Latest news with #DiegoGaxiola
Yahoo
25-07-2025
- 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
25-07-2025
- 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
25-07-2025
- 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."
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.
