Mexico · Delayed Price · Currency is MXN Gruma Earnings Call Transcripts
Fiscal Year 2025
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Flat consolidated volumes and modest sales growth were offset by higher raw material costs, compressing margins and EBITDA. Better-For-You and private label products remain resilient, while food service in the U.S. is expected to recover as consumer sentiment improves.
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Strong international growth in Europe, Central America, and Asia offset U.S. food service weakness, with consolidated sales and EBITDA up year-over-year. Guidance remains unchanged, and focus shifts to retail expansion and cost mitigation amid ongoing U.S. and raw material challenges.
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Q1 2025 saw resilient results amid global uncertainty, with EBITDA up 4% and net earnings up 13% despite a 6% sales decline due to FX and volume pressures. Strong better-for-you growth in the U.S. and retail expansion in Europe offset challenges in Mexico and Asia.
Fiscal Year 2024
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Q4 2024 saw flat consolidated volumes, 7% EBITDA growth, and strong free cash flow, despite FX headwinds. Guidance for 2025 projects low single-digit volume and sales growth, margin expansion, and $320 million in capex, with continued focus on share repurchases and stable dividends.
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Q3 2024 saw stable operations with 1% lower volumes and 4% lower sales year-over-year, but EBITDA grew 3% as margin expansion in Mexico and strong results in Europe, Central America, and Asia/Oceania offset U.S. food service weakness. Guidance for margin expansion and flat volumes is reiterated.
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Q2 2024 saw strong EBITDA growth and margin expansion despite a 1% volume decline, with upgraded profitability guidance for the year. U.S. retail and international segments performed well, while logistics and private label challenges persisted.