CAPITAL MARKETS  (EL ECONOMISTA 7) GRUMA.

The profits of the corn flour production and marketing firm increased by 34.4% to MXN 4.29 billion during 2014, compared to the MXN 3.16 billion figure from the previous year, due to its improved operating performance.

REPORTS CLEAR THE WAY FOR A POSITIVE TIME FOR THE IPC (EXCÉLSIOR 6)

The corporate reports season for the fourth quarter of 2014 in Mexico is coming to an end, although it has followed the same trend as last year, and there are some positives for the companies listed on the Mexican Stock Exchange... Another firm that has performed outstandingly in the same sector is Gruma. The tortilla producer has also benefitted from the exchange rate, since 61% of its sales are due to its subsidiary Gruma Corporation, which operates in the United States, where its operations increased by 6% annually. Gruma’s total revenue grew by 5% and its operating profits increased by 22%, thus helping the company to reduce its debt by USD 303 million.

WEAK PESO BOOSTS COMPANIES’ FOREIGN SALES, BUT LOSES THEM PROFITS. (EL FINANCIERO pp-26)

The 10% depreciation of the Mexican peso against the US dollar had a mixed impact on the financial results of the 35 companies that comprise the Mexican Stock Exchange IPC during the fourth quarter of 2014. On the one hand, their foreign sales increased by more than 10%, whereas their net profits fell by 30%. An analysis carried out by El Financiero revealed that the foreign sales of the Mexican Stock Exchange’s elite companies grew by more than their local sales, and their importance as a share of consolidated revenue was higher than the last quarter of 2014, representing 44% of this total. The companies with the largest growth in foreign sales, as opposed to local sales, were Arca Continental, Bimbo, América Móvil, Gruma, ICH and Genomma Lab...

REGIO INDEX EXPERIENCES GREATER GROWTH THAN THE IPC (EL HORIZONTE ONLINE 0).

During the first two months of this year, the Regio Index performed slightly better than the Mexican Stock Exchange IPC, growing by 2.95% compared to the 2.42% growth of the IPC, according to Banco Monex. The Regio Index rose by 10.48% in February. The best-performing companies during this two-month period were Axtel, Gruma, and Value, with share price performances of 30.5%, 16.4%, and 11.3%, respectively.

MEXICO IS CHANGING, BUT NOT IN TERMS OF DIFFERENTIATION: PRESIDENT PEÑA NIETO (DIARIO IMAGEN 15)

Mexico is on the road to transformation, and the country has chosen to turn itself round with respect to its differentiation and democracy, asserted President Enrique Peña Nieto to British business and financial sector representatives. Yesterday morning, before delivering a lecture at Canning House, the Mexican Head of State chaired the Mexico-Great Britain High-Level Business Group, to which he stated “This is the time to invest and grow alongside a country determined to change and elevate the quality of life of its people.” At this meeting, attended by Prince Andrew, Duke of York, the group’s business leaders from both countries delivered their conclusions from the meeting, the aim of which was to issue recommendations and generate actions to improve business links between the two countries... This group included representation from firms such as Shell, Lloyd's, BP, Ernst and Young, HSBC México, Cemex, Grupo BAL, Gruma, and Omnilife...

MEXICAN STOCK EXCHANGE RECORDS FOURTH CONSECUTIVE DECLINE; FALLS BY 0.70% (EL DÍA 10)

For the fourth consecutive period, the Mexican Stock Exchange closed with a 0.70% decrease, 303.82 units below its previous level. As such, the primary market index, the IPC, closed at 43,296.55 units... The companies recording the largest gains included Herdez (3.30%) and Gruma (2.12%)...

ENRIQUE CASTILLO-PESADO / HUMAN SPHERE (EXCÉLSIOR 154-153)

I believe there are no magic formulas and that the success of a culinary Manor is down to the wisdom of those who strive to achieve it. In my opinion, the idea of the Vargas family to launch The Capital Grille-Mexico, situated opposite the Mexican Stock Exchange in the Capital Reforma building - the 50th in the world - matches expectations by providing everything for the diner’s indulgence-... I was given the feeling that personalities from politics, business and showbiz passed through this Manor. Francisco Zea, Miguel Lerma Candelaria, and Luis Javier Solana, Rebeca Jones, Carmen Aristegui, José Sulaimán, the journalist Rafael Cardona; celebs and non-celebs… have all allowed themselves to be seen there, and the people who praise the artwork visible on the walls are personalities such as Juan Sánchez-Navarro, Roberto González-Barrera, Manuel Espinosa Yglesias, María Félix, Octavio Paz, Isaac Saba, Bernardo Quintana, the architect Ricardo Legorreta and Joaquín Vargas...

RELENTLESS DEVALUATION; THE US DOLLAR AT MXN 15.80. (OVACIONES pp-4)

It was reported at the end of this week that the Mexican Stock Market recorded a loss of 2.08% compared to last Friday, due to profit taking and expectations in regard to the decision over the monetary policy of the US Federal Reserve... the week’s best-performing issuers were Volaris and Gruma, growing 11.27% and 7.78%, respectively.

TENDENCIES AND TRENDS (EL ECONOMISTA 7) GRUMA.

Shares of the corn flour production and marketing firm led the gains in the Mexican Stock Exchange Price and Quotations Index last week, by registering a 7.14% increase in this period... Gruma’s share price closed the year 2014 with a 60.85% increase. The firm has continued the trend so far this year, recording a 25.45% rise in its share price.

UNITED KINGDOM SETS ITS SIGHTS ON MEXICAN ENTREPRENEURS AND INVESTORS (MILENIO DIARIO MONTERREY 0)

Mexican company Gruma has plants in Coventry and Seaham, in the United Kingdom. Besides, its corporate offices are in Brentford, to the west of London. This expansion will continue due to the success this Mexican company has enjoyed in the United Kingdom, which is an example of how the bilateral relationship between our countries creates jobs and growth. This is also a tangible sign that the United Kingdom is one of the best bets for foreign investment...

GRUMA CAPITALIZES ON THE FALL OF THE PESO (EL ECONOMISTA 1-5)

Most market analysts are recommending “buying” shares in the world’s largest corn flour and tortilla producer, Gruma, in view of the benefits the company can draw from the appreciation of the US dollar against the Mexican peso, according to data from Thomson Reuters Eikon. Seven out of eleven analysts recommend buying shares in this export-oriented company, which satisfies the nostalgia of Mexican expats in the United States, whereas three recommend “holding” and just one suggests “selling”, which shows a marked improvement on three months ago. These recommendations have improved following the posting of the firm’s financial results at the end of February...

IRASEMA ANDRÉS DAGNINI / CLEAR ACCOUNTS (LA RAZÓN 21)

Gruma, among the favorites. Stock market analysts agree to continue recommending “buying” shares in Gruma (GRUMAB) based on the company’s positive financial results, since the increase in its cost of sales during the fourth quarter was marginal at just 0.6%. Broker SmartEstimates estimates a target price of MXN 222.2 by the end of the year, which would equate to a potential rise of 9.72 [sic] from yesterday’s sales price of MXN 202.5 On the other hand, brokerage firm Vector keeps its target price for December 31, 2015, unchanged at MXN 205. At the close of yesterday’s trading, the issuer had risen by 17.71% in the month and 90.91% in 12 months. Very attractive!

GRUMA, THE MEXICAN FIRM WITH THE LARGEST PRESENCE IN THE UNITED KINGDOM. (EL PORVENIR 0)

Gruma, the corn flour and tortilla production company led by Juan González Moreno, heads the list of the 25 Mexican companies operating in the United Kingdom in view of its installed capacity in the country regarded as the fifth largest economic powerhouse in the world... This flour producer currently has two plants in the United Kingdom, dedicated to tortilla and flatbread production, which has allowed the firm to consolidate its position as the leading provider of these foodstuffs in Europe.

TENDENCIES AND TRENDS (EL ECONOMISTA 7) GRUMA.

Analysts are recommending Buying shares in the world’s largest corn flour and tortilla producer in view of the benefits the company can draw from the appreciation of the US dollar against the Mexican peso.

THE RICHEST MEXICANS (FORBES MÉXICO 193-202)

González Moreno Family. USD $4.7 billion. Juan A. González Moreno (shareholder and family member), Chairman of the Board of Directors of Gruma… The González Moreno family controls Gruma, the largest corn flour and tortilla producer in the world, which last year made a strategic exit from the wheat flour market to concentrate on its primary business: corn flour and tortilla production…

WHERE IS THE DEBT MARKET HEADED? (EJECUTIVOS DE FINANZAS 40-45)

The public debt market in Mexico has experienced erratic development since its growth and diversification began to take off only a few years ago... The Mexican government's discipline more than 15 years ago in creating two performance curves for Mexican public debt, one in Mexican pesos and another in US dollars, has helped produce a longer curve for Mexican debt in the local bond market and, in and specifically so, in international markets. This has allowed companies such as Televisa and Gruma, to mention just two, to have successfully placed 30-year and perpetual (no maturity date) bonds, respectively, in international markets as of a long time ago.

TENDENCIES AND TRENDS (EL ECONOMISTA 7) GRUMA.

The tortilla and corn flour producer’s stock capitalization value closed at MXN 87.234 billion on Friday. In March, its shares increased by 10.07% to a price of MXN 201.58.

GRUMA TO GROW IN 2015 (EL ECONOMISTA pp-1-8-9)

From 2011 to March 24 of this year, the share price of corn flour processing and merchandising company Gruma has increased by 786.1%, exceeding the 14.27% return of the Mexican Stock Exchange’s IPC Index over the same period., While some analysts are beginning to note a slowdown in share performance, the firm could benefit from this this volatile dollar-exchange climate since the majority of its revenues are in United States currency, which could result in a positive balance when these revenues are converted to Mexican pesos...

FUNDAMENTALS BACK UP THE COMPANY. (EL ECONOMISTA 9)

In November of last year, Fitch Ratings upgraded the international local and foreign currency Issuer Default Rating (IDR) of Gruma from “BB+” to “BBB-”, with a stable outlook. This suggests a moderate risk of noncompliance. However, changes in economic conditions increase the probability that its payment capacity will be affected, according to the rating agency's standards. The upgrade of Gruma’s credit rating was due to an improved capital structure, which reduced of its total debt, lowered levels of leverage, increased profitability and created strong free cash flow (FCF) generation, explained Fitch. In this respect, the financial leverage of the corn processor, measured as net debt to EBITDA, has decreased compared to 2012, from 4.2 times back then to 2.4 times at the close of 2013, and finally 1.2 times in 2014. On the other hand, its profitability in terms of EBITDA has progressively increased over the same period, rising from MXN 4.404 billion to MXN 7.483 billion at the close of last year, for an increase of 70% in this area.

THE FIELD WITHSTANDS THE STORM (MUNDO EJECUTIVO 168-175)

Gruma, the world’s largest corn flour and tortilla merchandiser, this year exceeded its growth expectations, and reinforced its position and infrastructure in the international market, as its share price increased by 40% during 2014. The food production firm also purchased Spanish corn and wheat manufacturer Mexifoods for USD $15 million, for which it will invest a further USD $35 million in the coming years to modernize the plant and triple production. The Spanish company had 25% of the market in its region, and the plans for growth will open up a path forGrumafrom Spain throughout the Iberian peninsula and to the South of France, Italy, Portugal and Malta...

THE 1000 MOST IMPORTANT COMPANIES IN MEXICO (MUNDO EJECUTIVO 38-49)

In 2013, 1000 companies contributed to 1.5% real-term growth in the country’s Gross Domestic Product (GDP). The National Occupation and Employment Survey (ENOE) estimates that these companies employ approximately four million people. Mundo Ejecutivo magazine publishes a ranking of the 1,000 most important companies in Mexico. In the 2013 top-1000 ranking: Gruma (61), Grupo Industrial Maseca (197).

200 EMPLOYERS. (MUNDO EJECUTIVO 80-89)

In the space of one year, our 200 companies created 423,000 additional jobs, representing a 12%  annual growth rate. Mundo Ejecutivo magazine publishes a ranking of the 200 biggest employers in Mexico. 2013 employment ranking: Gruma (42), Grupo Industrial Maseca (154).

PORTFOLIO (EL NORTE 0)

Gruma reported that Standard & Poor's upgraded its credit and debt rating from “BB+” to “BBB-”, placing it in the investment grade category. Its shares closed yesterday up 0.84% on the Mexican Stock Exchange, at MXN 196.91.

ISSUERS TO POST LOWER EARNINGS ON THE MEXICAN STOCK EXCHANGE (EL ECONOMISTA 20)

The companies listed on the Mexican Stock Exchange, specifically those in the IPC Index, are due to post earnings of MXN 324 billion for the first quarter of 2015, a figure 3.5% down on the same period last year, when earnings totaled MXN 336 billion, according to data from the analysis area of the Accival Brokerage House. In one document, analysts from the Banamex brokerage stated that the financial results only include companies in the IPC index for which estimates exist; Elektra is excluded. The issuers whose estimates have been revised upwards include companies in basic consumer products companies such as Gruma, Walmex and Bimbo. However, Accival indicated that some companies in this sector are having to make heavy cuts to their estimates.  The firm also mentioned that for some companies, the upward revision of earnings goes hand in hand with positive performance in terms of share price, and vice versa. Clear examples of this are Gruma, Walmex and Bimbo, whose estimated earnings increased by 12.6% and 5% respectively, while their shares responded in the same direction, with Gruma shares up 24% and Walmex up 17%.