MEXICO: US hits Bimbo H1 profits
US integration costs hit Bimbo profits
A drop in profits from its US operations has hit half-year profits at Mexican bakery giant Grupo Bimbo.
The company said yesterday (25 July) its net income fell 26.7% to MXN1.49bn (US$111.1m) in the first six months of the year.
Bimbo reported a 43.7% decline in operating profit from its US division, which incurred costs from the integration of businesses acquired from Sara Lee last year. Overall operating income fell 7.9% to MXN3.79bn.
An increase in debt pushed up interest costs, which also hit the bottom line.
However, the addition of the Sara Lee business in the US pushed up sales. Bimbo said its net sales increased 41.2% to MXN84.26bn.
Hillshire Brands has agreed to sell its Australia and New Zealand bakery business, Kitchens of Sara Lee, to McCain Foods....
- What next for Nestle under new CEO Schneider?
- Unilever is "working harder" in tough environment
- Hemp food sales in the US set for growth
- Nestle catering for an ageing global population
- Brexit and UK food market policymaking
- Unilever sees growth but spreads decline continues
- Dairy Crest sees "momentum" in spreads
- Campbell's Soup's sustainable growth strategy
- Mars launches frozen desserts range
- Campbell takes Unilever to court in Australia