July 1

MEXICAN STOCK EXCHANGE ENDS SEMESTER WITH LOSSES. (EL ECONOMISTA 21) (EL ECONOMISTA ONLINE 0)  

The main index of the Mexican Stock Exchange, the S&P/BMV IPC, ended the first semester of the year with a 13.38% drop, representing losses equal to MXN 692,464 million in market capitalization. Measured in dollars, the index fell 26.48% ... During these six months, some companies generated profits for their investors, despite market uncertainty and volatility. The issuers that did the best during the first half of the year were corn flour producer Gruma (+27.78), tequila producer José Cuervo (+25.88%), and pharmaceutical company Genomma Lab (+25.44%).

MONTERREY-BASED GIANTS ON THE GROUND! COMPANIES WITH LOSSES. (EL HORIZONTE ONLINE (NUEVO LEÓN) 0)

The Monterrey-based companies listed on the Mexican Stock Exchange had a semester to be forgotten when they reported sharp decreases in the value of their shares. Analysts attribute the situation to the fact that the stock market put the brakes on its activities because of the reduced operations caused by the COVID-19 pandemic. The only company that made a profit during the first half of 2020 was Gruma, with a 5.5% share price growth.

July 3

FEEDING THROUGH CORPORATE SOCIAL RESPONSIBILITY. (MUNDO EJECUTIVO 44)

Among essential activities, the food industry stands out for its commitment to health and distribution. These two topics have faced unprecedented challenges as a result of the COVID-19 pandemic. Gruma, a Mexican food company with a global presence, has stood out among food companies by demonstrating its foundations based on corporate social responsibility for citizens in recent months. “At Gruma, we have strengthened the theory of social commitment and are moving towards new horizons beyond philanthropy. We have reached out to the neediest communities and reaffirmed our commitment to Mexico and the world. Whenever a contingency or natural disaster arises, we are there to provide support,” said the company.

July 4

MASECA PROVIDES AID TO MORE THAN 600,000 FAMILIES LIVING IN MARGINALIZED AREAS ACROSS MEXICO. (MILENIO ONLINE 0)  (ECONOMÍAHOY.MX ONLINE 0)

Faced with the economic crisis caused by the COVID-19 health emergency, Gruma subsidiary Maseca, went house to house to deliver 1,200 tons of tortillas to families living in marginalized areas in all 32 Mexican states. Through its Maseca House-to-House National Aid Distribution Program aligned with its social commitment ethos, the world’s leading company in the production of corn flour, tortillas, and wraps benefited more than 600,000 families facing economic vulnerability due to the health emergency. The company used its Man-Truck sales force to distribute food twice, across 337 routes where each truck was loaded with 1,000 kilos of Maseca flour. In addition to delivering nixtamalized corn flour house-to-house, Grupo Maseca also made in-kind donations to health care centers, hospitals, foundations, food banks, and government programs aimed at helping the most vulnerable population during the health emergency caused by the COVID-19 pandemic. It also ensured the production and supply of corn flour during the contingency, consistently guaranteeing the quality standards and food safety of its products and processes.

July 8

MAURICIO FLORES / PEOPLE BEHIND THE MONEY. (LA RAZÓN 14)

Since Justin Trudeau did not attend today’s meeting at the White House, the agenda does not include the trilateral signing of the USMCA ... however, there is no doubt that Donald Trump will be the spokesman representing his nation’s powerful and influential industrialists, while Andrés Manuel López Obrador will be accompanied to Washington by the Mexican Business Advisory Council, and everything this entails. The presence of Mexican businesspeople at the presidential dinner, the likes of Ricardo Salinas of Grupo Salinas; Bernardo Gómez of Televisa; Olegario Vázquez Aldir of Grupo Ángeles; Francisco González of Multimedios; Daniel Chávez of Grupo Vidanta; Carlos Slim of Carso; Miguel Rincón of Bio Pappel; Patricia Armendáriz, Carlos Bremer, and Carlos Hank González of Banorte-Gruma conveys a positive signal.

July 9

AMLO EXPLAINS WHY HE TOOK BUSINESSPEOPLE TO HIS MEETING AT THE WHITE HOUSE (GRUPO FÓRMULA ONLINE 0)

President López Obrador assured Donald Trump that the Mexican businesspeople who accompanied him on his first meeting to the White House have “social dimension” and do not limit their thinking to the accumulation of wealth. The Mexican President spoke within the framework of the celebration of the entry into force of the Trade Agreement between Mexico, the United States, and Canada (the USMCA). The business people who accompanied AMLO in his first meeting at the White House, and whom he said have “social dimension,” include personalities the likes of Ricardo Salinas Pliego, CEO of Grupo Salinas; Carlos Hank González, president of Grupo Financiero Banorte, Vice President of GRUMA, and CEO of Grupo Hermes; Olegario Vázquez Aldir, CEO of Grupo Empresarial Ángeles; Daniel Chávez, founder of the Vidanta Group; and Bernardo Gómez, Executive Vice President of Grupo Televisa.

RODRIGO PACHECO: FINANCES (IMAGEN INFORMATIVA (EVENING NEWSCAST)  

Sometimes, we believe that direct foreign investment from the United States in Mexico is of the utmost importance for the country; however, many large companies run major operations in the United States, such as Arca Continental, which is about to open a plant in Texas. Cinépolis and Cinemex, which operate movie theaters in the United States; América Móvil, that has a presence as a virtual operator in the U.S.; and several Mexican companies and entrepreneurs have found a very attractive market in the United States. Obviously, the list includes Gruma and Bimbo, and others like Orbia, formerly Mexichem, to make a long story short ... 

July 13

GRUMA INCREASES ITS ATTRACTION RATE IN LIGHT OF FAVORABLE EXPECTATIONS FOR Q2 2020 (MILENIO ONLINE 0)

During a highly volatile environment in the financial markets, where the main index of the Mexican Stock Exchange (BMV) and most issuers appear to be on a downward trend, the appeal of Gruma shares continues to grow, especially in light of the positive expectations regarding its financial results report for the second quarter of the year, which it is expected to publish towards the end of this month. Higher demand for the share of the company known as the global leader in the production of corn flour, tortillas, and wraps worldwide, led several analyst groups, including BancoBase and Grupo Financiero Invex, to adjust the target price of the issuer’s shares upward...

July 14

ESSENTIALS AND FOOD PRODUCERS WILL DO BETTER IN Q2 2020, SAYS BARCLAYS (GOOGLE NEWS MEXICO 0)

Barclays expects food and other essential item manufacturers and sellers to withstand the financial downturn reported in Q2 2020. In its report before the publication of financial results for the period, the financial institution’s analysts indicated that they anticipate mixed results, which will depend on the type of business in which each company is involved. Barclays expressed its confidence, especially in the performance of both Gruma and Walmex, as well as Banorte.

July 15

FEEDING THROUGH CORPORATE SOCIAL RESPONSIBILITY. (MUNDO EJECUTIVO 32)

Among essential activities, the food industry stands out for its commitment to health and distribution, two of the topics facing unprecedented challenges during the COVID-19 pandemic. Gruma, a Mexican food company with a global presence, has stood out among companies in the food sector by demonstrating its foundations based on corporate social responsibility to citizens in recent months. “At Gruma, we have strengthened the notion of social commitment and are moving to new horizons beyond philanthropy. We have reached out to the neediest communities and reaffirmed our commitment to Mexico and the world. Whenever a contingency or natural disaster arises, we are there to provide support,” said the company. To maintain and secure its operations, the company, a world leader in the production of corn flour and tortillas, designed a Global Support Strategy and a COVID-19 security protocol that Gruma implemented in its operations worldwide.

FIVE ISSUERS THAT WILL SURVIVE THE HISTORICAL CRISIS CAUSED BY THE COVID-19 PANDEMIC DURING Q2 2020. (EL FINANCIERO P-16) (INFORMADOR.MX ONLINE (JALISCO) 0)

Analysts expect issuers listed on the Mexican Stock Exchange to announce historical outcomes in the second quarter of this year, due to the suspension of non-essential activities in April, May, and in some cases until June, to avoid the spread of the coronavirus through the implementation of social distancing measures and deterioration in the economy ... However, the five issuers expected to report the largest increases in operating cash flow (EBITDA) in the second quarter include Vesta, Gruma, Walmex, Bimbo, Kimberly Clark, with 19.1%, 11.9%, 11.5%, 10.2%, and 8.8%, respectively.

July 16

GRUMA TO SUPPORT SUSTAINABLE CORN PRODUCTION (EL NORTE 11)

In order to reduce white corn imports and encourage sustainable production in Mexico, Grupo Maseca (Gruma) signed an agreement with the federal authorities to help farmers improve their productivity in the harvest of this product. The company reported that it entered into a three-year agreement to work together with the National Institute of Forestry, Agricultural and Livestock Research (INIFAP), a decentralized body of the Secretariat of Agriculture and Rural Development. During this period, Gruma will contribute MXN 9 million; that is, MXN 3 million per year to evaluate 164 different hybrid white corn seeds to be planted on 256 hectares. Gruma President and CEO Juan González Moreno said that the best way to increase productivity is by supporting farmers. “We are sure that the collaboration between INIFAP and Gruma will yield tangible results for the farmers and society in general,” said INIFAP director Luis Ángel Rodríguez.

THE INIFAP AND MASECA TO WORK TOGETHER (EXCÉLSIOR 11) (REFORMA)(MILENIO DIARIO 17) (MURAL) (LA JORNADA) (24 HORAS) (EL HERALDO DE MÉXICO) (CONTRA RÉPLICA)MUNDO EJECUTIVO) (DINERO EN IMAGEN)(EL ECONOMISTA)(OSCAR MARIO BETETA) (SDP NOTICIAS)(TELE DIARIO) (QUADRATÍN)

In an effort to boost sustainable white corn production and improve small and large-scale farmer production rates in Mexico while also reducing corn imports, yesterday, the National Institute of Agricultural Forestry and Livestock Research (INIFAP), a decentralized agency of the Secretariat of Agriculture and Rural Development, and Grupo Maseca signed a three-year work agreement. The agreement includes the evaluation of 164 different hybrid white corn seeds to be planted on 256 hectares to determine the most appropriate seed for each region that will allow national small and large-scale farmers to improve their harvests and, hence their income. The program will be applied in 22 states across Mexico, including Baja California, Baja California Sur, Campeche, Chiapas, Chihuahua, Durango, Guanajuato, Guerrero, Hidalgo, Jalisco, the State of Mexico, Michoacán, Morelos, Nayarit, Nuevo León, Oaxaca, Puebla, Sinaloa, Sonora, Tamaulipas, Tlaxcala, and Veracruz.

ALICIA SALGADO / CURRENT ACCOUNTS. (EXCÉLSIOR 5)

From funds to the bottom. #Maseca … The Secretariat of Agriculture and Rural Development (SADER), headed by Víctor Villalobos, through the National Institute of Forestry, Agricultural and Livestock Research (INIFAP) and Maseca Group, run by Juan González, signed a three-year work agreement to promote the sustainable production of white corn while improving crop yields per hectare. Grupo Maseca will invest MXN 9 million to evaluate 164 different hybrid white corn seeds to be planted on 256 hectares distributed in 22 states across Mexico, to determine the most appropriate seed for each region, considering the improvement process to be implemented by the INIFAP.

ACTIONS AND REACTIONS. (EL ECONOMISTA 18) (EL ECONOMISTA ONLINE 0)

INIFAP, a decentralized agency of the Secretariat of Agriculture and Rural Development, and Grupo Maseca signed a three-year work agreement to promote the sustainable production of white corn and improve the productivity of small and large-scale farmers in Mexico, while also reducing grain imports ... 

500 LEADING COMPANIES IN MEXICO / UNO. (EXPANSIÓN 154-167) (EXPANSIÓN.MX ONLINE 0)

Expansión magazine publishes the ranking of the 500 largest companies in Mexico where Gruma placed 55.

July 17

INIFAP AND GRUPO MASECA SIGN PRODUCTION AGREEMENT (IMAGEN NEWS WITH YURIRIA SIERRA)

The INIFAP and Grupo Maseca sign a three-year work agreement. With it, they will boost the sustainable production of white corn that will improve the productivity of small and large-scale farmers and reduce imports ... Grupo Maseca President Juan González, noted that Gruma is committed to the sustainability and development of the Mexican farmland.

July 20

#INFORMACIÓNCONFIDENCIAL (EL CEO ONLINE 0) Gruma, a winner during the pandemic? Concerns about a potential change in consumption patterns when life goes back to normal, and families eat less at home, thus reducing demand for tortillas, were more than offset by the optimistic expectations regarding cash flow generation estimated by HSBC, which not only reiterated its buy recommendation but also increased its target price from MXN 240 to 265. The HSBC Analysis Department said that the company scheduled to publish its report on Wednesday is one of the winners of the pandemic, as it has already generated enough cash flow to keep its close to USD 100 million per year dividend policy intact, double its capital expenditures to USD 250 million, maintain its aggressive share buyback program, and even pay off all its debts, if necessary. HSBC believes that Gruma could actually build a new plant in Texas because production from its current facilities already seems insufficient to meet demand. You think ...?

July 22

THE 20 COMPANIES RESISTANT TO THE CORONAVIRUS CRISIS. (EXPANSIÓN POLÍTICA ONLINE 0) (GOOGLE NEWS MEXICO 0)

We are experiencing the worst crisis since the Great Depression, as indicated in the figures reported by the International Monetary Fund, but we will not bore you with them. However, at Expansión, we have chosen to see the glass half full and focus on analyzing the companies that are doing the best job resisting the situation created by thecoronavirus pandemic. In consumer staples, Bimbo andGruma saw their sales grow due to panic buying. Even with the closure of schools and community dining rooms, the first quarter yielded positive results for the bakery known for its iconic Teddy Bear, which increased its operating flow by more than 11% thanks to its solid sales performance in the United States and Mexico. Gruma net sales were up 16%.

July 23

GRUMA REPORTS 27% EBITDA GROWTH (EL NORTE 14) (REFORMA 2) (EL FINANCIERO 18) (EL ECONOMISTA 21) (EXCÉLSIOR 3) (MILENIO DIARIO 19) (LA RAZÓN 13) (24 HORAS 17) (EL SOL DE MÉXICO 15) (EL HERALDO DE MÉXICO 25)

Grupo Maseca (Gruma) reported a historic second quarter, with 27% growth in its cash flow (EBITDA) compared to the same period last year, driven primarily by its operations abroad. Higher sales volumes, the exchange rate, and price increases contributed to the world’s largest producer of tortillas and corn flour, reporting an EBITDA of MXN 4,023 million. In its report, Gruma announced that despite the complicated panorama of the global economy caused by the COVID-19 pandemic, it obtained results never seen before in its history. Part of that result was reflected in its largest market, which is the United States, thanks to increased consumer purchases in supermarkets and convenience stores due to the pandemic. Meanwhile, in Mexico, it benefited from consumer purchases, higher exports to the United States, and a growth in sales to the government channel.

ROGELIO VARELA / CORPORATE. (EL HERALDO DE MÉXICO 23)  (EL HERALDO DE MÉXICO ONLINE 0, and ÍNDICE CORPORATIVO [CORPORATE INDEX])

Second quarter reports to the Stock Exchange will be used as a thermometer to gauge the depth of the recession and which companies will do well in the adjustments brought about by the COVID-19 pandemic. You can go ahead and write down the name Gruma as one of the issuers that will beat the gale. … Net sales of the corn flour and tortilla giant jumped 25%, due primarily to its operations outside of Mexico, especially in the United States. Food sales are seen as a defensive sector worldwide, within the framework of the pandemic. However, we must also recognize that Gruma has been the true ambassador of the tortilla in an increasing number of countries and is now reaping the efforts made by its founder Roberto González Barrera, in addition to the strong management skills manifested by his successor Juan González Moreno in recent years. 

ALICIA SALGADO / CURRENT ACCOUNTS. (EXCÉLSIOR 5) (DINERO EN IMAGEN ONLINE 0)

From funds to the bottom. #Gruma ... the company chaired by Juan González Moreno has seen its growth and international expansion objectives consolidated in the balance shown in its results during the pandemic. At the end of June, it reported a 25% growth in net sales to stand at MXN 24,146 million, and profits that grew 38% to close at MXN 1,751 million despite the strength of the U.S. dollar influencing the cost of sales, and a USD 93 million reduction of its net debt for a net debt to EBITDA ratio of 1.89x ... The results continue to be driven by the United States, a market in which tortillas, wraps, and corn flour are products that have consolidated their position in the taste of consumers globally. 

MAURICIO FLORES / PEOPLE BEHIND THE MONEY. (LA RAZÓN 14) (LA RAZÓN DE MÉXICO ONLINE 0)

Gruma, strength in the pandemic. The results reported by the company run by Juan González deserve a special mention, as its sales were up 25% and net profits grew 38% in the second quarter of this year, compared to the same period in 2019, a historically high figure as a result of operations between Mexico and the United States. During “The Great Lockdown,” Gruma’s production and distribution chain met the required safety measures as they actively supplied consumers with flour and corn derivatives, as reflected in its outstanding results ...

GRUMA CLOSED IT SECOND QUARTER WITH A 4% INCREASE IN SALES. (MILENIO TV / MAGDA GONZÁLEZ 16.46)

Magda González…

July 24

ROBERTO AGUILAR / CORPORATE MOMENT. (EL SOL DE MÉXICO 14) (EL SOL DE MÉXICO ONLINE 0)

Outstanding performance. After Gruma, presided by Juan González, released its Q2 2020 report, domestic and foreign brokerage firms noted the strength of its results, and in some cases, improved their recommendations on the shares listed on the Mexican Stock Exchange run by José Oriol Bosch. “The most attractive investment idea under our coverage,” is how Goldman Sachs described Gruma while reiterating its buy recommendation. Meanwhile, Actinver, which raised its recommendation to Outperform, anticipated an outstanding growth in volumes during the second half of the year, as well as a positive exchange rate effect, considering that two-thirds of the world’s largest producer of corn flour and tortillas revenues are denominated primarily in U.S. dollars and euros.

July 28

MANUEL SOMOZA: MILENIO MARKETS IN PERSPECTIVE (MILENIO NEWS (06:00 to 12:00)

Jorge Gordillo, director of Economic Studies: The United States is doing better than expected, but its outlook for the next few quarters has been very cautious and this is what the market has moderated in its reaction. In Mexico, it is turning out more or less as we expected. The consumer sector, the telecommunications sector, all the companies related to it have reported sound reports, including Cuervo and Gruma. The banking sector, the restaurant sector, the airport sector, and the construction sector have been greatly affected in terms of profits and income.

July 29

COVID-19 CAUSES BUSINESS PROFITS TO PLUMMET. (EXCÉLSIOR 1-4)

COVID-19 infected the 26 most important issuers in Mexico listed on the S&P/BMV IPC, where earnings during the second quarter of the year fell 77.38%, from MXN 69,807 million to MXN 15,790 million. Although several issuers are beginning to reactivate their activities, employment and consumer confidence have dropped in recent weeks. In light of this, the Monex specialist noted that the recovery of companies in our country would be gradual, although companies centered on consumption will continue to be the most defensive. “América Móvil, for example, offers basic consumption and technology for cell phones; another of the large companies like Walmex is also focused on basic consumption. Gruma and Bimbo, on the other hand, have announced outstanding results,” he added.

July 30

COMPANIES LISTED ON THE STOCK MARKET CUT 79,000 JOBS IN THE FIRST HALF OF THE CURRENT YEAR. (EL FINANCIERO 17)

As a result of the health contingency caused by the COVID-19 pandemic and the economic crisis, various companies listed on the BMV implemented personnel cuts during the first half of this year. According to information published in its quarterly reports, excluding financial institutions, 79,183 jobs were cut between January and June of this year. Even with the stoppage of activities during the second quarter, several companies increased their workforces. Femsa noted that it hired 7,339 new employees. In comparison, the Mexican supermarket chain La Comer hired 1,847 new employees, and Gruma added 1,311 employees to its workforce.

CORONAVIRUS KNOCKS OUT COMPANIES LISTED ON THE STOCK EXCHANGE. (EXPANSIÓN.MX ONLINE 0). (IMAGEN RADIO ONLINE 0)

You could see it coming. With the coronavirus and the economic crisis unleashed, the companies listed on the Mexican Stock Exchange reported their worst quarter in more than a decade. From April to June, sales reported by the companies comprising the Mexican quotes and prices index (IPC), the market’s main indicator, fell 3%, while operating flow (EBITDA) fell 9% ... However, there is some light in the midst of the darkness for certain companies, as some did more than surviving the crisis to crown themselves as the big winners during the period, including Peñoles, José Cuervo, Bimbo, Gruma, the Mexican Stock Exchange Group, Kimberly Clark, Genomma Lab, IEnova, all of which reported more than 10% growth of EBITDA margins.

July 31

FIVE IPC ISSUERS THAT KEPT A SOCIAL DISTANCE FROM THE IMPACT PRODUCED BY THE COVID-19 PANDEMIC. (EL FINANCIERO P-24)  (INFORMADOR.MX ONLINE (JALISCO) 0)

The five companies that managed to keep a ‘social distance’ from the impact of the coronavirus on their operating flow (EBITDA) were Peñoles with a 76.3% increase, followed by José Cuervo with 69.3%, IEnova with 35.9%, Bimbo with a 29.2% growth, and Gruma with its 26.6% increase compared to Q2 2019.