MEXICO: Bimbo profits tumble on costs
- Net profit down 47%
- Margins dented by financing, FX
- Sales gain 39% on Sara Lee acquisition
Mexican baker Grupo Bimbo has indicated that first-quarter profits almost halved as higher financing costs and margin pressure hit the bottom line.
Bimbo reported net profit of MXN601m (US$46.3m) in the quarter, down 47% from the previous year.
Higher interest costs meant that financing expenses rose by MXN268m in the period, while currency exchange shaved MXN73m off the company's profits. These factors resulted in net margin contraction of 2.4% to 1.5%, the company added.
Operating profit dropped 24% in the year, declining to MXN1.7bn. Operating margins fell 3.4% to 4.1% in the three month period, Bimbo added. EBITDA fell 7% to MXN2.88bn.
However, sales increased 39% in the period, boosted by 12% organic growth and the impact of acquisitions, notably the purchase of Sara Lee's business in the US and Iberia, which raised sales by 27%.
For the full press release, click here.
Former Sara Lee executive Marleen Vaesen will become chief executive of Belgium-based produce group PinguinLutosa....
Hillshire Brands has added a Lemon Pound Cake to its Sara Lee brand, as well as making the label's signature Butter Pound Cake more moist....
Private-equity firm Wind Point Partners has snapped up US snacks group Shearer's Foods in a takeover backed by former Sara Lee executive C.J. Fraleigh....
- What are the implications of Brexit for UK food?
- Richelieu Foods CEO eyes growth - interview
- PepsiCo 2015 results, 2016 outlook - takeaways
- The mixed fortunes of Kellogg's two main US arms
- Mondelez results and outlook - 7 things to learn
- PepsiCo's Nooyi: "macro challenges" will continue
- WWF launches food security platform
- PepsiCo forecasts dip in sales growth in 2016
- Russia draws up plans for tax on palm oil
- Private-equity firm HKW acquires Panos Brands