December 3

Four Companies to Invest In. (EXCÉLSIOR 2) Amidst the uncertainty plaguing the Mexican market, only four companies trading on the exchange out of a sample of 33 are looking like an attractive investment. They are Arca Continental, Asur, Gruma, and Nemak, according to Intercam Grupo Financiero analysts.

December 4

Top 1,000 Companies Ranking / 1-150. (MUNDO EJECUTIVO 34-39) (MUNDO EJECUTIVO 40-45) The magazine Mundo Ejecutivo has published its ranking of the top 1,000 companies in Mexico, where Gruma was ranked 66 and Grupo Industrial Maseca 234.

Ranking the Top 200 Largest Employers. (MUNDO EJECUTIVO 2-74-81) The magazine Mundo Ejecutivo has published its ranking of the 200 Largest Employers, in which Gruma is ranked 44.

Hungry for Growth. (MUNDO EJECUTIVO 182-197) The food and beverage industry is going through a phase of profound changes. Population growth has spurred greater demand and has required productivity to increase through streamlined and environmentally sustainable processes. The food chain nowadays is far more complex, since production processes occur in multiple countries. The market trend is towards health-oriented products. Gimsa is listed in the table.

December 5

The best CFOs in Mexico. (MUNDO EJECUTIVO 100-106) The achievements of Mexico’s best Chief Financial Officers were honored by Grupo Mundo Ejecutivo and Bank of America Merrill Lynch México in a gala evening held last October at the Hotel Presidente Intercontinental in Mexico City. Raúl Cavazos, the head of finances at Gruma, one of the top Mexican companies worldwide, believes the most important objectives of a department leader is teamwork, constant communication, sound judgment, and trust. “We must seek the greatest returns for our shareholders by prioritizing sound judgment with respect to risks and investments. That vision must permeate throughout our divisions and exist as an organizational principle,” Cavazos says.

50 Companies in Mexico with the Best CSR. (MUNDO EJECUTIVO 38-49) (MUNDO EJECUTIVO 50-59) From its beginnings as a trend to justify expenditures and look good for the government and society, today Corporate Social Responsibility (CSR) has become a true strategy for using corporate profits to offer programs or other support to the families of company employees, their communities, the environment, and even their customers. Gruma is ranked number 15.

December 7

Mario Maldonado / Business Tales. (EL UNIVERSAL 2) Carlos Salazar Lomelín is a low-profile but highly efficient executive. His 45-plus years at FEMSA, the most successful conglomerate in Mexico and Latin America, have enabled him to forge good relationships and above all, transform him into one of Mexico’s most productive CEOs. (...) Yesterday I asked Carlos Salazar about the council, in which powerful executives participate who are not part of the Mexican Business Council (CMN), including Ricardo Salinas Pliego (President of TV Azteca), Olegario Vázquez Aldir (CEO of Grupo Imagen Multimedia), Carlos Hank González (Banorte and Vice President of Gruma), and Miguel Alemán Magnani (President of Interjet). “It seems very good to me. The more people helping the president, the better,” he said. “I’m going to reach out to them if I become the president of the Corporate Coordinating Council (CCE). I know them all, and they are highly valued executives.”

December 8

Young People, Prisoners of Narcotrafficking: Durazo. (EL SOL DE MÉXICO 6) (MILENIO NOTICIAS (13:00 to 14:00) (EL ECONOMISTA 35) Alfonso Durazo Montaño, Secretary of Public Safety and Civilian Protection, said it was young people who become the drug traffickers militia and who feed the daily police stats in Mexico. The social program promoted by Mexican president Andrés Manuel López Obrador will give out monthly scholarships in the amount of MXN 2,400 for young people to study and MXN 3,600 pesos for workplace training. Attending the agreement’s signing was Juan Pablo Castañón, president of the Corporate Coordinating Council (CCE), María Luisa Alcalde, Labor and Social Welfare Secretary, and Economy Secretary Graciela Márquez Colín. Citibanamex, Femsa, Gruma, Oxxo, Telcel, and Walmart are some of the companies that signed the pact.

December 14

Revenues. (CONTRARÉPLICA 28) (ENFOQUE FINANCIERO) Successful Companies. According to a recent analysis by Bank of America Merrill Lynch in Latin America, Arca Continental, Bimbo, and Gruma are the companies with the best outlook in the food and beverage industry. The study forecasts a positive future for these Mexican corporations due to their high share of U.S. dollar revenue and their flexibility to raise prices, which will help reduce volatility.

December 15

Notes from Monterrey. (EL NORTE ONLINE) Bank of America Merrill Lynch sees dark political clouds ahead for Mexico, but they nevertheless have a positive outlook for two Monterrey-based food and beverage corporations: Arca Continental and Gruma. Even with the peso’s volatility, forecasted in their last report to possibly reach 21.50 pesos on the dollar in 2019, the bank believes investment can take shelter in stocks such as these two homegrown companies. According to the U.S. bank, both corporations hold significant revenues in foreign currencies, which could reduce the effect of the peso’s volatility. They recommend a defensive investment strategy, but their report envisions both corporations possibly benefiting via domestic consumption due to minimum wage increases and more generous social programs. And this is all for now.

December 19

Budget to Boost Basic Domestic Consumption. (LA JORNADA 25) (EXCÉLSIOR 2) (EL FINANCIERO 23) The part of the economy to benefit most from Mexico’s 2019 federal budget proposal will be consumption, and in particular basic consumption, due to the emphasis on social programs that will increase disposable income within socioeconomic groups who are customers to a good number of companies trading on the Mexican Stock Exchange, according to the bank Vé Por Más. Based on this forecast, large companies such as Bachoco, Bimbo, Chedraui, Comercial Mexicana, Electra, Famsa, Fomento Económico Mexicano (Femsa),  Grupo Maseca, Grupo Sanborns, Herdez, Lala, Soriana, and Walmart could report positive results because of greater disposable income.

December 26

Actinver: Market Yet to Recognize Gruma’s Potential. (EL ECONOMISTA 22) Gruma shares represent a potential yield of up to 17.67%, from the day’s closing price of MXN 220.96 per share to MXN 260 per share next year. Actinver analysts repeated their buy recommendation and forecast a 1.1 percent dividend, while also listing a series of factors that will produce a positive impact on the company, such as its diversification and the currency of revenue brought in. According to their last quarterly report on September 30, 27% of company revenue is in Mexican pesos, while the remaining 73% is in foreign currencies.

December 29

100 Global Mexican Companies. (EXPANSIÓN 80-87) Mexican companies are increasingly taking advantage of their experience within the domestic market and their partnership with foreign companies to venture into new markets, expand their customer base, and increase revenues. The globalization of large Mexican companies is relatively recent, generally taking place over the last two decades. But the trend has intensified over the last two years, not only as a means for expanding and diversifying sales in international markets but also out of necessity. Gruma is ranked seven in the ranking of 100 Mexican Global Companies.