July 27, 2012

Mexico's Gruma posts four times up in Q2 profit

Aided by gains on currency derivatives and lower financing costs for its debt, Mexican corn miller and tortilla maker Gruma on Wednesday (July 25) posted a four-fold increase in its second-quarter profit.

Profit soared to MXN437 million (US$32.8 million) from MXN106 million (US$7.9 million) in the year-earlier period.

Second-quarter revenue rose 21% to MXN16.3 billion (US$1.2 billion) from MXN13.5 billion (US$1 billion) last year, boosted by higher prices.

The company said the derivative gains were related to currency hedges used to manage corn purchases. Gruma also paid less interest on its debt in the second quarter after it refinanced its borrowings last year.

Gruma shares closed down 1.15% at MXN33.65 (US$2.5) in local trading.