Bimbo: 2022 was a remarkable year with historic performance

Mexico City / MX. (gb) Mexico’s Grupo Bimbo S.A.B. de C.V. reported its financial results for the three and twelve months ended December 31, 2022.

Highlights of the Quarter

• Net Sales reached a record level for a fourth quarter at MXN 108,996 million, an increase of 15.3 percent, primarily due to strong price/mix and volume performance
• Operating Income more than doubled and the margin expanded 11.9 pp, reaching 22.1 percent, partly due to an extraordinary gain related to the Multiemployer Pension Plans (MEPPs)
• Adjusted Ebitda reached a record level for a fourth quarter at MXN 14,639 million, growing 12.0 percent, while the margin contracted 40 basis points to 13.4 percent
• The Company registered extraordinary gains for MXN 15,004 million and MXN 14,395 million (USD 734 million), arising from the sale of Ricolino and a non-cash benefit from MEPPs
• Net Majority Income increased by more than 5 times and the margin expanded 22.6 pp, to 27.7 percent, reflecting the sale of Ricolino, the MEPPs benefit, strong sales performance and productivity savings. Excluding the MEPPs and Ricolino effects, Net Majority Income increased 7 percent and the margin contracted 30 basis points

Highlights of the Year

• Net Sales reached a record level at MXN 398,706 million, an increase of 17.7 percent, mainly attributable to strong price/mix and volume across every region
• Operating Income rose 64.8 percent and the margin expanded 390 basis points, reaching 13.5 percent, partly due to an extraordinary gain related to MEPPs
• Adjusted Ebitda reached a record level at MXN 53,455 million, an increase of 12.8 percent while the margin contracted 60 basis points to 13.4 percent
• The Company successfully completed the acquisition of St. Pierre in the U.S. and the U.K.
• Net Majority Income increased more than two times and the margin expanded 710 basis points to 11.8 percent, due to the strong sales performance, the extraordinary gain related to MEPPs and the sale of Ricolino. Excluding these effects, Net Majority Income increased 21.4 percent and the margin expanded 20 basis points
• Return on Equity expanded 120 basis points, reaching 15.1 percent
• Net Debt/Adjusted Ebitda ratio closed the year at 1.5 times, the lowest level in 14 years
• CAPEX investments reached a record level of USD 1.4 billion
• Grupo Bimbo returned to its Shareholders MXN 8.8 billion through dividends and share buybacks

Recent Developments

• The Company acquired Vel Pitar, the leader within the Romanian baking industry, at 8 times EV/Ebitda, expanding Grupo Bimbo’s presence to 34 countries
• The Company is making several changes to its senior leadership team. These changes are consistent with its succession plan and its long-term vision
• BBU was recognized by IRI (Information Resources, Inc.) as the fourth fastest growing CPG company in 2022, and the fastest growing food company
• Grupo Bimbo was included for the first time in the Bloomberg Gender-Equality Index 2023
• Grupo Bimbo was recognized by Carbon Disclosure Project (CDP) for its actions to mitigate the effects of climate change

Commentary

«2022 was a remarkable year with historic financial performance. We reached USD 19.8 billion dollars in Net Sales and USD 2.7 billion dollars in Ebitda, posting 10 percent and 12 percent 10-year CAGR, respectively. We saw market share gains in most categories, made record CAPEX investments, fine-tuned our strategic focus on grain-based foods, successfully turned around Argentina and Brazil, and we launched our sustainability strategy,» says Daniel Servitje, Chairman and CEO, in the Group’s statement.

«I’m very proud of the impressive hard work of our teams to navigate under difficult conditions, with a successful implementation of pricing actions, an excellent execution at the point of sale and delivering better-than-expected results. After a year of outstanding results, we start 2023 well-positioned to reach our plan, with continued investments in key strategic opportunities for sustainable growth,» says Diego Gaxiola, CFO, in the same statement. For more details please read the company’s PDF file below (358 KB).

20230222-BIMBO-Q42022.