Grupo Bimbo’s net sales reached a record level for a second quarter at Ps. 100,366 million, a 4.1% increase. The adjusted EBITDA rose by 7.8%. In Q2, the company acquired National Choice Bakery, a US-based bagel producer. In other recent developments, Canada Bread resolved allegations made against it as part of an investigation by the Competition Bureau of Canada into packaged bread, claims of facts that happened when Canada Bread was majority owned and controlled by Maple Leaf Foods Inc., not by Grupo Bimbo. The company also issued Ps. 15,000 million in Sustainability-Linked Bonds (SLB) in the Mexican market, the largest corporate SLB in the history of the Mexican market, the fifth SLB for Scope 3 globally and the first in Latin America. Bimbo in China, Morocco and Kazakhstan is now operating with 100% renewable electricity; with this, Grupo Bimbo has 24 countries operating with 100% renewable electricity, the company’s Q2 report shows.
“I am very proud of the remarkable results of the quarter, we reached record levels of net sales, which grew at a double-digit rate excluding FX effect, and the Adjusted EBITDA margin expanded 50 basis points, and also posted record levels for a second quarter. This is a result of the strength of our brands and the hard work of our associates who have done an outstanding job executing at the point of sale, with laser focus in the baking and snack industries. We are committed to achieving our year-end objectives and will continue to invest in our business to expand our brands globally,” commented Daniel Servitje, Chairman and CEO.
“Second quarter results continued to be outstanding, as we reached record levels of sales and adjusted EBITDA, while strengthening our financial profile with a successful issuance of our first sustainability-linked bond in the Mexican market,” added Diego Gaxiola, CFO.
Net sales in USD increased by 11.8%. The dollar market share grew across premium and snacks categories.
Net sales in Mexico grew by 12.6%, attributable to favorable price/product mix performance. All categories grew, highlighting the snacks, cookies and buns categories, as well as the convenience and retail channels, which posted double-digit growth.
Sales in EAA grew by 14.4%; excluding FX effect, net sales increased by 31.2%, primarily reflecting pricing actions across most countries in the region (most notably Iberia). Strong volume growth in Bimbo QSR also contributed to this growth, as well as the Asian market, which continues its recovery path, and the incremental sales from Vel Pitar (the leader in the baking industry in Romania) and St. Pierre – leader in the brioche bread and buns categories in the U.K. and the U.S.
Net sales decreased by 0.6% in peso terms; excluding FX effect, they increased by 17.1%, mainly due to strong sales performance in local currencies in every organization, favorable price/mix across the region and strong results in Brazil, Chile, Argentina and Central America. The tortillas, cakes and snacks categories outperformed.
Photo: Stock Adobe (#31396225)