Grupo Bimbo: Reports Second Quarter 2021 Results

Mexico City / MX. (gb) Mexico’s Grupo Bimbo S.A.B. de C.V. reported its financial results for the three months ended June 30, 2021.

Highlights of the Quarter versus Q2/2020

  • Excluding FX effect, Net Sales increased 6.6 percent mainly attributable to strong volume performance in most regions. In peso terms, Net Sales declined 2.9 percent, primarily reflecting FX rate translation effect and difficult comparisons due to prior year peak in panic-buying
  • Despite the lack of comparability, Adjusted Ebitda reported record levels for a second quarter, growing 5.9 percent and the margin expanded 120 basis points to 14.4 percent
  • Net Majority Income improved by 18.6 percent with a margin expansion of 70 basis points
  • Return on Equity3 reached 13.4 percent, an expansion of 280 basis points
  • Net debt/ Adjusted Ebitda ratio closed the quarter at 1.8x

Highlights of the Quarter versus Q2/2019

  • Net Sales increased 16.2 percent, mainly as a result of strong volumes and price/mix across every region
  • Adjusted Ebitda grew 36.9 percent, while the margin expanded 220 basis points
  • Net Majority Income more than doubled and the margin expanded 200 basis points

Recent Events

  • Grupo Bimbo acquired Emmy’s Organics in the U.S., the leader in ultra-premium organic cookies and a major player in gluten-free cookies
  • Bimbo was ranked in the Brand Footprint Ranking 2021, by Kantar, as the most chosen food brand within households in Mexico and Latin America, and one of the most chosen globally
  • The Company completed the acquisition of a plant from Cerealto Siro Foods in Medina del Campo, Spain
  • The operations in Chile and Panama are now using 100 percent renewable electricity. With this, 90 percent of the electricity consumed by Grupo Bimbo (from 2017 baseline) comes from renewable sources and more than half of the organizations use 100 percent renewable electricity
  • Grupo Bimbo priced USUSD 600 million in senior unsecured 4.00 percent notes due 2051, through Bimbo Bakeries USA Inc.

Commentary

«I am more than proud that our teams reached record profits for a second quarter and Net Sales growth of 6.6 percent, excluding FX effect. We continue to see strong demand and extraordinary run rates in our core business, we held and grew market share across our key categories and saw a recovery of those channels and categories that suffered during the pandemic. As we move forward, we will continue to invest in our associates, our brands, in the entire value chain, in our sustainability strategy and in our digital transformation projects to achieve our Vision,» says Daniel Servitje, Chairman and CEO, in the Group’s statement.

«This second quarter was remarkable, despite tough comparisons and the FX translation effect, we reached record profits and our Return on Equity expanded by 280 basis points. We strengthened our balance sheet by improving our amortization profile and were able to generate strong cash flow,» says Diego Gaxiola, CFO, in the same statement. For additional information please read the company’s PDF file below (785 KB).

20210729-BIMBO-Q2-2021
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