Grupo Bimbo: reports Q3/2007 results

Mexico City / MX. (gb) Grupo Bimbo S.A.B. de C.V. reported its results for the third quarter ended September 30th. A solid pace of growth in the quarter, with outstanding results in Latin America, led to a 6,7 percent rise in net sales from the year ago period, to 17,9 billion MXN. This is attributable to steady volume gains and a better sales mix, as well as to pricing actions taken across all regions to offset the price escalation of the Company´s key raw materials.

Exchange rate on October 26th, 2007:
100 Euro (EUR) = 1.547.10 Mexican Pesos (MXN)
100 Mexican Pesos (MXN) = 6.46372 Euro (EUR)

Due to fluctuations in the international commodity markets, the Company continues to experience higher prices of wheat, oils and dairy when compared to the previous year´s levels. This resulted in continued pressure on the gross margin, which declined by 10 basis points year over year. However, a more efficient sales mix, selective pricing actions, and tighter controls of administrative expenses led to a 30 basis point improvement in the operating margin, to 10,3 percent. Mainly as a result of higher sales and operating income and a decrease in financing costs, net majority income rose 18,3 percent year over year, with a 0,6 percent expansion in the net margin, to 6,6 percent. Highlights from the quarter:

  • Net sales totaled 17.9 billion MXN, a solid increase of 6,7 percent, driven by steady growth in Mexico and the USA, and strong gains in Latin America.
  • Despite gross margin pressure, operating income and EBITDA increase 9,7 percent and 11,5 percent respectively, mainly due to a better sales mix, pricing actions and lower administrative expenses.
  • Operating margin expands 0,3 percentage points, while net margin grows by 0,6 percentage points, mainly due to lower financing costs.

Grupo Bimbo is one of the largest baking companies in the world in terms of production and sales volume. As the market leader in the Americas, Grupo Bimbo has more than 70 plants and 800 distribution centers strategically located in 18 countries throughout America, Europe an Asia. Its main product lines include sliced bread, buns, cookies, snack cakes, pre-packaged foods, tortillas, salted snacks and confectionery products, among others. Grupo Bimbo produces over 5.000 products and has one of the most extensive direct distribution networks in the world, with more than 34.000 routes and 87.000 employees.

Attention: A detailed description of the results for the third quarter ended September 30th Grupo Bimbo has printed as PDF file (9 pages | 222KB).