MEXICO CITY — Operating income of the North America business of Grupo Bimbo S.A.B. de C.V. fell in the third quarter ended Sept. 30.
At 2,181 million pesos ($113 million), operating income of Bimbo’s businesses in the United States and Canada was down 10% from 2,429 million pesos in the third quarter of 2016. Quarterly sales were 33,161 million pesos ($1,720 million), down 3.8% from 34,460 million pesos.
The decline in third-quarter sales was attributed to foreign exchange rate, Bimbo said, adding that sales in U.S. dollar terms actually increased about 1% during the period. The increase was driven by market share gains in the United States, positive volumes in Canada, which resulted in part from new product launches such as Dempster’s Whole Grain with chia, as well as organic growth at the recently acquired Stonemill Bakehouse business.
Year-to-date operating income was 5,859 million pesos ($304 million), up nearly 4% from 5,655 million pesos. Sales were 101,367 million pesos ($5,261 million), up 3% from 98,254 million pesos.
Bimbo attributed the year-to-date sales gain to an exchange rate benefit, growth in strategic brands and snacks, as well as a better price mix in the United States. But the company said that continued pressure in the private label and premium categories in the United States, as well as in the frozen category, continued to weigh on overall sales.
|Daniel Servitje, chairman and c.e.o. of Grupo Bimbo|
“Our year-to-date results reflect our ongoing investments to drive forward our long-term focus on profitability through superior execution, enduring and meaningful brands, and ongoing innovation,” said Daniel Servitje, chairman and chief executive officer.
Net majority income at Grupo Bimbo in the third quarter was 1,709 million pesos ($89 million), down 33% from 2,537 million pesos during the third quarter last year. Sales were 65,164 million pesos ($3,394 million), down narrowly from 65,390 million pesos in the same period in 2016.Year-to-date consolidated income was 4,203 million pesos ($219 million), down 28% from 5,812 million pesos. Nine-month sales were 196,584 million pesos ($10,233 million), up 7% from 183,279 million pesos.