Mexico-based baker Grupo Bimbo has posted a 31% rise in nine-month earnings as sales were boosted by recently-acquired Canada Bread and as raw material costs fell in the third quarter.
Bimbo booked net majority income of MXN4.06bn (US$300m) for the period to the end of September, an increase of 30.8% on the year. Operating income was up 12.5% at MXN8.86bn.
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Net sales grew 6.4% to MXN137.84bn, with third-quarter sales up 11.9%. The acquisition of Canada Bread from Canadian meats group Maple Leaf Foods, finalised in May, drove sales growth for Bimbo in its combined US and Canada division and in Europe.
Excluding the impact of the deal, third-quarter sales from the US and Canada division fell. Bimbo pointed to the effect of the disposal of assets in California last year but it added: “Organic performance in the quarter was affected by continued weakness in consumer spending as well as changing marketplace dynamics.”
In Mexico, net sales fell 1.3% in the nine-month period to MXN53.51bn amid pressure on volumes. Third-quarter sales were down 3.1%. Bimbo cited a “weak consumer environment” but said “pricing initiatives” the company introduced in last year’s fourth quarter had also affected volumes.
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