Grupo Bimbo: reports Q3/2009 results

Mexico City / MX. (div) Grupo Bimbo S.A.B. de C.V. reported its results for the third quarter ended September 30, 2009. Net sales in the third quarter rose a strong 41,1 percent to 29,3 billion MXN, primarily reflecting the incorporation of the acquisition in the United States, along with a 16,3 percent increase in Latin America. Excluding acquisition-related gains, net sales would have risen 4,2 percent in the period.

The consolidated gross margin rose 2,2 percentage points over the same quarter of last year to 53,8 percent, reflecting significant expansion in the U.S. and Mexico as a result of lower commodity costs. In addition, at BBU, margin improvement was driven by the incorporation of BBU East and ongoing gains in manufacturing productivity in the West.

Operating and EBITDA margins expanded by 1,3 and 1,4 percentage points, respectively, to 11,4 percent and 14,4 percent. This performance is mainly attributable to results in the U.S. where operating expenses as a percentage of sales declined 1,8 percentage points year over year. Excluding the acquisition in the U.S., the consolidated operating margin would have expanded 0,7 percentage points compared to the third quarter of last year, to 10,8 percent.

Net majority income totaled 1,7 billion MXN for the quarter, an increase of 24,5 percent compared to the same period of 2008, while the margin declined 80 basis points to 5,9 percent mainly as a result of higher financing costs related to new debt contracted to finance the acquisition in the U.S.