Bimbo profits doubles

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Proceeds from the Mexican bakery Grupo Bimbo more than doubled in the first quarter compared with the same period last year.

Grupo Bimbo, one of the largest producers of bread in the world, had a net profit of 907 million pesos (60 million dollars) between January and March 2015, which represents a 111% increase from 430 million pesos during the same period last year due to a positive performance at the operating level and a lower effective tax rate.

Proceeds from the bakery in the quarter increased 20% to reach 49.843 million pesos, as a result of acquisitions in Canada and Ecuador, strong organic growth in Mexico and Latin America and the positive effect of the peso depreciation to sales in United States, which soared by 35.4%.

In Mexican territory, the bakery increased its net sales 6.3%, representing the largest increase in the last two years.

“All channels and categories showed good results, mainly bread, cakes, tortillas and biscuits; this was driven by lower execution at the point of sale, strong trade and innovation efforts” stated the company through the Mexican Stock Exchange.

Bimbo acquired Canada Bread in May 2014 for 1.678 million dollars as well as the Ecuadorian Supan, which did not disclose the amount of the transaction. This year they bought Saputo Bakery, also Canadian, for 103.4 million dollars.

Source: Abasto Media