Grupo Bimbo B de C V : reports first quarter 2016 results

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GRUPO BIMBO REPORTS FIRST QUARTER 2016 RESULTS

Mexico city, April 26, 2016

Grupo Bimbo S.A.B. de C.V. ("Grupo Bimbo" or "the Company") (BMV: BIMBO) today reported its first quarter 2016 results ended March 31, 2016.1

1Q16 HIGHLIGHTS

Net sales rose 13.2% reflecting FX rate benefit and

solid organic growth in Mexico and Latin America

Gross margin expansion of 110 basis points was

driven by lower raw material costs in most regions

Operating income increased a significant 50.6%, with a 170 basis point expansion in the margin, due to lower restructuring expenses and a disposal of assets

Adjusted EBITDA2 rose 35%, reflecting productivity efficiencies in Mexico and a 230 basis point margin expansion in North America3

Net majority income grew 57.6%, with a 70 basis

point expansion in the margin

1 Figures included in this document are prepared in accordance with International Financial Reporting Standards (IFRS).

2 Operating Income plus depreciation, amortization and other non-cash items.

3 North America region includes operations in the United States and Canada.

Investor relations

www.grupobimbo.com/ri/

Tania Dib

[e-mail]

Estefanía Poucel

[e-mail]

(5255) 5268 6830

Diego Mondragón

[e-mail]

(5255) 5268 6789

1

NET SALES (millions of mexican pesos)
Net Sales	1Q16	1Q15	% Change
Mexico	19,944	18,824	5.9
North America	30,181	24,935	21.0
latin America	6,052	5,774	4.8
europe	2,023	1,785	13.3
Consolidated	56,638	50,048	13.2

Consolidated results exclude inter-company transactions.

Consolidated net sales rose 13.2% reflecting FX rate benefit and solid organic growth in Mexico and Latin America.

Mexico

Net sales in Mexico rose 5.9% over 2015, primarily driven by stronger volumes arising from a solid consumption environment, increased client penetration and positive performance in every channel and categories like buns, bread, cookies, confectionary and salty snacks; this was partially offset by continued pressure in the sweet baked goods category.

North America

Net sales grew 21.0% in the quarter mostly as a result of the exchange rate benefit and growth in strategic brands such as Thomas', Sara Lee, Little Bites, Ball Park, Nature's Harvest, Dempster's and Barcel, among others, due to increased marketing investment, as well as focused price and promotional strategy. Continued growth in the sweet baked goods, snacks, buns, flatbreads and frozen categories was offset by pressure in premium bread and private label. However, the branded mainstream bread category in the US began to trend positively, benefited by new product introductions.

18,824 19,944 24,935 30,181

1Q 1Q

(millions of Mexican pesos)

2015 2016

Latin America

The 4.8% rise in net sales reflected positive volume performance, most notably Brazil, Peru and Central America, despite challenging economic conditions and currency volatility in some markets. Highlights in the period included healthy performance in the tortillas category and Bisnaguitos, as well as product launches such as Bimbo Snacks.

Europe

The 13.3% improvement in net sales in the region reflected the FX rate benefit, as the bread category in Iberia remained under pressure during the period due to a challenging competitive environment that reflected pricing dynamics among private label players.

5,774 6,052 1,785 2,023

1Q 1Q

GROSS PROFIT

(millions of mexican pesos)

(millions of Mexican pesos)

2015 2016

Gross Profit	1Q16	1Q15	% Change
Mexico	11,217	10,795	3.9
North America	15,712	12,355	27.2
latin America	2,765	2,600	6.3
europe	854	753	13.4
Consolidated	30,278	26,234	15.4

Gross Margin (%)	1Q16	1Q15	Change pp
Mexico	56.2	57.3	(1.1)
North America	52.1	49.6	2.5
latin America	45.7	45.0	0.7
europe	42.2	42.2	0.0
Consolidated	53.5	52.4	1.1

Consolidated results exclude inter-company transactions.

53.5

52.4

Consolidated gross profit for the first quarter increased 15.4%, with a 110 basis point expansion in the margin to 53.5%, driven by lower raw material costs in most regions.

In the case of Mexico, the margin contraction reflected the

impact of a stronger US dollar on raw material costs.

26,234

1Q

30,278

(millions of Mexican pesos)

(% of net sales)

2015 2016

PROFIT BEFORE OTHER INcOME ANd ExPENSES

(millions of mexican pesos)

Profit Before Other Income & Expenses	1Q16	1Q15	% Change
Mexico	2,513	2,284	10.0
North America	1,387	825	68.2
latin America	(21)	(65)	(67.5)
Europe	(52)	(20)	>100
Consolidated	4,033	3,132	28.8