Grupo Bimbo: Reports Third Quarter 2022 Results

Mexico City / MX. (gb) Mexico’s Grupo Bimbo S.A.B. de C.V. reported its results for the three months ended September 30, 2022. The third quarter results of the confectionary business in process of sale are presented as a discontinued operation in the income statement; the main captions of these results for 3Q 2022 and 2021 are (figures in million of Mexican Pesos): Net Sales 3,465 million MXN (2,579 million MXN for 2021), Operating Costs and Expenses 2,872 million MXN (2,237 million MXN for 2021) and Net Income 443 million MXN (296 million MXN for 2021).

Highlights of the Quarter versus Q3/2022

  • Net Sales reached a record level for a third quarter at 102,821 million MXN, an increase of 20 percent, primarily due to strong price/mix performance and volume increase
  • Operating Income rose 37.6 percent and the margin expanded 140 basis points, reaching 10.7 percent
  • Adjusted Ebitda grew 15.2 percent, while the margin contracted 60 basis points mainly due to higher raw material costs and a highly inflationary environment
  • Net Majority Income improved by 50.8 percent and the margin expanded 120 basis points, to 5.9 percent
  • Return on Equity reached a record 16.7 percent
  • Net Debt/Adjusted Ebitda ratio closed the quarter at 2.0 times

Recent Developments

  • Grupo Bimbo acquired St. Pierre, a leading baking player in the premium brioche category in the U.S. and the U.K.
  • For the sixth consecutive year, Grupo Bimbo ranked first as the Company with the Best Corporate Reputation in Mexico, by Merco, and for the seventh consecutive year, Daniel Servitje was named the leader with the best reputation in the country
  • Grupo Bimbo held the 2022 Bimbo Global Race, and thanks to more than 341 thousand participants, more than 6.8 million slices of bread are being donated to food banks around the world
  • Bimbo China organization is now operating with 100 percent renewable electricity

Commentary

«Topline performance was exceptional in this third quarter, we reached a record level of sales and profits, our volumes continued to grow despite price increases, and our revenue growth management initiatives are increasingly being reflected in our results. The inflationary environment we are currently living in has been very challenging, yet we have been able to navigate through it thanks to the resiliency of our categories and the high demand for them, the hard work of our associates, the trust of our consumers and customers and the strength of our brands which continue to resonate globally,» says Daniel Servitje, Chairman and CEO, in the Group’s statement.

«Despite the multiple challenges we are facing on several fronts, we continue to see a strong 2022, as our volumes and sales continue to exceed our expectations. We are optimistic that 2023 will be a year where we will continue to realize the benefits of our growth strategy and productivity initiatives,» says Diego Gaxiola, Chief Financial Officer, in the same statement.

For additional information please read the company’s PDF file below (340 KB).

20221029-GRUPO-BIMBO-Q3-2022
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