The increase in prices, at the international level, of raw materials makes Grupo Bimbo ‘what the wind does to Juárez’, and that is that despite the difficult economic environment that exists worldwide, the bakery managed to register sales and profits record in the second quarter .
From April to June, Bimbo’s sales rose 18% to 96,434 million pesos, a level never seen before for this period in the company’s history, due to a growth in the volume sold in all the regions in which it operates. The amount exceeds the estimate by analysts.
“The performance of the second quarter in sales was exceptional, reaching a record level and with market share gains throughout our portfolio,” said Daniel Servitje, Chairman of the Board of Directors and CEO of Bimbo.
In the period, the majority net profit of the firm doubled (103%) from 3,028 million pesos to 6,146 million pesos in the second quarter of 2022. Regarding the operating flow (EBITDA), it registered an increase from 12.5% to 12,992 million pesos.
Despite the favorable results, the EBITDA margin, a measure that measures the company’s ability to generate profits, fell 60 basis points, due to the increase in costs due to the rise in the prices of raw materials and due to a higher inflationary environment. .
“We are applying the levers to offset rising inflation, including revenue growth management strategies, category and product mix, pricing strategy, productivity initiatives, and will continue to proactively seek out restructuring opportunities,” he said. the report Diego Gaxiola, global director of Administration and Finance of the company.
Although all regions registered an increase in sales, Latin America (which represents 10% of total revenues) was the best performer, registering an increase of 30.8%; followed by Mexico (33% of the total), with an advance of 21.6%.
The higher sales in Mexico were due to a double-digit increase in all channels and categories, with the best performing being the convenience channel and the categories of bread, sweet bread, cupcakes, cookies and snacks, the firm detailed.
Meanwhile, Bimbo’s largest market, North America, which contributes 51% of total revenues, had an increase in sales of 16% and the region made up of Europe, the Middle East and Africa (9% of the total) registered an increase of 7.4 %.
“Our volumes grew strongly across all of our regions reflecting the strong demand we are experiencing as our brands continue to resonate with our consumers. We will continue to invest in our brands as we go forward,” Servitje said.
