July 5

CONSTRUCTION COMPANIES SHINE ON THE BMV IN THE FIRST SEMESTER. (LA JORNADA 20) (LA JORNADA ONLINE 0) At the end of the first half of the year, the top construction companies listed on the BMV announced a 22.26% increase, according to data published by S&P/BMV Construye (S&P/BMV Builds), one of the seven indices that are part of the Mexican Stock Market (BMV). The increase in earnings reported by the sector stood out when recording the 14.1% nominal Index of Prices and Quotations (CPI) for the period. Another profitable sector reporting 16.29% returns was reported in the S&P/BMV Transforma Index listing the manufacturing, electricity, gas and water industries, including Bimbo, Gruma,Arca Continental, and Coca-Cola Femsa, among others.

July 9

GRUMA DONATES THREE TONS OF FLOUR TO THE MORELOS DIF. (LA CRÓNICA DE MORELOS ONLINE 0) (DIARIO DE MORELOS ONLINE 0) Strengthening solidarity ties with strategic partners to extend their assistance actions is a strategy carried out by the president of the DIF Morelos System, Natalia Rezende Moreira, to favor the State’s most vulnerable population. Hence, on Thursday, July 8, the decentralized entity received a donation of three tons of flour from Gruma that will benefit more than 2,500 families in Morelos as the product is delivered directly into their hands.

UN RESOLUTION 2014 DOES NOT RECOGNIZE RUSSIA’S ANNEXATION OF CRIMEA. (CONTRARÉPLICA 15) In an interview, the Ambassador of Ukraine in Mexico, Oksana Dramaretska, noted that Mexico is one of our most important partners in the Western Hemisphere; therefore, we promote further development of relations and cooperation with Mexico as an element relevant to our foreign policy. Two leading Mexican companies are present in the Ukrainian market: Bimbo and Gruma,with their investments in the Ukrainian agri-food sector. Given the opportunities to invest in Ukraine, we encourage more Mexican investors to participate in investment projects in the attractive Ukrainian market. I am sure that Ukrainian companies and investors are also interested in the Mexican market.

July 14

DESPITE THE PANDEMIC, CORONA IS THE MOST VALUABLE BRAND IN MEXICO. (DINERO EN IMAGEN ONLINE 0) Despite the pandemic, Corona managed to maintain its position as Mexico’s most valuable brand, with USD 5.822 billion, according to the Mexico 50 Brand Finance Report for 2021. However, the year was complex, as our country’s ten most valuable brands collectively lost USD 8.862 billion, falling -13.7%. Oxxo also lost its first position, which Banorte snatched from it by reaching a value of USD 1.758 billion. The new members included were Maseca and Banco Compartamos, ranked 48^th and 50^th, respectively.

July 16

CORPORATE PROFITS THROUGH THE ROOF IN Q221. (DINERO EN IMAGEN ONLINE 0) In Q221, sales of the country’s leading companies grew as they recovered profitability and their profits soared. Based on Monex forecasts, the collective earnings of the companies comprising Mexico’s main stock market indicator, including América Móvil, Gruma, Femsa, Bimbo and Alfa, will total MXN 1,234,455 billion, with EBITDA (the profitability indicator), standing at MXN 271,123 billion and net profits totaling MXN 89,689 billion. According to the Monex Director of Analysis, listed companies were highly favored between April and June of this year, thanks to the change in the epidemiological traffic light, vaccination, and the stimulus’s impact on the U.S. economy.

TORTILLA MARKET ORIENTATION 2021. (HOY CICLISMO ONLINE 0) Marketresearch.biz recently published a research report on the Tortilla Market that provides an in-depth analysis of key factors that can help well-known companies in the industry formulate suitable action plans looking forward. As the industry grows in popularity, the demand for Tortillas is expected to increase dramatically. The two main factors examined in this report include market revenue and market size. The key players in the global Tortilla industry are Gruma, Easy Food, La Tortilla Factory, Los Amigos Tortilla Manufacturing, Tortilla King, Catallia Mexican Foods, Aranda’s Tortilla Company, Arevalo Foods, Azteca Foods, and Eagle Foods Australia.

July 20

THE 300 LEADERS / 105-160. (LÍDERES MEXICANOS 324-352) (131) Juan González Moreno, Gruma and Gimsa President and CEO. Gruma was recently recognized as one of the few companies that care about the health of its workers according to the We Want Active Mexicans(Queremos Mexicanos Activos) and Movement for a Healthy Life(Movimiento por una Vida Saludable)organizations. This was demonstrated during the pandemic, as Gruma’s defensive nature permitted its solid financial performance and growth across the globe. In Mexico, Casa por Casa delivered Maseca corn flour to 1.4 million low-income families in the 32 states across the nation.

July 22

GRUMA REPORTS HEALTHY GROWTH RATES. (EXCÉLSIOR 3) (LA JORNADA 19) (EL ECONOMISTA 17) (EL FINANCIERO 18) (EL HERALDO DE MÉXICO 23) During the second quarter, Gruma rebalanced its product portfolio. This adjustment reflected the accelerated recovery of the economy to a world level and a return to normalcy. For Gruma,this meant healthy growth in the institutional and industrial channels in the tortilla and corn flour channels, respectively, “and a concentrated effort to retain demand in its retail channels,” the flour and tortilla manufacturer reported in its financial report. The company added that its financial indicators at a consolidated level since 2019 point towards stable growth of 15% in net sales and EBITDA. “The above confirms that our strategy is producing results, which are expected to continue especially with our innovation efforts in product lines throughout our global footprint.” Gruma continues to consolidate its position as a global company. In Q221, sales from operations outside Mexico represented 74 of the total, the company said in its report.

ALFREDO HUERTA / FINANCE 24 AND BUSINESSES. (24 HORAS 12) (24 HORAS ONLINE 0) The stock market develops with an increase in its level of volatility, as a result of the impact of a global environment, characterized by the pandemic and the Delta variant with effects on sectors and more sensitive companies, as well as the condition of the U.S. economy, inflation risks, and the Fed’s guidance and investor confidence. That is the case, for example, of Gruma, which current data vs. Q220 shows a drop in sales, operating cash flow and net profit, maintaining its sales volume. However, when comparing the data vs. Q219, sales were up 16.2%, operating cash flow was up 16.9%, and net profits rose 20.7%. The company registered sales of MXN 22.450 billion and an operating cash flow of MXN 3.716 billion. The exchange rate at the end of Q220 was MXN 23.19, and now in June, the peso closed at MXN 19.90, with a 14% appreciation. The Net-Debt-to-EBITDA ratio was 1.4x. Its price peaked at MXN 274 in August 2020 and corrected 21% to yesterday’s close at MXN 214. All of this is worth pondering.

INVESTMENTS. (MILENIO DIARIO 16) 74% of Gruma’s income comes from abroad. Gruma,the largest global manufacturer of corn flour, led by Juan González,increased its volumes in Europe, the U.S. and other markets; hence, sales abroad represented 74% of its income, of MXN 22.450 billion from April to June. The super-peso affected their results.

CORPORATE FINANCIAL CLOSINGS (ENFOQUE FINANCIERO) Isaí Morales. In the second quarter of the year, Gruma reported MXN 22.450 billion in sales volume, representing 7.8% growth compared to the same period in 2019, with MXN 3.716 billion in operating cash flow for a growth of 8.1 points.

FINANCIAL MARKETS (EN LOS TIEMPOS DE LA RADIO 6:48) Gruma, the current report reflects a 14% annual foreign exchange rate appreciation and the extraordinary demand produced by the pandemic in the same period in 2020. Hence, it announced a drop in sales, operating cash flow and single-digit net profits compared to the second quarter of 2020, which was an atypical year. However, compared with the second quarter of 2019, Gruma reported double-digit growth in sales, operating cash flow and net profits.

GRUPO GRUMA ANNOUNCES ITS SALES RESULTS, WITH AN INCREASE OF MXN 22.452 BILLION IN SALES (IMAGEN NOTICIAS – FRANCISCO ZEA). Francisco: Gruma,the world’s largest producer of corn flour and tortillas, presented its sales results for the second quarter of this year.

July 23

J. JESÚS RANGEL M. / TUG-OF-WAR. (MILENIO DIARIO 16) (MILENIO.COM) In Mexico, one of the business strategies companies followed in light of the COVID-19 pandemic was to retain customers, which is why Gruma,directed by Juan González Moreno,rebalanced its product portfolio and focused on maintaining demand from retail channels, especially in the United States.

July 24

GRUMA’S NET SALES AND EBITDA WOULD GROW 3.5% IN Q221, EXCLUDING FOREIGN EXCHANGE RATE CHANGES. (EDOMEX AL DÍA ONLINE 0) Gruma is strong and growing. Today, it announced its Q221 results. The extraordinary increase in demand for food derived from the pandemic in Q220, as well as the unusually high average exchange rate of MXN 23.19 per dollar, generated historical results for Gruma in that year. Consequently, the relevant comparison period to evaluate the company’s performance corresponds to Q221 vs. Q219, with strong growth trends in all relevant results indicators. Gruma continues to consolidate its position as a global company. In 2Q21, sales from operations outside of Mexico represented 74% of the company’s total.

July 27

ENGGE CHAVARRÍA / GRUMA PREFERS TO INVEST (EL HERALDO DE MÉXICO ONLINE 0) Speaking of business, Gruma faced a 7% drop in sales in the second quarter of the year, and the weak dollar ended up affecting its results. However, the company expects to strengthen its business in the following months after expanding its portfolio and making capital investments to the tune of USD 63 million (MXN 1.248 billion) during this period, during the pandemic. In addition, given the growing demand for products in the United States, the company reopened its tortilla plant in Omaha, Nebraska, which has an installed capacity to produce 11,000 tons of product per year and will serve the region’s retail segment. Congratulations!