Gruma net profit soars in 2nd quarter despite dip in sales

MEXICO CITY, July 23 Wed Jul 23, 2014 5:34pm EDT

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MEXICO CITY, July 23 (Reuters) - Mexican corn miller and tortilla maker Gruma said on Wednesday that its second-quarter profit was five-times bigger than last year as better exchange rates and lower financing costs offset a dip in sales.

The company reported a net profit of 1.135 billion pesos ($87 million) in the April to June period compared with 226 million pesos in the same period last year, according to a filing with the Mexican stock exchange.

Revenue slipped nearly 1 percent to 12.339 billion pesos.

Cost of sales fell, as did financing charges, while the company recorded a gain on exchange rates compared with a loss last year, when the Mexican peso sank sharply.

Gruma shares had closed 1.1 percent higher at a record 156.60 pesos before the company reported its results.

($1 = 12.9865 pesos at end June) (Reporting by Michael O'Boyle. Editing by Andre Grenon)

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