Weston helps drive Grupo Bimbo income
February 26, 2010
by Eric Schroeder
MEXICO CITY — Net majority income of Grupo Bimbo S.A.B. de C.V. in the year ended Dec. 31, 2009, was NP5,956 million ($466 million), up 38% from NP4,320 million in fiscal 2008. Sales rose 42%, climbing to NP116,479 million ($9,118 million) from NP82,317 million.
For the fourth quarter ended Dec. 31, net majority income was NP1,760 million ($138 million), up 38% from NP1,274 million in the same period a year ago. Sales were NP30,084 million ($2,355 million), up 36% from NP22,178 million in the same period a year ago.
“It was an outstanding year for Grupo Bimbo, marked by the successful integration of the largest acquisition in its history that along with a more beneficial commodity environment, helped propel the company’s results,” Grupo Bimbo said.
Operating profit in the United States during fiscal 2009 was NP4,261 million ($334 million), up sharply from NP125 million a year ago. Sales rose 177% to NP49,977 million ($3,913 million) from NP18,049 million.
“Net sales more than doubled on a quarterly basis when compared to the same period of 2008,” Grupo Bimbo said. “Growth reflected the incorporation of BBU East and higher volumes in both regions. New products, such as Sandwich Thins, which were pioneered by BBU, as well as promotions, helped drive volume growth in a highly competitive environment. For the full year, sales almost tripled … also as a result of the incorporation of BBU East and healthy volume performance.”
In the Mexico division, operating profit was NP7,500 million ($587 million), up 9% from NP6,855 million in fiscal 2008. Net sales were up narrowly to NP55,388 million ($4,338 million) from NP54,845 million.
In Latin America, operating profit fell 30% to NP301 million ($24 million) from NP431 million despite a 20% gain in sales to NP13,606 million. Grupo Bimbo said the declines reflected significant deterioration in its Venezuela operations. Also in the region, the company said it experienced higher sales and distribution expenses associated with efforts to increase penetration, as well as higher labor costs.