Gruma SAB, the world’s biggest tortilla maker, rose the most in a month after reporting an increase in a measure of profitability during the second quarter as sales fell.
The shares surged 3.4 percent to 63.48 pesos at the close of trading in Mexico City, the biggest jump since June 21. Mexico’s benchmark IPC fell 0.2 percent.
Adjusted net income in the three months through June fell by 48 percent from a year earlier to 225.6 million pesos ($17.9 million), while sales fell by 17 percent, according to data compiled by Bloomberg after the San Pedro Garza Garcia, Mexico-based Gruma reported the quarterly results yesterday. The company’s margin of earnings before interest, taxes, depreciation and amortization over revenue expanded by 3.7 percentage points to 11.8 percent, more than Mexico City-based brokerage firm Corporativo GMB SAB’s estimated.
“Their current profitability margins are sustainable, and we believe they will benefit from the tortilla boom, specifically in the U.S.,” Miguel Mayorga, an analyst at GBM, said in an interview. “The Spanish population will continue to increase and influence Anglo consumption trends.”