GRUPO BIMBO, S.A.B. DE C.V. GRUPO BIMBO REPORTS 2016 RESULTS
MEXICO CITY, FEBRUARY 23, 2017
Grupo Bimbo, S.A.B. de C.V. ("Grupo Bimbo" or "the Company") (BMV: BIMBO) today reported its results for the twelve months ended December 31, 2016.1
"Let's give our soul, heart and being in everything we do."
R.I.P. Don Lorenzo Servitje, founder of Grupo Bimbo
2016 HIGHLIGHTS
Net sales rose 15.0% on FX rate benefit in North America2, Latin America and Europe, organic growth in Mexico, and the acquisition of Donuts Iberia last July
The 70 basis point expansion in the gross margin was primarily driven by lower raw material costs in North America, Latin America and Europe
Operating income rose 28.1%, with an 80 basis point expansion in the margin, mainly due to gross margin performance and lower restructuring expenses in the US and Europe
Adjusted EBITDA3 margin expanded 90 basis points to 11.6%, reflecting operating improvements in Mexico, North America and Europe
Net majority margin contracted 10 basis points mainly on the back of a higher effective tax rate and non-cash charges
1 Figures included in this document are prepared in accordance with International Financial Reporting Standards (IFRS)
2 North America region includes operations in the United States and Canada
3 Operating Income plus depreciation, amortization and other non-cash items
Investor Relations
http://www.grupobimbo.com/ir/
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)
4Q16 | 4Q15 | % Change | Net Sales | 2016 | 2015 | % Change |
21,670 | 19,692 | 10.0 | Mexico | 82,386 | 76,295 | 8.0 |
36,965 | 32,796 | 12.7 | North America | 135,219 | 116,399 | 16.2 |
8,020 | 6,406 | 25.2 | Latin America | 29,100 | 24,272 | 19.9 |
3,884 | 1,926 | >100 | Europe | 11,676 | 7,560 | 54.4 |
68,862 | 59,519 | 15.7 | Consolidated | 252,141 | 219,186 | 15.0 |
Consolidated results exclude inter-company transactions.
Cumulative net sales rose 15.0% reflecting an FX rate benefit in North America, Latin America and Europe, as well as organic growth in Mexico and the acquisition of Donuts Iberia.
MexicoNet sales rose 8.0% over 2015, mainly driven by solid volume performance in most categories and every channel. Of particular note, the positive trend and volume recovery in sweet baked goods continued, in part driven by promotional strategy. Higher volumes were also supported by portfolio innovations such as Latte snack cake.
North AmericaNet sales in peso terms grew 16.2%, primarily reflecting the exchange rate benefit, while dollar- denominated sales declined 1.1% and volumes remained unchanged. Performance in the frozen, snacks and sweet baked goods categories, as well as growth in strategic brands, helped offset the overall challenges in bread consumption. Artisanal products performed well in Canada, as did bread alternatives such as bagels, english muffins and tortillas.
19,944 19,962
18,824 18,631
19,148
20,810
21,670
19,692
24,935
30,181
33,613 34,459 32,796
28,30730,361
36,965
1Q 2Q 3Q 4Q
1Q 2Q 3Q 4Q
(millions of Mexican pesos) 2015 2016
Latin AmericaThe 19.9% rise in net sales was primarily due to the revaluation of almost all currencies versus the Mexican peso, as well as solid volume progress in most countries, notably Peru, Chile and the Latin Centro division, reflecting more efficient routes and broader distribution. However, Brazil and Argentina faced a difficult economic environment that put pressure on consumption and volumes.
EuropeNet sales rose a strong 54.4% during the year, mainly as a result of the Donuts Iberia acquisition, FX rate benefit, and healthy sequential volume growth in Iberia, in part due to good performance in the traditional channel, the Oroweat and The Rustik Bakery bread brands, as well as snack brands.
6,489
6,863
7,7288,020
6,406
3,653
3,884
5,774 5,8646,229
1,785
2,023
2,116
1,858 1,9921,926
1Q 2Q 3Q 4Q
1Q 2Q 3Q 4Q
(millions of Mexican pesos)
2015 2016
GROSS PROFIT
(MILLIONS OF MEXICAN PESOS)
4Q16 | 4Q15 | % Change | Gross Profit | 2016 | 2015 | % Change |
12,235 | 11,209 | 9.1 | Mexico | 46,776 | 43,915 | 6.5 |
19,830 | 16,868 | 17.6 | North America | 72,025 | 59,757 | 20.5 |
3,569 | 2,897 | 23.2 | Latin America | 13,264 | 10,948 | 21.2 |
1,772 | 798 | >100 | Europe | 5,229 | 3,180 | 64.4 |
37,092 | 31,570 | 17.5 | Consolidated | 136,143 | 116,765 | 16.6 |
4Q16 | 4Q15 | Change pp | Gross Margin (%) | 2016 | 2015 | Change pp | |
56.5 | 56.9 | (0.4) | Mexico | 56.8 | 57.6 | (0.8) | |
53.6 | 51.4 | 2.2 | North America | 53.3 | 51.3 | 2.0 | |
44.5 | 45.2 | (0.7) | Latin America | 45.6 | 45.1 | 0.5 | |
45.6 | 41.4 | 4.2 | Europe | 44.8 | 42.1 | 2.7 | |
53.9 | 53.0 | 0.9 | Consolidated | 54.0 | 53.3 | 0.7 |
Consolidated results exclude inter-company transactions.
Lower raw material costs in North America, Latin America and Europe helped drive the 16.6% increase in the consolidated gross profit, and the 70 basis point margin expansion, to 54.0%.
53.7 54.3 54.1 53.9
52.4 53.3 54.2 53.0
35,27637,092
In Mexico, the effect of a stronger US dollar on raw material costs put pressure on the margin, in both the quarter and year, notwithstanding underlying efficiency improvements and cost control initiatives. In Latin America, the fourth quarter margin contraction reflected soft volume performance in some markets and higher indirect
26,234
33,137
30,638
28,391
30,57031,570
costs arising from the inflationary environment.
1Q 2Q 3Q 4Q
(millions of Mexican pesos)
(% of net sales)
2015 2016
PROFIT BEFORE OTHER INCOME AND EXPENSES
(MILLIONS OF MEXICAN PESOS)
4Q16 | 4Q15 | % Change | Profit before other inc. & exp. | 2016 | 2015 | % Change |
3,654 | 3,192 | 14.5 | Mexico | 12,488 | 11,471 | 8.9 |
2,433 | 2,018 | 20.6 | North America | 9,029 | 6,681 | 35.2 |
(94) | 113 | NA | Latin America | (108) | 41 | NA |
197 | (49) | NA | Europe | 173 | (161) | NA |
6,391 | 5,369 | 19.0 | Consolidated | 22,428 | 18,222 | 23.1 |
Grupo Bimbo SAB de CV published this content on 23 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 February 2017 22:43:08 UTC.
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