Latest news with #MarkBendix
Yahoo
25-07-2025
- 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
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.
