Input costs have hit half-year profits at Mexico-based bakery giant Grupo Bimbo.
The company on Thursday (21 July) posted a 11% fall in net income to MXN2.25bn (US$193.4m) for the first six months of 2011 despite sales rising by almost 4%.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Bimbo said “commodity pressures” in Mexico and Latin America, particularly from wheat, oils, sugar and cocoa, hit its profits. Its operating income fell 12.8% to MXN4.65bn.
Nevertheless, the group’s sales climbed 3.8% to MXN59.33bn as growth in Mexico and Latin America offset falling sales in the US.
However, Bimbo’s US sales numbers for the second quarter indicated that the weak US dollar was having a negative impact on its results north of the border. Its second-quarter US sales fell 5.8% but, when measured in dollars, were up 1%, the company said.
Bimbo’s total second-quarter net sales increased 4.1% to MXN30bn. Its operating income, however, fell 15.6% to MXN2.29bn and its net income dropped 16.2% to MX1.05bn.
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 GlobalData
