Gruma reports 35% more net profits in 2023 for up to US$ 430 million

Gruma, the main eMexican corn companyreported this Wednesday an accumulated net profit of US$ 429.5 million at the end of 2023, 35% more than the US$ 319.2 million in 2022.

The favorable results for the company were derived from higher sales, despite price sensitivity and volume volatility in some businesses as part of an ongoing selectivity strategy, Gruma said in its fourth quarterly report sent to the Mexican Stock Exchange. Securities (BMV).

“The company maintains a solid growth trend, thanks to its operations outside Mexico and constant innovation with the introduction of new tortilla presentations, mainly in the United States,” he added in a statement.

Gruma explained that part of its higher sales is explained by greater consumption of tortillas in the United States, its main market, and the “stable demand” in Mexico, while in Europe, Asia and Oceania it managed to improve the profitability of its businesses, growing above 100% in some indicators.

The Mexican company, best known for its corn flour “Maseca” and the brand of corn products “Mission”reported net sales in 2023 in the amount of US$ 6,576 million.

This meant a growth of 18% compared to the US$ 5,596 million reported at the end of 2022.

It also reported an annual increase of 27% in its operating profit, reaching US$610.1 million.

In the fourth quarter of the previous year alone, Gruma claimed net profits of US$ 120.8 million, an increase of 5% compared to 2022, when it told the BMV it had obtained net profits of US$ 112.6 million.

In 2023, net sales also amounted to US$1.64 billion, an annual increase of 5%, compared to US$1.556 million the previous year.

Operating income in the fourth quarter of 2023 totaled US$ 215 million, which was 10% higher than what was reported in 2022, when it reached US$ 196.1 million.

Gruma stated that the volume of its sales in the last quarter of 2023 decreased 1% to 1.1 million metric tons compared to the same period in 2022.

“After normalizing the extra week of operations in the fourth quarter of 2022 (in the US, Asia and Oceania), total volume expanded 1%, with a positive contribution from all Gruma subsidiaries,” contrasted.