Falling sales in the US and pressure from currency fluctuations weighed on Grupo Bimbo’s sales and earnings during the third quarter.
Bakery giant Bimbo booked a 1.2% rise in operating income to MXN3.39bn (US$272.9m) for the three months to the end of September, which marked a slowdown in the growth seen earlier in the year.
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Bimbo’s operating income in Mexico rose almost 14% but, in the US, lower prices and the revaluation of the Mexican peso meant the company’s operating income from north of the border fell 19.5%.
The group’s net sales inched up 0.7% to MXN29.56bn on the back of falling revenues from the US.
“In dollar terms, sales fell 1.5% from the third quarter of last year, as higher volumes could not offset pricing pressures resulting from a challenging economic and competitive environment,” Bimbo said.
However, faster sales growth in Mexico and Latin America meant Bimbo’s total third-quarter sales rose faster than across the first nine months of the year.
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By GlobalDataBimbo’s net income fell 13.6% to MXN1.5bn thanks in part to the falling US sales but also to higher interest costs and tax charges.
