Grupo Bimbo S.A.B. de C.V. reports its results for the three months ending June 30, 2022. Grupo Bimbo is a leading worldwide baking company and relevant participant in snacks. Its main product lines include sliced bread, buns and rolls, pastries, cakes, cookies, toast bread, English muffins, bagels, tortillas and flatbreads and salty snacks products, among others.
Highlights of the quarter
- Net sales reached a record level for a second quarter at Ps. 96,434 million, an increase of 18.1%, primarily due to strong price/mix and volumes performance across every region.
- Adjusted EBITDA2 grew 12.5%; while the margin contracted 60 basis points mainly due to higher raw material costs and a higher inflationary environment.
- Net majority income more than doubled and the margin expanded 270 basis points, reaching a record level at 6.4%.
- Return on equity reached a record 16.5%.
- Net debt/adjusted EBITDA ratio closed the quarter at 1.9 times.
Daniel Servitje, chairman and CEO, stated in the announcement: “Topline performance was exceptional in this second quarter, as we reached a record level of sales and saw broad-based share gains across our portfolio. Our volumes strongly grew across all our regions as a reflection of the high demand we are experiencing as our brands continue to resonate with our consumers. We will continue to invest in our brands as we move forward.”
Diego Gaxiola, CFO, added in the announcement, “Our net sales and profits reached historic levels for a second quarter, despite higher commodity prices and a high overall inflationary environment. We are pulling several levers to offset the rising inflation, including revenue growth management strategies, our category and product mix, pricing actions, productivity initiatives, and we continue to proactively look for restructuring opportunities.”
Net sales in U.S. dollars increased 16.8%, the strong topline performance was driven by the successful implementation of pricing strategy and volume growth across all branded categories, especially mainstream and premium breads, as well as snacks.
- The Bimbo brand was ranked as the most chosen food brand within households in Mexico and Latin America in the Kantar Brand Footprint 2022.
- The operations in Ecuador are now operating with 100% renewable electricity, the 22nd Grupo Bimbo country running with 100% renewable electricity.