Gruma SAB de CV
BMV:GRUMAB

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Gruma SAB de CV Logo
Gruma SAB de CV
BMV:GRUMAB
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Price: 312.01 MXN -0.6% Market Closed
Market Cap: 107.8B MXN

Gruma SAB de CV
Investor Relations

In the bustling landscape of global food production, Gruma SAB de CV stands out as a trailblazer in the realm of corn flour and tortilla manufacturing. Founded in 1949 in Monterrey, Mexico, the company embarked on its journey with a simple yet ambitious mission: to provide high-quality, ready-to-use corn flour to simplify the tortilla-making process, a Mexican staple. Over the decades, Gruma flourished under this mission, leveraging innovation and efficiency to transform the traditional process into a more accessible and commercially viable business. This approach enabled the company to not only dominate the Mexican market but also expand its reach internationally, thereby solidifying its position as a key player in the food industry.

Central to Gruma's success is its vertically integrated business model, which ensures tight control over its supply chain—from sourcing raw materials to production and distribution. Their core products, such as packaged corn flour and ready-to-eat tortillas, cater to both individual consumers and foodservice businesses. By ensuring consistent quality and tapping into the rising global demand for convenient and authentic cuisine, Gruma generates substantial revenues. Its strategic expansion into diverse markets, including the United States and Europe, capitalizes on the global appetite for Mexican food. This wide geographical footprint not only diversifies its revenue streams but also buffers the company against regional economic fluctuations. Thus, Gruma’s business model not only reimagines traditional culinary staples but ensures they are lucrative, scalable offerings in today's global food economy.

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GRUMAB
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Last Earnings Call
Fiscal Period
Q1 2025
Call Date
Apr 24, 2025
AI Summary
Q1 2025

Sales Decline: Gruma reported Q1 sales of $1.5 billion, down 6% year-on-year, mainly due to weaker volumes, lower revenues at GIMSA, and a depreciated Mexican peso.

Volume Softness: Consolidated volume fell 1.3% year-on-year to 1 million metric tons, with declines in the U.S. foodservice, GIMSA, and European corn milling segments.

EBITDA Growth: EBITDA reached $276 million, up 4% despite currency headwinds, with margin expansion in Europe and Central America.

Margin Strength: The U.S. division posted a 22% EBITDA margin, and Central America reached 16.8%. European EBITDA grew 20% helped by a favorable product mix.

Better for You Outperformance: The "Better for You" line drove growth in the U.S. retail channel, now representing 33% of retail sales and growing volumes at about 15% per year.

Guidance Maintained: Management confirmed their previous guidance on margins and capital spending, expecting no major changes unless market conditions shift.

Competitive Pressures: U.S. standard product lines face increased competition from private label and aggressive pricing by competitors, though value-added products remain resilient.

Central America Expansion: Ongoing capacity investments in Central America to meet strong demand; approximately $20 million to be invested, raising capacity by 10–13%.

Key Financials
Sales
$1.5 billion
Consolidated Volume
1 million metric tons
EBITDA
$276 million
Net Income
$126 million
U.S. Division EBITDA Margin
22%
Central America EBITDA Margin
16.8%
Leverage (Net Debt to EBITDA)
1.2x
Capital Expenditures (Q1)
$50 million
Annual CapEx Guidance
$320 million
Other Earnings Calls

Management

Mr. Juan Antonio Gonzalez Moreno
Chairman of the Board & CEO
No Bio Available
Lic. Raul Cavazos Morales
Chief Financial Officer
No Bio Available
Mr. Francisco Martinez Saldivar
Chief Operational Officer
No Bio Available
Mr. Rogelio Sanchez Martinez
Vice-President of Corporate Finance
No Bio Available
Mr. Homero Huerta Moreno
Chief Administrative Officer & Director
No Bio Available
Adolfo Werner Fritz
Head of Investor Relations
No Bio Available
Lilia Gómez
Executive
No Bio Available

Contacts

Address
NUEVO LEON
San Pedro Garza Garcia
Calzada Del Valle 407 Oriente Del Valle
Contacts
+528183993300.0
www.gruma.com