Grupo Bimbo: Reports Third Quarter 2023 Results

Mexico City / MX. (gb) South America’s Grupo Bimbo S.A.B. de C.V., the largest baker of the world, reported its financial results for the third quarter of 2023 (Q3-2023), ended September 30.

Highlights of the Quarter versus Q3-2022

  • Net Sales reached a record level excluding FX rate impact, growing 8.2 percent due to favorable price/mix across regions
  • Adjusted Ebitda reached historic levels, excluding FX rate impact, increasing 9.5 percent and the margin expanded 50 basis points, reaching 14.6 percent
  • Net Majority Income decreased 31.0 percent in MXN terms due to the FX rate impact and the MEPPs3 non-cash benefit registered during Q3-2022 and the margin contracted 170 basis points to 4.2 percent
  • Return on Equity closed the quarter at 14.6 percent
  • Net Debt/ Adjusted Ebitda ratio closed the quarter at 2.0 times

Recent Developments

  • Grupo Bimbo now has 27 countries (including USA and Mexico), out of 34, operating under 100 percent renewable electricity
  • Grupo Bimbo acquired Mile Hi Bakery in Colorado, U.S., that produces buns and English muffins for the QSR channel
  • The Company acquired the majority stake of its QSR operations in Switzerland, and now it owns 60 percent of the business
  • For the seventh consecutive year, Grupo Bimbo ranked first as the Company with the Best Corporate Reputation in Mexico, by Merco, and for the eight consecutive year, Daniel Servitje was named the leader with the best reputation in the country
  • Grupo Bimbo held the 2023 Bimbo Global Race, and thanks to more than 300 thousand participants, including 180 thousand virtual runners, more than 2.8 million slices of bread are being donated to food banks around the world

Commentary

«Excluding the FX impact, our Net Sales increased more than 8 percent and Adjusted Ebitda margin expanded by 50 basis points, now standing at a robust 14.6 percent. Both key metrics have consistently improved, showcasing 10-year CAGRs of 5 percent and 7 percent, respectively, and reached record levels for a third quarter excluding FX effects, underscoring our commitment to sustainable success. Moreover, we successfully completed two strategic acquisitions and our CAPEX investments reached record breaking levels so far. These milestones are a testament to the extraordinary dedication and resilience of our global teams, who have overcome challenges and consistently delivered outstanding results,» says Daniel Servitje, Chairman and CEO.

«Our third quarter results continue to impress, especially when we consider a soft consumer environment and a complex operating environment in some markets. We were able to reach record levels of Net Sales and Adjusted Ebitda, of course excluding the «super peso» effect. We remain committed to our long-term goals and look forward to continuing our journey of growth and profitability,» says Diego Gaxiola, CFO, in the same financial statement.

For additional information please read the company’s PDF file below (312 KB).

20231030-GRUPO-BIMBO-Q3-2023.

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