Mexican bakery giant Grupo Bimbo today (27 February) reported a fourth-quarter loss on the back of pension charges and restructuring costs in the US – although sales grew in the last three months of the year.
Bimbo also said underlying profits were up in the fourth quarter compared to the final three months of 2013.
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The company booked a loss of MXN231m (US$15.5m) versus net income of MXN1.31bn in the fourth quarter of 2013. The charges – related to its US pension plan – eroded its operating income, which reached MXN1.56bn, compared to MXN2.61bn in the fourth quarter of 2013.
Stripping out the charges, Bimbo said its profits were up 34.1% at MXN4.85bn.
Revenue increased 10.8% to MXN51.1bn, boosted by Bimbo's acquisition of Canadian business Canada Bread from Maple Leaf Foods last year.
Bimbo also pointed to a "continued strong performance" in its Latin American division – which does not include Mexico – and in Europe.
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By GlobalDataThe charges in the fourth quarter meant Bimbo's annual profits fell. Net income dropped 18% to MXN3.51bn. Operating income slid 1.3% to MXN10.31bn.
Without the pension and restructuring charges, profits grew 15.8% to MXN15.5bn.
Annual net sales were up 7.1% at MXN187.05bn. Sales in Mexico fell 1.5% as a "weak consumption environment" put pressure on volumes.
