Grupo Bimbo has booked mixed first-quarter results, with higher sales but pressure on profitability.
The bakery group said that net earnings were hit by integration and restructuring expenses and a higher effective tax rate. Net majority income fell to MXN985m (US$51.8m) in the quarter, compared to MXN1.43bn in the comparable period of last year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Operating income was also slightly down year-on-year. EBIT dipped to MXN3.65bn compared to MXN3.88bn in the prior year. Operating profit margins saw a 130 basis point contraction in the quarter to 5.5%. Bimbo said it was “in line” with the company’s plans, as it closed two North American facilities, integrated the Donuts Iberia business in Europe and opened a new production plant in Cordoba, Argentina.
While investments dampened profitability, Bimbo stressed sales were higher in the three-month period. Revenue increased to MXN66.51bn, up from MXN57.08bn last year. This 16.5% increase reflected positive forex impact, “solid” organic growth in Mexico and the contribution of the recently-acquired Donuts Iberia business.
