Bimbo exceeded all analyst expectations. The company not only recorded another sales record in the first quarter of 2022, but also posted more favorable results than expected both at the level of operating flow (Ebitda) and net profit.
From January to April 2022, Daniel Servitje’s company registered sales of 93,321 million pesos, 17.7% more than in the same period last year. In addition, its Ebitda increased 11.9% to 11,897 million pesos, while its net profit was 4,467 million pesos, an increase of 10.4%, according to its financial report for the period sent to the Mexican Stock Exchange (BMV).
Analysts had expected the company to post a 10% rise in revenues, a 7% rise in Ebitda and a 36% drop in net profit.
“We had a great start to the year. The performance in net sales was exceptional, reaching a record level for the first quarter and gaining market share in multiple categories,” Daniel Servitje, Chairman of the Board and CEO of Bimbo, said in the report.
According to its report, the rise in sales volume and a mix of prices in all the regions where it operates was what favored its results.
In North America, which is its main market contributing 48% of its income, the increase in its sales was 17%, especially due to the growth in categories of mainstream bread, pastries, sweet bread and snacks, the company detailed in its report.
The rise in prices in Mexico helped its sales in the country grow 19.5%, with the categories with the best performance being salty snacks, cupcakes, sweet bread, box bread, cookies and confectionery, the latter a business unit that recently sold.
Yesterday, the Mondelez company announced the acquisition of the Ricolino confectionery business for 27,000 million dollars. Bimbo will use the resources from the operation for, among other things, the payment of debt “which has decreased significantly in recent quarters,” says Monex in a report. At the end of the quarter, the company’s debt was 91,022 million pesos, a decrease of around 2% compared to the end of 2021, with leverage, measured by the net debt to Ebitda ratio of 1.8 times.
In other regions, in Latin America its sales grew 21.2%, while in Europe and Asia, the increase was 16.3%.
“Our results for the quarter were extraordinary, especially when we consider the complicated comparison with the remarkable results of the first quarter of 2021, general inflation and the complicated environment in several countries,” said Diego Gaxiola, global director of Administration and Finance of the group.
