Gruma, S.A.B. De C.V. (OTC) ( (GPAGF) ) has released its Q3 earnings. Here is a breakdown of the information Gruma, S.A.B. De C.V. (OTC) presented to its investors.
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Gruma, S.A.B. De C.V., a leading producer of tortillas and corn flour, operates in the consumer staples sector with a significant presence across the United States, Mexico, Central America, Europe, Asia, and Oceania. The company reported its third-quarter 2024 earnings, highlighting a 3% growth in EBITDA and a 4% increase in operating income, despite a 4% decline in net sales compared to the previous year. Gruma’s performance reflects solid results in its ‘Better for You’ product category in the US and expansion in the European tortilla market, although challenges persist in the US food service channel and logistics in Europe.
The financial highlights revealed a decrease in sales volume by 1% and net sales by 4%, primarily due to price adjustments in Mexico and lower food service volumes in the US. Despite these challenges, the company achieved a 9% reduction in cost of sales, improving its gross margin to 39.4%. Operating income rose to $227.9 million, with an operating margin increase to 14%. EBITDA saw a 3% rise to $288 million, with the EBITDA margin expanding to 17.7%.
Gruma’s subsidiaries showed varied performance, with Gruma USA experiencing a 2% decline in sales volume due to food service contractions, while Gruma Europe and Gruma Centroamérica reported significant operating income growth. The Asian and Oceania segment continued to perform well, despite a challenging commercial environment in China.
Looking forward, Gruma remains focused on expanding its retail presence, especially in Europe and Central America, while addressing challenges in the US food service sector. As geopolitical and logistical issues persist, the company aims to leverage its operational efficiencies and strategic market expansions to sustain growth.