Grupo Bimbo: Reports Results for Q3-2019

Mexico City / MX. (gb) Mexico’s Grupo Bimbo S.A.B. de C.V. reported its financial results for the three months ended 30 September, 2019.

Highlights of the Quarter

  • Net sales rose 3.2 percent year-over-year, driven by healthy organic growth across all regions and, to a lesser extent, FX rate benefit.
  • Adjusted Ebitda increased 10.1 percent, while the margin expanded 80 basis points, mainly attributable to positive operating performance in Mexico, North America and EAA.
  • Mexico and North America reached record adjusted Ebitda for the third quarter.
  • Net majority income rose 6.9 percent and the margin expanded 10 basis points due to improved operating performance and a lower effective tax rate, offset by a non-cash charge related to MEPPs.
  • Return on equity posted a strong 370 basis points expansion.

Recent Developments

  • Grupo Bimbo successfully issued a 30-year bond for USD 600 million, at 4.00 percent.
  • Grupo Bimbo announced that in Mexico, 100 percent of the packages, where the technology applies, are already biodegradable, and it will launch the first compostable packaging in the country for bread.
  • The Company signed an agreement to acquire the Paterna plant from Cerealto Siro Foods in Valencia, Spain.
  • The Company opened the largest solar roof system in Chile and South America, built in a single warehouse.

«Third quarter results reflected improved momentum, as we achieved healthy organic performance and double-digit growth in adjusted Ebitda. This was supported by investment behind our brands and rapid execution, as we remain dedicated to leveraging our global leadership and brand strength to drive long-term growth,» says Daniel Servitje, Chairman and CEO, in the Group’s statement.

«We are pleased with the improved trends and profitability seen across our regions, reaching record levels for a third quarter in adjusted Ebitda in Mexico and North America. We conducted a successful bond issuance and keep investing to drive growth and profitability, generate significant cash flow and deliver on our capital allocation strategy,» says Diego Gaxiola, CFO, in the same statement.

For additional information please read Grupo Bimbo’s PDF file below (680 KB).

20191029-BIMBO-Q3-2019.

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