“GRUMA’S OPERATIONS OUTSIDE MEXICO DRIVE THE COMPANY’S GROWTH IN NET SALES UP 24% WITH A 31% INCREASE IN EBITDA IN Q2 2023.”.

• Compared to the same period in 2022, sales volume was up 1% to stand at 1,090,000 tons.
  
  
• Net Sales and EBITDA in Q2 2023 stood at USD 1.657 billion and USD 244 million, respectively.
  
  
• Net Sales and EBITDA from operations outside of Mexico represented 72% and 82% of the total, respectively.
  
  
• During Q2 2023, the company invested USD 59 million, allocated primarily to its operations in the United States, Asia and Oceania.
  
  
• Net Sales of its operation in the United States were up 23%, with a 14% increase in Central America and a 10% increase in Asia and Oceania.
  
  
• Gruma’s debt at the end of Q2 2023 is USD 2.125 billion.
  
  

Mexico City, July 19, 2023. Today, Gruma announced its operating results for the second quarter of the year (Q2 2023), highlighting that it grew its Sales Volume, Net Sales and EBITDA thanks to constant innovation and high demand for its higher value-added products at a global level, primarily in its leading market, the United States.

The multinational’s Sales Volume during the second quarter of the year registered a 1% growth, driven primarily by its subsidiaries in the United States, Europe, Asia and Oceania.

Improved results by all of its subsidiaries also led to increases in the multinational’s operating profit and EBITDA, which were up 33% and 31%, respectively, for the second quarter of the year compared to the same period in 2022, reporting growth in all of its divisions, except Mexico.

Gruma’s Net Sales outside of Mexico represent 72% of its consolidated results, while EBITDA outside the country stood at 82%.

In Q2 2023, all of Gruma’s global operations maintained strong demand levels for their products, highlighting the United States, its leading market, where its line of healthy “Better for You” products continues to report a positive performance in terms of consumer preferences, and the nixtamalized corn flour business remains stable, highlighting the retail channel because consumers prefer to cook at home.

In the United States, customers and consumers’ growing demand for tortillas boosted the company’s Net Sales by 23%, while EBITDA in that country was up 41%. The company’s Mission, Guerrero and Maseca brands enjoy growing consumer recognition.

In Europe,the world leader in the production of nixtamalized corn flour, tortillas and wraps reports a 3% growth in Sales Volume and a 16% increase in its EBITDA during the year’s second quarter.

In Asia and Oceania, the company’s Sales Volume was up 8%, driven primarily by its operations in China, Malaysia and Australia, where it reported a 10% growth in Net Sales and a 31% increase in EBITDA.

In Central America,Gruma improved its Net Sales by 14% and its EBITDA by 17%. Implementing innovative commercial strategies allowed this operation to improve its profitability levels.

The company’s growth expectations remain positive thanks to its business strategies and innovation in the products it produces across the globe, as well as the growing global demand for its food products.

Financial Results Q2 2023 compared to Q2 2022

At the end of Q2 2023, Gruma’s Sales Volume was up 1% compared to the same period in 2022 to stand at 1,090,000 metric tons.

Net Sales were up 24% compared to the same period in 2022, to stand at USD 1.657 billion, driven primarily by the growth in sales volume of its subsidiaries in the United States, Europe, Asia and Oceania.

The company’s Cost of Sales increased by 23% due to the higher cost of raw materials and higher labor costs in the United States. As a percentage of Gruma’s net sales, it improved from 65.2% to 65.0%.

The company’s Gross Profit in Q2 2023 stood at USD 580 million, 25% higher than the same period in 2022 when it stood at USD 465 million. Its gross margin stands at 35.0%.

The Operating Profit of the world’s leading company in the production of nixtamalized corn flour, tortillas and wraps stood at USD 185 million in the quarter mentioned above. Its operating margin stood at 11.1% in Q2 2023.

The multinational’s EBITDA stood at USD 244 million. The EBITDA margin is 14.7% in the second quarter of the year.

Gruma reported USD 96.6 million in Majority Net Profit and USD 96.3 million in Net Income.

At the end of Q2 2023, the company’s debt stands at USD 2.125 billion.

During Q2 2023, Gruma made Capital Investments of USD 59 million, used primarily to:

1. Improve equipment at its Tortillas plant in Dallas, Texas, in the United States.
2. General improvements and maintenance in all its operations, especially in Mexico.
3. The expansion of production capacity at its plants in Australia and China.
4. The construction of its new Tortilla plant in Indiana in the USA.

__ __ __