February 4

THE PRICE OF AVOCADO IN THE UNITED STATES (Formula Noticias with Jaime Nuñez) Jaime Núñez: I do not know how much an avocado costs in Mexico. Wherever you go, you're going to get a good avocado. Here (in Atlanta) a good guacamole with tortillas mostly from Gruma, because another Mexican company also makes them, chips, those tortilla triangles are mainly from a Mexican firm, in this case Gruma, who also sells them here (in the United States).

February 7

76% OF UNEMPLOYED YOUTH LEFT OUT OF TRAINING PROGRAM (Contraréplica pgs. 14-15) Article with front-page headline  The Public Finance Studies Center of the House of Representatives delivered a study to lawmakers showing the characteristics and density of Mexican youth that are unemployed and not in school at the end of November 2018. The size of this demographic group is 3.8 million, while the program “Youth Building the Future” lists only 2.3 million. The tutors. Companies that have enlisted to participate in the program include ADO, Aeromexico, América Móvil, Bachoco, Banco Inbursa, Banorte, Bayer, Bimbo, Bonafon, and JP Morgan. Others participating companies are Cemex, Chedraui, Cinépolis, Coca-Cola, Colgate, Del Fuerte, Gruma, and Grupo Lala.

February 8

JONATHAN RUIZ / THE DIVIDE. (El Financiero pg. 21) The most prevalent version of events for Mexicans is that the country is in a crisis. This belief is currently at odds with how analysts in the U.S. recommend buying shares in companies that depend on the consumption of Mexicans. They are saying to buy Gruma, the company that depends on people buying tortillas; to buy Arca Continental, which sells Coca-Cola in the north of Mexico; to buy Femsa, which is putting up Oxxo stores and gas stations everywhere; to buy Banorte, “Mexico’s strong bank,” that would be dead if Mexicans didn’t have money to save. (...) All of these companies are the top picks from the largest bank in our northern neighbor, according to an analyst report signed by Nur Cristiani.

YOUNGSTER FROM HIDALGO WINS TRIP TO ROME (La Razón pg. 10) (Excélsior pg. 18) Hidalgo Governor Omar Fayad announced the winner of a trip to Rome for visitor number three million to the Sistine Chapel replica in Mexico, currently located in Pachuca in David Ben Gurión Park. The governor also thanked authorities from the Vatican, the Nunciature, church authorities in Mexico, and the sponsors Maseca and Banorte for making the traveling museum possible, which receives approximately 600 visitors every half hour.

February 11

ASIAN AIRLINES TAKE FLIGHT IN MEXICO (El Universal pgs. 28-30) According to the Secretary of Labor, Foreign Direct Investment from China was USD 871.3 billion in 2018, representing just 0.6% of investment entering Mexico, which demonstrates the vast opportunity for increasing commercial ties between the two countries. In Mexico, many Chinese companies are growing such as BAIC, Envison Energy, Hier and Sanhua, Hisense, Huawei, JAC Motors, Jinko Solar, Lenovo, Sinohydro, and ZTE, in addition to ICBC, the first Chinese bank with a subsidiary in Mexico. Meanwhile, Mexican companies in China include Bimbo, ICC, Grupo Kuo, Maseca, Nemak, and Softek. This has led to a significant amount of business tourism between both countries.

February 12

ROGELIO VARELA / CORPORATE AGENDA (El Heraldo de México pg. 27) Although Mexico is going through changes ... the search for foreign markets has resulted in one-third of GDP coming from export activities. This has created an environment in which Mexico holds a surplus of foreign currencies, which has helped the economy a great deal. Additionally, these years, companies such as Alsea, América Móvil, Bimbo, Cemex, and Gruma have acquired companies outside of Mexico. However, the challenges of globalization are still great.

February 20

THREE EXECUTIVES JOIN TEC DE MONTERREY BOARD OF DIRECTORS (El Sol de México pg. 24) Three corporate executives, Arturo Zapata Guízar of Corporación Zapata, José Coppel Luken of Grupo Coppel, and Lorenzo Barrera Segovia of Grupo Financiero BASE, joined the board of directors of the Monterrey Institute of Technology and Higher Education, known as “Tec de Monterrey” and led by José Antonio Fernández Carbajal. During the board meeting held at the Monterrey campus, José Antonio Fernández Carbajal and Tec de Monterrey’s president, Salvador Alva, announced the 2030 Strategic Plan for the institution. Known as the “Monterrey Group,” the board is formed by 12 businessmen: Raúl Gutiérrez from DeAcero, Armando Garza Sada from Alfa, Armando Garza T. from Frisa, Enrique Zambrano from Proeza, Federico Toussaint from Lamosa; Juan González Moreno from Gruma, Adrián Sada from Vitro, Tomás González de Cydsa and Rogelio Zambrano from Cemex, Juan Ignacio Garza Herrera, president of Caintra, and Ricardo Martín Bringas from Soriana.

February 21

GRUMA REPORTS NET SALES UP 5% IN 2018 (La Jornada pg. 21) (Reforma pg. 3) Gruma, a global tortilla and corn flour producer, announced its annual and quarterly results this Wednesday. In its financial statement, Gruma reported 2018 net results of MXN 4.892 billion, a 22% decrease compared to MXN 6.274 the previous year.

PRICES STRENGTHEN SALES AT GRUMA, REVENUES UP 4.1% (El Financiero pg. 29) (El Economista pgs. 1-3) (24 Horas pg. 17) (El Heraldo de México pg. 30) (El Norte Online) Gruma posted total revenues of MXN 19.8 billion during the Q418, 4.1% up year-over-year. The improved figures were driven mainly by price increases in Mexico and the weakness of the peso against the dollar.

A CHALLENGING YEAR FOR GRUMA (Excélsior pg. 2) (Contraréplica pg. 16) The fourth quarter of 2018, like the entire year, was a challenging one for Gruma. However, the growth of Mexican restaurants in the U.S. and higher consumption in France and Germany helped drive the company’s results. The company reported fourth-quarter sales in 2018 up 4%, while EBITDA was down 3% and profits less minority interest was down 44%.

ALICIA SALGADO (Enfoque Financiero) Alicia Salgado: At the close of Q418, the multinational Gruma posted sales of MXN 19.8 billion, up 4% year-over-year, driven by price increases by Grupo Industrial Maseca and the effect of a weak peso against the dollar.

February 22

AMONG BOSSES (El Financiero pg. 21) 2019, the year of consolidation for Gruma? 2018 was undoubtedly a year of organic growth and activity for Gruma. Among other things, the world’s largest producer of corn flour and tortillas expanded production and storage plants in the United States, Russia, Georgia, and England. Additionally, in Puebla, the company built a new tortilla plant that started operations last October. On the heels of this flurry of activity, the multinational led by Juan González plans capital expenditures between USD 100 and 120 million, about half of the USD 209 million spent last year.

GRUMA POSTS SOLID 4Q18 / EDGAR GONZÁLEZ (AlMomento.mx) (IndicePolitico.com) Gruma announced its results for Q418, which saw net sales up, an increase in capacity for the company’s future growth in the U.S. and Mexico, and increases on the year for net sales (5%), operational profits (1%), and EBITDA (4%).

February 28

COMPANIES POST SLOWEST GROWTH IN FIVE YEARS DURING Q418 (El Financiero pgs. 20-21) Fourth-quarter results for companies on the IPC index of the Mexican Stock exchange (S&P/BMVIPC) reflected slowing Mexican and global economies, increased commodity prices, and a less favorable exchange rate for transactions in U.S. dollars. Companies on the IPC index reported revenue up 6.1% and EBITDA up 6.1% year-over-year for Q418. When increasing the sample to 90 companies on the Mexican exchange, growth in those categories was 7.2, 7.6, and 1.9, respectively. Analysts graded reports from Alfa, Alpek, Asur, Bimbo, and Cuervo as positive surprises. On the flip side were the results from Gruma, Grupo Cementos Chihuahua (GCC), Peñoles, and Televisa.