Gruma sees mixed 2015 as Venezuela exit weighs

Mexican baker Gruma has booked a mixed set of results for 2015, with losses from discontinued operations weighing on the bottom line despite a stronger operating performance.

The company said full-year net profit fell to MXN1.09bn (US$58.9m), down from MXN4.46bn in 2014. Profit was dented by a leap in losses from discontinued operations, which totaled MXN4.31bn versus a contribution of MXN599m in 2014.

In December, Gruma announced that it is writing off investments in Monlinos Nacionales and Derivados de Maíz Seleccionado in Venezuela.The Venezuelan government nationalised Gruma’s factories in the country in January 2013 and Gruma sought World Bank arbitration to attempt to settle the dispute but was unable to regain control of the assets. In December, Gruma said economic conditions in the country prompted the group to write off the investments.

While net profit was down in 2015, both operating profit and sales increased steeply in the period. Operating income rose to MXN7.37bn, up 21% on higher sales and improved margins. Revenue rose 17% to MXN58.28bn. The result was lifted by the weakening of the Mexican peso as well as “improvements driven by better performance at all subsidiaries”, the company said.