Grupo Bimbo S.A.B. de C.V. : 4th Quarter and Full Year 2011 Results

GRUPO BIMBO REPORTS FOURTH QUARTER AND FULL YEAR 2011 RESULTS

Highlights from the quarter:

• Consolidated sales rose 36.8%, with healthy organic growth and contributions from acquisitions

• Integration and expansion costs impacted operating and EBITDA margins

• Comprehensive financing cost decreased 15% and 50% for the quarter and year respectively

• Net majority margin contracted by 2.1 percentage points

Investor Relations Contacts

Armando Giner

Tel: (5255) 5268-6924 armando.giner@grupobimbo.com

Azul Argüelles

Tel: (5255) 5268-6962 azul.arguelles@grupobimbo.com

Mexico City, February 22, 2012 - Grupo Bimbo S.A.B. de C.V. ("Grupo Bimbo" or "the Company") (BMV: BIMBO) today reported results for the fourth quarter and full year ended December 31, 2011.*

Sales in the fourth quarter reflected three key factors: i) double-digit organic growth; ii) the integration of the Sara Lee operations in the United States and Spain and Fargo in Argentina; and iii) the consolidation of independent operators (IOs) in the United States, as per below. Net sales rose 36.8% over the year ago quarter to Ps. 41.6 billion, with increases of
14.5% in Mexico, 59.5% in the United States, and 44.6% in Latin
America. Organic growth was 14.9%.
Higher raw material costs on a comparative basis combined with the impact of the peso devaluation on the Mexico operation resulted in a 90 basis point contraction in the consolidated gross margin. At the operating level, gross margin pressure, integration costs and the expected dilution in the US following the Sara Lee integration were further exacerbated by a goodwill impairment charge in Brazil resulting from longer than expected ROI timeframes for certain investments. As a result, there was a
1.8 and 2.2 percentage point decline in the operating and EBITDA
margins, respectively.
As of 4Q2011, the Company's results reflect the consolidation of the IOs in the United States acting as legal entities, which are subject to the Variable Interest Entity (VIE) accounting rules under US GAAP, Mexican GAAP and IFRS. Consolidation was not required prior to 2011 because the impact was deemed immaterial; however, a growing number of IOs have converted to legal entities from sole proprietorships, and the Sara Lee acquisition has significantly increased the number of IOs acting as legal entities. It should be noted that Sara Lee had consolidated their IO VIEs for many years. This consolidation is reflected across the entire P&L. However, it has no impact on the net majority income, as the IO effect is offset in the non-controlling interest line. While the current period reporting shows the impact of a full year of IO consolidation, going forward it will be reported on a quarterly basis.

* Figures included in this document are prepared in accordance with Mexican Financial

Reporting Standards (NIF), and are expressed in nominal terms.

Mexico

(Millions of pesos)

Net majority income of Ps. 1.0 billion reflected performance at the operating level and a higher effective tax rate. Net margin contracted by
2.1 percentage points to 2.4%.

Net Sales

17,256

15,328 15,323 16, 15,075

14,300 14,062 14,433

1Q 2Q 3Q 4Q

United States

(Millions of pesos)

19,255

11,434 12,202 12,163 12,075

11,017 11,492 12,045

Note: Figures expressed in millions of pesos. Consolidated results exclude inter-company transactions.

Mexico

Net sales in the fourth quarter totaled Ps. 17.3 billion, a 14.5% increase from the year ago period. Growth was driven equally by healthy volume gains across the portfolio, with outperformance in the bread, cookies, sweet baked goods and salted snacks categories, as well as by pricing initiatives taken over the course of the year. All channels registered good sales growth over the year ago period, and in particular the modern channel. Sales for the full year rose 11.2% to Ps. 64.4 billion.

United States

1Q 2Q 3Q 4Q

Latin America

(Millions of pesos)

3,943 4,202 4,639

3,240 3,297 3,672 3,999

5,784

Net sales totaled Ps. 19.3 billion in the quarter. Contributing to the 59.5% rise over the year ago period was i) the Sara Lee acquisition (32.0%); ii) the annual contribution from IOs (14.3%); and iii) organic performance driven by favorable FX rates and a limited decline in volume that was fully offset by pricing initiatives over the course of the year (13.2%, with 9.9% attributable to FX). It should be noted that volume decline was lower than in previous quarters. On a cumulative basis, sales rose 12.4% to Ps. 53.8 billion, driven by the acquisition (8.1%), IOs (3.6%) and organic growth (0.7%).

Latin America

Net sales rose a strong 44.6% from the same quarter of last year, to Ps.
5.8 billion, reflecting higher volumes across the region as a result of the Company's ongoing market penetration efforts combined with better prices in each country (28.5%), and the integration of Fargo in Argentina

1Q 2Q 3Q 4Q

(16.1%). On a cumulative basis, sales in the year totaled Ps. 18.6 billion, a 30.7% rise over 2010 driven primarily by organic growth (25.6%), with the contribution from Fargo in the final months of the year (5.1%).

Iberia

Results reflected 28 days of consolidated sales.

Page 2 Fourth Quarter 2011

52.3

Gross Profit

(Millions of pesos)

53.6 53.4

51.9

Gross Profit

Consolidated gross profit in the quarter rose 34.3% from the year ago period; however, gross margin contracted by 90 basis points to 51.0% as a result of commodity pressures and the impact of the peso devaluation in Mexico. This was somewhat offset by continued improvement in the

51.2 51.4 51.5 51.0

21,214

United States and good performance in Latin America that more than offset startup costs at the new Brasilia plant.

15,127

15,527 16,654

15,788 15,792

14,819 15,448

For the full year, the consolidated gross margin fell by 1.6 percentage points as a result of higher commodity costs in all regions, although in the United States this was fully offset by performance in the fourth quarter, reflecting pricing initiatives in the first half of the year.

1Q 2Q 3Q 4Q

Note: Figures expressed in millions of pesos. Consolidated results exclude inter-company transactions.

Note: Consolidated results exclude inter-company transactions.

Operating Expenses

(% of net sales)

Operating Expenses

Operating expenses as a percentage of sales increased 90 basis points in the quarter to 44.0%. This was primarily due to: i) investments related

43.1 43.2

44.2 43.8

41.9 41.3

43.1 44.0

to expansion and market penetration efforts in the United States and Latin
America; ii) the integration of Sara Lee operations in the United States and Spain, which have higher expense structures; and iii) a non-cash goodwill impairment charge of Ps. 268 million in Brazil. Nonetheless, operating expenses in Latin America, as a percentage of sales, were lower than in the year ago period due to an extraordinary expense in

1Q 2Q 3Q 4Q

2010 for legal contingencies in Brazil. On a cumulative basis, operating expenses comprised 43.1% of sales, unchanged from 2010.

Operating Income

Operating income in the fourth quarter of the year rose 8.4%, while operating margin declined 1.8 percentage points as a result of gross margin pressure, the aforementioned goodwill impairment charge, and the integration of new operations. On a cumulative basis, consolidated

Page 3 Fourth Quarter 2011

Operating Income

(Millions of pesos)

operating income for 2011 declined 4.8%, with a 1.6 percentage point contraction in the margin to 8.1%.

9.2 9.4

11.5

8.8

8.0 7.5

2,618 2,713

2,355 2,277

10.3

3,3863,314

7.0

2,897

673

Note: Figures expressed in millions of pesos. Consolidated results exclude inter-company transactions.

1Q 2Q 3Q 4Q

Note: Consolidated results exclude inter-company transactions.

On a regional basis, operational efficiencies in Mexico, mainly in distribution, combined with volume gains helped to absorb fixed costs and partially offset gross margin pressure, driving operating income up 10.5% in the quarter and limiting the decline in margin to 60 basis points, or
16.4%. Similarly, the aforementioned efficiencies over the course of the year contributed to the 2.3% rise in full year operating income and
minimized contraction in the margin, which declined 1.1 percentage
points to 12.7%.
In the United States, operating income rose 6.4% with the integration of the Sara Lee operation and stronger performance at the gross margin level. However, as expected, there was some dilution in the margin due to the integration and ongoing investments in expanding the distribution network. The operating margin was 3.3%, compared to 5.0% in the year ago period. On a cumulative basis, gross margin pressure in the first half of the year, investments in distribution, the startup of a new production plant and the integration of the Sara Lee operation contributed to the
4.5% decline in operating income and 120 basis point reduction in the margin, to 6.6%.
In Latin America, strong sales growth and healthy gross margin performance contributed to the 3.5 percentage point improvement in the quarterly operating margin. It should be noted that the comparative figures include a non-cash provision in both years attributable to the Brazil operation, of Ps. 346 million in 2010 for legal contingencies, and Ps. 268 million in the current quarter as a goodwill impairment charge. This led to a Ps. 480 million operating loss in the current quarter despite strong performance at the gross profit level. For the full year, continued pressure from higher raw material prices, ongoing investment in market penetration and the aforementioned goodwill impairment charge led to a

Page 4 Fourth Quarter 2011

Ps. 805 million peso operating loss in 2011 compared to a Ps. 345 million loss in 2010.

Comprehensive Financing Result

(Millions of pesos)

155

In Iberia, integration costs and the restructuring of the operations led to a Ps. 99 million operating loss for the one month of the quarter in which results were consolidated.

Comprehensive Financing Result

Comprehensive financing resulted in a Ps. 570 million cost in the fourth quarter, compared to a Ps. 674 million cost in the same period of last year. This decrease is due to lower interest expense, with an average financing cost of 3.6% compared to a 6.2% in the same period of 2010.

(594)

(420)

(547)

(478)

(807)

(674)

(570)

On a cumulative basis, comprehensive financing resulted in a Ps. 1,313 million cost in 2011, compared to a Ps. 2,623 million cost in the same period of last year. This decrease was attributable to: i) lower interest expense due to the refinancing of the Company's debt and conversion to nearly all dollar-denominated debt, resulting in an average 4.2% financing

1Q 2Q 3Q 4Q

cost in 2011 compared to 6.7% in 2010; and ii) an exchange gain of Ps.
629 million, compared to a Ps. 94 million exchange loss on the previous year, mainly as a result of the dollar-denominated cash holdings from
3Q2011 used to acquire the Sara Lee North American Fresh Bakery business.

Net Majority Income

4Q11	4Q10	% Change	Net Majority Income	12M11	12M10	% Change
1,012	1,372	(26.2)	Consolidated	5,329	5,392	(1.2)

EBITDA

(Millions of pesos)

14.5 13.2

12.6 12.5

10.9 10.4

13.0

11.0

4,596

Despite lower financing costs in the period, net majority income in the fourth quarter declined 26.2% compared to the fourth quarter of last year, to Ps. 1.0 billion, while the margin contracted 2.1 percentage points to

3,571 3,601

3,218 3,153

4,292 4,207

4,002

2.4%. This reflected operating performance and the higher effective tax
rate on a comparative basis, with a deferred tax benefit registered in
2010. For the full year, net majority income declined 1.2%, while the margin contracted by 60 basis points to 4.0%.

Operating Income plus Depreciation and Amortization (EBITDA)

1Q 2Q 3Q 4Q

EBITDA in the quarter rose 14.8% to Ps. 4.6 billion, while the margin contracted 2.2 percentage points to 11.0%. On a cumulative basis, EBITDA declined 1.9% for the year and the margin declined by 1.9 percentage points. Results in both periods largely mirrored performance at the operating level.

Page 5 Fourth Quarter 2011

	Note: Figures expressed in millions of pesos. Consolidated results exclude inter-company transactions. Note: Consolidated results exclude inter-company transactions. Financial Structure As of December 31, 2011, the Company's cash position totaled Ps. 3.9 billion, compared to Ps. 3.3 billion in 2010. Total debt at December 31, 2011 was Ps. 47.1 billion, compared to Ps. 33.2 billion in the year ago period. The 2011 figure includes: i) the debt secured to fund the Sara Lee acquisitions in the United States and Spain; ii) the depreciation of the Mexican peso, and iii) the Ps. 688 million of debt attributable to IOs, with the aforementioned effect. The total debt to EBITDA ratio was 3.1 times compared to 2.2 times at December 2010. It should be noted that the pro forma ratio for December 31, 2011 would be approximately 2.8 times if the prepayment of debt made in early 2012 and a full one year of non-synergized EBITDA of the recent acquisitions were factored in. Long-term debt comprised 91% of the total; separately, 90% of the debt was denominated in U.S. dollars, maintaining a natural economic and accounting hedge and in alignment with the Company's strong cash flow in dollars. Average maturity was 4.5 years. After the close of the quarter the Company issued US$800,000,000 of 4.50% notes due 2022 under the 144A Reg-S Rule, and Ps. 5,000 million Certificados Bursátiles (domestic bonds) in the local debt market with a 6.5-year tenor and a fixed rate of 6.83%. These issues increased the average maturity to 6.5 years with an average cost of debt of 4.5%. The Company used the proceeds from both offerings to refinance existing indebtedness.
Page 6	Fourth Quarter 2011

Conference Call Information

The 2011 fourth quarter call will be held on Thursday, February 23, 2012 at 11:00 am Eastern time (10:00 am Central time). To participate in the call, please dial: domestic U.S. +1 (877) 325-8253, International +1 (973)
935-8893; conference ID: 42952801. Alternatively, the webcast for this call can be accessed at Grupo Bimbo's website at http://www.grupobimbo.com/ri. If you are unable to participate live, an instant replay of the conference call will be available through March 1,
2012. To access the replay, please dial Domestic U.S. +1 (855) 859-
2056, International +1 (404) 537-3406; conference ID: 42952801.

About Grupo Bimbo

Grupo Bimbo is one of the largest baking companies in the world in terms of production and sales volume. As the market leader in the Americas, Grupo Bimbo has

155 plants and more than 1,600 distribution centers strategically located in 19 countries throughout the Americas and Asia. Its main product lines include sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-packaged foods,

tortillas, salted snacks and confectionery products, among others. Grupo Bimbo produces over 8,000 products and has one of the most extensive direct distribution networks in the world, with more than 45,000 routes and more than 127,000 employees. Grupo Bimbo's shares have traded on the Mexican Stock Exchange since

1980 under the ticker symbol BIMBO.

Note on Forward-Looking Statements

This announcement contains certain statements regarding the expected financial and operating performance of Grupo Bimbo, S.A.B. de C.V., which are based on current financial information, operating levels, and market conditions, as well as on estimations of the Board of Directors of the Company related to possible future events. The results of the Company may differ in regards with those expressed on these statements, due to different factors that are beyond the Company's control, such as: adjustments in price levels, variations in the costs of its raw materials, changes in laws and regulations, or economic or political conditions not foreseen in the countries where the Company operates. Therefore, the Company is not responsible for such differences in the information and suggests that readers review such statements prudently. Moreover, the Company will not undertake any obligation to publicly release any revisions to the statements due to variations of such factors after the date of this press release.

Page 7 Fourth Quarter 2011

CONSOLIDATED INCOME STATEMENT 2010	2011
(MILLIONS MEXICAN PESOS)	1Q %	2Q %	3Q %	4Q %	ACCUM %	1Q %	2Q %	3Q %	4Q %	ACCUM %
NET SALES	28,334 100.0	28,828 100.0	29,571 100.0	30,431 100.0	117,163 100.0	29,561 100.0	30,233 100.0	32,314 100.0	41,624 100.0	133,732 100.0
MEXICO UNITED STATES IBERIA LATIN AMERICA	14,300 50.5 11,434 40.4 0 0.0 3,240 11.4	14,062 48.8 12,202 42.3 0 0.0 3,297 11.4	14,433 48.8 12,163 41.1 0 0.0 3,672 12.4	15,075 49.5 12,075 39.7 0 0.0 3,999 13.1	57,870 49.4 47,875 40.9 0 0.0 14,207 12.1	15,328 51.9 11,017 37.3 0 0.0 3,943 13.3	15,323 50.7 11,492 38.0 0 0.0 4,202 13.9	16,461 50.9 12,045 37.3 0 0.0 4,639 14.4	17,256 41.5 19,255 46.3 413 1.0 5,784 13.9	64,368 48.1 53,810 40.2 413 0.3 18,568 13.9
COST OF GOODS SOLD GROSS PROFIT	13,515 47.7 14,819 52.3	13,380 46.4 15,448 53.6	13,783 46.6 15,788 53.4	14,640 48.1 15,792 51.9	55,317 47.2 61,846 52.8	14,434 48.8 15,127 51.2	14,706 48.6 15,527 51.4	15,660 48.5 16,654 51.5	20,410 49.0 21,214 51.0	65,209 48.8 68,523 51.2
MEXICO UNITED STATES IBERIA LATIN AMERICA	7,834 54.8 5,649 49.4 0 - 1,335 41.2	7,935 65.0 6,149 50.4 0 - 1,363 41.3	8,175 56.6 6,063 49.8 0 - 1,549 42.2	8,477 56.2 5,814 48.1 0 - 1,500 37.5	32,422 56.0 23,675 49.5 0 - 5,748 40.5	8,016 52.3 5,575 50.6 0 - 1,535 38.9	8,088 52.8 5,825 50.7 0 - 1,613 38.4	8,932 54.3 5,835 48.4 0 - 1,887 40.7	9,202 53.3 9,635 50.0 156 37.8 2,221 38.4	34,238 53.2 26,870 49.9 156 37.8 7,256 39.1
OPERATING EXPENSES OPERATING PROFIT	12,200 43.1 2,619 9.2	12,734 44.2 2,714 9.4	12,401 41.9 3,387 11.5	13,118 43.1 2,674 8.8	50,453 43.1 11,393 9.7	12,772 43.2 2,355 8.0	13,251 43.8 2,277 7.5	13,340 41.3 3,314 10.3	18,317 44.0 2,897 7.0	57,680 43.1 10,843 8.1
MEXICO UNITED STATES IBERIA LATIN AMERICA	1,587 11.1 973 8.5 0 - 49 1.5	1,579 11.2 1,121 9.2 0 - 14 0.4	2,285 15.8 1,046 8.6 0 - 66 1.8	2,561 17.0 598 5.0 0 - (471) (11.8)	8,013 13.8 3,739 7.8 0 - (342) (2.4)	1,574 10.3 891 8.1 0 - (113) (2.9)	1,406 9.2 1,035 9.0 0 - (149) (3.5)	2,391 14.5 1,006 8.4 0 - (64) (1.4)	2,830 16.4 637 3.3 (99) (23.9) (480) (8.3)	8,201 12.7 3,569 6.6 (99) (23.9) (805) (4.3)
OTHER (EXPENSES) INCOME NET COMPREHENSIVE FINANCING RESULT INTEREST PAID (NET) EXCHANGE (GAIN) LOSS MONETARY (GAIN) LOSS EQUITY IN RESULTS OF ASSOCIATED COMPANIES EXTRAORDINARY CHARGES INCOME BEFORE TAXES INCOME TAXES PROFIT BEFORE DISCONTINUED OPERATIONS NET MINORITY INCOME NET MAJORITY INCOME EARINGS BEFORE INTERESTS, TAXES, DEPRECIATON AND AM	(124) (0.4) (594) (2.1) (494) (1.7) (109) (0.4) 9 0.0 1 0.0 0 0.0 1,902 6.7 603 2.1 1,299 4.6 29 0.1 1,270 4.5 O 3,572 12.6	(180) (0.6) (547) (1.9) (672) (2.3) 100 0.3 25 0.1 23 0.1 0 0.0 2,010 7.0 720 2.5 1,290 4.5 32 0.1 1,257 4.4 3,602 12.5	(260) (0.9) (807) (2.7) (732) (2.6) (83) (0.3) 8 0.0 27 0.1 0 0.0 2,346 7.9 806 2.7 1,539 5.2 44 0.2 1,495 5.1 4,292 14.5	(386) (1.3) (674) (2.2) (676) (2.2) (1) (0.0) 3 0.0 36 0.1 0 0.0 1,649 5.4 233 0.8 1,416 4.7 43 0.1 1,372 4.5 4,002 13.2	(950) (0.8) (2,623) (2.2) (2,574) (2.2) (94) (0.1) 45 0.0 87 0.1 0 0.0 7,907 6.7 2,363 2.0 5,544 4.7 149 0.1 5,395 4.6 15,468 13.2	(162) (0.5) (420) (1.4) (513) (1.7) 68 0.2 24 0.1 16 0.1 0 0.0 1,788 6.0 577 2.0 1,210 4.1 26 0.1 1,185 4.0 3,218 10.9	(205) (0.7) (478) (1.6) (475) (1.6) (25) (0.1) 22 0.1 (4) (0.0) 0 0.0 1,591 5.3 528 1.7 1,062 3.5 27 0.1 1,036 3.4 3,153 10.4	(187) (0.6) 155 0.5 (453) (1.5) 562 1.7 47 0.1 (18) (0.1) 0 0.0 3,265 10.1 1,123 3.5 2,142 6.6 45 0.1 2,097 6.5 4,207 13.0	(290) (0.7) (570) (1.4) (623) (1.5) 24 0.1 29 0.1 57 0.1 0 0.0 2,093 5.0 847 2.0 1,246 3.0 234 0.6 1,012 2.4 4,596 11.0	(845) (0.6) (1,313) (1.0) (2,065) (1.5) 629 0.5 123 0.1 51 0.0 0 0.0 8,736 6.5 3,076 2.3 5,660 4.2 331 0.2 5,329 4.0 15,173 11.3
MEXICO UNITED STATES IBERIA LATIN AMERICA	2,009 14.0 1,346 11.8 0 - 207 6.4	1,977 14.1 1,449 11.9 0 - 177 5.4	2,684 18.6 1,388 11.4 0 - 231 6.3	2,957 19.6 1,015 8.4 0 - 45 1.1	9,628 16.6 5,197 10.9 0 - 660 4.6	1,972 12.9 1,180 10.7 0 - 62 1.6	1,804 11.8 1,333 11.6 0 - 0 0.0	2,790 17.0 1,315 10.9 0 - 117 2.5	3,242 18.8 1,448 7.5 (90) (21.8) (14) (0.2)	9,808 15.2 5,276 9.8 (90) (21.8) 201 1.1

Inter-regional sales are excluded from the consolidated figure operations

Regional percentages of Gross Profit, Operating Profit and EBITDA are calculated as a percentage of sales of each operation

BALANCE SHEET 2010 2011 %

(MILLIONS MEXICAN PESOS)

TOTAL ASSETS 99,069 136,256 37.5

CURRENT ASSETS 20,212 27,192 34.5

Cash and equivalents 3,325 3,966 19.3

Accounts and notes receivables, net 13,115 17,082 30.3

Inventories 3,130 4,885 56.0

Other current assets 641 1,260 96.5

Property, machinery and equipment, net 32,028 42,006 31.2

Intangible Assets and Deferred Charges, net

and Investment in Shares of Associated Companies 43,640 62,240 42.6

Other Assets 3,190 4,817 51.0

TOTAL LIABILITIES 54,532 85,847 57.4

CURRENT LIABILITIES 16,016 26,490 65.4

Trade Accounts Payable 6,757 9,889 46.4

Short-term Debt 1,624 4,142 155.0

Other Current Liabilities 7,635 12,459 63.2

Long-term Debt 31,586 43,050 36.3

Other Long-term Non Financial Liabilities 6,930 16,306 135.3

Stockholder's Equity 44,536 50,409 13.2

Minority Stockholder's Equity 826 2,060 149.2

Majority Stockholder's Equity 43,710 48,350 10.6

STATE OF CASH FLOW

INDIRECT METHOD 2010 2011

INCOME (LOSS) BEFORE INCOME TAXES 7,907 8,736

+ (-) ITEMS NOT REQUIRING CASH - -

+ (-) ITEMS RELATED TO INVESTING ACTIVITIES 3,836 4,279

+ (-) ITEMS RELATED TO FINANCING ACTIVITIES 2,999 2,065

CASH FLOW BEFORE INCOME TAX 14,741 15,080

CASH FLOW PROVIDED OR USED IN OPERATION (3,367) (152)

NET CASH FLOWS PROVIDED OF OPERATING ACTIVITIES 11,374 14,928

NET CASH FLOW FROM INVESTING ACTIVITIES (6,075) (20,477) FINANCING ACTIVITIES 5,300 (5,549) NET CASH FLOW FROM FINANCING ACTIVITIES (6,985) 6,149

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (1,685) 600

TRANSLATION DIFFERENCES IN CASH AND CASH EQUIVALENTS 29 40

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 4,982 3,325

CASH AND CASH EQUIVALENTS AT END OF PERIOD 3,325 3,966

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