Mexican bakery and confectionery company Grupo Bimbo has posted a 9% rise in third-quarter net income as price increases offset higher commodity costs.
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Net income increased to MXN1.36bn (US$102.7m) from MXN1.25bn a year earlier, while net sales rose 12% to MXN20.6bn from MXN18.3bn in the same period last year.
Operating income rose 7.9% in the quarter to reach MXN2.07bn as a result of “gains in every region”.
Higher average product prices and the containment of costs and expenses helped to offset some pressure from higher raw material prices, the company said, which limited the decline in operating margin to only 0.4%, reaching 10.1%.
Escalation in the price of wheat flour, particularly in the first two months of the quarter, led to a rise in raw material costs. As a result, gross margin in the quarter declined by 2.3% to MXN51.7m from MXN54m in the previous year.
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By GlobalData
