Mexican bakery giant Grupo Bimbo has vowed to turn around its US operations by the first half of 2005.
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Labour costs, competition and the popularity of low-carbohydrate diets have hit the profitability of the company’s US unit, which includes the operations it bought from Canada’s George Weston in 2002, reported Reuters.
“We’re expecting to have the US operation on a positive EBIT (earnings before interest and tax) number by the first half of next year,” chief executive Daniel Servitje was quoted as saying.
Bimbo said its third-quarter profit leapt to 827m pesos (US$71.7m), compared to 335m pesos a year earlier, helped by a one-off tax gain and better economic conditions. However, its US operations performed weakly. While Bimbo’s revenues rose 4.6% to 12.94bn pesos, its sales in the US slid 0.2%.
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