GRUPO BIMBO REPORTS 1Q17 RESULTS
MEXICO CITY, APRIL, 26, 2017
Grupo Bimbo, S.A.B. de C.V. ("Grupo Bimbo" or "the Company") (BMV: BIMBO) today reported its
results for the three months ended March 31, 2017.1
1Q17 HIGHLIGHTS
Net sales increased 16.5% primarily reflecting FX rate benefit, solid organic growth in Mexico and the acquisition of Donuts Iberia in Europe
Gross profit rose 16.5%, while the margin remained flat at 53.7%
Adjusted EBITDA2 margin contracted 120 basis points, primarily due to higher integration and restructuring expenses in North America, Iberia and Argentina
Net majority margin contracted 100 basis points, as a result of a higher effective tax rate, in addition to the aforementioned reasons
The Company made two minor acquisitions:
Stonemill Bakehouse, a producer of slow crafted baked bread in Toronto, Canada, generating sales of CAD 18 million
Grupo Adghal in Morocco, specialized in baked goods, with estimated annual sales of US 11 million
Diego Gaxiola to assume role of Global Chief Financial Officer upon the retirement of Guillermo Quiroz on August 1, 2017
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
Investor Relations
http://www.grupobimbo.com/ir/
Tania Dib
tania.dib@grupobimbo.com
Estefanía Poucel estefania.poucel@grupobimbo.com (5255) 5268 6830
Diego Mondragón diego.mondragon@grupobimbo.com (5255) 5268 6789
1
NET SALES
(MILLIONS OF MEXICAN PESOS)
Net Sales | 1Q17 | 1Q16 | % Change |
Mexico | 22,342 | 19,944 | 12.0 |
North America | 34,002 | 30,181 | 12.7 |
Latin America | 8,134 | 6,489 | 25.3 |
Europe | 3,956 | 2,023 | 95.6 |
Consolidated | 66,511 | 57,075 | 16.5 |
Consolidated results exclude inter-company transactions.
Grupo Bimbo net sales rose 16.5% primarily reflecting FX rate benefit, solid organic growth in Mexico and the acquisition of Donuts Iberia in Europe.
Mexico
Net sales rose 12.0% over the same period of 2016, as increased client penetration and promotional activity helped drive volume growth in every channel, particularly the modern, and in almost every category, notably sweet baked goods, bread & buns, salty snacks and confectionery. This was supported by the outperformance of the Sanissimo, Oroweat, Bimbo, Barcel, and Ricolino brands, as well as successful product launches, such as Canelitas Tentación, Gansito Doble Chocolate and Takis Cobra.
North America3
Net sales grew 12.7%, primarily due to the exchange rate benefit. Sales in strategic brands continued to rise, while the total branded business remained flat but trended favorably, supported by the mainstream category. Notwithstanding these favorable developments, overall volumes declined as a result of continued pressure on the industry, soft performance in the non-branded business in the US, the frozen business in the region, and the premium category due to a more aggressive competitive environment.
34,002
22,342
30,181
19,944
1Q1Q
(millions of Mexican pesos) 2016 2017
3 North America region includes operations in the United States and Canada
Latin America
The 25.3% rise in net sales is attributable to an FX rate benefit along with positive volume performance in most countries across the region, most notably in the Latin Centro division, with the sweet baked goods category outperforming. Successful product launches in the period included Artesano Pullman in Brazil and Chocotost in Colombia. Nonetheless, a challenging economic environment in the region continued to weigh on overall organic growth.
Europe
The 95.6% improvement in net sales in the region was primarily due to the Donuts Iberia acquisition, around 2% organic growth, and to a lesser extent, an FX rate benefit. The introduction of Donuts Pantera Rosa, which unites two iconic brands in Spain, as well as positive performance of the packaged bread category, the New York Bakery brand and the modern channel contributed to growth in the period.
8,134
6,489
3,956
2,023
1Q 1Q
(millions of Mexican pesos) 2016 2017
GROSS PROFIT
(MILLIONS OF MEXICAN PESOS)
Gross Profit | 1Q17 | 1Q16 | % Change |
Mexico | 12,298 | 11,334 | 8.5 |
North America | 18,251 | 15,707 | 16.2 |
Latin America | 3,807 | 3,019 | 26.1 |
Europe | 1,753 | 853 | >100 |
Consolidated | 35,706 | 30,638 | 16.5 |
Gross Margin (%) | 1Q17 | 1Q16 | Change pp |
Mexico | 55.0 | 56.8 | (1.8) |
North America | 53.7 | 52.0 | 1.7 |
Latin America | 46.8 | 46.5 | 0.3 |
Europe | 44.3 | 42.1 | 2.2 |
Consolidated | 53.7 | 53.7 | 0.0 |
Consolidated results exclude inter-company transactions.
53.7
Consolidated gross profit for the first quarter increased 16.5%, while the margin remained flat at 53.7%. While raw material costs were lower in most regions, it was fully offset by the impact of a stronger US dollar on raw material costs in Mexico, higher indirect costs in Latin America and higher labor costs in Europe.
30,638
53.7
35,706
1Q
(millions of Mexican pesos)
(% of net sales)
PROFIT BEFORE OTHER INCOME AND EXPENSES
(MILLIONS OF MEXICAN PESOS)
2016 2017
Profit Before Other Income & Expenses | 1Q17 | 1Q16 | % Change |
Mexico | 2,608 | 2,624 | (0.6) |
North America | 1,816 | 1,381 | 31.5 |
Latin America | (20) | 24 | NA |
Europe | (12) | (54) | (77.9) |
Consolidated | 4,369 | 4,179 | 4.6 |
Margin Before Other Income & Expenses (%) | 1Q17 | 1Q16 | Change pp |
Mexico | 11.7 | 13.2 | (1.5) |
North America | 5.3 | 4.6 | 0.7 |
Latin America | (0.3) | 0.4 | (0.7) |
Europe | (0.3) | (2.7) | 2.4 |
Consolidated | 6.6 | 7.3 | (0.7) |
Consolidated results exclude inter-company transactions.
7.3
Profit before other income & expenses increased 4.6% in the period, while the margin contracted by 70 basis points due to higher general expenses, increased marketing expenses in North America aimed at growing strategic brands, and higher distribution expenses in Latin America corresponding to route restructuring efforts, primarily in Chile.
4,179
6.6
4,369
1Q
(millions of Mexican pesos)
(% of net sales)
2016 2017
Grupo Bimbo SAB de CV published this content on 26 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 April 2017 22:27:28 UTC.
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