Tortilla Maker Gruma Tumbles After Venezuela Devalues Currency
Gruma SAB, the world’s largest tortilla maker, fell the most in seven months on speculation that Venezuela’s currency devaluation will cut revenue in the company’s third-biggest market.
The stock plunged as much as 5 percent today in Mexico City trading to 39.71 pesos, the steepest intraday drop since June. It was the biggest decliner on Mexico’s benchmark IPC index, which was little changed.
Gruma, based in San Pedro Garza Garcia, Mexico, got about 16 percent of its revenue from operations in Venezuela in 2011, according to data compiled by Bloomberg. The devaluation may cut the share of revenue to 9 percent, said Gaspar Quijano, an analyst at Vector Casa de Bolsa SA in Mexico City who rates the stock a hold.
The stock’s drop today is “not that bad considering the impact that this is having on the company,” Quijano said in a telephone interview.
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