Bimbo suffers loss in U.S. operations
July 25, 2008
by Eric Schroeder
MEXICO CITY — Higher sales and lower operating expenses were not enough to offset significantly higher input costs, leading to a U.S. operating loss in the second quarter for Grupo Bimbo S.A.B. The U.S. operating loss was NP35 million ($3.5 million) for the quarter ended June 30. This compared with operating income of NP87 million in the previous year’s second quarter. U.S. second-quarter sales reached NP4,294 million, up 4% from NP4,129 million in the previous year’s second quarter. "Performance in the quarter benefited from several pricing actions taken in recent months and a better overall sales mix," Grupo Bimbo said. "Penetration in both the convenience store and supermarket channels was strong in the quarter, while performance in all regions was higher year over year. Sales growth was particularly favorable in the Oroweat brand." Companywide, Mexico City-based Grupo Bimbo S.A.B. de C.V. had second-quarter operating profit of NP1,376 million, up from NP1,336 million, and second-quarter sales of NP19,706 million, up from NP17,569 million.