Mexican bakery Bimbo’s profits fall 41% in first quarter

The Mexican group Bimbo reported this Monday a majority net profit of 2.37 billion pesos (about US$ 138.2 million) in the first quarter of 2024, a drop of 41% compared to the same period in 2023.

In its earnings report, the world’s largest bakery company noted a year-on-year drop in 0.3% in net sales up to 93,221 million pesos (US$ 5,438.8 million).

Despite the decrease, the global director of Administration and Finance, Diego Gaxiola, maintained that “First quarter results were good and, for the most part, resilient.”

“(This) considering the impact of the superpeso (the record appreciation of the Mexican currency) and the difficult basis of comparison that we have from the first quarter of 2023, where we report record results in several metrics“, indicated the manager in the report.

Excluding the exchange rate, gross profits rose by 1.3% up to 48,488 million pesos (almost US$ 2,829 million).

While the adjusted operating profit before depreciation and amortization reached 11,845 million pesos (US$ 691.07 million), an interannual decrease of 3.3%.

By region, the bakery company recognized a year-on-year drop in 4.5% in net sales in North America, which fell to 41,016 million pesos (almost US$ 2,393 million).

But in Mexico income rose 3.2% up to 37,386 million pesos (US$ 2,181.2 million).

While in Europe, Asia and Africa, income increased by 5.3% by excluding the exchange rate up to 9,832 million pesos (US$ 573.6 million)

And in Latin America they increased by 4.5% up to 8,961 million pesos (US$ 522.8 million).

“After a record year in 2023, we are starting 2024, a year of investment and transformation of our business, with a first quarter in which we saw the benefits of geographic diversification,” commented the president and CEO, Daniel Servitje.

Bimbo’s main production lines include boxed and frozen bread, buns, cookies, pastries, muffins, bagels, tortillas, and confectionery, in 32 countries in America, Europe, Asia and Africa.

In 2023, Bimbo reported a drop in 67% in its benefits up to 15,477 million pesos (US$ 902.9 million).

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