MEXICO: Bimbo Q4 profits down one-quarter
Sales gains failed to offset a drop in fourth-quarter profits at bakery giant Grupo Bimbo, which saw earnings fall by more than one-quarter in the last three months of the year.
In a regulatory filing, Bimbo said that fourth-quarter sales increased by 37%, boosted by organic growth, the acquisitions of Sara Lee's US and Spanish business and Fargo operations in Argentina. Sales rose to MXN41.62bn (US$3.24bn), the company said.
In contrast, the company booked a 26% decline in fourth-quarter net profit, which dropped to MXN1.01bn.
Bimbo blamed the fall on higher raw materials costs, integration expenses associated with acquisitions and the depreciation of the Mexican peso. As a consequence, the group's gross margin fell to 51%, down from 51.9% in the year-ago quarter. Operating margin fell to 7% from 8.8%.
For the full year, Bimbo posted net profit of MXN5.33bn, down 1.2%. Net sales grew 14.1% in 2011 to MXN133.73bn.
Barry Callebaut, the Swiss B2B chocolate manufacturer, today (5 July) reported a 2% increase in sales for the first nine months of its fiscal year, with contracts in the Americas helping revenue....
A swathe of results releases this week highlighted the ongoing difficulties of operating in the current economic climate....
JM Smucker said today (7 June) it had been able to grow earnings and sales in the fourth quarter of its financial year as higher prices offset weaker volumes....
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