“GRUMA REPORTS AN 18% GROWTH IN NET SALES, A 24% INCREASE IN EBITDA, AND A 35% RISE IN NET PROFITS IN 2023”.

• Net sales and EBITDA in Q4 2023 stood at USD 1.640,1 billion and USD 273.2 million, respectively.
  
  
• Net sales from operations outside of Mexico represented 71% of the Group’s consolidated figures and 83% of EBITDA.
  
  
• Gruma’s capital investments in Q4 2023 totaled USD 56 million, allocated primarily to its operations in the United States, Mexico, Asia, and Oceania.
  
  
• Gruma reduced its debt by USD 92 million to USD 1.897 billion in Q4 2023. Its net debt-to-EBITDA ratio is 1.53x.

Mexico City, February 21, 2024. -Gruma announced its 2023 results today, driven by the growing demand for its products globally. The company, born in the State of Nuevo León in northern Mexico, reported an 18% growth in net sales, a 24% increase in EBITDA, and a 35% rise in net profits compared to 2022.

Results by Region

The company maintained a solid growth trend, thanks to its operations outside of Mexico and consistent innovation, such as introducing new tortilla presentations, especially in the United States.

In the United States,the company’s leading market worldwide, EBITDA was up10%during the fourth quarter of 2023 (Q4 2023), with a 25% increase reported at the end of the year compared to 2022. The company attributes these results to growing consumer trends for tortillas and their diverse uses among Hispanic and Anglo consumers.

In its subsidiaries in Europe, Asia and Oceania,Gruma improved profitability significantly compared to 2022, rising close to or above 100% in some indicators.

In Mexico,the stable demand and preference for the MASECA corn flour brand increased its volume by 2% at the end of the fourth quarter of 2023. However, Operating Profit and EBITDA registered drops of 1% and 11%, respectively, compared to the same quarter in 2022.

Gruma Central America reported an 8% increase in Net Sales and a 104% rise in EBITDA in the fourth quarter of 2023 and 13% and 56%, respectively, in 2023.

Thus, in Q4 2023,Net Sales from operations outside of Mexico represented 71% of the multinational’s consolidated figures, while EBITDA represented 83%.

Gruma remains optimistic about its growth expectations for this year, leveraging its customers' and consumers' positive trends in tortilla consumption, especially in its “Better for You” healthy product line.

Financial Results Q4 2023 vs. Q4 2022

At the end of Q4 2023, the company’s Sales Volumes stood at 1.099 billion metric tons.

Net Sales were up 5% compared to the same period in 2022, from USD 1,556.9 billion to USD 1,640.1 billion. In the fourth quarter of 2023, sales from Gruma operations outside of Mexico represented 71% of the total.

Gruma’s Operating Profit in the abovementioned quarter was USD 215 million, a 10% increase over the same period in 2022. Operating margins expanded 50 basis points from 12.6% to 13.1% in Q4 2023.

The multinational’s EBITDA at the end of Q4 2023 stood at USD 273.2 million, 10% above the amount reported in the same quarter of 2022, when it stood at USD 249.4 million. The company reported an EBITDA margin of 16.7% in Q4 2023. EBITDA from operations outside Mexico represented 83% of the consolidated figures.

Gruma’s Net Profit in Q4 2023 was USD 120.7 million, 7% above the same quarter of 2022, when it was USD 112.6 million.

Gruma reduced its debt by USD 92 million in Q4 2023 to USD 1.897 billion, thanks to its payment of outstanding debt after financing working capital needs in previous quarters. This resulted in a net debt-to-EBITDA ratio of 1.53x.

In Q4 2023, the Mexican company, a world leader in the production of corn flour, tortillas and wraps, announced Capital Investments of USD 56 million, allocated primarily to:

1. Replacing equipment and expanding the capacity of its plants in the United States.
2. Refurbishments and overall maintenance across the company, particularly at GIMSA México.
3. The expansion of the production capacity in its operations in Australia, Malaysia and China.

Gruma invested USD 211 million in 2023.

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