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Yahoo
30-04-2025
- Business
- Yahoo
Grupo Bimbo SAB de CV (BMBOY) Q1 2025 Earnings Call Highlights: Record Sales Amidst North ...
Consolidated Sales: Record-breaking sales in the first quarter. Mexico EBITDA Margin: 19%. Latin America EBITDA Margin Increase: 50 basis points. North America Sales Decrease: 4.9% excluding FX effect. Canada EBITDA Margin Contraction: 130 basis points. Latin America Net Sales Increase: 5.2% excluding FX effect. Europe, Asia, and Africa Sales Increase: 4.5% excluding FX effect. Europe, Asia, and Africa EBITDA Margin: 7.2% unchanged from Q1 2024. CapEx: $260 million, 20% lower than Q1 2024. Total Debt: MXN161 billion. Net Debt to Adjusted EBITDA Ratio: 2.9 times. Full-Year Guidance Adjustment: High single-digit sales growth, mid-single digit EBITDA growth. Warning! GuruFocus has detected 6 Warning Sign with BMBOY. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Grupo Bimbo SAB de CV (BMBOY) achieved record-breaking sales in the first quarter, driven by exceptional diversification and global presence. The company reported high single-digit growth in EBITDA, with Mexico reaching a 19% EBITDA margin, highlighting operational strength. Grupo Bimbo SAB de CV (BMBOY) was named one of the World's Most Ethical Companies for the ninth consecutive year, reflecting its commitment to ESG principles. Sales in Latin America increased by 5.2%, with strong performance in Brazil, Argentina, and the Central America region, contributing to a 50 basis point expansion in adjusted EBITDA margin. The company is actively broadening its distribution footprint and leveraging channel-specific strategies to deliver compelling value across various markets. Sales in North America decreased by 4.9% due to a soft consumption environment and the impact of last year's strategic exit from certain non-branded items. Adjusted EBITDA margin in Canada contracted by 130 basis points, primarily due to soft top-line performance and strategic investments in transformation projects. The company faces challenges in North America with a weak consumer environment and ongoing strategic investments impacting EBITDA margins. In Europe, Asia, and Africa, the adjusted EBITDA margin remained unchanged due to the impact of minimum wage increases and the phase-out of wage subsidies in Romania. Grupo Bimbo SAB de CV (BMBOY) revised its full-year guidance, anticipating a softer consumption environment in North America and a slight margin contraction compared to last year. Q: Can you provide insights into the early benefits of your investments in the US and any changes in guidance due to the current global scenario? A: Mark Bendix, Deputy CEO, explained that Grupo Bimbo is optimizing its North American operations by integrating people, processes, technologies, and systems. This transformation is a multi-year plan aimed at enhancing operational efficiency and expanding customer base. Diego Gaxiola, CFO, added that current tariffs have minimal direct impact on Grupo Bimbo due to the USMCA framework. The guidance adjustments are based on the current US environment, with no additional tariff impacts assumed. Q: What are the consumption trends in Mexico, and how do they compare to North America? A: Rafael Romero, Co-CEO, noted some softness in Mexican consumption, particularly in convenience channels, but highlighted resilience in retail and traditional channels. Despite a softer scenario, Grupo Bimbo sees opportunities to adapt its portfolio and expand in key locations and emerging channels in Mexico. Q: Could you elaborate on the performance and challenges in North America and EAA regions? A: Diego Gaxiola mentioned that specific investment impacts in North America are not disclosed, but margins are sustainable with room for improvement. In the EAA region, labor expenses in Romania and the loss of subsidies have pressured margins, but the company is confident in managing these challenges and continuing margin improvements. Q: How is Grupo Bimbo addressing competitive dynamics and consumer trends in the US? A: Mark Bendix explained that the US market is bifurcating, with economically stressed consumers opting for private labels and affluent consumers choosing premium products. Grupo Bimbo is expanding its value segment offerings and premium products to address these trends, while also adapting promotional strategies post-pandemic. Q: What is the outlook for CapEx and working capital for the year? A: Diego Gaxiola stated that the company generated positive free cash flow in Q1 and is cautious with CapEx execution. While the initial CapEx guidance remains, it may be adjusted slightly lower. The company is focused on improving working capital and expects to generate cash from it, enhancing financial position. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
03-03-2025
- Business
- Yahoo
Grupo Bimbo SAB de CV (BMBOY) Q4 2024 Earnings Call Highlights: Record Growth and Strategic ...
Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Grupo Bimbo SAB de CV (BMBOY) achieved record top-line growth in 2024, driven by strong performance in Mexico and the EAA regions. The company completed five strategic acquisitions in profitable and growing markets like Eastern Europe and North Africa, enhancing its global profile. Grupo Bimbo SAB de CV (BMBOY) reached 97% renewable electricity globally, with 100% renewable electricity in 28 out of 35 operating countries. The company was recognized for its commitment to global nutrition and health, ranking 4th among food companies evaluated by the Access to Nutrition Initiative. Sales in Latin America increased by 13.8%, with strong growth in countries like Argentina, Paraguay, El Salvador, and Panama. In North America, the topline declined by 5.7% due to a weak consumption environment and strategic exit from certain non-branded businesses. The adjusted margin in North America contracted by 390 basis points, primarily due to strategic investments and one-time charges related to bakery closures. Grupo Bimbo SAB de CV (BMBOY) faced a challenging consumer environment in North America, with prolonged inflationary pressures affecting consumption. The company is still awaiting regulatory approvals for acquisitions in Brazil and the Balkans, which could delay expansion plans. Grupo Bimbo SAB de CV (BMBOY) anticipates a challenging first half of 2025 due to ongoing investments in North America and a strained consumer environment. Warning! GuruFocus has detected 5 Warning Sign with BMBOY. Q: Can you elaborate on the expected benefits from your investments in North America, particularly in the second half of 2025? A: (Diego Aciola, CFO) We anticipate seeing benefits from our investments in North America starting in the second half of 2025. The first half will be challenging due to tough comparisons and ongoing investments. However, we expect to see improvements as the benefits from these investments begin to materialize, alongside a more favorable comparison base. Q: How much of your Mexican operations are exposed to potential tariffs on exports to the US? A: (Rafael Sameer, CEO) Less than 10% of our US revenues come from Mexican exports, so the impact of potential tariffs would be minimal. We have contingency plans to mitigate any impact, including maximizing local production in the US. Q: What are the main drivers behind the 2% year-over-year growth in Mexico's top line? A: (Rafael Sameer, CEO) The growth is primarily driven by volume increases, supported by innovation and a strong market presence. We have been prudent with pricing strategies, focusing on volume growth through new product introductions and market expansion. Q: Can you provide more details on the competitive environment in North America and any changes in consumer trends? A: (Mark Bendix, Executive Vice President) We are seeing a bifurcation in consumer behavior, with economically stressed consumers opting for value offerings and more affluent consumers choosing premium products. Our focus is on expanding our value segment offerings and premium products to capture these trends. Q: What is your strategy for driving growth in North America in 2025, and are there any plans for M&A activities? A: (Mark Bendix, Executive Vice President) Our strategy includes focusing on health-conscious consumers, expanding capacity and distribution, and optimizing our asset base. We are also exploring M&A opportunities that align with our strategic goals, although no specific plans can be disclosed at this time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
