“OPERATIONS OUTSIDE MEXICO DRIVE GRUMA’S NET SALES AND EBITDA UP IN Q123 WITH 25% AND 28% GROWTH, RESPECTIVELY”.

• Sales Volume grew 5% to 1.090 billion tons YoY.
  
  
• Net Sales and EBITDA in the first quarter of 2023 stood at USD 1.586 billion and USD 211 million, respectively.
  
  
• Net Sales and EBITDA from operations outside of Mexico represented 73% and 87% of the total, respectively.
  
  
• In Q123, the company invested USD 49 million primarily in its operations in the United States, Mexico and Australia.
  
  
• Net Sales were up 22% in the United States, 21% in Europe and 7% in Asia and Oceania.
  
  
• Gruma’s debt in Q123 stands at USD 2.016 billion; its Net Debt-to-EBITDA Ratio is 2.0x.
  
  

Mexico City, April 19, 2023. This Wednesday, Gruma announced its operating results for the first quarter of the year (Q123), noting that the company experienced solid growth in profits thanks to its implementation of innovative business strategies, innovation in its food products, cost optimization and cost containment.

Sales Volumes reported by the multinational during the first three months of the year were up 5%, driven primarily by its subsidiary in the United States.

The improved results reported by all subsidiaries and the multinational’s operating profits and EBITDA were up 36% and 28%, respectively, in the first quarter of the year compared to the same period in 2022, reporting growth across all divisions except Mexico.

Gruma’s Net Sales outside of Mexico represent 73% of its consolidated results, while EBITDA outside the country stands at 87%.

Gruma had a solid start to the year in all its operations, with strong, resilient demand for its products globally, primarily in the United States, its top market, where its Better for You line of healthy products continues to do well. The nixtamalized corn flour business remains stable, especially in retail, as consumers prefer homecooked meals over eating out.

In the United States, its clients and consumers' growing demand for tortillas and corn flour boosted its Net Sales by 22%, while its EBITDA was up 41%.

The company announced a 21% growth in Net Sales and 22% growth in EBITDA in Europe in Q123.

Net Sales In Asia and Oceania were up 7%, with an 11% EBITDA growth. This subsidiary’s operating costs have begun to stabilize, with the company’s profitability on the rise.

In Central America,Gruma improved its Net Sales by 27% and EBITDA by 88%. The implementation of innovative commercial strategies allowed this operation to improve its profitability levels.

The company’s growth expectations remain high thanks to its business strategies and innovation in the food it produces globally and the growing demand for its food in the countries and regions where it has a presence.

Q123 Financial Results Compared to Q122

At the end of Q123, Gruma’s Sales Volume compared to the same period in 2022 grew 5% to stand at 1.090 billion metric tons.

Net Sales in the period mentioned above were up 25% compared to the same period in 2022, to stand at USD 1.586 billion, driven primarily by the growth in sales volume in its subsidiaries in the United States and Mexico.

Cost of Sales was up 27% due to higher raw material costs and higher labor costs in the United States. As a percentage of Gruma’s net sales, the cost of sales was up 65.9%

The company’s Gross Profit in the first quarter of 2023 totaled USD 541 million, 23% higher than the same period in 2022, for a total of USD 439 million; gross margin stands at 34.1%.

The Operating Profit of this global producer of nixtamalized corn flour, tortillas and wraps in the quarter mentioned above totaled USD 158 million; its operating margin stood at 10% in Q123.

The multinational’s EBITDA stood at USD 211 million. The company reported a 13.3% EBITDA margin in the first quarter of the year.

Gruma reported USD 76 million in Net Income for the period.

Gruma has USD 2.016 billion in debt at the end of Q123; its Net Debt-to-EBITDA Ratio is 2.0x.

During the first three months of the year, Gruma invested USD 49 million, primarily in:

1. Expanding production capacity at its plant in Australia.
   
   
2. Improving production capacity at its tortilla plant in Dallas, Texas, in the United States.
   
   
3. Building a new tortilla plant in Indianapolis, Indiana, in the USA.
   
   
4. General improvements across the company’s operations, especially in Mexico.

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