MONTERREY, MEXICO — Amid a cloudy US economic outlook, Gruma USA saw operating profit climb for the fiscal 2025 first quarter, citing a strong performance by its better-for-you product line.
For the quarter ended March 31, operating income for the US business grew 4% to $150.7 million from $145.5 million a year earlier, parent company Gruma SAB de CV reported. Operating margin also widened by 100 basis points to 17.1%.
Gruma USA’s first-quarter net sales fell 3% to $879.7 million from $902.9 million a year ago. The company said the decrease stemmed from a dip in sales volume and a lower average price in the sales mix, due to declined consumer confidence in the period.
“Sales volume decreased 2% to 383,000 metric tons on the back of weaker consumer sentiment reflecting inflationary pressures and the potential of a softer economic outlook,” Monterrey, Mexico-based Gruma said. “This effect was more weighted in the foodservice channel, which has been gradually recovering from price sensitivity dynamics, while the retail channel showed a partial slowdown in first-quarter 2025. In spite of this, the growth of Gruma’s better-you-line continues to be in line with historic standards and a main driver for future growth.”
Cost of sales at Gruma USA shrank 6% to $488.2 million in the quarter, which Gruma attributed primarily to cost efficiencies. The company described the US performance as solid, noting gains of 6% in EBITDA to $193.4 million and 190 basis points in EBITDA margin to 22%.
Overall in the first quarter, Gruma SAB de CV tallied majority net income of $125.9 million, up 13% from $111 million a year ago. EBITDA rose 4% to $276 million from $264 million. Net sales fell 6% to $1.55 billion from $1.65 billion.
Capital expenditures totaled $50 million during the quarter. Gruma said the spending was allocated mainly to operational equipment replacement in the United States, along with a land purchase for a capacity expansion of its milling operation; general upgrades and maintenance companywide; and additional capacity in Guatemala.
“We are pleased with the first-quarter results, as Gruma has been able to overcome volatile market dynamics arising from the uncertainty perceived in the US economy, which has weakened consumer sentiment and added selectivity,” the company said. “Our better-for-you SKU line has been evolving favorably and in line with historic growth, supported by still healthy tortilla retail growth, while volumes continue to recover in our foodservice channel.”