat again next year. A company with a real kick for some time yet.

INDUSTRIAL CORRIDOR (AM DE LEÓN 0)

There are some companies of which little is known in terms of  the quantities produced at their plants, in spite of their market significance and consolidation. One example is the Grupo Maseca unit, led by Juan González Moreno and based between León and Silao. The plant serves 7,900 businesses that produce tortillas consumed by 2.25 million households in Guanajuato and surrounding states every day. Gruma contributes 20% of the raw materials necessary for tortilla production in the region, with the traditional nixtamal dough used to complete the recipe. Gruma’s Silao plant is internationally certified with certificates such as the Safe Quality Food (SQF) certificate, global environmental management standard ISO 14000, and the A&B Food Safety Certificate... 

MOSCOW AND MEXICO, BEYOND THE CRISES (EL PAÍS 3)

This year, Mexico and Russia celebrate 125 years since they formally established diplomatic relations. The occasion is seen as an opportunity to renew a relationship that, despite the continuity and dynamism of political dialogue, also demands momentum and upgrading in other areas, such as business and legal frameworks... The commercial component of the bilateral relationship has enormous potential, and has been stepped up in recent years. A number of prestigious Mexican companies, such as Grupo Maseca and Nemak, are in the process of building plants in Russia, with initial investments of USD 50 million and USD 80 million respectively.

TRENDS (EL ECONOMISTA 7)

GRUMA. Barclays raised its stock price target for the corn flour trader and producer from MXN 260 to MXN 230. Its equity value at the close of Q1 was MXN 500.89 billion.  

ANALYSTS RAISE GRUMA’S PRICE TARGET (EL ECONOMISTA 12)

The stock of corn trader and producer Gruma is expected to reach a price of MXN 285 towards the end of this year, compared to its current Mexican Stock Exchange price of MXN 245.28, which would make for a gain of 16%. This rise is primarily a resuly of the lower prices of raw materials and a favorable exchange rate, according to the estimates of Banco Santander’s analysis area... Banco Santander’s stock market analysts raised Gruma’s price target based on a more favorable macro-panorama for the company (particularly in its key markets of the United States and Mexico), a weakening peso that benefits the firm, as 60% of its sales are in the United States and Europe, and slightly better than expected profit margins in the United States and Canada. 

MEXICHEM REACHES THE SUMMIT (AMÉRICAECONOMÍA 5-42)

Today, América Economía magazine publishes its ranking of the “Top 100 Multi-Latin Companies” with Gruma up six places from 13th in 2014 to 7th this year. It also publishes a ranking of the multi-Latin companies with the “Top European presence”, with Gruma in 6th position. In addition, its ranking of the “Top 20 most travelled multi-Latin companies” has Gruma in 12th place.

GRUMA BOOSTS EBITDA BY 25% (EL NORTE 0)

Gruma today reported that during Q315 the company earned an EBITDA of MXN 2.41 billion, for a gain of 25% on the same period last year. According to its financial results reported for the July-September period, the company recorded a sales volume of 968,000 metric tons for growth of 5%, which was driven by Gruma Corporation.

GRUMA’S INCOME INCREASES BY 21%. (EL SOL DE MÉXICO 1-7 PRIMERA PLANA DE FINANZAS) (EL NORTE 0) (REFORMA 7) (EL ECONOMISTA PRIMERA PLANA-1-5) (EL UNIVERSAL 4) (LA JORNADA 27) (EL FINANCIERO 21) (EL FINANCIERO 30) (EXCÉLSIOR 12)

At the close of Q3, Gruma reported that its net income stood at MXN 1.47 billion, 21% more than the MXN 1.22 billion reported during the same quarter in 2014, while its net majority income increased by 20% to MXN 1.83 billion. The global food company founded by Roberto González also reported that its EBITDA grew by 27% from June through September 2015, increasing from MXN 1.57 billion in Q314 to MXN 1.99 billion this year. The company said that this growth owed much to the improved performance of its U.S. subsidiary, Gruma Corporation and the positive effects of the depreciation of the Mexican peso. The company’s sales volume stood at 968,000 metric tons, 5% up on the 924,000 tons posted during the same period the previous year. The company indicated that this growth, too, was primarily achieved through the operations of Gruma Corporation.  

IRASEMA ANDRÉS DAGNINI / CLEAR ACCOUNTS. (LA RAZÓN 23)

Mexican firm Gruma again earned double-digit net income and profits in Q315, with its success largely due to its strong management, clear investment objectives and use of coverage instruments… 

MAURICIO FLORES/PEOPLE BEHIND THE MONEY (LA RAZÓN 22)

Fourteen in a row: Gruma, led by Juan González Moreno, has seen its EBITDA grow by double figures for the past 14 months in a row, recording 25% growth for Q315, allied to a 21% sales increase to MXN 15.31 billion. The effectiveness of the multinational’s current management is reflected by its controlled debt figure of USD 753 million.

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

Good Report. Gruma, led by Juan Antonio González Moreno, recorded net profits of MXN 1.47 billion during Q315, 21% higher than the MXN 1.22 it reported during the same period last year. The all-Mexican company’s net majority income increased by 20% to MXN 1.383 billion. The firm’s excellent performance in the U.S. and European markets continues to provide great satisfaction to the company founded by Roberto González Barrera...

ACTIONS AND REACTIONS. (EL ECONOMISTA 2)

GRUMA approved. The Q3 report that did please analysts was that of Gruma, led by Juan Antonio González Moreno. The experts underlined that the firm’s results were favorable, observing a continued expansion of its margins due to its uptake of cost efficiencies. The figures even exceeded the company’s sales and EBITDA estimates by 6%, leading analysts to retain a positive outlook for the firm. The only blemish came in its fractuous Venezuelan operations affecting the issuer, albeit marginally. The recommendation is to Buy, with a price target per share of MXN 268, although this forecast could be revised.

GRUMA INCREASES ITS SALES BY 21% IN Q3   (ENFOQUE (VESPERTINO)

Martín Carmona: The Mexican Stock Exchange is up 0.44% and Gruma, a Mexican company with an extensive international presence, has reported growth in its sales of 21% in Q315, for 21% growth in its net income, thus performing very well indeed. Its overseas sales accounted for 74% of total sales due to its significant present in several countries. 

MILITARY BASE READIED IN SABINAS HIDALGO (MILENIO DIARIO DE MONTERREY 0)

The state government, together with private initiative and the Mexican army, are readying a military base in Sabinas Hidalgo, in addition to the completion of a Naval Air Center in Agualeguas, for the purposes of strengthening security in the north of the state of Nuevo León. Following a visit to the municipality of Cerralvo, where the Youth Action Meeting organized by the Cerralvo Trust, headed by Gruma, was being held in El Sabinal Park, the state governor announced a series of projects planned for the area’s development and exploitation.

ARMY TO MONITOR THE NORTH OF THE STATE BY GROUND AND AIR (EL NORTE 0)

With an aeronautical center in Agualeguas and a military base in Sabinas Hidalgo, the Army is to monitor the northern area of Nuevo León by ground and air, in order to guarantee safety for economic investment, Governor Jaime Rodríguez announced yesterday. He set out plans to recover game hunting activities, to promote El Sabinal Park, and to reactivate agriculture in Anáhuac through corn planting, by way of an agreement with Grupo Maseca.

GRUMA TO INVEST USD 300 MILLION IN 2016; THE FIRM ANTICIPATES EXPANSION THROUGH EUROPEAN ACQUISITIONS (EL FINANCIERO 30)

Next year, Gruma, the world leader in corn flour and tortilla production, is to invest USD 300 million, of which approximately 10% could go towards acquisitions, Raúl Cavazos, the company’s Finance Director explained at a meeting with analysts. By the end of 2015, the firm hopes to close the year with investments of approximately USD 250 million. In the third quarter of this year, the firm invested capital in technology improvements for Gruma Corporation (Europe and United States) and GIMSA (Mexico), as well expanding the installed capacity of several tortilla production plants in the United States and the corn flour production plant in Mexicali.  The group’s expansion plans include Europe, where it hopes to make acquisitions in addition to its 11 plants already located in countries such as Italy, the Netherlands, Russia and Spain. 

TRENDS. (EL ECONOMISTA 7)

GRUMA. Its total income increased by 21% to MXN 15.31 billion in Q315, with the equivalent fugure for the first nine months of this year standing at MXN 43.12 billion. Both figures represent a record high. 

THE 300 MOST INFLUENTIAL LEADERS IN MEXICO (LÍDERES MEXICANOS 40)

As every year, the hosts for the evening, Jorge and Raúl Ferráez, presidents of Líderes Mexicanos, welcomed those in attendance by taking stock of the ten years since the “Los 300” dinner was first held. Following the warm welcome given by Jorge and Raúl Ferráez, the speeches began and the surprise of the evening came from Rafael España, a 14-year-old boy whose words got everyone to sit up and take notice. Once the venue had been electrified by the voice of the young boy, it was the turn of José Antonio Meade, the recently appointed Secretary of Social Development, who attended the dinner on behalf of President Enrique Peña Nieto. The supplement entitled “The 300 Most Influential Leaders in Mexico” features a photograph of Mr. Juan González Moreno.

CAPTAINS (REFORMA 3) (EL NORTE 0) (MILENIO DIARIO 34)

A Classic Returns. From the fast-food memory bank emanate names such as “Supermac”, 'Unifante”, “Brontosaurio” and “Dinotriple”... as well as commercials with Salma Hayek and the voices of Jorge “El Tata” Arvizu. We are talking, of course, about restaurant chain Burger Boy, which became popular in the 1980s, and is coming back. We are reminded that Burger Boy was acquired in 1974 by Maseca, now captained by Juan González Moreno, and in 1996, following the mass arrival of hamburger brands, was sold along with all its branches to U.S. chain Whataburger, which would also close up in Mexico...

ALFREDO HUERTA / CORPORATE RESULTS ARE BETTER THAN EXPECTED  (24 HORAS p.16)

Mexican companies have started to announce Q315 results, and so far they appear to show that companies are taking actions to improve profitability, which resulted in a third quarter GDP increase over the previous quarter. In the food and consumer goods industries, it bears noting that Gruma shows a 20% increase in net sales, 25% in EBITDA, and 20% in net profits, aided by the company's operations in the United States...

Burger Boy was a fast food chain that operated in Mexico until the 1990s, when it could no longer compete against McDonald's, who opened its first store in Mexico in 1985. The Burger Boy chain's success was so great that Grupo Maseca― owned by Monterrey businessman Roberto González Barrera―bought it in 1974. The company operated nearly 50 Burger Boy locations throughout the country at one point, which was quite great given the fact that it was not a franchised business. In 1996, Grupo Maseca sold Burger Boy to Whataburger, an American chain that later closed the business. Now, the Burger Boy brand is returning to Mexico. It will make its debut in self-service stores with products such as hamburgers, hot dogs, French fries, milkshakes, and other items. Mexico City is expected to have a couple Burger Boy restaurants by 2017. 

Gruma was named Mexico's most global food industry company in Latin America, according to the 2015 "100 Multilatinas" ranking. According to the list, released by financial magazine América Economía, the company, run by Juan González Moreno, is in seventh place, having advanced six spots from 13th in 2014...

Gruma, a Mexican tortilla manufacturing company, is now introducing Mission Wraps in Spain. These products are versatile, innovative, and healthy, and they help consumers in their day to day lives. The wraps are also a fresh and efficient source of fiber. Gruma began operating in Spain in 2014 with the company's purchase of Mexifoods. In 2015, it acquired Azteca Foods. These actions have made Gruma a key player in wrap sales through the Mission brand, as well as in Mexican food sales...

During the celebration of the Mexico - United Kingdom Dual Year in 2015, the British embassy held the first ever "Mexicans in the UK, Investment Awards" ceremony to recognize Mexican companies with operations in the United Kingdom for their achievements during the last year. Recipients of awards, who were recognized at an event attended by United Kingdom ambassador to Mexico, Duncan Taylor, were Lovis Ltd. and Gresmex in the Innovation category; KidZania and Manuvo in the Entrepreneurs category; and Grupo Bimbo, Cemex, Mexichem, Grupo Gruma, Grupo Financiero Monex, and Fresnillo Plc in the Multinationals category.