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.
“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.
