Grupo Bimbo: Reports First Quarter 2023 Results

Mexico City / MX. (gb) Mexico’s Grupo Bimbo S.A.B. de C.V. reported its results for the three months ended March 31, 2023.

Highlights of the Quarter versus Q1/2022

  • Net Sales reached a record level for a first quarter at MXN 99,565 million, an increase of 9.9 percent, primarily due to the favorable price/mix, which was partially offset by FX rate translation effect. Excluding this effect, Net Sales increased 18.4 percent
  • Adjusted Ebitda rose 13.7 percent and the margin expanded 40 basis points to 12.9 percent
  • Net Majority Income decreased 9.4 percent and the margin contracted 80 basis points to 4.1 percent primarily reflecting the MEPPs non-cash benefit registered during 1Q22, as well as the profit from the Ricolino’s discontinued operation during 2022
  • Return on Equity reached a record level at 16.4 percent
  • Net Debt/ Adjusted Ebitda ratio closed the quarter at 1.7 times

Recent Developments

  • Moody’s upgraded Grupo Bimbo’s global rating to Baa1 from Baa2, and S+P Ratings and Fitch Ratings to BBB+ from BBB
  • The Company completed the acquisition of Natural Bakery in Winnipeg, Canada, which specializes in a wide variety of rye breads
  • For the seventh consecutive year, Ethisphere Institute named Grupo Bimbo as one of the World’s Most Ethical Companies in 2023
  • Bimbo Guatemala is now operating with 100 percent renewable electricity
  • Grupo Bimbo exercised its option to redeem all its outstanding USD subordinated perpetual notes on the first call date
  • The Company renewed its sustainability-linked committed revolving credit facility, upsizing it from US USD 1.75 Bn to US USD 1.93 Bn


«We kicked off the year with a very strong first quarter, we continue to see the benefit from the pricing strategy implemented during 2022, which enabled us to surpass our expectations and last year’s results. I am very proud of the hard work of our associates around the globe and their resilience to navigate in a difficult high inflationary environment. We will continue to invest behind our brands and assets to capture growth opportunities and fully expect to continue gaining efficiencies throughout our supply chain, so we remain optimistic about the remainder of the year,» says Daniel Servitje, Chairman and CEO, in the Group’s statement.

«Our results for the quarter continue to be very strong, especially when we consider the challenging comparison versus last year, a high inflationary environment, still higher commodities when compared to last year, because of the hedges we implemented during the back half of 2022, a complex operating environment in some markets and a negative effect from FX rate. Net Sales reached a record level at USD 99.6 billion pesos, or 10 percent growth, and our Adjusted Ebitda reached USD 12.9 billion pesos, while our margin expanded 40 basis points. All attributable to the strong sales performance and the efficiencies across the supply chain,» says Diego Gaxiola, CFO, in the same statement. For additional information please read the company’s PDF file below (327 KB).


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