1 September 2024
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Global Industry

Grupo Bimbo: Reports Second Quarter 2024 Results

Mexico City / MX. (gb) Grupo Bimbo S.A.B. de C.V. reported its results for Q2-2024, ended June 30.

Highlights of the Quarter versus Q2/2023

  • Despite the tough comparison, Net Sales excluding FX rate impact increased 0.5 percent, reflecting robust sales growth across all regions, most notably EAA and Mexico, except North America, as well as the contribution from past acquisitions
  • Gross Margin expanded 120 basis points to 52.3 percent due to lower raw material costs and favorable mix across all regions
  • Operating margin contracted 60 basis points, primarily due to soft volume against semi-fixed overhead costs and investments in the supply chain which will enable long-term benefits
  • Adjusted Ebitda, excluding FX rate impact, increased 1.4 percent and the margin expanded 20 basis points, reaching a historic 14.2 percent for a second quarter
  • Net Majority Income margin contracted 60 basis points
  • Return on Equity closed the quarter at 11.9 percent
  • Net Debt/Adjusted Ebitda ratio closed the quarter at 2.6 times

Recent Developments

  • Bimbo was recognized as the most chosen food brand in Mexico, and in the top five most chosen brands in Mexico and in Latin America within the Fast-Moving Consumer Goods sector, according to Kantar
  • Grupo Bimbo reduced its Scope 3 emissions in 2023 by 12 percent vs. 2022 and 3.7 percent vs. 2019 baseline
  • As of 2023, 93 percent of the Company’s packaging is made from recyclable materials, reinforcing its commitment to circular economy

Commentary

«The second quarter results emphasize the advantages of our status as a diversified, global leader in our industry. Our EAA operation substantially increased profitability, achieving a record double-digit margin for a second quarter. Significant contribution came from our operations in Mexico, which not only demonstrated solid performance but also continued to emerge as our most profitable region, achieving sustained growth with an Ebitda margin expansion of 140 basis points. These successes effectively mitigated the challenging environments in North America and certain LatAm countries. Furthermore, we continued to reap the benefits of our enhanced revenue growth management capabilities, lower raw material costs, and strategic investments in innovation and transformational projects aimed at long-term value creation,» says CEO Rafael Pamias in the Group’s statement.

«This quarter’s results were good and a perfect example of the benefits of being a well diversified company. On one hand we were able to reach an all-time high level of Sales in Mexico and EAA, while at the same time Grupo Bimbo’s Sales increased, despite the tough comparison of the second quarter of 2023 where our sales grew 14.2 percent. We continue to benefit from lower commodities and from the investments we have made in the past, as well as efficiencies gained across the supply chain, which led to a record Ebitda margin for a second quarter,» says Diego Gaxiola, CFO, in the same statement. For additional information please read the company’s PDF file below (312 KB).

20240724-GRUPO-BIMBO-Q22024.


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