Gruma Q3 income up sharply from year ago

by Eric Schroeder
Share This:

MEXICO CITY — Gruma S.A.B. de C.V. posted net income of 112 million pesos ($8,566,000) in the third quarter, versus a loss of 1,663 million pesos in the same period in fiscal 2008. The loss in 2008 was attributed to the company’s currency derivative instruments. Sales totaled 12,566 million pesos ($961,234,000), up 12% from 11,244 million pesos in the same period a year ago.

The company said sales volume during the most recent quarter rose 1% due to higher sales volume in GIMSA and, to a lesser extent, Molinera de Mexico.

Operating income at Gruma Corp. totaled 483 million pesos ($36,957,000), up sharply from 92 million pesos in the third quarter of fiscal 2008. Net sales totaled 5,959 million pesos ($455,950,000), down 1% from 6,005 million pesos a year ago.

Sales volume at Gruma Corp. fell 3% due to lower tortilla sales volume in connection with a product-count reduction in some of the company’s tortilla stock-keeping units for the retail segment and lower sales in food service driven by a decline in the industry, as well as by lower corn flour sales volume in the United States as the company announced a price reduction at the beginning of the fourth quarter of fiscal 2009 to reflect lower corn prices.

Operating income at GIMSA totaled 298 million pesos ($22,806,000), up 6% from 280 million pesos in the same period a year ago. Net sales totaled 2,615 million pesos ($200,129,000), up 13%.

Sales volume at GIMSA rose 4% to 477,000 tonnes, driven by several initiatives designed to expand coverage, the opening of in-store tortillerias in supermarkets, increased sales to supermarkets in connection with competitive tortilla prices at these customers’ in-store tortillerias, and the build up of inventories in anticipation of price increases.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

The views expressed in the comments section of Baking Business News do not reflect those of Baking Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.