Mexico · Delayed Price · Currency is MXN Gruma Earnings Call Transcripts
Fiscal Year 2026
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Consolidated volumes and EBITDA declined amid U.S. consumer weakness and cost inflation, while Central America and Asia/Oceania grew. U.S. and consolidated margin guidance was revised down, with food service stabilization expected in Q4 and higher input costs a 2027 risk.
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International subsidiaries delivered strong growth, offsetting U.S. volume and margin declines driven by weak consumer sentiment and food service contraction. Guidance was revised downward for the U.S., while leverage and free cash flow remain healthy.
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 performance amid global uncertainty, with EBITDA up 4% and net earnings up 13% despite a 6% sales decline. Growth was driven by better-for-you products and strong demand in Central America, while competitive pressures and cost inflation remain key risks.
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 and innovation offset distribution and logistics pressures. Better For You and international segments drove growth, while U.S. food service volumes are expected to recover in 2025.
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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.