GRUMA: Celebrating 65 years of excellence

This year GRUMA celebrates its 65th anniversary by consolidating its position as the world's leading tortilla, wrap and flatbread producer

GRUMA, founded in Cerralvo, Nuevo León, Mexico in 1949, is one of the world's largest corn flour and tortilla makers. It is engaged primarily in the production, marketing, distribution, and sale of wraps and flatbreads (pitta bread, naan, chapatti, piadina and pizza bases, among others), corn and wheat tortillas, chips and tostadas, as well as corn, wheat, palm heart, and rice flours.

With its global brands, MISSION and MASECA, GRUMA has operations in the United States, Mexico, Central America, Europe, Asia, and Oceania. GRUMA has a business presence in more than 100 countries across the globe with close to 22,000 employees and 101 strategically located production plants

GRUMA went through a series of changes in 2013, driven by shifts in strategy which GRUMA began developing at the end of 2012. In Q4-2012, the company began a consolidation process and implemented a strategy with the aim of, among other objectives, creating value through increased cash flows, while strengthening its business structure.

The company's President and CEO Juan González Moreno supported by the company's executive committee implemented the following strategies:

◾A focus on core businesses

◾To restructure administrative and marketing expenses

◾Reduce investments by postponing its incursion into new global regions to 2015

◾Establishing higher profit criteria for all investments

In light of these shifts in strategy, President and CEO, Mr Moreno commented: “We must re-think the way we do business, with the sole purpose of becoming more efficient and building the foundation for a new development phase.”

Raúl Cavazos, GRUMA, CFO, said: “The company reported positive financial and operating results for 2013. For example, GRUMA's shares in the prices and quotations index of the Mexican Stock Exchange reported the strongest profits in 2013, compared to all other Mexican companies on the stock market, by consolidating a 152 per cent increase in value, after which Fitch Ratings upgraded GRUMA to a BB+ rating with a stable outlook thanks to the steps the company has taken to reduce its debt and improve profitability.”

GRUMA's ratings, according to Fitch, are based on its position as one of the leading players in its industry worldwide. This is in addition to its geographic diversification of hard currency earnings; nearly 52 per cent of its total sales are generated by GRUMA Corporation, which has operations in the United States and Europe.

A sustainable company

GRUMA has successfully lowered its greenhouse gas emissions, thanks to its insistence on technology that calls for lower fuel consumption in its corn processing methods. Gas emissions are currently monitored at all of the company's production units in compliance with current regulations in all regions of the world where GRUMA operates. One of its main concerns is to guarantee its improved use of natural resources in its production processes

The company has therefore implemented a number of processes in order to help reduce its environmental impact in the following areas:

◾A reduction in water use.

◾Reduced fuel consumption

◾A decrease in waste water and solid waste levels

GRUMA subsidiaries

In the United States and Europe, GRUMA Corporation is a leading producer of corn flour and tortillas, with tortilla operations in the United States (22 plants), and five in Europe (two in the United Kingdom, two in Holland, and one in Russia). GRUMA makes tortillas, chips and different types of flat breads including wraps, pitta bread, naan, chapatti and piadinas. Its main brands include MISSION (sold globally) and Guerrero and Calidad, which are sold in the United States.

Through its corn flour business, which includes six plants in the United States and three in Europe (Italy, Ukraine and Turkey), GRUMA Corporation serves industrial, retail, and institutional clients. Its flagship brand is MASECA, and its plant in Italy produces corn grits used in the brewery and grain industries.

In Mexico, its subsidiary Grupo Industrial MASECA (GIMSA), is the leading producer of corn flour, focused on its production, distribution and sale to customers under the MASECA brand through the 19 plants it operates throughout Mexico. GIMSA also operates a wheat flour plant with a secondary factory for other product varieties. In Central America, GRUMA has 12 plants strategically located throughout the area to serve customers in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Ecuador. It manufactures corn flour, tortillas and snacks; cultivates palm hearts, and processes rice. Its main brands in the region are MASECA for corn flour, TortiRicas and MISSION for tortillas, and Tosty snacks.

The Asia & Oceania division produces and distributes wheat and corn flour tortillas, corn chips, and other types of flat breads (including pitta bread, chapatti, naan and pizza bases) through its three plants, one in China, another in Malaysia and one in Australia. Its main brands in this area of the world are MISSION and Rositas.

GRUMA has a sound growth forecast looking forward, thanks to the policies and strategies implemented by the board of directors to increase the company's value.