Gruma USA sees strong sales growth

MONTERREY, MEXICO — Gross sales volumes in the US remained robust at Gruma USA as demand for the corporate’s “better-for-you” product remained robust and corn flour operations reached report ranges in gross sales within the first quarter of fiscal 2022.

Working earnings at Gruma USA within the first quarter ended March 31 totaled $83.3 million, down 4% from $86.5 million in the identical interval a yr in the past. Internet gross sales elevated 17% to $724.6 million from $618.9 million, whereas gross sales quantity rose 5%.

“From a divisional efficiency foundation within the US division, each tortillas and corn flour had a strong first quarter of the yr,” Adolfo Fritz, investor relations officer at Gruma, mentioned throughout an April 21 convention name with analysts. “Retail tortilla saved its robust momentum, rising by 1.2% on the again of wholesome demand from ‘better-for-you’ tortillas, particularly the gluten-free, Carb Steadiness product strains. In the meantime, foodservice has not solely recovered to pre-pandemic ranges for the reason that fourth quarter of 2021; it has skilled robust demand, evidenced by quantity progress of 8% in comparison with final yr.

“In all, quantity in our tortilla operation within the US grew by 2% within the quarter. And our corn flour operations (had) a quantity progress of 9%, with outcomes near historic report ranges within the US had it not been for 2020, the place the results of the pandemic helps robust quantity gross sales. We skilled robust demand from institutional shoppers along with wholesome quantity progress from our retail shoppers as residence cooking for the reason that pandemic has began to overhaul eating at eating places, and much more so with inflation ranges in the course of the begin of 2022. These wholesome volumes, coupled with the value will increase applied final yr, boosted gross sales by 17%, setting a agency precedent for future efficiency.”

Mr. Fritz added that Gruma’s model recognition in the US is “substantial,” placing the corporate in a a lot better place to assist worth will increase than its rivals.

“I feel we really feel very snug in that regard,” he mentioned. “And our competitors is in the identical boat coping with their very own points in line with their very own price construction.”

Gruma mentioned working margin at Gruma USA fell 250 foundation factors in the course of the first quarter to 11.5% from 14%. In the meantime, price of gross sales as a share of internet gross sales improved to 60.1% from 56.5% within the first quarter, ensuing largely from significant progress in prices relative to the primary quarter of fiscal 2021, Gruma mentioned.

Gruma mentioned it incurred $63 million in capital expenditures in the course of the first quarter. In the course of the quarter, the corporate allotted expenditures to building and capability growth of a brand new tortilla plant in Indiana; land buy for wastewater remedy at a corn milling plant in Madera, Calif.; transportation gear at its tortilla crops in Mexico; upgrades at its tortilla plant in Omaha, Neb.; capability growth at its tortilla plant in Australia; and upkeep and common know-how upgrades throughout the corporate, significantly at GIMSA.

General, majority internet earnings at Gruma SAB de CV within the first quarter was $61.2 million, down 5% from $64.3 million a yr in the past. EBITDA was 164.9 million, down 2% from 168.9 million, whereas gross sales rose 17% to $1.26 billion from $1.08 billion.  Source

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