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Mexico's Grupo Bimbo's Q4 net profit surges aided by sales, Ricolino deal

Published 02/22/2023, 05:12 PM
Updated 02/22/2023, 07:35 PM
© Reuters. FILE PHOTO: The logo of Mexican breadmaker Grupo Bimbo is pictured on a delivery truck in Monterrey, Mexico, August 8, 2018. Picture taken August 8, 2018. REUTERS/Daniel Becerril
MDLZ
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MEXICO CITY (Reuters) -Mexican breadmaker Grupo Bimbo's net profit surged 526% in the fourth quarter of 2022 from the year-earlier period, driven by rising sales and the exit of its Ricolino unit, according to a filing published on Wednesday.

Grupo Bimbo's net profit totaled 30.23 billion pesos ($1.5 billion).

The firm sold its confectionery business Ricolino to Mondelez International Inc (NASDAQ:MDLZ) for around $1.3 billion.

Company revenue totaled 109 billion pesos, a 15% jump from the year before, aided by a favorable price mix and higher sales volumes, the filing said.

The Canada and the United States region led Bimbo's growth in sales with a 21.9% increase, followed by Mexico at 17.4% and the rest of Latin America at 16.3%.

Revenues are expected to grow by the mid to high single digits in 2023, Grupo Bimbo executives said on a call after the results were published.

The firm's capex for 2023 is projected to be between $1.7 billion and $2 billion, Grupo Bimbo's Chief Executive Daniel Servitje said during the call.

Adjusted earnings before interest, tax, depreciation and amortization stood at 14.64 billion pesos, up 12% from the previous October to December period.

© Reuters. FILE PHOTO: The logo of Mexican breadmaker Grupo Bimbo is pictured on a delivery truck in Monterrey, Mexico, August 8, 2018. Picture taken August 8, 2018. REUTERS/Daniel Becerril

Grupo Bimbo is among the Mexican food makers who last year signed onto a government anti-inflation plan to tame prices of basic food items.

($1= 19.5089 Mexican pesos at end December)

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