October 1

ANALYSTS FORECAST GRUMA GROWTH. (EL ECONOMISTA 20) (EL ECONOMISTA ONLINE 0)

Corn flour and tortilla producer Gruma continues to enjoy positive income and sales volumes in Q320, primarily from its operations in the U.S. According to a Signum Research document, this region accounted for 60.2% of the company’s sales in Q220 and has successfully maintained demand, unlike the demand observed during the peaks of the first and second quarters of this year, primarily in retail channels, which accounted for close to 80% of sales in North America in Q2. The balance was reported from restaurant sales. For the third quarter and the remainder of the year, Signum Research expects to see the depreciation of the Mexican peso against the U.S. dollar produce a positive impact on its results...

COAHUILA TORTILLAS CONQUER HONG KONG

https://www.laprensademonclova.com/2020/10/01/las-tortillas-de-coahuila-conquistan-hong-kong-2/

Like good northerners who enjoy eating tortillas in all their meals, two Mexican companies picked up on the craving for good food as a potential business benefitting Hong Kong residents to make sure they enjoy the flavors of our land. “So far, we have done well producing fresh tortillas for people, restaurants, and small businesses in this area,” said Arturo Salazar, who was born in Monterrey, Nuevo León, and has lived in that country for 11 years ... Maseca is the flour brand with the strongest recognition level nationwide, as people use it as a raw material to perfect the technique they apply to make the most Mexican recipe they can find, to enhance their meals with the right flavor.

October 3

TORTILLAS, A FOOD PRODUCT THAT PREVENTS AND HELPS FIGHT CANCER: RESEARCHERS. (MILENIO ONLINE 0)

October 19 is the International Day Against Breast Cancer, with awareness campaigns running throughout the month about breast cancer, considered a public health problem worldwide that is on the rise. Few people know that they have a food product on their table every day to prevent this disease: corn tortillas. The most popular brand of this type of fortified tortillas is Maseca, owned by Mexican multinational Gruma, which started to enrich its nixtamalized corn flour with folic acid, iron, zinc, and B1, B2, and B3 vitamins over 20 years ago, thus ensuring that tortilla consumption that contributes to a balanced diet, becomes one of our health allies to prevent this and other diseases.

October 11

ANALYSTS PREDICT A STRONG 2020 CLOSE FOR GRUMA. (MILENIO ONLINE 0)

During the coronavirus pandemic, which has affected most issuers on the BMV due to the financial market’s volatility, analysts predict that Mexican company Gruma, the world leader in the production of nixtamalized corn flour, tortillas, and wraps, will have a favorable closing this year that will beat 2019. Monex explained that the favorable exchange rate effect is expected to produce a position effect on the Mexican multinational’s Q320 results, in addition to its operational improvements compared to 2019. BancoBase analyst Luis Alvarado explained that the above favors Gruma because more than 65% of its income is denominated in U.S. dollars; therefore, the stronger U.S. currency boosts the company’s income and net results.

October 12

THE TOP 100 BUSINESS LEADERS IN MEXICO. (EXPANSIÓN 2-69-74)

JuanGonzález Moreno (Gruma) ranked 24…

WHAT ARE THE FOOD PRODUCTS THAT MEXICANS LIVING ABROAD MISS THE MOST? (GOOGLE NEWS MEXICO 0)

Diana López in Germany is okay with making tortillas twice a year after buying Maseca online. She does her best to recreate the flavors of Mexico for her young children. “A friend gave me a griddle for my birthday, and since I don’t have a tortilla press, I use a glass to give them the proper shape and thickness.”

October 17

GRUMA PRESIDENT JUAN GONZÁLEZ, RANKED AMONG MEXICO’S LEADING ENTREPRENEURS. (SDP NOTICIAS.COM ONLINE 0)

Mexican company Gruma, founded in 1949, is considered an international benchmark for financial strength, diversification, and resistance to economic shocks worldwide, such as the one derived from the health emergency caused by COVID-19. In fact, far from the recent global economic crisis affecting the firm, it strengthened it, with an increase in sales, profits, and the appreciation of the value of its shares listed on the Mexican Stock Exchange, not only because the company is considered a defensive enterprise by producing food staples, such as corn flour, tortillas, and wraps, but also because of its international diversification levels.Gruma products are currently made in the company’s 71 international plants and sold in more than 120 countries across the globe, earning Gruma President and CEO Juan González Moreno, the ranking as one of the 100 top businessmen in Mexico, according to Expansión magazine.

October 19

THE FIVE COMPANIES WITH THE MOST PROMISING Q320 RESULTS. (EL FINANCIERO 18)

The El Financiero survey of forecasts made by eight brokerage firms including Barclays, Banorte, CI Banco, Monex, Vector, Ve por Más, and Intercam, revealed that the companies comprising the leading indicator on the Mexican Stock Exchange, without including banks, will report moderate annual increases of 1.7%, 0.9%, and 4.6% in sales, operating flow (EBITDA), and net income, respectively. According to THE experts, the five issuers with the largest operating cash flow (EBITDA) increases in Q3 include Peñoles with 54.2%, Cuervo with 38.7%, Bimbo with 24.8%,Gruma with 19%, and IEnova with 12.2%. Another company favored by its sales in the United States will be Gruma,as analysts noted its continued improvement in the retail channel, offsetting the closure or low sales reported by restaurants during the pandemic.

October 23

DAVID CARDONA / SIGNUM RESEARCH OUTLOOK. (EL ECONOMISTA 20) (EL ECONOMISTA ONLINE 0)

The companies with the best results are those earning income in U.S. dollars since the average exchange rate for the quarter (MXN 22.0972) is higher than the average exchange rate of Q319 (MXN 19.3376) ... We expect favorable results and margin increases for Gruma since the issuer has not changed the guidance offered to the investing public at the beginning of the year, which includes an EBITDA margin expansion of between 30 and 40 basis points in the consolidated statement, which we consider significant despite the current financial circumstances ...…

October 28

PROFECO DISMISSES RISING TORTILLA PRICES THIS YEAR. (MILENIO DIARIO 28) (MILENIO ONLINE 0) (IMPACTO TV CANAL 77 ONLINE (CHIHUAHUA) 0) (PUENTE LIBRE.MX ONLINE (CHIHUAHUA) 0) (DIARIO PRESENTE.MX ONLINE (TABASCO) 0) (MORELOS PUNTUAL ONLINE 0)

Tortilla prices in Mexico, which currently cost an average of MXN 16 per kilo, have not registered significant increases or variations this year; therefore, these levels can be maintained until the beginning of 2021, according to PROFECO. “Corn crops this year, especially in Sinaloa, were very good, leading us to believe tortilla prices will be stable for a year since there is no reason for the price to go up,” said PROFECO Director Ricardo Sheffield, in an interview. He noted that the two large producers in the sector in Mexico (Gruma and Minsa), which hold more than 90% of the flour market share, “have not raised their prices so far this year.” Last April, President Andrés Manuel López Obrador said that the Chairman of the Gruma Board of Directors, Juan Antonio González Moreno,promised not to raise the price of corn flour during a meeting held with the Group of Ten.

October 29

20% INCREASE IN GRUMA FLOWS. (EL NORTE PRINTED VERSION 0) (REFORMA 1) (EL FINANCIERO 40) (EXCÉLSIOR 1-2) (24 HORAS 17) (EL HERALDO DE MÉXICO 37) (EL ECONOMISTA 40) (MILENIO DIARIO 17) (CONTRARÉPLICA 17) (DINERO EN IMAGEN/MONEY AT IMAGEN) (EL HORIZONTE) (PUBLIMETRO)

The taste for tortillas even in non-Hispanic markets in the United States, as well as higher prices due to a better mix of products and exchange rate benefits, contributed to Gruma’s 20% increase in operating cash flow (EBITDA) in Q320, to stand at MXN 3.954 billion. Although Gruma’s consolidated sales volume remained stable, at 1,353 tons, the company capitalized on the appetite for certain products that increased demand in its largest market, the United States. Also, the world’s largest producer of tortillas and corn flour reported revenues of MXN 23.473 billion, 17% more compared to Q319, while its net profit increased 26%.

ALICIA SALGADO / CURRENT ACCOUNT. (EXCÉLSIOR 5) (DINERO EN IMAGEN ONLINE 0)

#Gruma… The excellent Q3 results presented by Gruma,led by Juan González Moreno, were driven primarily by the United States, where the preference for tortillas among non-Hispanics continues to grow during the pandemic. It is striking to see that the taste for tortillas has grown the most in northwestern states of the U.S., such as New York, Massachusetts, Pennsylvania, Washington D.C., Ohio, and Michigan. Gruma’s net sales at the end of Q320 stood at MXN 23.473 billion, 17% higher than Q319. Operating income increased 21%, EBITDA grew 20%, net income increased 26%, and net income was up 26%. Thanks to the company’s great results, Gruma shares, one of the favorites on the Mexican Stock Exchange, increased their value by 21.3% between Q319 and the same period this year.

GRUMA REPORTED MXN 1.645 BILLION IN NET PROFITS IN Q320. (IN RADIO TIMES / 6.22 HRS) (IN RADIO TIMES / 5:49 HRS)

Juan Manuel De Anda: Gruma reported MXN 1.645 million in net profits in Q320, for a 26.2% increase compared to the same period last year. The largest corn flour and tortilla products manufacturer worldwide reported a 17.1% and 19.9% growth in revenue and operating cash flow, respectively.

October 30

POPULAR TORTILLA SALES IN THE U.S. DRIVE GRUMA INCOME UP (IMAGEN RADIO.COM)

Tortillas are increasingly popular in the United States, especially in New York and Washington, D.C. Growing preference for the product drove Gruma sales in Q320. Gruma’s performance during Q320 has continued to improve, benefiting primarily from the higher home tortilla consumption, especially in the United States. The COVID-19 pandemic helped accelerate consumers becoming more accustomed to using tortillas, thus increasing per capita consumption, especially among non-Hispanics. In addition, healthier trends and the versatility tortillas offer to prepare a variety of recipes have supported higher consumption rates. The company said, in its quarterly report, “We believe that this will continue to expand the tortilla industry at a higher rate.”

JESÚS RANGEL / ESTIRA Y AFLOJA (GIVE AND TAKE). (MILENIO DIARIO 21) (MILENIO ONLINE 0)

The Room Next Door ... Gruma’s low-carb, gluten-free, and protein-enriched wheat tortillas are preferred by consumers looking for healthy alternatives, especially in New York, Washington, Ohio, and Massachusetts.

GRUMA SALES UP 17% (MILENIO NEWS TV (10:00 A 11:00)

October 31

GRUMA BENEFITS FROM HOME FOOD CONSUMPTION. (GOOGLE NEW MEXICO 0)

Gruma USA’s operating income in the third quarter ended on September 30, totaled MXN 1.990 billion (USD 93.81 million), 11% higher than the MXN 1.79 billion reported in the same period last year.Gruma USA’s net sales increased 10% in Q320 to stand at MXN 13.96 billion (USD 657.94 million) from MXN 12.71 billion. “Tortilla sales volumes grew 5% driven primarily by the strong trend in home food consumption that resulted in a 10% increase in the retail channel,” said Gruma CFO Raúl Cavazos Morales, during a conference call with analysts on October 29 ...