Grupo Bimbo: Reports Second Quarter 2023 Results

Mexico City / MX. (gb) Mexico’s Grupo Bimbo S.A.B. de C.V. reported its results for Q2-2023, ended June 30.

Highlights of the Quarter versus Q2-2022

  • Net Sales reached a record level for a second quarter at MXN 100,366 million, an increase of 4.1 percent, primarily due to a favorable price/mix effect, which was offset by FX rate translation effect. Excluding the translation effect, Net Sales increased 13.9 percent
  • Adjusted Ebitda rose 7.8 percent and the margin expanded 50 basis points, reaching a record margin at 14.0 percent
  • Net Majority Income decreased 35.7 percent and the margin contracted 240 basis points to 3.9 percent, primarily reflecting the MEPPs3 non-cash benefit registered during 2Q22
  • Return on Equity4 closed the quarter at 16.4 percent
  • Net Debt/ Adjusted Ebitda5 closed the quarter at 1.8 times

Recent Developments

  • The Company acquired National Choice Bakery; a U.S. based high-quality co- manufacturer of bagels
  • Canada Bread resolved allegations made against it as part of an investigation by the Competition Bureau of Canada into packaged bread, claims of facts that happened when Canada Bread was majority owned and controlled by Maple Leaf Foods Inc., not by Grupo Bimbo
  • The Company issued MXN 15,000 million in Sustainability-Linked Bonds (SLB) in the Mexican market, the largest corporate SLB in the history of the Mexican market, the fifth SLB for Scope 3 globally and the first in Latin America
  • Bimbo in China, Morocco and Kazakhstan is now operating with 100 percent renewable electricity; with this, Grupo Bimbo has 24 countries operating with 100 percent renewable electricity

Commentary

«I am very proud of the remarkable results of the quarter, we reached record levels of Net Sales, which grew at a double-digit rate excluding FX effect, and the Adjusted Ebitda margin expanded 50 basis points, and also posted record levels for a second quarter. This is a result of the strength of our brands and the hard work of our associates who have done an outstanding job executing at the point of sale, with laser focus in the baking and snack industries. We are committed to achieving our year-end objectives and will continue to invest in our business to expand our brands globally,»… says Daniel Servitje, Chairman and CEO, in the Group’s statement.

«Second quarter results continued to be outstanding, as we reached record levels of Sales and Adjusted Ebitda, while strengthening our financial profile with a successful issuance of our first sustainability-linked bond in the Mexican market,»… says Diego Gaxiola, CFO, in the same financial statement.

For additional information please read the company’s PDF file below (322 KB).

20230726-GRUPO-BIMBO-Q2-2023.