Grupo Bimbo, world’s third-largest bread group, has reported first quarter operating profits slightly ahead at 708m pesos (US$76.1m).
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This represents an approximately 2.5% increase on the same period in 2001, but is well below market expectations of 747m pesos. Three-month revenues rose almost 15% to 9.092bn pesos.
Results were given a shot in the arm by Bimbo’s recently expanded US operating unit, boosted by the recent US$610m acquisition of a US baking unit of Canada’s George Weston. New units in Brazil and Costa Rica also lifted sales.
Bimbo sells a large variety of packaged bread, desserts, cookies, sweets and snacks, chocolates and packaged tortillas. It has operations in 16 countries, although Mexico and the US account for more than 90% of sales.
While US sales rose 31% in the quarter, this growth came solely from the new units. Bimbo’s long-standing businesses, based mainly in California and Texas, actually saw lower sales volumes in the first three months of the year.
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By GlobalData“Without considering the sales from the new operations, sales volumes showed a reduction as a result of a decline in consumption, particularly in Texas, where the company has an important presence,” Bimbo said in a statement.
