Grupo Bimbo B de C : reports 2Q17 results

GRUPO BIMBO REPORTS FIRST HALF 2017 RESULTS

MEXICO CITY, JULY 25, 2017

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, 2017.1

HIGHLIGHTS IN THE PERIOD

Net sales increased 11.1%, primarily reflecting FX rate benefit, organic growth in Mexico and Iberia, and the acquisitions of Donuts Iberia, Groupe Adghal in Morocco and Ready Roti in India

Gross profit rose 10.8%, while the margin declined a slight 10 basis points, mainly driven by FX impact on raw material costs in Mexico

Adjusted EBITDA2 margin contracted 100 basis points mainly on the back of the aforementioned impact and higher integration and restructuring expenses in several regions

Net majority margin contracted 90 basis points, as a result of the abovementioned expenses, coupled with a higher financing cost and a higher effective tax rate

The Company acquired the majority stake of Ready Roti, the baking leader in New Delhi and its surrounding areas, with annual sales of US$48 million

Grupo Bimbo signed an agreement to acquire East Balt Bakeries, a global leader within the foodservice industry, with annual sales of approximately US$420 million

The Company changed the accounting method for Bimbo Venezuela's results; accordingly, starting June 1st, this operation is valued using the Fair Value approach. Grupo Bimbo will continue with its operation in this country

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

   Investor Relations

   http://www.grupobimbo.com/ri/

   Tania Dib tania.dib@grupobimbo.com

   Estefanía Poucel estefania.poucel@grupobimbo.com (5255) 5268 6830

   1

   NET SALES

   (MILLIONS OF MEXICAN PESOS)

   2Q17	2Q16	% Change	Net Sales	6M17	6M16	% Change
   22,047	19,732	11.7	Mexico	44,130	39,507	11.7
   34,204	33,613	1.8	North America	68,206	63,794	6.9
   6,870	6,863	0.1	Latin America	14,573	13,352	9.1
   3,927	2,346	67.4	EAA	8,145	4,538	79.5
   65,115	61,040	6.7	Consolidated	131,195	118,115	11.1

   Consolidated results exclude inter-company transactions.

   Consolidated net sales rose 11.1% reflecting FX rate benefit, organic growth in Mexico and Iberia, and the acquisitions of Donuts Iberia, Groupe Adghal in Morocco, and Ready Roti in India.

   Mexico

   Net sales rose 11.7% over the first half of 2016, primarily driven by volume growth across most categories and channels, with outperformance in the sweet baked goods, salty snacks, confectionery and tostadas categories, as well as in the convenience channel. A slight price increase on certain categories, in line with inflation, also supported sales growth in the period. In addition to increased client penetration, new launches such as Barcel Snaps popcorn contributed to growth.

   North America3

   Net sales grew 6.9% due to the exchange rate benefit, along with growth in the branded business, notably the strategic brands, and market share in the US, with outperformance in the Little Bites brand in the US and the tortillas and bagels categories in Canada. Nonetheless, continued pressure in the non-branded and frozen businesses as well as in the premium category put pressure on volumes, leading to a 1% sales decrease in dollar terms.

   22,083 22,047

   30,181

   34,002

   33,613 34,204

   19,775 19,732

   1Q 2Q

   1Q 2Q

   (millions of Mexican pesos) 2016 2017

3. North America region includes operations in the United States and Canada

Latin America

Net sales growth of 9.1% in the period mainly reflected an FX rate benefit, as volumes were lower in Argentina due to economic pressure, which offset gains in the Latin Centro division. Organic growth was driven by product innovation such as Artesano in Brazil, the tortillas category in Chile and enhanced distribution efficiencies throughout the region.

EAA (Europe, Asia & Africa)

The 79.5% improvement in net sales in the region was largely driven by the integration of Donuts Iberia, Ready Roti in India, and Groupe Adghal in Morocco, FX rate benefit, organic growth in Iberia, and China sales and volume double-digit growth during the second quarter.

Organic growth was supported by good performance of the bread category, market share growth in Spain and Portugal, and new product launches such as the introduction of Little Adventures buns and sweet baked goods in the

U.K. This was offset by a weak performance in the sweet baked goods category mainly as a result of higher temperatures in Spain.

7,703

6,4896,863

6,870

4,218 3,927

2,1922,346

1Q 2Q

1Q 2Q

(millions of Mexican pesos) 2016 2017

GROSS PROFIT

(MILLIONS OF MEXICAN PESOS)

Consolidated results exclude inter-company transactions.

Consolidated gross profit for the first half increased 10.8%, while the margin contracted a slight 10

53.7

53.7

54.3

54.1

basis points, to 53.9%, due to the impact of a stronger US dollar on raw material costs in Mexico, which are expected to continue for the rest of the year, and higher labor and indirect costs in EAA and Canada, which offset lower raw material costs in the US, as well as in the other regions.

30,638

35,464 35,208

33,137

EAA contraction of 370 basis points during the second quarter was driven by higher raw material costs, on the back of a different product mix,

1Q 2Q

coupled with higher labor and indirect costs. (millions of Mexican pesos) (% of net sales)

2016 2017

PROFIT BEFORE OTHER INCOME AND EXPENSES

(MILLIONS OF MEXICAN PESOS)