Gruma’s Strong Q4 2024 Performance Amid Global Challenges

Gruma, S.A.B. De C.V. (OTC) ( (GPAGF) ) has released its Q4 earnings. Here is a breakdown of the information Gruma, S.A.B. De C.V. (OTC) presented to its investors.

Gruma, S.A.B. de C.V., a leading global producer of tortillas and corn flour, operates in diverse markets including the United States, Mexico, and Europe. In the fourth quarter of 2024, Gruma reported strong financial performance, with a notable EBITDA growth of 7% and a significant increase in net income by 29% compared to the previous year. Despite a challenging foreign exchange environment, the company achieved a robust EBITDA margin of 18.8% and managed to maintain stable sales volumes across its divisions.

The company’s consolidated results showed a 5% decline in net sales, primarily due to the depreciation of the Mexican Peso and lower volumes in the U.S. food service channel. However, cost optimization efforts led to a 10% reduction in the cost of sales, enhancing the gross profit margin to 39.3%. Gruma’s U.S. operations, while experiencing a decline in sales volume, managed to maintain profitability through efficiencies and strategic pricing.

In Europe, the tortilla business continued to expand, contributing to a 9% increase in net sales, while in Asia and Oceania, increased economic activity in China bolstered sales volumes by 4%. The Central American division also reported a 9% growth in EBITDA, supported by a strategic focus on a more profitable product mix and efficient cost management.

Looking ahead, Gruma’s management remains optimistic about future performance, emphasizing continued expansion and strategic adjustments to navigate economic challenges. The company is poised to leverage its strong market presence and operational efficiencies to drive growth across its global operations.