Grupo Bimbo: Reports Q1-2020 Financial Results

Mexico City / MX. (gb) Mexico’s Grupo Bimbo S.A.B. de C.V. reported its financial results for the first three months ended March 31, 2020.

Highlights of the Quarter

• First quarter net sales rose 7.0 percent mainly due to strong volume growth in every region notably North America and Mexico
• Adjusted Ebitda grew 11.4 percent, with a margin expansion of 50 basis points
• Net majority income declined and the margin contracted 190 basis points due to a non-cash charge related to the MEPPs liability adjustment
• Free cash flow for the period totaled MXN 2.7 billion

Recent Events

• For the fourth consecutive year, Grupo Bimbo was recognized as one of the «World’s Most Ethical Companies»
• Grupo Bimbo received, for the sixth consecutive year, the first place in the ranking for the most responsible companies and with the best corporate governance in Mexico

Covid-19 Initiatives

We have established committees to closely monitor the safety of our associates and the performance, needs and strategies to supply our customers. We have also implemented specific measures in line with the recommendations of local authorities to protect against Covid-19. Some of the initiatives we have implemented are the following:

• The safety of our associates comes first, that’s why we have redoubled the efforts to practice social distancing. For those teams, whose role allows it, and depending on local circumstances, different formats of labor flexibility have been implemented, such as remote work, guards or special shifts. We provided additional hygiene steps daily and the right equipment and required temperature checkups at our facilities to ensure the safety of our frontline associates.
• We also increased our financial liquidity by drawing USD 720 million from our committed revolving credit facility to refinance the 2020 bond and to increase liquidity, prioritizing flexibility and financial strength.
• We are prioritizing high volume SKUs to optimize production capacity; we reopened our Hazelton Bakery in the U.S. given the high demand in the country.
• We reaffirm our commitment to the world in the midst of the outbreak by donating approximately MXN 200 million globally through product donations to food banks and foundations, economic resources for the construction of a temporary hospital unit in Mexico, box lunches for medical personnel from public hospitals and face masks to small merchants in Mexico to take care of their health and their customers’, among others.

«We are unwavering in our determination to successfully navigate the challenge of these complex times, and we have the resilience and agility to do so, our experienced leadership in every country and our production capabilities enable us to serve consumers during this time of disruption and extraordinary demand,» says Daniel Servitje, Chairman and CEO, in the Group’s statement.

«We have recently made financial decisions primarily focused on cash generation and preservation, making sure that we have more flexibility in this uncertain environment and keeping a strong balance sheet, as well as solid cash flow generation,» says Diego Gaxiola, CFO, in the same statement.

For additional information please read Grupo Bimbo’s PDF file below (682 KB).

20200428-BIMBO-Q1-2020.