Grupo Bimbo income down 16% in second quarter

by Eric Schroeder
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MEXICO CITY — Net majority income of Grupo Bimbo S.A.B. de C.V. in the second quarter ended June 30 was NP1,054 million ($90,725,000), down 16% from NP1,257 million in the same period a year ago. Sales rose 4% to NP29,999 million ($2,582 million) from NP28,828 million.

Operating profit in the United States during the second quarter of fiscal 2011 was NP1,035 million ($89,097,000), down 8% from NP1,121 million a year ago. Sales fell 6% to NP11,492 million ($989,326,000) from NP12,202 million.

“Net sales declined 5.8% in peso terms to 11.5 billion, while in dollars terms sales rose 1%,” Grupo Bimbo said. “This performance reflected the benefit of better pricing, which offset lower overall volumes, although certain segments such as Bimbo bread and sweet baked goods registered double-digit growth. Most channels registered higher sales in the period. On a cumulative basis, sales in pesos declined 4.8% to 22.5 billion.”

In the Mexico division, operating profit was NP1,406 million ($121,025,000), down 11% from NP1,579 million in the second quarter of fiscal 2010. Net sales were up 9% to NP15,323 million ($1,319 million) from NP14,602 million.

Bimbo said net sales in the Mexico division reflected volume growth in sweet baked goods, packaged bread and cookie categories, as well as ongoing pricing initiatives and the integration of Dulces Vero.

In Latin America, Bimbo sustained an operating loss of NP135 million, which compared with operating profit of NP14 million in the same period a year ago. Net sales rose 20% to NP3,968 million ($341,464,000) from NP3,297 million.

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