Bimbo sales reach all-time high in Mexico, EAA

Bimbo white toast bread packaging in the supermarket in Mexico.

25. July 2024

Grupo Bimbo reported record-breaking sales in the second quarter of 2024 in Mexico and the EAA, its financial report shows. At the same time, Bimbo was recognized as the most chosen food brand in Mexico, and in the top five most chosen brands in Mexico and LATAM within FMCG, according to Kantar.

“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,” said Rafael Pamias, CEO.

“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%. 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,” added Diego Gaxiola, CFO.

The company’s Net Sales excluding FX rate impact increased 0.5%, reflecting robust sales growth across all regions, most notably EAA and Mexico, except North America.

Its gross margin expanded 120 basis points to 52.3% due to lower raw material costs and a favorable mix across all regions.

The operating margin contracted 60 basis points, primarily due to soft volume against semi-fixed overhead costs and investments in the supply chain.

The adjusted EBITDA, excluding FX rate impact, increased by 1.4% and the margin expanded 20 basis points, reaching a historic 14.2% for a second quarter, the report shows.

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