Mexico’s Gruma remained on track to achieve its long-term targets as the corn flour and tortillas maker posted an increase in second-quarter sales and profits.

The San Pedro Garza Garcia-based company, which ploughed funds into new and existing plants during the quarter, saw net sales rise 7% to MXN17.4bn (US$990m) from a year earlier, according to its results published yesterday (19 July). Earnings before interest, tax, depreciation and amortization or EBITDA) also climbed 7% to MXN2.8m to represent a margin of 16.3%, which Gruma said was the highest ever.

Capital expenditure dropped to MXN61m from MXN79m, even though the company invested in new tortilla production facilities in the US and Russia, and expanded existing plants in the Netherlands, Malaysia and Australia. 

“Sales volume growth in all subsidiaries, other than Gruma Centroamerica, is providing benefits that arise from economies of scale, which coupled with a better product portfolio and improved operational performance, particularly at Gruma USA and GIMSA, has enabled the company to once again attain a record EBITDA margin level.”

While Gruma’s net income dropped 1.4% to MXN1.48bn for the quarter from a year earlier, majority net income, a measure watched in Mexico, climbed just over 1% to MXN1.43bn. Operating income rose 7% to MXN2.3bn, primarily driven by a better performance at Gruma USA, the company said.

The company’s debt increased to US$806m in the second quarter versus US$704m a year earlier, primarily related to cyclical working capital requirements, dividend payments and Capex, according to the statement. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.