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Grupo Bimbo reports third quarter 2023 results
Bimbo white toast bread Blanco Mediano packaging supermarket in Mexico.
1. November 2023

Grupo Bimbo’s net sales in Q3 – 2023 reached a record level excluding FX rate impact, growing 8.2% due to favorable price/mix across regions, according to its results for the three months ending on September 30, 2023. Its adjusted EBITDA reached historic levels, Bimbo reports: excluding FX rate impact, it increased by 9.5% and the margin expanded 50 basis points, reaching 14.6%.

According to the new report, Grupo Bimbo now has 27 countries (including USA, Mexico and Canada), out of 34, operating under 100% renewable electricity.

In the reporting period, the bakery acquired Mile Hi Bakery in Colorado, U.S., which produces buns and English muffins for QSR, and the majority stake of its QSR operations in Switzerland, meaning it now owns 60% of the business.

“Excluding the FX impact, our net sales increased more than 8% and Adjusted EBITDA margin expanded by 50 basis points, now standing at a robust 14.6%. Both key metrics have consistently improved, showcasing 10-year CAGRs of 5% and 7%, respectively, and reached record levels for a third quarter excluding FX effects, underscoring our commitment to sustainable success. Moreover, we successfully completed two strategic acquisitions and our CAPEX investments reached record breaking levels so far. These milestones are a testament to the extraordinary dedication and resilience of our global teams, who have overcome challenges and consistently delivered outstanding results,” says Daniel Servitje, Chairman and CEO.

“Our third quarter results continue to impress, especially when we consider a soft consumer environment and a complex operating environment in some markets. We were able to reach record levels of Net Sales and Adjusted EBITDA, of course excluding the “super peso” effect. We remain committed to our long-term goals and look forward to continuing our journey of growth and profitability,” adds Diego Gaxiola, CFO.

Highlights of the quarter:

  • Net Majority Income decreased 31.0% in peso terms due to the FX rate impact and the MEPPs non-cash benefit registered during 3Q22 and the margin contracted 170 basis points to 4.2%
  • Return on Equity closed the quarter at 14.6%
  • Net Debt/Adjusted EBITDA ratio closed the quarter at 2.0 times

 

Photo: AdobeStock( #431947754)