B.B.U. income rises 29% in second quarter

by Eric Schroeder
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MEXICO CITY — Operating income of Bimbo Bakeries USA in the second quarter ended June 30 was 1,031 million pesos ($82.5 million), up 29% from 797 million pesos in the second quarter of 2012.

Sales were 19,986 million pesos ($1,599 million), down 3%, from 20,706 million in the second quarter last year. Grupo Bimbo S.A.B. de C.V., parent company of B.B.U., said U.S. sales growth in the second quarter would have been 4.8% but for the impact of foreign exchange.

“Net sales in dollar terms increased 4.8% reflecting positive performance from new categories and the benefit of market share gains, partially offset by the divestiture in California that was completed in June,” Bimbo said.

Operating margins in the United States rose to 5.2%, a 1.4 percentage point improvement from the 3.8% operating margin in the second quarter last year.

At 5.2% the B.B.U. margins were narrower than the 11.6% the company earned in Mexico. Profit margins were negative in Bimbo’s other regional segments, including a negative margin of 9.6% in Latin America (compared with a negative 2.7% last year) and negative 5.7% in Iberia (versus a negative margin of 10.7% last year).

Consolidated net majority income of Group Bimbo in the second quarter was 922 million pesos ($73.8 million), up 4% from 883 million in the second quarter of 2012.

Consolidated operating income increased 20% to 2,497 million pesos ($199.7 million) from 2,075 million pesos. Grupo Bimbo said income increased even after integration costs in the United States, which remained on plan, and one-time charges related to the Brazil restructuring process.

Consolidated sales were 43,455 million pesos ($3,426 million), up narrowly from 43,318 million pesos.

For the six months ended June 30, consolidated net majority income of Grupo Bimbo was 1,467 million pesos, down 1% from 1,484 million pesos in the same period a year ago. Consolidated operating income in the six months was 4,498 million pesos, up 18% from 3,796 million pesos, while consolidated sales totaled 85,130 million pesos, up from 84,346 million pesos.

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