MEXICO: US hits Bimbo H1 profits

By Dean Best | 26 July 2012

US integration costs hit Bimbo 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.

Sectors: Bakery, Emerging markets, Financials

Companies: Grupo Bimbo, Sara Lee

View next/previous articles

Currently reading -

MEXICO: US hits Bimbo H1 profits

There are currently no comments on this article

Be the first to comment on this article

Related articles

Deal or no deal: "Stalking horse" Flowers eyes Hostess bread brands

Flowers Foods showed its hand when it emerged as the "stalking horse" bidder for parts of Hostess Brands' bread business, notably the Wonder and Nature's Pride brands. While the deal is not yet in the bag, Flowers has clearly emerged as the front-runner to snap up a significant chunk of Hostess' bread interests. Katy Askew takes a look at the impact the potential acquisition could have on Flowers.

US: Bimbo Bakeries to invest in Philadelphia plant

Bimbo Bakeries, the US unit of Mexico's Grupo Bimbo, is to invest US$75m in the construction of a second production facility in Lehigh Valley, Philadelphia.

US: Hillshire Brands poaches Kraft exec for strategy VP role

Hillshire Brands has announced that Brian Davison has joined the company from Kraft Foods as VP of corporate strategy and development.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page