This follows our Oct. 21 report on Gruma's third-quarter results. On the company's Oct. 22 conference call, according to a transcript published by Investing.com (opens in new tab), investor relations officer Adolfo Fritz said U.S. foodservice volume fell about 17% in the quarter. Gruma had expected that channel to level off in the third quarter. It now expects that to happen sometime in the fourth, pointing to weaker consumer confidence and a cyclospora-related drag on the recovery. Foodservice is now about 16% of Gruma's U.S. business, with retail at about 84%.
Retail looked better. Citing Nielsen data, Fritz put Gruma's U.S. share at 59.6%, up from 58.0%, and said its volume declined less than the overall category for the first time in about 18 months.
Gruma lowered its full-year outlook for the U.S., where it now expects EBITDA margin to fall 250 basis points in 2026 instead of 200, mainly because it is making more private-label product. Stronger results elsewhere led it to narrow the expected consolidated decline to 120 basis points from 160, excluding a US$9 million insurance gain in Central America.
For 2027, Gruma said about 70% of its corn needs are hedged and other raw materials are covered through the first quarter. It plans capital spending of about US$200 million next year, mostly for storage in Europe and Australia and more production capacity in Central America. It has not yet discussed 2027 prices with customers and plans to do so after year-end budgeting.
GRUMA Mission Foods