Acquisitions and a “beneficial commodity market” have helped Grupo Bimbo post a jump in its fourth-quarter sales and profits.
The Mexican food group said that net sales in the fourth quarter rose 35.7% to MXN30.1bn (US$2.35bn), reflecting the incorporation of an acquisition in the US, as well as a 19.7% increase in Latin America.
Go deeper with GlobalData
In December 2008, Canadian food processing and distribution company George Weston sold its US fresh bakery business to the Mexican baker. The purchase price totalled US$2.5bn, including around US$125m of interest baring assets.
At the time, Grupo Bimbo hailed its acquisition as a transformational deal that would help the Mexican-facing baker build its credentials as an international player.
The company’s consolidated gross margin expanded 3.1 percentage points to 53.5%, due to lower commodity costs in Mexico and the US.
Operating and EBITDA margins for the quarter expanded by 1.3 and 2.2 percentage points, respectively, to 12.6% and 16.7%, mainly attributable to strong results in the US and gross-margin improvement in Mexico.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataNet majority income totalled MXN1.8bn in the quarter, an increase of 38.1% compared to the same period of 2008, while the margin expanded 10 basis points to 5.8%, despite increases in other expenses, comprehensive financing costs and taxes.
