Gruma silos
Net sales at Gruma USA increased 2% in fiscal 2016 to 41,824 million pesos.

MEXICO CITY — In the year ended Dec. 31, 2016, Gruma USA had operating income of 5,864 million pesos ($295.8 million), up 18% from 4,975 million pesos in 2015. For the fourth quarter ended Dec. 31, operating income increased 15% to 1,490 million pesos from 1,294 million.

Net sales at Gruma USA increased 2% in fiscal 2016 to 41,824 million pesos ($2,109.9 million) from 41,092 million pesos. For the fourth quarter, net sales rose 8% to 10,972 million pesos from 10,112 million.

Gruma said operating margin improved to 14% from 12.1% during the full year, and improved to 13.6% from 12.8% in the fourth quarter.

Cost of sales as a percentage of net sales improved to 58.1% from 56.1% in the fourth quarter, Gruma said, driven by accelerated depreciation for assets that will no longer be used when the company’s Dallas tortilla plant ceases operations in the fourth quarter of fiscal 2017, and year-end accounting adjustments related to higher general liability and health insurance as well as workers’ compensation costs.

Gruma said it incurred $107 million in capital expenditures during the fourth quarter and $295 million for the full year. During the fourth quarter, the company allocated expenditures to the United States (in connection with the construction of a tortilla plant in Dallas, the expansion of a tortilla plant in Florida and a corn flour plant in Indiana), to Europe (for the expansion of a corn mill in Italy and increased corn storage capacity at a corn mill in Ukraine) and to Mexico (for a tortilla plant near Monterrey, the reopening of a corn flour plant in Central Mexico, and increased corn storage capacity at existing plants).

Overall, majority net income at Gruma S.A.B. de C.V. in fiscal 2016 was 5,922 million pesos ($299 million), up sharply from 762 million pesos in fiscal 2015. EBITDA was 10,964 million pesos, up 20% from 9,139 million pesos, while sales increased 17% to 68,206 million pesos from 58,279 million pesos.