MEXICO CITY — Grupo Bimbo SAB de CV tallied record sales for fiscal 2024, lifted by foreign exchange tailwinds and despite what chief executive officer Rafael Pamias called a “still complicated consumer environment” — namely in its largest market of North America, where the top line fell for the year.

The region also figured in a nearly 20% drop at the bottom line for 2024, which the Mexico City-based baked foods giant attributed mainly to long-term investments in its North America (United States and Canada) value chain.

Fiscal 2024 “showcased our resilience, innovation and unwavering commitment to excellence, as well as the importance of being a highly diversified global company,” Pamias said.

Full-year net majority income totaled 12.55 billion Mexican pesos ($612.8 million), down 19% from 15.48 billion pesos in fiscal 2023. Excluding the impact of foreign exchange, the decline was nearly 20%. For the fourth quarter ended Dec. 31, 2024, net majority income was down 4.3% to 3.12 billion pesos ($152.5 million) from 3.26 billion pesos a year earlier, with the decline at 9% excluding foreign exchange. Net majority margin narrowed 80 basis points for the year and 40 basis points in the quarter.

While the North America value chain investments squeezed the bottom line, Grupo Bimbo noted that the plan will “enable long-term benefits.”

Adjusted EBITDA edged up 1% year over year in fiscal 2024 to a record level of 55.47 billion pesos ($2.71 billion), though the value chain investment contributed to a margin contraction of 10 basis points, according to the company. Adjusted EBITDA for the year dipped 0.1% excluding foreign exchange. In the quarter, adjusted EBITDA rose 2.3% to 13.99 billion pesos ($683.6 million) but excluding foreign exchange was down 3.1%, with margin contracting by 70 basis points.

“I would like to reinforce the importance of being a highly diversified company, as more than 50% of our business delivered outstanding results,” said Diego Gaxiola, chief financial officer. “We are investing in our largest operation to secure a sustainable and profitable growth in the long run, maintaining an optimistic perspective about the positive impact these initiatives will have on the company in the future.”

Meanwhile, Grupo Bimbo saw operating income shrink by 6.5% (6.6% excluding foreign exchange) to 33.15 billion pesos ($1.62 billion), with operating margin narrowing 80 basis points. Results fared better in the fourth quarter, with operating profit rising 1.1% to 8.24 billion pesos ($402.6 million). Excluding foreign exchange, operating income dipped 0.2% for the quarter. Along with the North America value chain investment, the company attributed the full-year and quarterly results to one-time costs from the closing of 11 bakeries globally.

Fiscal 2024 net sales grew 2.1% (0.5% excluding foreign exchange) to 408.34 billion pesos ($19.95 billion) from 399.88 billion in 2023. Grupo Bimbo said fourth-quarter net sales also hit a record high, climbing 8.3% (0.1% excluding foreign exchange) to 110.31 billion pesos ($5.39 billion) from 101.88 billion pesos a year earlier. The growth for both periods reflected positive volumes and price/mix, favorable exchange rate conversion and contributions from acquisitions.

Grupo Bimbo said it closed five acquisitions during the year, which extended its geographic reach to 35 countries. The completed deals include Pagnifique (frozen bread and pastries) in Uruguay, Moulin d’Or (sweet baked foods) in Tunisia, La Zarcereña (sweet baked foods) in Costa Rica, Trei Brutari (bread and cookies) in Romania and a minority stake in UNO (packaged bread) in Turkey. Two other acquisitions announced later in the year are pending, including Don Don (baked foods) in Slovenia and Wickbold (bread and sweet baked foods) in Brazil.

“Our top line reached record levels, delivering an increase in our volume throughout the year in a still complicated consumer environment in some of our markets,” Pamias said. “We were able to achieve this by a robust performance in Mexico and EAA (Europe, Asia and Africa) regions. In Latin America, despite a tough start in some operations like Chile and Colombia, we managed to deliver strong growth by maintaining a competitive offer and adapting rapidly to market conditions throughout the second semester. And in North America, regardless of a continued challenging consumer environment, we embarked on an exciting project that we expect will gradually yield benefits in the second half of 2025.”

Grupo Bimbo’s North America net sales receded 1.7% to 189.33 billion pesos ($9.25 billion) in 2024 but were down 4.6% excluding foreign exchange. The region accounted for 46.4% of fiscal year sales. The company said the results reflected positive price/mix and volumes, favorable exchange rate conversion and the impact of acquisitions.

Stronger growth came in the fourth quarter, with North American net sales up 7.1% to 53.01 billion pesos ($2.59 billion) but down 5.7% excluding foreign exchange. Grupo Bimbo said market share gains across the snacking category — including salty snacks, cakes, muffins, brownies and cookies in the United States — partially offset the impact of soft consumption environment industrywide as well as strategic exits from some non-branded businesses.

Operating income for North America sank 51% (55% excluding foreign exchange) to 973 million pesos ($47.5 million) in the quarter and fell 47% (48% excluding foreign exchange) to 5.92 billion pesos ($289.2 million) for the year, reflecting the impact of the value chain investment and bakery closings.

Net sales in Mexico, Grupo Bimbo’s next-largest market at 32.8% of fiscal 2024 revenue, rose 4% to 151.16 billion pesos ($7.38 billion) for the year and were up 1.7% in the fourth quarter to 37.62 billion pesos ($1.84 billion). The company cited positive volume across most categories — particularly in buns and rolls, cookies, cakes and salty snacks — and said all channels posted growth. Operating income grew 8.4% to 23.73 billion pesos ($1.16 billion) for the year and gained 7.2% to 6.25 billion pesos ($306 million) for the quarter.

In EAA (11% of annual revenue), net sales climbed 11% (7.9% excluding foreign exchange) for the year and 25% (9.6% excluding foreign exchange) for the quarter. Latin American net sales (9.8% of revenue) grew 8.8% (10% excluding foreign exchange) for the year and were up 21% (13.8% excluding foreign exchange) for the quarter.

“Bimbo reported sales growth of 8.3%, below our more upbeat estimates on the back of underperforming sales in North America and in Mexico,” Actinver Institutional Research analyst Antonio Hernandez said in a Feb. 27 research note, adding that Bimbo’s “sales were flattish” excluding the foreign exchange tailwinds. “Profitability mostly contracted year over year and was, on average, close to our estimates.”

North America “remains the lowlight” for Bimbo, Hernandez said.

“On a regional basis, North America posted sales growth of 7.1% year over year amid FX tailwinds; sales declined 5.7% year over year in local currency, the heaviest contraction during the year,” he said in his report. “A soft consumption environment along with the company’s strategy of opting out from some of its non-branded businesses led to the sales contraction.”

Gaxiola noted that Grupo Bimbo in February completed a 15 billion pesos ($734 million) bond offering in the Mexican market, the proceeds of which are earmarked primarily for operations, including investments, working capital, refinancing of liabilities and operating expenses.

“I am thrilled about our recent issuance in the Mexican market, which attracted a remarkable demand of 22 billion pesos,” he said. “This strong demand underscores the confidence our investors have in our strategy and future goals. This issuance strengthens our financial position and enables us to continue advancing with our expansion strategy.”