Grupo Bimbo: Reports Record Q4-2020 Financial Results

Mexico City / MX. (gb) Mexico’s Grupo Bimbo S.A.B. de C.V. reported its financial results for the three and twelve months ended December 31st, 2020.

Highlights of the Quarter

  • Grupo Bimbo posted record Net Sales for a fourth quarter and full year
  • Adjusted Ebitda reached record levels for a fourth quarter and full year
  • Net Majority Income increased 58.4 percent, the margin expanded 100 basis points and the ROE improved by 310 basis points reaching 12.4 percent
  • Cumulative Gross Cash Flow doubled closing the year with MXN 31.8 billion
  • Net Debt / Adjusted Ebitda ratio closed at 1.9 times, the lowest level in ten years
  • IRI named Grupo Bimbo the fastest growing large consumer products company in the USA

Recent Events

  • Grupo Bimbo increased its global use of renewable electricity from 49 percent to 80 percent, progressing in their commitment to achieve 95 percent renewable electricityby 2023
  • The Company signed an agreement with Cerealto Siro Foods to acquire a production plant in Medina del Campo, Spain
  • Grupo Bimbo acquired Modern Foods, a leading player in the baking industry in India
  • For the fifth year, Ethisphere Institute named Grupo Bimbo as one of the World’s Most Ethical Companies in 2021

Financial Summary

(in millions of Mexican Pesos) Q4-2020 Q4-2019 Change FY-2020 FY-2019 Change
Net Sales 84’778 75’457 12.4% 331’051 291’926 13.4%
Gross Profit 45’553 39’289 15.9% 178’443 153’742 16.1%
Operating Income 8’517 6’071 40.3% 25’408 20’419 24.4%
Adjusted Ebitda 12’776 10’808 18.2% 45’193 37’873 19.3%
Net Majority Income 2’890 1’825 58.4% 9’110 6’319 44.2%
Net Debt | Adjusted Ebitda(*) 1.9 2.4 (0.5x)
ROE(**) 12.4% 9.3% 3.1pp

(*) Does not consider the effect of IFRS16.      (**) Adjusted with the MEPPs non-cash charges.

Commentary

«2020 was a remarkable year for Grupo Bimbo, evidenced by record financial results and market share gains, despite a challenging environment. Today, I can see the results of 75 years of creation and progress, because thanks to our global leadership in an essential industry, the hard work of our associates, our geographic, channel and category diversification, our brands and our production capabilities, we were able to proudly serve our consumers during this time of disruption and extraordinary demand,» says Daniel Servitje, Chairman and CEO, in the Group’s statement.

«In 2020 we reached record levels for Net Sales and Adjusted Ebitda, we doubled our Gross Cash Flow and reached the lowest leverage of the past 10 years. We start 2021 stronger than ever and despite the tough comparable, we are ready to continue strengthening our financial position,» says Diego Gaxiola, CFO, in the same statement. For additional information please read the company’s PDF file below (668 KB).

20210225-BIMBO-Q4-2020
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