Mexican bakery and confectionery company Grupo Bimbo has posted a 14% rise in first-quarter profits on the back of buoyant sales.
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The company saw net profit rise 13.9% to MXN783m (US$71m) as sales rose 10% to just under MXN17bn.
Grupo Bimbo said the sales jump was driven by a 26% rise in Latin America. Sales domestically rose 8.3% to MXN11.7bn. US sales rose by 7.3% to MXN4.1bn.
On a region-by-region basis, operating income in Mexico increased by 5.4% to MXN1.1bn, though margins slipped due to the continued impact of higher raw material costs and pre-operating costs related to the expansion of production capacity. In the US, operating income rose by 35.4% to MXN61m.
Grupo Bimbo also reported that its Latin American operations generated an operating profit of MXN41m, against a MXN9m loss in the first quarter of 2006. Progress in Brazil and the strength of the group’s operations in Venezuela drove the performance.
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By GlobalData
