Grupo Maseca, commonly known as Gruma, is a Mexican company and one of the world's leading producers of tortillas and nixtamalized corn flour. With leading brands in most markets, it has operations in the United States, Mexico, Europe, Central America, Asia, and Oceania.
In 2021, it was recognized as one of the companies with the greatest global presence by Expansión magazine, forming part of the ranking "The 100 Global Mexican Companies". With an international expansion, it has a presence in 112 countries through its global brands Maseca and Mission.
On March 11, 2020, the World Health Organization declared the new coronavirus disease (COVID-19) a global pandemic. Governments implemented various public health and social measures to reduce the transmission of the virus. These included physical and social distancing measures as well as travel restrictions.
Despite this, sales volume managed to increase 3% in 2020 to 4,232 thousand tons compared with 4,116 thousand tons in 2019, driven mainly by Gruma United States, GIMSA, and Gruma Central America.
Net sales increased 18% to Ps.91,103 million in 2020 compared to Ps.77,388 million in 2019, mainly due to:
1. Higher sales volume in Gruma United States and a more profitable portfolio comprised of higher-priced products in the tortilla business
2. Higher prices in GIMSA
3. Higher sales volume in Central America driven by exports to Guatemala and Honduras, and participation in the United Nations World Food Program.
Cost of sales increased 16% to Ps.56,260 million in 2020 compared to Ps.48,672 million in 2019, driven by higher volume and higher raw material costs. Also, higher cost from the product portfolio mix shift in the U.S. to more profitable products contributed to the increase.
Operating income increased 22% to Ps.11,348 million in 2020 compared to Ps.9,282 million in 2019, mainly due to favorable net sales performance as a result of the volume and price increases mentioned above, as well as better product mix. This caused operating margin to expand to 12.5% in 2020 from 12% in 2019.
Net income attributable to controlling interest increased 11% to Ps. 5,368 million in 2020 versus Ps. 4,836 million in 2019, mainly explained by the increase in sales volume and net sales, mentioned above.
During 2021, sales volume declined 3% driven by the build-up of inventories during the first half of 2020 as a result of COVID-19. Additionally, bad weather and frost affected distribution and operations in the United States and Mexico.
EBITDA decreased 1% and EBITDA margin declined 60 basis points to 15.7%, mainly due to higher cost of sales in Mexico as a result of higher corn costs and higher frost-related costs in the United States and Mexico. EBITDA from operations outside Mexico represented 84% of consolidated results.
Majority net income increased 135% to Ps.1,321 million due to extraordinary foreign exchange losses during 1Q20.
At the end of the second quarter, Gruma's sales decreased 7.0% compared to the same period in 2020, reaching Ps.22.45 billion.
According to its financial report for the second quarter of 2021, the company reported a net profit of 1.532 billion pesos, 12.5 percent less than in the second quarter of last year when the pandemic was at its peak.
Net sales were affected by a shift towards lower-margin sales in the institutional channel as businesses reopen operations in the United States and Europe.
During the second quarter of the year, the company spent US$63 million on capital expenditures for the construction and expansion of a new plant in Indiana, United States; capacity expansions at the tortilla plant in Spain; wastewater treatment systems at the corn flour plants in Evansville, Indiana, and Edinburg, Texas; and maintenance and technology upgrades.
