Latest news with #Bimbo
Yahoo
7 days ago
- Business
- Yahoo
Grupo Bimbo SAB de CV (BMBOY) Q2 2025 Earnings Call Highlights: Record Sales Amidst North ...
Net Sales: Achieved historic levels for the second quarter. EBITDA Margin: Improved sequentially in North America from 5.9% in Q4 2024 to 9% in Q2 2025. Total Debt: MXN157 billion, a MXN6 billion increase from the end of 2024. CapEx: $486 million as of the end of June 2025. Net Debt to Adjusted EBITDA: Remained unchanged at 2.9 times from the end of 2024. Sales Growth in Mexico: 3% growth, reaching a new all-time high. Sales Decline in North America: More than 4% decline, excluding FX effects. Sales Growth in Latin America: Record net sales with double-digit growth in Latin Sur, Brazil, and El Salvador. Sales Growth in Europe, Asia, and Africa: Nearly 7% increase, excluding FX effects. Full-Year Guidance Revision: Mid-single-digit sales growth expected, with a flat to slight margin contraction. CapEx Guidance: Lowered to $1.3 billion to $1.4 billion from $1.4 billion to $1.5 billion. Leverage Ratio Guidance: Expected to close the year at around 3x. Warning! GuruFocus has detected 3 Warning Sign with BMBOY. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Grupo Bimbo SAB de CV (BMBOY) reported a sequential acceleration in sales growth, demonstrating resilience in a complex market environment. The company achieved record performance in sales or EBITDA margin outside the US, with strong momentum in regions like Latin America and Europe. Innovation is a key driver, with an innovation rate surpassing 12%, contributing to volume growth and long-term sustainable growth. The company is advancing its ESG strategy, with 99% of daily consumption products now free from artificial flavors and colorants. Grupo Bimbo SAB de CV (BMBOY) is strategically investing in new business models and targeted acquisitions to strengthen its competitive position. Negative Points Sales in North America declined by more than 4% due to continued softness in US consumption and strategic exits from certain non-branded clients. The EBITDA margin contracted due to a challenging environment in North America, impacting overall profitability. The company faces challenges in the US market with economically stressed consumers shifting to private labels and value offerings. There is ongoing pressure from macroeconomic challenges, including a stronger Mexican peso impacting top-line growth. The transformation project in North America is progressing slower than anticipated due to the uncertain economic environment. Q & A Highlights Q: Can you discuss the US performance, particularly the decline in sales and the optimism in the snacks category? A: Mark Bendix, Deputy General Manager, North America and the Bimbo QSR business unit: In the US, we are seeing a bifurcation of consumers, with economically stressed consumers moving to private labels and more affluent consumers opting for premium products. We are expanding our offerings in the value segment with products like Bimbo bread and buns, and in the premium segment with Rustik and protein-focused products. Our snacks category is showing sequential improvement due to these strategic adjustments. Q: Could you elaborate on the profitability improvements in Mexico, particularly the gross and EBITDA margins? A: Rafael Romero, Chief Executive Officer: The improvement in Mexico's profitability is due to a favorable mix and strategic investments in distribution to expand our reach. This has resulted in an 80 basis point improvement in gross margin and a 30 basis point improvement in EBITDA margin. Q: How is the transformation in the US progressing, and what are the expectations for future margins? A: Mark Bendix, Deputy General Manager, North America and the Bimbo QSR business unit: Our transformation program is optimizing our business across people, processes, technology, and systems. We expect sequential improvements in the second half of the year, although reaching double-digit margins might not be immediate. We anticipate consistent high single-digit EBITDA margins in the coming quarters. Q: What changes are reflected in the new CapEx guidance, and how does it affect your strategic priorities? A: Mark Bendix, Deputy General Manager, North America and the Bimbo QSR business unit: We have lowered our CapEx guidance by $100 million to align with the current pace of key projects. This adjustment ensures disciplined investment levels while supporting our long-term strategic priorities. The reduction will be reflected as a carryover into 2026. Q: How is Grupo Bimbo addressing the softer consumer environment in Mexico, and what strategies are in place to maintain growth? A: Rafael Romero, Chief Executive Officer: Despite a softer consumer environment, we continue to deliver growth across channels and categories. We are leveraging our strong market position, expanding our commercial footprint, and focusing on premium offerings and innovation. Our strategy includes targeted initiatives and on-pack promotions to maintain consumer engagement. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
7 days ago
- Business
- Yahoo
Baking giant Bimbo vows to cut artificial colorings by end-2026
By Sarah Morland MEXICO CITY (Reuters) -Grupo Bimbo, one of the world's largest breadmakers, said on Thursday it would cut artificial colorings from all of its products by the end of next year, as consumers turn more health-conscious when shopping for staple foods. Shorter term, executives at the Mexico City-based company said Bimbo's entire bread bun and breakfast range would by the end of this year have a positive nutrition - or a so-called health star rating - of at least 3.5 stars, as it looks to simplify recipes and boost nutrition by 2030. WHY IT'S IMPORTANT Scientists have linked synthetic dyes such as Red 40 and Yellow 5 to behavioral challenges, allergies and respiratory issues in children and other vulnerable consumers, and some major regulators have ordered usage caps and label warnings. In parts of the U.S., some activists have pushed for bans on synthetic dyes particularly in food destined for school meals. BY THE NUMBERS Bimbo estimates it is the largest single supplier of baked goods worldwide, with a close to 4% global market share of a $641 billion industry. It sells thousands of well-known staple products worldwide such as sliced bread and packaged snacks. Last year, these brought in $22 billion in sales. Executives said they did not expect a major cost impact from cutting artificial colorings. KEY QUOTES "By the end of 2026, we will have removed artificial colors from all our portfolio and by 2030 we're going to ensure that 100% of our baked goods and snacks will be made with simple, natural recipes," Bimbo Chief Financial Officer Diego Gaxiola told analysts in a call. "We're seeing that for younger consumers functional benefits are clearly important. It's not a fad, it's a trend." Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Baking giant Bimbo vows to cut artificial colorings by end-2026
By Sarah Morland MEXICO CITY (Reuters) -Grupo Bimbo, one of the world's largest breadmakers, said on Thursday it would cut artificial colorings from all of its products by the end of next year, as consumers turn more health-conscious when shopping for staple foods. Shorter term, executives at the Mexico City-based company said Bimbo's entire bread bun and breakfast range would by the end of this year have a positive nutrition - or a so-called health star rating - of at least 3.5 stars, as it looks to simplify recipes and boost nutrition by 2030. WHY IT'S IMPORTANT Scientists have linked synthetic dyes such as Red 40 and Yellow 5 to behavioral challenges, allergies and respiratory issues in children and other vulnerable consumers, and some major regulators have ordered usage caps and label warnings. In parts of the U.S., some activists have pushed for bans on synthetic dyes particularly in food destined for school meals. BY THE NUMBERS Bimbo estimates it is the largest single supplier of baked goods worldwide, with a close to 4% global market share of a $641 billion industry. It sells thousands of well-known staple products worldwide such as sliced bread and packaged snacks. Last year, these brought in $22 billion in sales. Executives said they did not expect a major cost impact from cutting artificial colorings. KEY QUOTES "By the end of 2026, we will have removed artificial colors from all our portfolio and by 2030 we're going to ensure that 100% of our baked goods and snacks will be made with simple, natural recipes," Bimbo Chief Financial Officer Diego Gaxiola told analysts in a call. "We're seeing that for younger consumers functional benefits are clearly important. It's not a fad, it's a trend." Error in retrieving data Sign in to access your portfolio Error in retrieving data
Reuters
7 days ago
- Business
- Reuters
Baking giant Bimbo vows to cut artificial colorings by end-2026
MEXICO CITY, July 24 (Reuters) - Grupo Bimbo ( opens new tab, one of the world's largest breadmakers, said on Thursday it would cut artificial colorings from all of its products by the end of next year, as consumers turn more health-conscious when shopping for staple foods. Shorter term, executives at the Mexico City-based company said Bimbo's entire bread bun and breakfast range would by the end of this year have a positive nutrition - or a so-called health star rating - of at least 3.5 stars, as it looks to simplify recipes and boost nutrition by 2030. Scientists have linked synthetic dyes such as Red 40 and Yellow 5 to behavioral challenges, allergies and respiratory issues in children and other vulnerable consumers, and some major regulators have ordered usage caps and label warnings. In parts of the U.S., some activists have pushed for bans on synthetic dyes particularly in food destined for school meals. Bimbo estimates it is the largest single supplier of baked goods worldwide, with a close to 4% global market share of a $641 billion industry. It sells thousands of well-known staple products worldwide such as sliced bread and packaged snacks. Last year, these brought in $22 billion in sales. Executives said they did not expect a major cost impact from cutting artificial colorings. "By the end of 2026, we will have removed artificial colors from all our portfolio and by 2030 we're going to ensure that 100% of our baked goods and snacks will be made with simple, natural recipes," Bimbo Chief Financial Officer Diego Gaxiola told analysts in a call. "We're seeing that for younger consumers functional benefits are clearly important. It's not a fad, it's a trend."
Time of India
17-07-2025
- Business
- Time of India
Trump tariff war: Mexico, Canada plan stronger trade collaboration
Mexican President Claudia Sheinbaum on Wednesday said that she and Canadian Prime Minister Mark Carney have agreed to strengthen trade collaboration in response to the US President Donald Trump 's proposed tariffs, set to take effect on August 1. Speaking at a daily morning press briefing, Sheinbaum said, "We both agreed that the (US-Canada-Mexico) trade agreement needed to be respected, and we shared our experiences about the letter than we received from President Trump." Sheinbaum revealed that both leaders discussed their respective strategies for negotiating with the Trump administration before the deadline. She added that Carney is expected to visit Mexico soon, although no date has been confirmed, according to Reuters. Sheinbaum also held meetings with top Mexican business leaders, including billionaire Carlos Slim and executives from firms such as Bimbo and steel companies, to discuss how to respond to Trump's proposed trade measures. " One of the things I asked them was, 'Why don't we lay out, in black and white, the investments that they have planned in the United States?' so they can take part in these negotiations," she added. This comes after Trump announced a 30% tariff on imports from Mexico and the European Union, citing failed trade talks and the need to cut the US trade deficit. The proposed rate for Mexico is 30%, slightly below the 35% planned for Canada. Trump has issued a series of letters recently, threatening to impose tariffs on various US trade partners, including Canada, Japan, Brazil, and others. The move, part of a renewed aggressive trade stance, also includes a 50% duty on copper imports. Despite international criticism, Trump appears firm on his position, backed by a strong US economy and soaring stock market. Both Mexico and the EU have denounced the proposed tariffs as unjust and disruptive but remain open to dialogue in hopes of reaching an agreement before the August 1 deadline. The Mexican President had earlier said that, "We're also clear on what we can work with the United States government on, and we're clear on what we can't. And there's something that's never negotiable: the sovereignty of our country.' European Commission President Ursula von der Leyen warned that the 30% tariffs would disrupt key transatlantic supply chains, harming businesses, consumers, and patients on both sides. "The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit," Ursula added. So far, Trump has only secured basic trade agreements with a few countries like the UK, Indonesia, and Vietnam, while talks with other major partners are still underway. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
