Grupo Bimbo: Q3 profits rise on acquisition

Mexico City / MX. (div) Grupo Bimbo S.A.B. de C.V., the world´s largest bread maker, said third-quarter profit rose 21 percent on cost savings after its acquisition of George Weston Limited. Net income climbed to 1,7 billion MXN from 1,4 billion MXN in the year-earlier period, the Mexico City-based company said. Operating profit climbed 60 percent to 3,3 billion MXN, the highest ever for the company.

Exchange rate on October 26th, 2009 (Interbank):
1’000’000 Euro (EUR) = 19’575’800,000 Mexican Pesos (MXN)
1’000’000 Mexican Pesos (MXN) = 51’083,481 Euro (EUR)

Sales gains in the U.S. were primarily driven by Bimbo´s acquisition of George Weston´s U.S. operations for 2,4 billion USD last year. The purchase added 22 plants and 4’000 distribution routes to Bimbo Bakeries USA. The company also saw a 16,3 percent sales lift in South and Central America, but the bakery´s sales from Mexico fell 1,8 percent. Bimbo´s debt surged to 32,6 billion MXN from 2,7 billion MXN in 2008. Revenue climbed 41 percent to 29,3 billion MXN from the year-earlier period. Financing costs rose to 625 million MXN in the three months through September from 25 million MXN in the year-ago period, Bimbo said in its statement.