U.S. acquisition continues to boost Bimbo results
October 23, 2009
by FoodBusinessNews.net Staff
MEXICO CITY – U.S. sales and operating income for Grupo Bimbo S.A.B. de C.V. both rose more than 100% in the third quarter ended Sept. 30 thanks mostly to the incorporation of BBU East, formerly the U.S. fresh bakery business of George Weston Bakeries, Inc.
Net U.S. third-quarter sales more than tripled to NP12,717 million ($978 million) when compared to the previous year’s third quarter, reflecting the incorporation of BBU East, the continued benefit of translating U.S. dollar results into Mexican pesos and new product launches. In dollar terms, net sales for the quarter excluding the January acquisition of the Weston business would have remained almost unchanged when compared to the third quarter of the previous year.
Third-quarter U.S. operating income grew dramatically, to NP1,301 million ($100 million), up from NP63 million, driven by an expansion on the gross margin by 8.7 percentage points to 10.2%. Elaborating on the improvement, Bimbo noted the more efficient cost and expense structure derived from the incorporation of BBU East, the shared best practices between regions, and a stronger U.S. dollar versus the peso. Excluding BBU East, the third-quarter operating margin would have expanded 4.2 percentage points to 5.7%.
Companywide, Grupo Bimbo S.A.B. de C.V. reported third-quarter net income of NP1,732 million, an increase of 25% from NP1,391 million. Third-quarter net sales rose 41% to NP29,338 million from NP20,796 million.
Through the fiscal year’s first nine months, Grupo Bimbo S.A.B. de C.V. reported net sales of NP83,353 million, up 44% from NP60,139 million in the same time period of the previous year, and net income of NP4,191 million, up 38% from NP3,045 million.
Within the United States, nine-month sales rose to NP37,407 million from NP12,856 million while nine-month operating income rose to NP3,473 million from NP44 million.