MEXICO CITY – Operating income of the North American business of Grupo Bimbo S.A.B. de C.V. totaled 1,806 million pesos ($110 million) in the third quarter ended Sept. 30, up 58% from 1,145 million pesos in the third quarter of 2014. The earnings gain eclipsed a jump of 47% in the second quarter of 2015. Year-to-date B.B.U. operating income was 3,668 million pesos ($222 million), up 61%. Net sales in the quarter were 30,391 million pesos ($1,843 million), up 23% from 24,741 million pesos. Year-to-date sales were 83,603 million pesos ($5,070 million), up 29%. Of this 29% gain, a strengthening U.S. dollar versus the peso accounted for 16.7 percentage points. The company indicated it has taken steps to arrest a recent erosion in sales volume.
“While pricing initiatives in the US during the first half of the year led to limited volume gains, growth has been notable in the sweet baked goods, breakfast and snacks categories,” Bimbo said.
Gross profit margins in the third quarter were 52.8%, up from 51.1% the year before. Bimbo attributed the 170-point widening of the margins to lower average raw material costs. Lower restructuring costs in the United States were a benefit to operating earnings
Year-to-date B.B.U. restructuring costs were 938 million pesos ($57 million) versus 1,625 million during the same period last year. Higher integration-related costs, though, were a drag on profitability.
Net majority income of Grupo Bimbo in the third quarter ended Sept. 30 was 2,270 million pesos ($138 million), up 33% from 1,705 million in the third quarter of 2014. Net sales were 56,219 million pesos ($3,409 million), up 14%. Year-to-date earnings were 4,880 million pesos, up 30%. Net sales were 159,313 million pesos, up 17%.