GRUPO BIMBO, S.A.B. DE C.V. 
GRUPO BIMBO
REPORTS FIRST QUARTER 2024
RESULTS
April 22, 2024
"Following a record 2023, we are kicking off 2024, a year of investing and transforming our business, with a first quarter where we saw the benefits of geographic, category and channel diversification which allowed us to invest in a business unit for future growth, which is the case of North America. We completed four bolt-on strategic acquisitions globally including one in Tunisia, a new market for us: expanding our global presence to 35 countries, while boosting growth and profitability in regions like Mexico and EAA."
- Daniel Servitje, Chairman and CEO
"The first quarter results were good and mostly, resilient, considering the super peso impact and the tough comparison that we have vs. the first quarter of 2023, where we reported record results in several metrics. Being a diversified global Company has its pluses and minuses: North America had a soft start to the year given a challenging environment, as expected, while Mexico and EAA came in strong, enabling Grupo Bimbo to continue to be in line with our expectations."
- Diego Gaxiola, CFO
Grupo Bimbo S.A.B. de C.V. ("Grupo Bimbo" or "the Company") (BMV: BIMBO) reports its results for the three months ended March 31, 2024.1
HIGHLIGHTS OF THE QUARTER
- Despite the tough comparison, Net Sales excluding FX rate impact were essentially flat, reflecting strong sales performance across most regions, which was primarily offset by volume softness in North America
- Gross margin expanded 90 basis points to 52.0% due to lower raw material costs across every region, which was offset by higher labor costs
- Operating Income declined 16.6% and the margin contracted 90 basis points
- Excluding the FX effect, Adjusted EBITDA2 decreased 3.3%; the EBITDA margin contracted 30 basis points, reaching 12.7%
- Net Majority Income decreased 41.8%
- Return on Equity3 closed the quarter at 12.6%
- Net Debt/ Adjusted EBITDA4 ratio closed the quarter at 2.3 times
- The Company acquired Trei Brutari, a producer of bread and cookies in Romania, and three franchisees
- The Company acquired a 30% stake of UNO, the packaged bread leader in Turkey
RECENT DEVELOPMENTS
- Grupo Bimbo named Daniel Servitje Executive Chair, while Rafael Pamias has been appointed CEO of the Company, effective May 1, 2024
- The Company acquired Moulin d'Or, the market leader in branded sweet baked goods in Tunisia, expanding Grupo Bimbo's presence to 35 countries
- Grupo Bimbo acquired La Zarcereña, the leader in sweet baked goods and a participant in the cookies and snacks industries in Costa Rica
- For the 8th consecutive year, Ethisphere Institute named Grupo Bimbo as one of the World's Most Ethical Companies in 2024
FINANCIAL SUMMARY
(MILLIONS OF MEXICAN PESOS) | 1Q24 | 1Q23 | Change | Change |
(MXN) | (excl. FX)5 | |||
Net Sales | 93,221 | 99,181 | (6.0%) | (0.3%) |
Gross Profit | 48,488 | 50,684 | (4.3%) | 1.3% |
Operating Income | 6,863 | 8,228 | (16.6%) | (13.8%) |
Adjusted EBITDA | 11,845 | 12,852 | (7.8%) | (3.3%) |
Net Majority Income | 2,370 | 4,074 | (41.8%) | (41.0%) |
Net Debt/Adj. EBITDA | 2.3x | 1.7x | 0.6x | |
ROE6 | 12.6% | 15.9% | (3.3pp) |
- Figures included in this document are prepared in accordance with International Financial Reporting Standards (IFRS).
- Earnings before interests, taxes, depreciation, amortization, impairments and Multiemployer Pension Plans ("MEPPs").
- Adjusted with MEPPs and Ricolino's divestiture.
- For this ratio's calculation Adjusted EBITDA does not consider the effect of IFRS16.
5. Excluding FX exchange. | 1 |
6. Adjusted with Ricolino divestiture and MEPPs for 1Q23, and only MEPPs for 1Q24. |
N E T S A L E S
(MILLIONS OF MEXICAN PESOS)
Net Sales | 1Q24 | 1Q23 | % Δ (MXN) | % Δ (excl. FX) |
North America | 41,016 | 47,246 | (13.2) | (4.5) |
Mexico | 37,386 | 36,244 | 3.2 | 3.2 |
EAA | ||||
9,832 | 10,291 | (4.5) | 5.3 | |
Latin America | ||||
8,961 | 9,252 | (3.1) | 4.5 | |
Grupo Bimbo | ||||
93,221 | 99,181 | (6.0) | (0.3) | |
Consolidated results exclude inter-company transactions.
North America
47.3%
Latam 9.2%
EAA 10.2%
Revenue mix for the last twelve months ended March 31, 2024.
Mexico7 33.3%
Despite the tough comparison, Net Sales excluding FX rate impact were essentially flat, reflecting strong sales performance across most regions, which was primarily offset by volume softness in North America.
NORTH AMERICA8
Net Sales excluding FX effect decreased 4.5% mainly due to a difficult comparison, a weaker consumption environment and some exit of non-brandedbusiness, partially offset by improving volume trends for certain categories including sweet baked goods, cookies and salty snacks in the region.
MEXICO
Despite the strong results of 1Q23 and the calendar effect of the easter week, Net Sales in Mexico grew 3.2%, excluding this effect sales improved by over 7% attributable to a favorable price/mix effect. Every channel and almost every category grew, most notably buns and rolls, tortillas, cookies, bread and sweet baked goods, as well as the retail and convenience channels.
7. Inter-company transactions have been removed from Mexico.
8. North America region includes operations in the United States and Canada. | 2 |
EAA9
Sales in EAA excluding FX effect grew 5.3%, primarily due to strong sales performance across most organizations, especially Bimbo QSR and India, and to a lesser extent, the inorganic contribution from the acquisitions of Amaritta Food in Spain and Trei Brutari in Romania. This was partially offset by the calendar effect of the Easter week.
LATIN AMERICA10
Excluding FX effect, first quarter Net Sales increased
4.5%; due to strong volume performance in Brazil and Argentina, which was partially offset by weak results in the Latin Centro and Latin Sur divisions, due to a challenging competitive environment in Chile, Colombia and Panama, as well as by the calendar effect of the Easter week.
G R O S S P R O F I T
(MILLIONS OF MEXICAN PESOS)
Gross Profit | Gross Margin (%) | ||||||
1Q24 | 1Q23 | % Δ | % Δ | 1Q24 | 1Q23 | Δ pp. | |
(MXN) | (excl. FX) | ||||||
North America | 21,505 | 24,704 | (13.0) | (4.3) | 52.4 | 52.3 | 0.1 |
Mexico | 20,416 | 19,255 | 6.0 | 6.0 | 54.6 | 53.1 | 1.5 |
EAA | 3,464 | 3,341 | 3.7 | 14.2 | 35.2 | 32.5 | 2.8 |
Latin America | 3,841 | 4,020 | (4.5) | 3.4 | 42.9 | 43.5 | (0.6) |
Grupo Bimbo | 48,488 | 50,684 | (4.3) | 1.3 | 52.0 | 51.1 | 0.9 |
Consolidated results exclude inter-company transactions.
Gross Profit, excluding FX effect, increased 1.3%, while the margin expanded 90 basis points to 52.0%, mainly attributable to lower raw material costs across every region, which was partially offset by higher labor costs.
O P E R A T I N G I N C O M E
(MILLIONS OF MEXICAN PESOS)
Operating Income | Operating Margin (%) | ||||||
1Q24 | 1Q23 | % Δ | % Δ | 1Q24 | 1Q23 | Δ pp. | |
(MXN) | (excl. FX) | ||||||
North America | 1,394 | 2,770 | (49.7) | (44.7) | 3.4 | 5.9 | (2.5) |
Mexico | 5,070 | 4,823 | 5.1 | 5.1 | 13.6 | 13.3 | 0.3 |
EAA | 25 | 133 | (81.3) | (76.4) | 0.3 | 1.3 | (1.0) |
Latin America | 348 | 476 | (26.9) | (19.1) | 3.9 | 5.1 | (1.3) |
Grupo Bimbo | 6,863 | 8,228 | (16.6) | (13.8) | 7.4 | 8.3 | (0.9) |
Regional results do not reflect intercompany royalties and consolidated results exclude intercompany transactions.
9. EAA region includes operations in Europe, Asia and Africa. | 3 |
10. Latin America region includes operations in Central and South America. | |
Operating Income, excluding FX effect, declined 13.8% and the margin contracted 90
basis points reaching 7.4%, due to higher distribution and administrative expenses, as well as restructuring and transformational investments in some regions.
A D J U S T E D E B I T D A
(MILLIONS OF MEXICAN PESOS)
Adjusted EBITDA | Adjusted EBITDA Margin (%) | ||||||
1Q24 | 1Q23 | % Δ | % Δ | 1Q24 | 1Q23 | Δ pp. | |
(MXN) | (excl. FX) | ||||||
North America | 3,552 | 4,870 | (27.1) | (19.8) | 8.7 | 10.3 | (1.6) |
Mexico | 6,649 | 6,128 | 8.5 | 8.5 | 17.8 | 16.9 | 0.9 |
EAA | 706 | 709 | (0.5) | 12.3 | 7.2 | 6.9 | 0.3 |
Latin America | 809 | 1,025 | (21.1) | (14.8) | 9.0 | 11.1 | (2.0) |
Grupo Bimbo | 11,845 | 12,852 | (7.8) | (3.3) | 12.7 | 13.0 | (0.3) |
Regional results do not reflect intercompany royalties and consolidated results exclude intercompany transactions.
Adjusted EBITDA excluding FX effect declined 3.3%, while the margin contracted 30 basis points, to 12.7%, attributable to the abovementioned operating performance, which was offset by lower commodity costs across regions.
NORTH AMERICA
North America margin contracted 160 basis points mainly due to the strong Mexican peso impacting product cost imported from Mexico, volume softness, general inflation and transformational investments across the value chain. This was partially offset by lower commodity costs and improved productivity benefits.
MEXICO
The margin in Mexico expanded 90 basis points mainly attributable to the favorable price/mix performance, lower cost of sales and productivity savings throughout the supply chain.
EAA
EAA margin expanded 30 basis points to 7.2%, as a result of the abovementioned strong sales performance and lower cost of sales, which was partially offset by restructuring investments including the closure of a bakery in El Vergel, Spain, excluding this effect, confirmation of robust evolution across the region with a margin expansion of 300 basis points.
LATIN AMERICA
Latin America Adjusted EBITDA margin contracted 200 basis points mainly due to the
devaluation in Argentina, the challenging competitive environment in Colombia and Chile and restructuring investments in Bimbo QSR Brazil, coming from the closure of a bakery in Santo Amaro. This was partially offset by productivity benefits in Brazil and lower cost of sales in the region.
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C O M P R E H E N S I V E F I N A N C I A L C O S T
(MILLIONS OF MEXICAN PESOS)
Comprehensive Financial Cost totaled Ps. 2,829 million, a 77.2% increase when compared to the first quarter of 2023, mainly attributable to higher interest expenses because of a higher debt position and the negative FX effect.
N E T M A J O R I T Y I N C O M E
(MILLIONS OF MEXICAN PESOS)
Net Majority Income | Net Majority Margin (%) | ||||||
1Q24 | 1Q23 | % Δ | % Δ | 1Q24 | 1Q23 | Δ pp. | |
(MXN) | (excl. FX) | ||||||
Grupo Bimbo | 2,370 | 4,074 | (41.8) | (41.0) | 2.5 | 4.1 | (1.6) |
Net Majority Income excluding FX effect declined 41% and the margin contracted 160 basis points, mainly reflecting the abovementioned operational performance and higher financing costs.
F I N A N C I A L S T R U C T U R E
Total Debt on March 31, 2024, was Ps. 128 billion, compared to Ps. | 4% | 3% |
110 billion on December 31, 2023. The increase was primarily due | ||
to the January US$1.25 billion dual-tranche issuance, where the | ||
use of proceeds included debt refinancing (including Bimbo | ||
2024's) and other general corporate purposes. | ||
Average debt maturity was 11.6 years with an average cost of | 44% | 49% |
6.76%. Long-term Debt comprised 93% of the total; 49% of the | ||
debt was denominated in US dollars, 44% in Mexican pesos, 4% | ||
in Euros and 3% in Canadian dollars. | ||
The Net Debt to Adjusted EBITDA ratio, which does not consider | USD MXN EUR CAD | |
the effect of IFRS16, was 2.3 times, compared to 2.1 times on | ||
December 31, 2023. |
A M O R T I Z A T I O N P R O F I L E 1 1
(MILLIONS OF US DOLLARS)
31 | |||||||||||||||
147 | 642 | 578 | 900 | 720 | 800 | 650 | |||||||||
560 | 585 | ||||||||||||||
408 | 462 | 550 | 498 | ||||||||||||
13 | |||||||||||||||
6 | 144 | ||||||||||||||
2024 2025 2026 2027 2028 2029 … 2033 2034 2035 2036 | … 2044 … | 2047 2048 2049 2050 2051 | |||||||||||||
USD Bonds | Bank Loans | MXN Bonds | |||||||||||||
11. Does not include US$ 51 million of long-term debt at subsidiary level. Includes 30-year issuance by BBU. | 5 |
C O N F E R E N C E C A L L I N F O R M A T I O N
D I A L - I N
A conference call will be held today
Monday, April 22, 2024, at 7:00 pm Eastern (6:00 pm Central, 5:00pm Mexico City). To access the call, please dial:
US +1 (844) 450 3853 International +1 (412) 317 6375 Mexico +52 (55) 8880 8040 Conference ID: GRUPO BIMBO
W E B C A S T
A webcast for this call can also be accessed at Grupo Bimbo's website: https://www.grupobimbo.com/en/investors
R E P L A Y
A replay will be available until April 29,
2024. You can access the replay through Grupo Bimbo's website https://www.grupobimbo.com/en/invest ors or by dialing:
US +1 (877) 344 7529
International +1 (412) 317 0088
Canada +1 (855) 669 9658
Conference ID: 9689966
A B O U T G R U P O B I M B O
Grupo Bimbo is the leader and largest baking Company in the world and a relevant participant in snacks. Grupo Bimbo has 227 bakeries and plants and more than 1,500 sales centers strategically located in 35 countries throughout the Americas, Europe, Asia and Africa. Its main product lines include sliced bread, buns & rolls, pastries, cakes, cookies, toast bread, English muffins, bagels, tortillas & flatbreads and salty snacks, among others. Grupo Bimbo has one of the largest direct distribution networks in the world with more than 57,000 routes and over 151,000 associates. Its shares trade on the Mexican Stock Exchange (BMV) under the ticker symbol BIMBO, and in the over-the-countermarket in the United States with a Level 1 ADR, under the ticker symbol BMBOY.
N O T E O N F O R W A R D - L O O K I N G S T A T E M E N T S
This announcement contains certain statements regarding the expected financial and operating performance of Grupo Bimbo, S.A.B. de C.V., which are based on current financial information, operating levels, and market conditions, as well as on estimations of the Board of Directors of the Company related to possible future events. The results of the Company may differ in regards with those expressed on these statements, due to different factors that are beyond the Company's control, such as: adjustments in price levels, variations in the costs of its raw materials, changes in laws and regulations, or economic or political conditions not foreseen in the countries where the Company operates. Therefore, the Company is not responsible for such differences in the information and suggests that readers review such statements prudently. Moreover, the Company will not undertake any obligation to publicly release any revisions to the statements due to variations of such factors after the date of this press release.
I N V E S T O R R E L A T I O N S C O N T A C T
www.grupobimbo.com
ir@grupobimbo.com
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C O N S O L I D A T E D B A L A N C E S H E E T
(MILLIONS OF MEXICAN PESOS)
TOTAL ASSETS
CURRENT ASSETS
Cash and Equivalents
Accounts and Notes Receivables, Net Inventories
Other Current Assets Assets Available for Sale Property, Plant and Equipment
Intangible Assets and Deferred Charges, Net and Investment in Shares of Associated Companies
Lease Rights of Use Other Assets
TOTAL LIABILITIES
CURRENT LIABILITIES
Trade Accounts Payable
Short-term Debt
Short-term lease liability
Other Current Liabilities
Long-term Debt
Long-term lease liability
Other Long-termNon-Financial Liabilities
SHAREHOLDERS' EQUITY
Minority Shareholders' Equity
Majority Shareholders' Equity
Mar, 2024
363,596
71,481
17,568
24,985
16,153
12,631
144
130,455
127,895
25,931
7,834
252,973
81,748
35,142
9,369
5,845
31,392
119,022
21,113
31,090
110,623
3,178
107,445
Dec, 2023
348,102
58,914
6,353
24,013
16,120
12,272
156
129,156
126,292
25,848
7,892
236,474
87,192
41,821
12,932
5,751
26,688
97,003
21,064
31,215
111,628
3,306
108,322
- Change 4.5% 21.3% >100% 4.0% 0.2% 2.9% (7.7%)
1.0%
1.3%
0.3%
(0.7%)
7.0%
(6.2%)
(16.0%)
(27.6%)
1.6%
17.6%
22.7%
0.2%
(0.4%)
(0.9%)
(3.9%)
(0.8%)
C O N S O L I D A T E D I N C O M E S T A T E M E N T
(MILLIONS OF MEXICAN PESOS)
1Q24 | |
Net Sales | 93,221 |
Cost of Goods Sold | 44,732 |
GROSS PROFIT | 48,488 |
General Expenses | 40,531 |
Other Expenses (Income), Net | 1,094 |
OPERATING INCOME | 6,863 |
Comprehensive Financing Cost | 2,829 |
Interest Paid Net | 2,755 |
Exchange Rate Loss (Gain) | 161 |
Monetary Loss (Gain) | (86) |
Share in Results of Associated Companies | 111 |
NET INCOME BEFORE TAXES | 4,145 |
Income Taxes | 1,430 |
INCOME (LOSS) FROM CONTINUED OPERATIONS | 2,715 |
INCOME FROM DISCONTINUED OPERATIONS | 0 |
Net Minority Income | 345 |
NET MAJORITY INCOME | 2,370 |
ADJUSTED EBITDA | 11,845 |
1Q23
99,181
48,497
50,684
41,788
668
8,228
1,596
1,653
(51)
(5)
69
6,701
2,202
4,499
(28)
397
4,074
12,852
-
Change (6.0%) (7.8%)
(4.3%)
(3.0%)
63.8%
(16.6%)
77.3%
66.7%
>100%
>100%
60.9%
(38.1%)
(35.1%)
(39.7%)
(100.0%)
(13.1%)
(41.8%)
(7.8%)
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Grupo Bimbo SAB de CV published this content on 22 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2024 21:16:04 UTC.
