Grupo Bimbo: reports Q4 and year end 2007 results

Mexico City / MX. (gb) Grupo Bimbo S.A.B. de C.V. reported its results for the fourth quarter and full year ended December 31, 2007. As in the first nine months of the year, top line performance in the fourth quarter maintained a solid pace of growth which led to an 8,5 percent rise in net sales from the year ago period, to 19 billion MXN. This is attributable to stable sales volume and a better sales mix, as well as to pricing actions taken throughout the year in all regions, which were primarily implemented to offset the significant price escalation of the company´s key raw materials, particularly wheat flour, fats, oils and dairy. The consolidated gross margin for the quarter declined 0,3 percentage points to 52,7 percent as higher year over year raw material prices impacted every region. Operating and EBITDA margins declined by 0,5 and 0,6 percentage points, to 10,3 percent and 13,4 percent, respectively. In addition to the gross margin pressure, margins at the operating level where affected by an increase in administrative expenses that resulted from an extraordinarily low basis of comparison in 2006, although distribution expenses registered a slight decrease when compared to the previous year. Finally, net majority margin registered a 0,8 percentage point reduction in the quarter, to 5,2 percent, which reflected operating margin pressure as well as one-time non-cash charges taken during the quarter for adjustments to the value of deferred taxes. Excluding these extraordinary charges, net majority income would have risen 12,3 percent to 1,2 billion MXN, and the margin would have been 6,2 percent (press release).