23 November 2024
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Global Industry

Grupo Bimbo: Reports Third Quarter 2024 Results

Mexico City / MX. (gb) Grupo Bimbo S.A.B. de C.V. reported its results for Q3-2024, ended September 30.

Highlights of the Quarter versus Q3/2023

  • Net Sales hit a record high for a third quarter at MXN 106,046 million, an increase of 7.4 percent, driven by positive volume and mix, a favorable exchange rate conversion and, to a lesser extent, the inorganic contribution from recent acquisitions
  • Mexico posted strong volume performance and Adjusted Ebitda margin of nearly 22 percent
  • EAA region reached record levels of Net Sales and Adjusted Ebitda margin for a third quarter of 10 percent
  • Gross Margin expanded 150 basis points to 53.1 percent attributable to lower raw material costs and favorable mix evolution.
  • Operating Margin contracted 100 basis points, primarily due to investments in the value chain, which will enable long-term benefits, mainly in North America. As a result, Net Majority Income decreased 11.6 percent and the margin contracted 70 basis points
  • Adjusted Ebitda, reached a peak level for any quarter at MXN 15,640 million, an increase of 8.4 percent, and the margin expanded 10 basis points to 14.7 percent, achieving for two periods in a row the highest level recorded for a quarter
  • Net Debt/ Adjusted Ebitda ratio closed the quarter at 2.8 times

Recent Developments

  • Grupo Bimbo signed an agreement to acquire Don Don, a leading player in the baking industry within Southeast Europe, with presence in Serbia, Slovenia, Croatia and Montenegro, and exports to several countries. With this, Grupo Bimbo will expand its geographic presence to 39 countries. The acquisition is still subject to regulatory approvals
  • The Company entered into an agreement to acquire Wickbold, a player in the baking industry in Brazil. This transaction is still subject to regulatory approvals
  • Grupo Bimbo concluded the acquisition of Pagnifique in Uruguay, a recognized player in the high-quality frozen bread market
  • For the second consecutive year, Grupo Bimbo appeared in the list of the «World’s Best Companies» by Time’s magazine, standing out for being part of the top 10 within the global food category. And for the first time, Forbes magazine recognized the Company as one of the World’s Best Employers in 2024
  • Grupo Bimbo was awarded by Merco, for the eighth consecutive year, as the Company with the Best Corporate Reputation in Mexico
  • Grupo Bimbo held the ninth Bimbo Global Race, and thanks to more than 300 thousand participants, including 160 thousand virtual runners, more than 3 million slices of bread are being donated to food banks around the world

Commentary

«These third quarter results continue to demonstrate the strength of our business, showcasing our diverse geographies and categories, as well as the exceptional execution by our teams. Overall, our volumes showed positive growth, and our Net Sales increased 7.4 percent. In Mexico, we achieved strong results thanks to significant volume growth exceeding the mix effect, allowing us to reach an Ebitda margin of nearly 22 percent. We also saw remarkable results in EAA, where we attained the highest Ebitda margin ever at 10 percent. And our Latam region began to show signs of recovery, despite ongoing challenges, with improving trends in Colombia and Chile, and resilience in Argentina. These successes helped offset the difficult environment in North America, where, while we observed improvements compared to H1-2024, consumption trends remain soft. Collectively, all the mentioned results contributed to a record Adjusted Ebitda margin for a third quarter at 14.7 percent,» 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 not only in terms of categories and channels, but also in terms of currencies. We achieved an all-time high in Sales, a favorable mix evolution, and we continue to benefit from lower commodity prices and the acquisitions made in the past, resulting in a record Adjusted Ebitda margin for a third quarter,» says Diego Gaxiola, CFO, in the same statement. For additional info please read the PDF file below (293 KB).

20241029-GRUPO-BIMBO-Q32024.


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