Mexican tortilla maker Gruma swung into profit during the second quarter due to an improvement in operating income and lower financing costs.
The company, which produces the Mission brand, said on Wednesday (27 July) that net income reached MXN106m (US$9m) for the quarter ended 30 June, against a loss of MXN172m in the same period of the previous year.
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Gruma attributed the improvement to a 29% increase in operating income, which improved to MXN775m, with operating margin increasing to 5.9% from 5.2% in the previous year.
It also said that financing costs fell to MXN196m from MXN624m in the same quarter of the previous year, which it attributed to lower foreign exchange rate losses from the appreciation of the Mexican peso and lower financial expenses due to debt and lower interest rates.
Sales increased 13% over the previous quarter to MXN13.1bn, while volumes rose 1% to 1.1bn tonnes. The increase in sales was driven by price increases across most subsidiaries to offset higher raw material prices.
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By GlobalData
