GRUPO BIMBO, S.A.B. DE C.V. GRUPO BIMBO REPORTS FIRST HALF 2016 RESULTS
MEXICO CITY, JULY 26, 2016
Grupo Bimbo S.A.B. de C.V. ("Grupo Bimbo" or "the Company") (BMV: BIMBO) today reported its results for the six months ended June 30, 2016.1
6M HIGHLIGHTS
Net sales rose 13.4% due to an FX rate benefit in North America and Europe and solid organic growth in Mexico
Gross margin expansion of 100 basis points was driven by lower raw material costs in North America and Europe
Operating income increased 32.8%, with a 100 basis point expansion in the margin, due to the aforementioned raw material benefit and, to a lesser extent, lower restructuring expenses
Adjusted EBITDA2 margin expanded 110 basis points,
reflecting margin improvement in most regions
Net majority income grew 22.7%, with a 20 basis point expansion in the margin
1 Figures included in this document are prepared in accordance with International Financial Reporting Standards (IFRS).
2 Operating Income plus depreciation, amortization and other non-cash items.
3 North America region includes operations in the United States and Canada.
Investor relations
www.grupobimbo.com/ri/
Tania Dib
tania.dib@grupobimbo.com
Estefanía Poucel
estefania.poucel@grupobimbo.com
(5255) 5268 6830
Diego Mondragón
diego.mondragon@grupobimbo.com
(5255) 5268 6789
1
NET SALES
(MILLIONS OF MEXICAN PESOS)
2Q16 | 2Q15 | % Change | Net Sales | 6M16 | 6M15 | % Change |
19,962 | 18,631 | 7.1 | Mexico | 39,906 | 37,455 | 6.5 |
33,613 | 28,307 | 18.7 | North America | 63,794 | 53,242 | 19.8 |
6,449 | 5,864 | 10.0 | Latin America | 12,439 | 11,637 | 6.9 |
2,116 | 1,858 | 13.9 | Europe | 4,139 | 3,643 | 13.6 |
60,626 | 53,267 | 13.8 | Consolidated | 117,202 | 103,315 | 13.4 |
Consolidated results exclude inter-company transactions.
Cumulative net sales rose 13.4% reflecting growth in every region, primarily due to FX rates benefit and solid organic
growth in Mexico.
Mexico
Net sales in Mexico rose 6.5% over the same period of 2015, driven by stronger volumes in all sales channels, most notably the modern. Outperforming brands in the period included Oroweat, Tia Rosa, Barcel and Marinela, and almost every category posted solid growth. Of particular note, the sweet baked goods category reversed its past trend and generated sales and volume growth in the second quarter, as a result of focused promotions and in-store execution.
North America
Net sales in peso terms grew 19.8% in the first half of the year largely as a result of the exchange rate benefit, while dollar- denominated sales increased a slight 1%. Volume pressure in the private label bread category in the US and competitive pressure in the bread category in Canada more than offset sales growth in strategic brands, the frozen business and the snacks category in the US, and solid performance of the buns category in Canada.
18,824 19,944 18,631 19,962 24,935 30,181 28,307 33,6131Q 2Q
1Q 2Q
(millions of Mexican pesos)
2015
2016
Latin America
The 6.9% rise in net sales reflected volume increases in several countries, particularly Brazil, despite a deceleration in the pace of growth in that country, as well as Peru and most of the Central America region. Challenging economic conditions and currency volatility in some markets such as Argentina and Uruguay put downward pressure in sales. Nonetheless, highlights in the period include a reduction in returns and new product launches such as "Line Zero" and Coconut bread in Brazil.
Europe
Net sales rose 13.6% as a result of FX rate benefits, as volumes in Iberia remained soft due to competitive pressure and weak performance of the bread category, which more than offset healthy growth of new product launches.
5,774 5,990 5,864 6,449 1,785 2,023 1,858 2,1161Q 2Q
1Q 2Q
(millions of Mexican pesos)
GROSS PROFIT
(MILLIONS OF MEXICAN PESOS)
2015
2016
2Q16 | 2Q15 | % Change | Gross Profit | 6M16 | 6M15 | % Change |
11,391 | 10,765 | 5.8 | Mexico | 22,613 | 21,560 | 4.9 |
18,068 | 14,489 | 24.7 | North America | 33,780 | 26,844 | 25.8 |
2,868 | 2,626 | 9.2 | Latin America | 5,596 | 5,226 | 7.1 |
924 | 781 | 18.3 | Europe | 1,778 | 1,534 | 15.9 |
32,977 | 28,391 | 16.2 | Consolidated | 63,224 | 54,625 | 15.7 |
2Q16 | 2Q15 | Change pp | Gross Margin (%) | 6M16 | 6M15 | Change pp |
57.1 | 57.8 | (0.7) | Mexico | 56.7 | 57.6 | (0.9) |
53.8 | 51.2 | 2.6 | North America | 53.0 | 50.4 | 2.6 |
44.5 | 44.8 | (0.3) | Latin America | 45.0 | 44.9 | 0.1 |
43.7 | 42.0 | 1.7 | Europe | 43.0 | 42.1 | 0.9 |
54.4 | 53.3 | 1.1 | Consolidated | 53.9 | 52.9 | 1.0 |
Consolidated results exclude inter-company transactions.
53.5 54.4
Consolidated gross profit in the first six months increased 15.7%, with a 100 basis point expansion in the margin to 53.9%. This expansion was on the back of lower raw material costs in North America and Europe.
52.4 53.3
The margin contraction in Mexico and Latin America during the quarter reflected the impact of a stronger US dollar, as well as higher prices for certain commodities.
26,234 30,247 28,391 32,9771Q 2Q
(millions of Mexican pesos)
(% of net sales)
2015 2016
PROFIT BEFORE OTHER INCOME AND EXPENSES
(MILLIONS OF MEXICAN PESOS)
2Q16 | 2Q15 | % Change | Profit Before Other Income & Expenses | 6M16 | 6M15 | % Change |
2,993 | 2,676 | 11.8 | Mexico | 5,493 | 4,960 | 10.8 |
2,538 | 1,783 | 42.3 | North America | 3,925 | 2,608 | 50.5 |
(194) | (78) | >100 | Latin America | (222) | (143) | 55.4 |
1 | (52) | NA | Europe | (51) | (72) | (29.3) |
5,555 | 4,425 | 25.5 | Consolidated | 9,568 | 7,557 | 26.6 |
Grupo Bimbo SAB de CV published this content on 26 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 July 2016 21:39:09 UTC.
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